ITRON INC (ITRI) Stock Fundamental Analysis
NASDAQ:ITRI - Nasdaq - US4657411066 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to ITRI. ITRI was compared to 125 industry peers in the Electronic Equipment, Instruments & Components industry. While ITRI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ITRI has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ITRI had positive earnings in the past year.
ITRI had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: ITRI reported negative net income in multiple years.
In the past 5 years ITRI always reported a positive cash flow from operatings.
1.2 Ratios
ITRI has a better Return On Assets (7.22%) than 86.40% of its industry peers.
ITRI's Return On Equity of 16.99% is amongst the best of the industry. ITRI outperforms 87.20% of its industry peers.
ITRI has a better Return On Invested Capital (9.00%) than 80.80% of its industry peers.
ITRI had an Average Return On Invested Capital over the past 3 years of 5.07%. This is below the industry average of 9.16%.
The 3 year average ROIC (5.07%) for ITRI is below the current ROIC(9.00%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.22% | ||
| ROE | 16.99% | ||
| ROIC | 9% |
ROA(3y)3.44%
ROA(5y)0.94%
ROE(3y)7.92%
ROE(5y)1.87%
ROIC(3y)5.07%
ROIC(5y)4.06%
1.3 Margins
ITRI has a Profit Margin of 10.34%. This is amongst the best in the industry. ITRI outperforms 84.80% of its industry peers.
ITRI's Profit Margin has improved in the last couple of years.
ITRI has a Operating Margin of 11.46%. This is amongst the best in the industry. ITRI outperforms 82.40% of its industry peers.
ITRI's Operating Margin has improved in the last couple of years.
ITRI has a Gross Margin (34.82%) which is in line with its industry peers.
ITRI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.46% | ||
| PM (TTM) | 10.34% | ||
| GM | 34.82% |
OM growth 3Y76.32%
OM growth 5Y14.55%
PM growth 3YN/A
PM growth 5Y37.99%
GM growth 3Y5.93%
GM growth 5Y2.72%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ITRI is creating some value.
Compared to 1 year ago, ITRI has less shares outstanding
The number of shares outstanding for ITRI has been increased compared to 5 years ago.
Compared to 1 year ago, ITRI has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.07 indicates that ITRI is not in any danger for bankruptcy at the moment.
ITRI has a Altman-Z score of 3.07. This is comparable to the rest of the industry: ITRI outperforms 50.40% of its industry peers.
The Debt to FCF ratio of ITRI is 5.16, which is a neutral value as it means it would take ITRI, 5.16 years of fcf income to pay off all of its debts.
ITRI has a Debt to FCF ratio of 5.16. This is in the better half of the industry: ITRI outperforms 61.60% of its industry peers.
ITRI has a Debt/Equity ratio of 0.53. This is a neutral value indicating ITRI is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.53, ITRI is doing worse than 75.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 5.16 | ||
| Altman-Z | 3.07 |
ROIC/WACC1.01
WACC8.89%
2.3 Liquidity
A Current Ratio of 1.93 indicates that ITRI should not have too much problems paying its short term obligations.
The Current ratio of ITRI (1.93) is worse than 64.00% of its industry peers.
A Quick Ratio of 1.65 indicates that ITRI should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.65, ITRI is in line with its industry, outperforming 44.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.65 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 44.39% over the past year.
The Earnings Per Share has been growing by 11.11% on average over the past years. This is quite good.
ITRI shows a small growth in Revenue. In the last year, the Revenue has grown by 7.10%.
ITRI shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.50% yearly.
EPS 1Y (TTM)44.39%
EPS 3Y47.43%
EPS 5Y11.11%
EPS Q2Q%22.58%
Revenue 1Y (TTM)7.1%
Revenue growth 3Y7.19%
Revenue growth 5Y-0.5%
Sales Q2Q%0.61%
3.2 Future
The Earnings Per Share is expected to grow by 14.13% on average over the next years. This is quite good.
Based on estimates for the next years, ITRI will show a small growth in Revenue. The Revenue will grow by 5.53% on average per year.
EPS Next Y-1.9%
EPS Next 2Y3.97%
EPS Next 3Y7.21%
EPS Next 5Y14.13%
Revenue Next Year1.33%
Revenue Next 2Y3.58%
Revenue Next 3Y4.16%
Revenue Next 5Y5.53%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
A Price/Earnings ratio of 22.91 indicates a rather expensive valuation of ITRI.
ITRI's Price/Earnings ratio is a bit cheaper when compared to the industry. ITRI is cheaper than 72.80% of the companies in the same industry.
