ITERIS INC (ITI)

US46564T1079 - Common Stock

4.99  +0.18 (+3.74%)

After market: 4.99 0 (0%)

Fundamental Rating

4

Taking everything into account, ITI scores 4 out of 10 in our fundamental rating. ITI was compared to 128 industry peers in the Electronic Equipment, Instruments & Components industry. The financial health of ITI is average, but there are quite some concerns on its profitability. ITI has a decent growth rate and is not valued too expensively.



2

1. Profitability

1.1 Basic Checks

ITI had positive earnings in the past year.
ITI had a positive operating cash flow in the past year.
In the past 5 years ITI reported 4 times negative net income.
ITI had negative operating cash flow in 4 of the past 5 years.

1.2 Ratios

ITI has a Return On Assets (2.12%) which is in line with its industry peers.
ITI has a Return On Equity of 3.64%. This is comparable to the rest of the industry: ITI outperforms 51.59% of its industry peers.
ITI's Return On Invested Capital of 2.37% is in line compared to the rest of the industry. ITI outperforms 50.00% of its industry peers.
Industry RankSector Rank
ROA 2.12%
ROE 3.64%
ROIC 2.37%
ROA(3y)-3.7%
ROA(5y)-6.01%
ROE(3y)-6.78%
ROE(5y)-10.42%
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

ITI has a Profit Margin (1.45%) which is comparable to the rest of the industry.
ITI has a Operating Margin of 1.37%. This is comparable to the rest of the industry: ITI outperforms 49.21% of its industry peers.
With a decent Gross Margin value of 36.17%, ITI is doing good in the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Gross Margin of ITI has declined.
Industry RankSector Rank
OM 1.37%
PM (TTM) 1.45%
GM 36.17%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-12.81%
GM growth 5Y-6.86%

6

2. Health

2.1 Basic Checks

ITI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ITI has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, ITI has more shares outstanding
There is no outstanding debt for ITI. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

2.2 Solvency

ITI has an Altman-Z score of 2.93. This is not the best score and indicates that ITI is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of ITI (2.93) is comparable to the rest of the industry.
ITI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 2.93
ROIC/WACC0.26
WACC9.12%

2.3 Liquidity

ITI has a Current Ratio of 1.79. This is a normal value and indicates that ITI is financially healthy and should not expect problems in meeting its short term obligations.
ITI has a Current ratio of 1.79. This is in the lower half of the industry: ITI underperforms 72.22% of its industry peers.
ITI has a Quick Ratio of 1.50. This is a normal value and indicates that ITI is financially healthy and should not expect problems in meeting its short term obligations.
ITI has a Quick ratio (1.50) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.79
Quick Ratio 1.5

6

3. Growth

3.1 Past

ITI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 115.00%, which is quite impressive.
Looking at the last year, ITI shows a quite strong growth in Revenue. The Revenue has grown by 16.11% in the last year.
The Revenue has been growing by 8.52% on average over the past years. This is quite good.
EPS 1Y (TTM)115%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q120%
Revenue 1Y (TTM)16.11%
Revenue growth 3Y13.27%
Revenue growth 5Y8.52%
Revenue growth Q2Q3.54%

3.2 Future

ITI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 62.21% yearly.
Based on estimates for the next years, ITI will show a quite strong growth in Revenue. The Revenue will grow by 11.13% on average per year.
EPS Next Y130.45%
EPS Next 2Y62.21%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.51%
Revenue Next 2Y11.13%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 83.17, which means the current valuation is very expensive for ITI.
Compared to the rest of the industry, the Price/Earnings ratio of ITI is on the same level as its industry peers.
When comparing the Price/Earnings ratio of ITI to the average of the S&P500 Index (26.42), we can say ITI is valued expensively.
ITI is valuated rather expensively with a Price/Forward Earnings ratio of 23.25.
62.70% of the companies in the same industry are more expensive than ITI, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.74. ITI is around the same levels.
Industry RankSector Rank
PE 83.17
Fwd PE 23.25

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as ITI.
Based on the Price/Free Cash Flow ratio, ITI is valued a bit cheaper than 77.78% of the companies in the same industry.
Industry RankSector Rank
P/FCF 20.77
EV/EBITDA 31.81

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ITI's earnings are expected to grow with 62.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.64
PEG (5Y)N/A
EPS Next 2Y62.21%
EPS Next 3YN/A

0

5. Dividend

5.1 Amount

ITI does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

ITERIS INC

NASDAQ:ITI (3/27/2024, 8:21:44 PM)

After market: 4.99 0 (0%)

4.99

+0.18 (+3.74%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap214.12M
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
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EPS beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 83.17
Fwd PE 23.25
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.64
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 2.12%
ROE 3.64%
ROCE
ROIC
ROICexc
ROICexgc
OM 1.37%
PM (TTM) 1.45%
GM 36.17%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.46
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.79
Quick Ratio 1.5
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)115%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y130.45%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)16.11%
Revenue growth 3Y13.27%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y