ITURAN LOCATION AND CONTROL (ITRN) Stock Fundamental Analysis
USA - NASDAQ:ITRN - IL0010818685 - Common Stock
37.19 USD
-0.18 (-0.48%)
37.19 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to ITRN. ITRN was compared to 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally ITRN also has an excellent dividend rating. With these ratings, ITRN could be worth investigating further for value and 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.
In the past 5 years ITRN has always been profitable.
ITRN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ITRN (15.24%) is better than 93.75% of its industry peers.
The Return On Equity of ITRN (26.95%) is better than 91.67% of its industry peers.
ITRN has a better Return On Invested Capital (21.90%) than 95.83% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ITRN is significantly above the industry average of 13.08%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.24% | ||
| ROE | 26.95% | ||
| ROIC | 21.9% |
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's Profit Margin of 16.35% is amongst the best of the industry. ITRN outperforms 89.58% of its industry peers.
ITRN's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 21.61%, ITRN belongs to the top of the industry, outperforming 89.58% of the companies in the same industry.
In the last couple of years the Operating Margin of ITRN has grown nicely.
ITRN has a better Gross Margin (48.94%) than 64.58% of its industry peers.
ITRN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.61% | ||
| PM (TTM) | 16.35% | ||
| GM | 48.94% |
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.
The number of shares outstanding for ITRN remains at a similar level compared to 1 year ago.
The number of shares outstanding for ITRN has been increased compared to 5 years ago.
Compared to 1 year ago, ITRN has an improved debt to assets ratio.
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/WACC2.49
WACC8.79%
2.3 Liquidity
A Current Ratio of 2.25 indicates that ITRN has no problem at all paying its short term obligations.
The Current ratio of ITRN (2.25) is better than 64.58% of its industry peers.
ITRN has a Quick Ratio of 2.00. This indicates that ITRN is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of ITRN (2.00) is better than 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.25 | ||
| Quick Ratio | 2 |
3. Growth
3.1 Past
ITRN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.41%, which is quite good.
ITRN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.57% yearly.
Looking at the last year, ITRN shows a small growth in Revenue. The Revenue has grown by 3.30% in the last year.
ITRN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.78% yearly.
EPS 1Y (TTM)9.41%
EPS 3Y15.47%
EPS 5Y10.57%
EPS Q2Q%1.52%
Revenue 1Y (TTM)3.3%
Revenue growth 3Y7.47%
Revenue growth 5Y3.78%
Sales Q2Q%2.27%
3.2 Future
ITRN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.73% yearly.
Based on estimates for the next years, ITRN will show a small growth in Revenue. The Revenue will grow by 7.64% on average per year.
EPS Next Y6.52%
EPS Next 2Y7.84%
EPS Next 3Y8.73%
EPS Next 5YN/A
Revenue Next Year4.96%
Revenue Next 2Y7.3%
Revenue Next 3Y7.64%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.33, the valuation of ITRN can be described as correct.
Based on the Price/Earnings ratio, ITRN is valued cheaper than 87.50% of the companies in the same industry.
ITRN is valuated cheaply when we compare the Price/Earnings ratio to 27.57, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.80, the valuation of ITRN can be described as very reasonable.
89.58% of the companies in the same industry are more expensive than ITRN, based on the Price/Forward Earnings ratio.
ITRN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.09.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.33 | ||
| Fwd PE | 11.8 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ITRN indicates a rather cheap valuation: ITRN is cheaper than 91.67% of the companies listed in the same industry.
ITRN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ITRN is cheaper than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.62 | ||
| EV/EBITDA | 7.07 |
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)2.05
PEG (5Y)1.26
EPS Next 2Y7.84%
EPS Next 3Y8.73%
5. Dividend
5.1 Amount
ITRN has a Yearly Dividend Yield of 5.02%, which is a nice return.
ITRN's Dividend Yield is rather good when compared to the industry average which is at 3.55. ITRN pays more dividend than 95.83% of the companies in the same industry.
ITRN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.02% |
5.2 History
The dividend of ITRN has a limited annual growth rate of 4.85%.
ITRN has been paying a dividend for at least 10 years, so it has a reliable track record.
