ITURAN LOCATION AND CONTROL (ITRN) Stock Fundamental Analysis
USA - NASDAQ:ITRN - IL0010818685 - Common Stock
38.41 USD
-0.19 (-0.49%)
38.41 USD
0 (0%)
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 gets an excellent profitability rating and is at the same time showing great financial health properties. ITRN may be a bit undervalued, certainly considering the very reasonable score on growth ITRN also has an excellent dividend rating. These ratings would make ITRN suitable for value and dividend and quality investing!
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.
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 has a Return On Assets of 15.24%. This is amongst the best in the industry. ITRN outperforms 93.75% of its industry peers.
ITRN's Return On Equity of 26.95% is amongst the best of the industry. ITRN outperforms 91.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 21.90%, ITRN belongs to the top of the industry, outperforming 95.83% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ITRN is significantly above the industry average of 13.01%.
| 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 has a better Profit Margin (16.35%) than 87.50% of its industry peers.
In the last couple of years the Profit Margin of ITRN has grown nicely.
ITRN has a Operating Margin of 21.61%. 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.
ITRN's Gross Margin of 48.94% is fine compared to the rest of the industry. ITRN outperforms 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ITRN is creating value.
The number of shares outstanding for ITRN remains at a similar level compared to 1 year ago.
ITRN has more shares outstanding than it did 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
ITRN has a Current Ratio of 2.25. This indicates that ITRN is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.25, ITRN is doing good in the industry, outperforming 62.50% of the companies in the same industry.
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.
The Earnings Per Share has been growing by 10.57% on average over the past years. This is quite good.
Looking at the last year, ITRN shows a small growth in Revenue. The Revenue has grown by 3.30% in the last year.
The Revenue has been growing slightly by 3.78% on average over the past years.
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
The Earnings Per Share is expected to grow by 8.73% on average over the next years. This is quite good.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
A Price/Earnings ratio of 13.77 indicates a correct valuation of ITRN.
Based on the Price/Earnings ratio, ITRN is valued cheaply inside the industry as 81.25% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ITRN to the average of the S&P500 Index (25.67), we can say ITRN is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 12.19, the valuation of ITRN can be described as correct.
Based on the Price/Forward Earnings ratio, ITRN is valued cheaply inside the industry as 89.58% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 31.86. ITRN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.77 | ||
| Fwd PE | 12.19 |
4.2 Price Multiples
ITRN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ITRN is cheaper than 91.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ITRN is valued cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.03 | ||
| EV/EBITDA | 7.38 |
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.
The excellent profitability rating of ITRN may justify a higher PE ratio.
PEG (NY)2.11
PEG (5Y)1.3
EPS Next 2Y7.84%
EPS Next 3Y8.73%
5. Dividend
5.1 Amount
ITRN has a Yearly Dividend Yield of 4.92%, which is a nice return.
Compared to an average industry Dividend Yield of 3.43, ITRN pays a better dividend. On top of this ITRN pays more dividend than 95.83% 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 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.92% |
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.
The dividend of ITRN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP59.82%
EPS Next 2Y7.84%
EPS Next 3Y8.73%
38.41
-0.19 (-0.49%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners60.78%
Inst Owner Change0.13%
Ins Owners0.27%
Ins Owner ChangeN/A
Market Cap763.97M
Revenue(TTM)339.61M
Net Income(TTM)55.54M
Analysts82.5
Price Target47.94 (24.81%)
Short Float %0.86%
Short Ratio1.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.92% |
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)0%
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 | 13.77 | ||
| Fwd PE | 12.19 | ||
| P/S | 2.25 | ||
| P/FCF | 13.03 | ||
| P/OCF | 9.82 | ||
| P/B | 3.71 | ||
| P/tB | 4.86 | ||
| EV/EBITDA | 7.38 |
EPS(TTM)2.79
EY7.26%
EPS(NY)3.15
Fwd EY8.21%
FCF(TTM)2.95
FCFY7.67%
OCF(TTM)3.91
OCFY10.19%
SpS17.07
BVpS10.36
TBVpS7.91
PEG (NY)2.11
PEG (5Y)1.3
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%
ITURAN LOCATION AND CONTROL / ITRN FAQ
Can you provide the ChartMill fundamental rating for ITURAN LOCATION AND CONTROL?
ChartMill assigns a fundamental rating of 7 / 10 to ITRN.
What is the valuation status of ITURAN LOCATION AND CONTROL (ITRN) stock?
ChartMill assigns a valuation rating of 7 / 10 to ITURAN LOCATION AND CONTROL (ITRN). This can be considered as Undervalued.
How profitable is ITURAN LOCATION AND CONTROL (ITRN) stock?
ITURAN LOCATION AND CONTROL (ITRN) has a profitability rating of 9 / 10.
Can you provide the expected EPS growth for ITRN stock?
The Earnings per Share (EPS) of ITURAN LOCATION AND CONTROL (ITRN) is expected to grow by 6.52% in the next year.
Is the dividend of ITURAN LOCATION AND CONTROL sustainable?
The dividend rating of ITURAN LOCATION AND CONTROL (ITRN) is 7 / 10 and the dividend payout ratio is 59.82%.