ITURAN LOCATION AND CONTROL (ITRN) Stock Fundamental Analysis
NASDAQ:ITRN - Nasdaq - IL0010818685 - Common Stock - Currency: USD
ITRN gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 48 industry peers in the Communications Equipment industry. ITRN scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ITRN is not valued too expensively and it also shows a decent growth rate. ITRN also has an excellent dividend rating. With these ratings, ITRN could be worth investigating further for dividend and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year ITRN was profitable.
In the past year ITRN had a positive cash flow from operations.
ITRN had positive earnings in each of the past 5 years.
ITRN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ITRN's Return On Assets of 16.40% is amongst the best of the industry. ITRN outperforms 93.75% of its industry peers.
Looking at the Return On Equity, with a value of 28.96%, ITRN belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
ITRN has a better Return On Invested Capital (23.77%) than 95.83% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ITRN is significantly above the industry average of 14.22%.
The last Return On Invested Capital (23.77%) for ITRN is above the 3 year average (23.44%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.4% | ||
| ROE | 28.96% | ||
| ROIC | 23.77% |
ROA(3y)14.76%
ROA(5y)12.23%
ROE(3y)27.34%
ROE(5y)24.11%
ROIC(3y)23.44%
ROIC(5y)21.97%
1.3 Margins
ITRN has a Profit Margin of 16.35%. This is amongst the best in the industry. ITRN outperforms 89.58% of its industry peers.
ITRN's Profit Margin has improved in the last couple of years.
ITRN has a Operating Margin of 21.56%. This is amongst the best in the industry. ITRN outperforms 89.58% of its industry peers.
In the last couple of years the Operating Margin of ITRN has grown nicely.
The Gross Margin of ITRN (48.30%) is better than 64.58% of its industry peers.
In the last couple of years the Gross Margin of ITRN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.56% | ||
| PM (TTM) | 16.35% | ||
| GM | 48.3% |
OM growth 3Y1.64%
OM growth 5Y3.87%
PM growth 3Y8.01%
PM growth 5Y45.22%
GM growth 3Y0.76%
GM growth 5Y0.44%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ITRN is creating value.
Compared to 1 year ago, ITRN has about the same amount of shares outstanding.
Compared to 5 years ago, ITRN has more shares outstanding
ITRN has a better debt/assets ratio than last year.
2.2 Solvency
ITRN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | N/A |
ROIC/WACC2.62
WACC9.07%
2.3 Liquidity
A Current Ratio of 2.16 indicates that ITRN has no problem at all paying its short term obligations.
ITRN has a Current ratio of 2.16. This is in the better half of the industry: ITRN outperforms 64.58% of its industry peers.
ITRN has a Quick Ratio of 1.91. This is a normal value and indicates that ITRN is financially healthy and should not expect problems in meeting its short term obligations.
ITRN's Quick ratio of 1.91 is fine compared to the rest of the industry. ITRN outperforms 72.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.16 | ||
| Quick Ratio | 1.91 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.20% over the past year.
Measured over the past years, ITRN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.57% on average per year.
Looking at the last year, ITRN shows a small growth in Revenue. The Revenue has grown by 3.73% in the last year.
The Revenue has been growing slightly by 3.78% on average over the past years.
EPS 1Y (TTM)11.2%
EPS 3Y15.47%
EPS 5Y10.57%
EPS Q2Q%10.61%
Revenue 1Y (TTM)3.73%
Revenue growth 3Y7.47%
Revenue growth 5Y3.78%
Sales Q2Q%1.68%
3.2 Future
Based on estimates for the next years, ITRN will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.76% on average per year.
ITRN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.03% yearly.
EPS Next Y11.97%
EPS Next 2Y9.23%
EPS Next 3Y10.76%
EPS Next 5YN/A
Revenue Next Year8.18%
Revenue Next 2Y8.9%
Revenue Next 3Y9.03%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 13.86, which indicates a correct valuation of ITRN.
ITRN's Price/Earnings ratio is a bit cheaper when compared to the industry. ITRN is cheaper than 79.17% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. ITRN is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 11.92, which indicates a very decent valuation of ITRN.
Based on the Price/Forward Earnings ratio, ITRN is valued a bit cheaper than the industry average as 79.17% of the companies are valued more expensively.
ITRN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.06.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.86 | ||
| Fwd PE | 11.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ITRN is valued cheaper than 85.42% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ITRN is valued a bit cheaper than the industry average as 77.08% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.52 | ||
| EV/EBITDA | 7.51 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of ITRN may justify a higher PE ratio.
PEG (NY)1.16
PEG (5Y)1.31
EPS Next 2Y9.23%
EPS Next 3Y10.76%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.44%, ITRN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.53, ITRN pays a better dividend. On top of this ITRN pays more dividend than 95.83% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, ITRN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.44% |
5.2 History
The dividend of ITRN has a limited annual growth rate of 4.85%.
ITRN has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of ITRN decreased in the last 3 years.
