ITURAN LOCATION AND CONTROL (ITRN) Stock Fundamental Analysis
USA - NASDAQ:ITRN - IL0010818685 - Common Stock
35.455 USD
-0.73 (-2.02%)
35.455 USD
0 (0%)
Taking everything into account, ITRN scores 7 out of 10 in our fundamental rating. 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. ITRN scores decently on growth, while it is valued quite cheap. This could make an interesting combination. 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
ITRN had positive earnings in the past year.
In the past year ITRN had a positive cash flow from operations.
Each year in the past 5 years ITRN has been profitable.
Each year in the past 5 years ITRN had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 15.24%, ITRN belongs to the top 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.
The Return On Invested Capital of ITRN (21.90%) is better than 95.83% of its industry peers.
ITRN had an Average Return On Invested Capital over the past 3 years of 23.44%. This is significantly above the industry average of 13.71%.
| 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
Looking at the Profit Margin, with a value of 16.35%, 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 Profit Margin of ITRN has grown nicely.
The Operating Margin of ITRN (21.61%) is better than 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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
Compared to 1 year ago, ITRN has an improved debt to assets ratio.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | N/A |
ROIC/WACC2.48
WACC8.82%
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.
ITRN has a better Current ratio (2.25) than 66.67% 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.
The Revenue has been growing slightly by 3.30% in the past 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
Based on estimates for the next years, ITRN will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.73% on average per year.
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 Y9.53%
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.
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 12.71, which indicates a correct valuation of ITRN.
ITRN's Price/Earnings ratio is rather cheap when compared to the industry. ITRN is cheaper than 83.33% of the companies in the same industry.
ITRN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.20.
Based on the Price/Forward Earnings ratio of 11.25, the valuation of ITRN can be described as reasonable.
ITRN's Price/Forward Earnings ratio is rather cheap when compared to the industry. ITRN is cheaper than 87.50% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.71, ITRN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.71 | ||
| Fwd PE | 11.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ITRN is valued cheaper than 91.67% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ITRN indicates a rather cheap valuation: ITRN is cheaper than 85.42% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.03 | ||
| EV/EBITDA | 6.85 |
4.3 Compensation for Growth
ITRN's 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)1.33
PEG (5Y)1.2
EPS Next 2Y7.84%
EPS Next 3Y8.73%
5. Dividend
5.1 Amount
ITRN has a Yearly Dividend Yield of 5.38%, which is a nice return.
ITRN's Dividend Yield is rather good when compared to the industry average which is at 3.64. ITRN pays more dividend than 95.83% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, ITRN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.38% |
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
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%
35.455
-0.73 (-2.02%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners61.14%
Inst Owner Change-0.73%
Ins Owners0.27%
Ins Owner ChangeN/A
Market Cap705.20M
Analysts82.5
Price Target47.94 (35.21%)
Short Float %0.62%
Short Ratio0.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.38% |
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)-8%
EPS NQ rev (3m)-8%
EPS NY rev (1m)-2.18%
EPS NY rev (3m)1.22%
Revenue NQ rev (1m)-3.21%
Revenue NQ rev (3m)-3.21%
Revenue NY rev (1m)-2.98%
Revenue NY rev (3m)-2.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.71 | ||
| Fwd PE | 11.25 | ||
| P/S | 2.08 | ||
| P/FCF | 12.03 | ||
| P/OCF | 9.06 | ||
| P/B | 3.42 | ||
| P/tB | 4.48 | ||
| EV/EBITDA | 6.85 |
EPS(TTM)2.79
EY7.87%
EPS(NY)3.15
Fwd EY8.89%
FCF(TTM)2.95
FCFY8.31%
OCF(TTM)3.91
OCFY11.03%
SpS17.07
BVpS10.36
TBVpS7.91
PEG (NY)1.33
PEG (5Y)1.2
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%
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-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
WACC8.82%
ROIC/WACC2.48
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 Y9.53%
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 Year39.87%
EBIT Next 3Y19.68%
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%