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ITURAN LOCATION AND CONTROL (ITRN) Stock Fundamental Analysis

NASDAQ:ITRN - Nasdaq - IL0010818685 - Common Stock - Currency: USD

38.39  -1.43 (-3.59%)

Fundamental Rating

6

Taking everything into account, ITRN scores 6 out of 10 in our fundamental rating. ITRN was compared to 51 industry peers in the Communications Equipment industry. While ITRN has a great profitability rating, there are some minor concerns on its financial health. ITRN may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make ITRN suitable for value investing!


Dividend Valuation Growth Profitability Health

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8

1. Profitability

1.1 Basic Checks

ITRN had positive earnings in the past year.
ITRN had a positive operating cash flow in the past year.
Of the past 5 years ITRN 4 years were profitable.
ITRN had a positive operating cash flow in 4 of the past 5 years.
ITRN Yearly Net Income VS EBIT VS OCF VS FCFITRN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M

1.2 Ratios

The Return On Assets of ITRN (16.16%) is better than 96.08% of its industry peers.
The Return On Equity of ITRN (28.33%) is better than 94.12% of its industry peers.
ITRN's Return On Invested Capital of 23.11% is amongst the best of the industry. ITRN outperforms 98.04% 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 10.86%.
The 3 year average ROIC (22.68%) for ITRN is below the current ROIC(23.11%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 16.16%
ROE 28.33%
ROIC 23.11%
ROA(3y)13.19%
ROA(5y)9.35%
ROE(3y)26.31%
ROE(5y)19.38%
ROIC(3y)22.68%
ROIC(5y)20.05%
ITRN Yearly ROA, ROE, ROICITRN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30

1.3 Margins

ITRN has a better Profit Margin (15.65%) than 92.16% of its industry peers.
In the last couple of years the Profit Margin of ITRN has declined.
ITRN's Operating Margin of 21.03% is amongst the best of the industry. ITRN outperforms 90.20% of its industry peers.
In the last couple of years the Operating Margin of ITRN has declined.
With a decent Gross Margin value of 47.68%, ITRN is doing good in the industry, outperforming 66.67% of the companies in the same industry.
ITRN's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 21.03%
PM (TTM) 15.65%
GM 47.68%
OM growth 3Y6.42%
OM growth 5Y-3.5%
PM growth 3Y31.9%
PM growth 5Y-8.89%
GM growth 3Y0.59%
GM growth 5Y-0.97%
ITRN Yearly Profit, Operating, Gross MarginsITRN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30 40 50

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6

2. Health

2.1 Basic Checks

ITRN has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
ITRN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
ITRN Yearly Shares OutstandingITRN Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 5M 10M 15M 20M
ITRN Yearly Total Debt VS Total AssetsITRN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M

2.2 Solvency

There is no outstanding debt for ITRN. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z N/A
ROIC/WACC2.55
WACC9.07%
ITRN Yearly LT Debt VS Equity VS FCFITRN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M

2.3 Liquidity

ITRN has a Current Ratio of 2.20. This indicates that ITRN is financially healthy and has no problem in meeting its short term obligations.
ITRN has a Current ratio (2.20) which is in line with its industry peers.
ITRN has a Quick Ratio of 1.92. 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 1.92 is fine compared to the rest of the industry. ITRN outperforms 68.63% of its industry peers.
Industry RankSector Rank
Current Ratio 2.2
Quick Ratio 1.92
ITRN Yearly Current Assets VS Current LiabilitesITRN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M

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4

3. Growth

3.1 Past

ITRN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.92%, which is quite good.
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.
EPS 1Y (TTM)12.92%
EPS 3Y15.47%
EPS 5Y10.57%
EPS Q2Q%16.67%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%6.52%

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 10.26% on average per year.
The Revenue is expected to grow by 8.98% on average over the next years. This is quite good.
EPS Next Y7.08%
EPS Next 2Y10.26%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.37%
Revenue Next 2Y9.33%
Revenue Next 3Y8.98%
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.
ITRN Yearly Revenue VS EstimatesITRN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 100M 200M 300M 400M
ITRN Yearly EPS VS EstimatesITRN Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1 2 3

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7

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 14.17, ITRN is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of ITRN indicates a rather cheap valuation: ITRN is cheaper than 84.31% of the companies listed in the same industry.
ITRN is valuated cheaply when we compare the Price/Earnings ratio to 29.71, which is the current average of the S&P500 Index.
ITRN is valuated correctly with a Price/Forward Earnings ratio of 13.23.
Based on the Price/Forward Earnings ratio, ITRN is valued cheaply inside the industry as 80.39% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.34. ITRN is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 14.17
Fwd PE 13.23
ITRN Price Earnings VS Forward Price EarningsITRN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ITRN is valued cheaply inside the industry as 86.27% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ITRN indicates a rather cheap valuation: ITRN is cheaper than 80.39% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 12.69
EV/EBITDA 8
ITRN Per share dataITRN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ITRN does not grow enough to justify the current Price/Earnings ratio.
ITRN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2
PEG (5Y)1.34
EPS Next 2Y10.26%
EPS Next 3YN/A

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6

5. Dividend

5.1 Amount

ITRN has a Yearly Dividend Yield of 4.23%, which is a nice return.
Compared to an average industry Dividend Yield of 11.18, ITRN pays a better dividend. On top of this ITRN pays more dividend than 94.12% of the companies listed in the same industry.
ITRN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
Industry RankSector Rank
Dividend Yield 4.23%