ITRN has decreased its dividend in the last 3 years.
Dividend Growth(5Y)4.85%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
59.82% of the earnings are spent on dividend by ITRN. This is a bit on the high side, but may be sustainable.
ITRN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP59.82%
EPS Next 2Y7.84%
EPS Next 3Y8.73%
37.19
-0.18 (-0.48%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners60.78%
Inst Owner Change-0.04%
Ins Owners0.27%
Ins Owner ChangeN/A
Market Cap739.71M
Revenue(TTM)339.61M
Net Income(TTM)55.54M
Analysts82.5
Price Target47.94 (28.91%)
Short Float %0.66%
Short Ratio0.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.02% |
Yearly Dividend1.19
Dividend Growth(5Y)4.85%
DP59.82%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.5%
Min EPS beat(2)-7.48%
Max EPS beat(2)4.48%
EPS beat(4)3
Avg EPS beat(4)3.13%
Min EPS beat(4)-7.48%
Max EPS beat(4)9.11%
EPS beat(8)6
Avg EPS beat(8)4.01%
EPS beat(12)9
Avg EPS beat(12)3.46%
EPS beat(16)10
Avg EPS beat(16)1.43%
Revenue beat(2)0
Avg Revenue beat(2)-5.67%
Min Revenue beat(2)-6.43%
Max Revenue beat(2)-4.91%
Revenue beat(4)0
Avg Revenue beat(4)-4.55%
Min Revenue beat(4)-6.43%
Max Revenue beat(4)-1.81%
Revenue beat(8)0
Avg Revenue beat(8)-4.42%
Revenue beat(12)1
Avg Revenue beat(12)-3.33%
Revenue beat(16)2
Avg Revenue beat(16)-3.2%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8%
EPS NY rev (1m)-2.75%
EPS NY rev (3m)-4.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.21%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.33 | ||
| Fwd PE | 11.8 | ||
| P/S | 2.18 | ||
| P/FCF | 12.62 | ||
| P/OCF | 9.51 | ||
| P/B | 3.59 | ||
| P/tB | 4.7 | ||
| EV/EBITDA | 7.07 |
EPS(TTM)2.79
EY7.5%
EPS(NY)3.15
Fwd EY8.47%
FCF(TTM)2.95
FCFY7.92%
OCF(TTM)3.91
OCFY10.52%
SpS17.07
BVpS10.36
TBVpS7.91
PEG (NY)2.05
PEG (5Y)1.26
Graham Number25.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.24% | ||
| ROE | 26.95% | ||
| ROCE | 27.58% | ||
| ROIC | 21.9% | ||
| ROICexc | 32.85% | ||
| ROICexgc | 45.28% | ||
| OM | 21.61% | ||
| PM (TTM) | 16.35% | ||
| GM | 48.94% | ||
| FCFM | 17.26% |
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%
ROICexgc growth 3Y-3.79%
ROICexgc 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-Score6
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 102.87% | ||
| Cap/Sales | 5.65% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.54% | ||
| Profit Quality | 105.54% | ||
| Current Ratio | 2.25 | ||
| Quick Ratio | 2 | ||
| Altman-Z | N/A |
F-Score6
WACC8.79%
ROIC/WACC2.49
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)9.41%
EPS 3Y15.47%
EPS 5Y10.57%
EPS Q2Q%1.52%
EPS Next Y6.52%
EPS Next 2Y7.84%
EPS Next 3Y8.73%
EPS Next 5YN/A
Revenue 1Y (TTM)3.3%
Revenue growth 3Y7.47%
Revenue growth 5Y3.78%
Sales Q2Q%2.27%
Revenue Next Year4.96%
Revenue Next 2Y7.3%
Revenue Next 3Y7.64%
Revenue Next 5YN/A
EBIT growth 1Y7.65%
EBIT growth 3Y9.24%
EBIT growth 5Y7.79%
EBIT Next Year31.47%
EBIT Next 3Y18.22%
EBIT Next 5YN/A
FCF growth 1Y32.76%
FCF growth 3Y15.69%
FCF growth 5Y7.95%
OCF growth 1Y25.06%
OCF growth 3Y10.01%
OCF growth 5Y4.47%