ITURAN LOCATION AND CONTROL (ITRN) Stock Fundamental Analysis
USA - NASDAQ:ITRN - IL0010818685 - Common Stock
36.62 USD
-0.41 (-1.11%)
36.62 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 gets an excellent profitability rating and is at the same time showing great financial health properties. A decent growth rate in combination with a cheap valuation! Better keep an eye on ITRN. ITRN also has an excellent dividend rating. These ratings could make ITRN a good candidate 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.
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
With an excellent Return On Assets value of 15.24%, ITRN belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
Looking at the Return On Equity, with a value of 26.95%, ITRN belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
ITRN has a Return On Invested Capital of 21.90%. This is amongst the best in the industry. ITRN outperforms 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 13.10%.
| 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
With an excellent Profit Margin value of 16.35%, ITRN belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
ITRN's Profit Margin has improved in the last couple of years.
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.
The Gross Margin of ITRN (48.94%) 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 | 21.61% | ||
| 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.
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.
The Current ratio of ITRN (2.25) is better than 62.50% 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.
With a decent Quick ratio value of 2.00, ITRN is doing good in the industry, outperforming 72.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.25 | ||
| Quick Ratio | 2 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.41% over the past year.
ITRN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.57% yearly.
The Revenue has been growing slightly by 3.30% in the past 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
The Earnings Per Share is expected to grow by 8.73% on average over the next years. This is quite good.
ITRN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.64% yearly.
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
With a Price/Earnings ratio of 13.13, ITRN is valued correctly.
Based on the Price/Earnings ratio, ITRN is valued cheaply inside the industry as 81.25% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.89, ITRN is valued a bit cheaper.
With a Price/Forward Earnings ratio of 11.62, the valuation of ITRN can be described as very reasonable.
Based on the Price/Forward Earnings ratio, ITRN is valued cheaper than 89.58% of the companies in the same industry.
ITRN is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.13 | ||
| Fwd PE | 11.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ITRN is valued cheaply inside the industry as 93.75% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ITRN is valued cheaply inside the industry as 85.42% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.43 | ||
| EV/EBITDA | 7.04 |
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)2.01
PEG (5Y)1.24
EPS Next 2Y7.84%
EPS Next 3Y8.73%
5. Dividend
5.1 Amount
ITRN has a Yearly Dividend Yield of 5.10%, which is a nice return.
ITRN's Dividend Yield is rather good when compared to the industry average which is at 3.21. 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.1% |
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.
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
ITRN pays out 59.82% 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.
DP59.82%
EPS Next 2Y7.84%
EPS Next 3Y8.73%
36.62
-0.41 (-1.11%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners60.78%
Inst Owner Change-0.98%
Ins Owners0.27%
Ins Owner ChangeN/A
Market Cap728.37M
Revenue(TTM)339.61M
Net Income(TTM)55.54M
Analysts82.5
Price Target47.94 (30.91%)
Short Float %0.86%
Short Ratio1.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.1% |
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 | 13.13 | ||
| Fwd PE | 11.62 | ||
| P/S | 2.14 | ||
| P/FCF | 12.43 | ||
| P/OCF | 9.36 | ||
| P/B | 3.54 | ||
| P/tB | 4.63 | ||
| EV/EBITDA | 7.04 |
EPS(TTM)2.79
EY7.62%
EPS(NY)3.15
Fwd EY8.61%
FCF(TTM)2.95
FCFY8.05%
OCF(TTM)3.91
OCFY10.68%
SpS17.07
BVpS10.36
TBVpS7.91
PEG (NY)2.01
PEG (5Y)1.24
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%.