5.2 History

The dividend of ITRN decreases each year by -12.43%.
ITRN has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of ITRN decreased in the last 3 years.
Dividend Growth(5Y)-12.43%
Div Incr Years2
Div Non Decr Years2
ITRN Yearly Dividends per shareITRN Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5

5.3 Sustainability

44.82% of the earnings are spent on dividend by ITRN. This is a bit on the high side, but may be sustainable.
DP44.82%
EPS Next 2Y10.26%
EPS Next 3YN/A
ITRN Yearly Income VS Free CF VS DividendITRN Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M
ITRN Dividend Payout.ITRN Dividend Payout, showing the Payout Ratio.ITRN Dividend Payout.PayoutRetained Earnings

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ITURAN LOCATION AND CONTROL

NASDAQ:ITRN (3/6/2025, 2:04:11 PM)

38.39

-1.43 (-3.59%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)02-26 2025-02-26/bmo
Earnings (Next)05-26 2025-05-26
Inst Owners63.85%
Inst Owner Change-1.09%
Ins Owners0.27%
Ins Owner ChangeN/A
Market Cap763.58M
Analysts80
Price Target47.43 (23.55%)
Short Float %0.39%
Short Ratio0.3
Dividend
Industry RankSector Rank
Dividend Yield 4.23%
Yearly Dividend0.49
Dividend Growth(5Y)-12.43%
DP44.82%
Div Incr Years2
Div Non Decr Years2
Ex-Date03-20 2025-03-20 (0.5)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.59%
Min EPS beat(2)6.08%
Max EPS beat(2)9.11%
EPS beat(4)3
Avg EPS beat(4)5.54%
Min EPS beat(4)-1.96%
Max EPS beat(4)9.11%
EPS beat(8)6
Avg EPS beat(8)4.21%
EPS beat(12)7
Avg EPS beat(12)1.22%
EPS beat(16)10
Avg EPS beat(16)1.52%
Revenue beat(2)0
Avg Revenue beat(2)-4.21%
Min Revenue beat(2)-5.06%
Max Revenue beat(2)-3.36%
Revenue beat(4)0
Avg Revenue beat(4)-4.76%
Min Revenue beat(4)-7.87%
Max Revenue beat(4)-2.73%
Revenue beat(8)0
Avg Revenue beat(8)-3.38%
Revenue beat(12)2
Avg Revenue beat(12)-2.75%
Revenue beat(16)4
Avg Revenue beat(16)-2.27%
PT rev (1m)0%
PT rev (3m)5.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.74%
EPS NY rev (1m)0%
EPS NY rev (3m)1.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.28%
Valuation
Industry RankSector Rank
PE 14.17
Fwd PE 13.23
P/S 2.31
P/FCF 12.69
P/OCF 10.41
P/B 4.17
P/tB 5.67
EV/EBITDA 8
EPS(TTM)2.71
EY7.06%
EPS(NY)2.9
Fwd EY7.56%
FCF(TTM)3.02
FCFY7.88%
OCF(TTM)3.69
OCFY9.61%
SpS16.65
BVpS9.2
TBVpS6.77
PEG (NY)2
PEG (5Y)1.34
Profitability
Industry RankSector Rank
ROA 16.16%
ROE 28.33%
ROCE 29.77%
ROIC 23.11%
ROICexc 32.48%
ROICexgc 45.79%
OM 21.03%
PM (TTM) 15.65%
GM 47.68%
FCFM 18.17%
ROA(3y)13.19%
ROA(5y)9.35%
ROE(3y)26.31%
ROE(5y)19.38%
ROIC(3y)22.68%
ROIC(5y)20.05%
ROICexc(3y)29.33%
ROICexc(5y)27.08%
ROICexgc(3y)45.03%
ROICexgc(5y)44.34%
ROCE(3y)29.28%
ROCE(5y)25.88%
ROICexcg growth 3Y-7.14%
ROICexcg growth 5Y0.02%
ROICexc growth 3Y3.44%
ROICexc growth 5Y5.92%
OM growth 3Y6.42%
OM growth 5Y-3.5%
PM growth 3Y31.9%
PM growth 5Y-8.89%
GM growth 3Y0.59%
GM growth 5Y-0.97%
F-Score7
Asset Turnover1.03
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 62.85%
Cap/Sales 3.98%
Interest Coverage 250
Cash Conversion 80.94%
Profit Quality 116.06%
Current Ratio 2.2
Quick Ratio 1.92
Altman-Z N/A
F-Score7
WACC9.07%
ROIC/WACC2.55
Cap/Depr(3y)97.06%
Cap/Depr(5y)85.13%
Cap/Sales(3y)6.54%
Cap/Sales(5y)6.07%
Profit Quality(3y)98.39%
Profit Quality(5y)240.86%
High Growth Momentum
Growth
EPS 1Y (TTM)12.92%
EPS 3Y15.47%
EPS 5Y10.57%
EPS Q2Q%16.67%
EPS Next Y7.08%
EPS Next 2Y10.26%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%6.52%
Revenue Next Year9.37%
Revenue Next 2Y9.33%
Revenue Next 3Y8.98%
Revenue Next 5YN/A
EBIT growth 1Y7.55%
EBIT growth 3Y16.23%
EBIT growth 5Y1.11%
EBIT Next Year35.82%
EBIT Next 3Y18.41%
EBIT Next 5YN/A
FCF growth 1Y185.12%
FCF growth 3Y8.11%
FCF growth 5Y14.85%
OCF growth 1Y62.14%
OCF growth 3Y8.73%
OCF growth 5Y7.71%