Dividend Growth(5Y)4.85%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
ITRN pays out 56.21% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of ITRN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP56.21%
EPS Next 2Y9.23%
EPS Next 3Y10.76%
38.53
-0.09 (-0.23%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners61%
Inst Owner Change0%
Ins Owners0.27%
Ins Owner ChangeN/A
Market Cap766.36M
Analysts82.5
Price Target47.94 (24.42%)
Short Float %0.73%
Short Ratio1.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.44% |
Yearly Dividend1.19
Dividend Growth(5Y)4.85%
DP56.21%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.44%
Min EPS beat(2)4.48%
Max EPS beat(2)6.4%
EPS beat(4)4
Avg EPS beat(4)6.52%
Min EPS beat(4)4.48%
Max EPS beat(4)9.11%
EPS beat(8)7
Avg EPS beat(8)6.55%
EPS beat(12)9
Avg EPS beat(12)3.22%
EPS beat(16)11
Avg EPS beat(16)2.47%
Revenue beat(2)0
Avg Revenue beat(2)-3.36%
Min Revenue beat(2)-4.91%
Max Revenue beat(2)-1.81%
Revenue beat(4)0
Avg Revenue beat(4)-3.78%
Min Revenue beat(4)-5.06%
Max Revenue beat(4)-1.81%
Revenue beat(8)0
Avg Revenue beat(8)-3.75%
Revenue beat(12)2
Avg Revenue beat(12)-2.79%
Revenue beat(16)3
Avg Revenue beat(16)-2.78%
PT rev (1m)0%
PT rev (3m)1.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.71%
EPS NY rev (1m)3.48%
EPS NY rev (3m)3.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.11%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.86 | ||
| Fwd PE | 11.92 | ||
| P/S | 2.27 | ||
| P/FCF | 12.52 | ||
| P/OCF | 9.78 | ||
| P/B | 4.02 | ||
| P/tB | 5.37 | ||
| EV/EBITDA | 7.51 |
EPS(TTM)2.78
EY7.22%
EPS(NY)3.23
Fwd EY8.39%
FCF(TTM)3.08
FCFY7.99%
OCF(TTM)3.94
OCFY10.22%
SpS16.98
BVpS9.59
TBVpS7.18
PEG (NY)1.16
PEG (5Y)1.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.4% | ||
| ROE | 28.96% | ||
| ROCE | 29.93% | ||
| ROIC | 23.77% | ||
| ROICexc | 34.5% | ||
| ROICexgc | 48.33% | ||
| OM | 21.56% | ||
| PM (TTM) | 16.35% | ||
| GM | 48.3% | ||
| FCFM | 18.13% |
ROA(3y)14.76%
ROA(5y)12.23%
ROE(3y)27.34%
ROE(5y)24.11%
ROIC(3y)23.44%
ROIC(5y)21.97%
ROICexc(3y)30.9%
ROICexc(5y)30.46%
ROICexgc(3y)44.04%
ROICexgc(5y)48.27%
ROCE(3y)29.54%
ROCE(5y)27.73%
ROICexcg growth 3Y-3.79%
ROICexcg growth 5Y7.15%
ROICexc growth 3Y2.66%
ROICexc growth 5Y10.55%
OM growth 3Y1.64%
OM growth 5Y3.87%
PM growth 3Y8.01%
PM growth 5Y45.22%
GM growth 3Y0.76%
GM growth 5Y0.44%
F-Score7
Asset Turnover1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 88.14% | ||
| Cap/Sales | 5.07% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.94% | ||
| Profit Quality | 110.87% | ||
| Current Ratio | 2.16 | ||
| Quick Ratio | 1.91 | ||
| Altman-Z | N/A |
F-Score7
WACC9.07%
ROIC/WACC2.62
Cap/Depr(3y)89.06%
Cap/Depr(5y)82.68%
Cap/Sales(3y)5.85%
Cap/Sales(5y)5.57%
Profit Quality(3y)98%
Profit Quality(5y)143.55%
High Growth Momentum
Growth
EPS 1Y (TTM)11.2%
EPS 3Y15.47%
EPS 5Y10.57%
EPS Q2Q%10.61%
EPS Next Y11.97%
EPS Next 2Y9.23%
EPS Next 3Y10.76%
EPS Next 5YN/A
Revenue 1Y (TTM)3.73%
Revenue growth 3Y7.47%
Revenue growth 5Y3.78%
Sales Q2Q%1.68%
Revenue Next Year8.18%
Revenue Next 2Y8.9%
Revenue Next 3Y9.03%
Revenue Next 5YN/A
EBIT growth 1Y8.52%
EBIT growth 3Y9.24%
EBIT growth 5Y7.79%
EBIT Next Year37.56%
EBIT Next 3Y19.43%
EBIT Next 5YN/A
FCF growth 1Y89.63%
FCF growth 3Y15.69%
FCF growth 5Y7.95%
OCF growth 1Y40.95%
OCF growth 3Y10.01%
OCF growth 5Y4.47%