ITRI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.18, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 22.25, the valuation of ITRI can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ITRI indicates a somewhat cheap valuation: ITRI is cheaper than 61.60% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.34, ITRI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.91 | ||
| Fwd PE | 22.25 |
4.2 Price Multiples
61.60% of the companies in the same industry are more expensive than ITRI, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ITRI is valued a bit cheaper than the industry average as 69.60% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.66 | ||
| EV/EBITDA | 18.78 |
4.3 Compensation for Growth
The excellent profitability rating of ITRI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.06
EPS Next 2Y3.97%
EPS Next 3Y7.21%
5. Dividend
5.1 Amount
ITRI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
135.63
+0.29 (+0.21%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners113.65%
Inst Owner Change-0.01%
Ins Owners1.01%
Ins Owner Change8.74%
Market Cap6.18B
Analysts84.21
Price Target133.72 (-1.41%)
Short Float %8.72%
Short Ratio7.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)20.36%
Min EPS beat(2)14.32%
Max EPS beat(2)26.41%
EPS beat(4)4
Avg EPS beat(4)31.17%
Min EPS beat(4)14.32%
Max EPS beat(4)59.95%
EPS beat(8)8
Avg EPS beat(8)53.4%
EPS beat(12)11
Avg EPS beat(12)118.31%
EPS beat(16)14
Avg EPS beat(16)106.82%
Revenue beat(2)0
Avg Revenue beat(2)-1.75%
Min Revenue beat(2)-3.11%
Max Revenue beat(2)-0.39%
Revenue beat(4)1
Avg Revenue beat(4)-0.67%
Min Revenue beat(4)-3.11%
Max Revenue beat(4)1.25%
Revenue beat(8)4
Avg Revenue beat(8)0.4%
Revenue beat(12)6
Avg Revenue beat(12)-0.85%
Revenue beat(16)6
Avg Revenue beat(16)-2.54%
PT rev (1m)0.71%
PT rev (3m)0.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.77%
EPS NY rev (1m)0.04%
EPS NY rev (3m)1.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.04%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.91 | ||
| Fwd PE | 22.25 | ||
| P/S | 2.53 | ||
| P/FCF | 25.66 | ||
| P/OCF | 22.99 | ||
| P/B | 4.15 | ||
| P/tB | 15.98 | ||
| EV/EBITDA | 18.78 |
EPS(TTM)5.92
EY4.36%
EPS(NY)6.1
Fwd EY4.5%
FCF(TTM)5.28
FCFY3.9%
OCF(TTM)5.9
OCFY4.35%
SpS53.62
BVpS32.65
TBVpS8.49
PEG (NY)N/A
PEG (5Y)2.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.22% | ||
| ROE | 16.99% | ||
| ROCE | 11.12% | ||
| ROIC | 9% | ||
| ROICexc | 16.24% | ||
| ROICexgc | 76.86% | ||
| OM | 11.46% | ||
| PM (TTM) | 10.34% | ||
| GM | 34.82% | ||
| FCFM | 9.86% |
ROA(3y)3.44%
ROA(5y)0.94%
ROE(3y)7.92%
ROE(5y)1.87%
ROIC(3y)5.07%
ROIC(5y)4.06%
ROICexc(3y)6.94%
ROICexc(5y)5.29%
ROICexgc(3y)17.86%
ROICexgc(5y)14.3%
ROCE(3y)6.27%
ROCE(5y)5.02%
ROICexcg growth 3Y70.54%
ROICexcg growth 5Y9.42%
ROICexc growth 3Y85.56%
ROICexc growth 5Y14.7%
OM growth 3Y76.32%
OM growth 5Y14.55%
PM growth 3YN/A
PM growth 5Y37.99%
GM growth 3Y5.93%
GM growth 5Y2.72%
F-Score7
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 5.16 | ||
| Debt/EBITDA | 2.34 | ||
| Cap/Depr | 50.46% | ||
| Cap/Sales | 1.15% | ||
| Interest Coverage | 36.72 | ||
| Cash Conversion | 80.13% | ||
| Profit Quality | 95.28% | ||
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.65 | ||
| Altman-Z | 3.07 |
F-Score7
WACC8.89%
ROIC/WACC1.01
Cap/Depr(3y)44%
Cap/Depr(5y)44.14%
Cap/Sales(3y)1.2%
Cap/Sales(5y)1.49%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)44.39%
EPS 3Y47.43%
EPS 5Y11.11%
EPS Q2Q%22.58%
EPS Next Y-1.9%
EPS Next 2Y3.97%
EPS Next 3Y7.21%
EPS Next 5Y14.13%
Revenue 1Y (TTM)7.1%
Revenue growth 3Y7.19%
Revenue growth 5Y-0.5%
Sales Q2Q%0.61%
Revenue Next Year1.33%
Revenue Next 2Y3.58%
Revenue Next 3Y4.16%
Revenue Next 5Y5.53%
EBIT growth 1Y33.19%
EBIT growth 3Y89.01%
EBIT growth 5Y13.98%
EBIT Next Year28.36%
EBIT Next 3Y20.16%
EBIT Next 5Y24.52%
FCF growth 1Y8407.86%
FCF growth 3Y23.47%
FCF growth 5Y13.12%
OCF growth 1Y1369.86%
OCF growth 3Y17.99%
OCF growth 5Y6.63%