ITURAN LOCATION AND CONTROL (ITRN) Stock Fundamental Analysis
NASDAQ:ITRN - Nasdaq - IL0010818685 - Common Stock - Currency: USD
Overall ITRN gets a fundamental rating of 7 out of 10. We evaluated ITRN against 50 industry peers in the Communications Equipment industry. Both the health and profitability get an excellent rating, making ITRN a very profitable company, without any liquidiy or solvency issues. ITRN may be a bit undervalued, certainly considering the very reasonable score on growth ITRN also has an excellent dividend rating. This makes ITRN very considerable 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.
ITRN had positive earnings in each of the past 5 years.
Each year in the past 5 years ITRN had a positive operating cash flow.
1.2 Ratios
ITRN's Return On Assets of 16.40% is amongst the best of the industry. ITRN outperforms 94.00% of its industry peers.
ITRN has a better Return On Equity (28.96%) than 92.00% of its industry peers.
ITRN's Return On Invested Capital of 23.77% is amongst the best of the industry. ITRN outperforms 96.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ITRN is significantly above the industry average of 13.73%.
The last Return On Invested Capital (23.77%) for ITRN is above the 3 year average (23.44%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.4% | ||
| ROE | 28.96% | ||
| ROIC | 23.77% |
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's Profit Margin of 16.35% is amongst the best of the industry. ITRN outperforms 90.00% of its industry peers.
ITRN's Profit Margin has improved in the last couple of years.
ITRN has a Operating Margin of 21.56%. This is amongst the best in the industry. ITRN outperforms 90.00% of its industry peers.
ITRN's Operating Margin has improved in the last couple of years.
ITRN has a better Gross Margin (48.30%) than 64.00% 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 | 21.56% | ||
| PM (TTM) | 16.35% | ||
| GM | 48.3% |
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.
ITRN has about the same amout of shares outstanding than it did 1 year ago.
ITRN has more shares outstanding than it did 5 years ago.
ITRN has a better debt/assets ratio than last year.
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/WACC2.63
WACC9.02%
2.3 Liquidity
A Current Ratio of 2.16 indicates that ITRN has no problem at all paying its short term obligations.
ITRN has a better Current ratio (2.16) than 64.00% of its industry peers.
ITRN has a Quick Ratio of 1.91. This is a normal value and indicates that ITRN is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of ITRN (1.91) is better than 74.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.16 | ||
| Quick Ratio | 1.91 |
3. Growth
3.1 Past
ITRN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.20%, 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.
ITRN shows a small growth in Revenue. In the last year, the Revenue has grown by 3.73%.
Measured over the past years, ITRN shows a small growth in Revenue. The Revenue has been growing by 3.78% on average per year.
EPS 1Y (TTM)11.2%
EPS 3Y15.47%
EPS 5Y10.57%
EPS Q2Q%10.61%
Revenue 1Y (TTM)3.73%
Revenue growth 3Y7.47%
Revenue growth 5Y3.78%
Sales Q2Q%1.68%
3.2 Future
The Earnings Per Share is expected to grow by 10.86% on average over the next years. This is quite good.
The Revenue is expected to grow by 9.03% on average over the next years. This is quite good.
EPS Next Y8.21%
EPS Next 2Y10.34%
EPS Next 3Y10.86%
EPS Next 5YN/A
Revenue Next Year8.18%
Revenue Next 2Y8.9%
Revenue Next 3Y9.03%
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.
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 12.97, which indicates a correct valuation of ITRN.
84.00% of the companies in the same industry are more expensive than ITRN, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ITRN to the average of the S&P500 Index (26.32), we can say ITRN is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.93, the valuation of ITRN can be described as very reasonable.
Based on the Price/Forward Earnings ratio, ITRN is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
ITRN is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.97 | ||
| Fwd PE | 10.93 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ITRN indicates a rather cheap valuation: ITRN is cheaper than 92.00% of the companies listed in the same industry.
ITRN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ITRN is cheaper than 76.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.71 | ||
| EV/EBITDA | 6.99 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ITRN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.58
PEG (5Y)1.23
EPS Next 2Y10.34%
EPS Next 3Y10.86%
5. Dividend
5.1 Amount
ITRN has a Yearly Dividend Yield of 4.94%, 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 96.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, ITRN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.94% |
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 56.21% 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.
DP56.21%
EPS Next 2Y10.34%
EPS Next 3Y10.86%
NASDAQ:ITRN (6/16/2025, 3:43:30 PM)
36.05
-0.18 (-0.5%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners61%
Inst Owner Change-5.18%
Ins Owners0.27%
Ins Owner ChangeN/A
Market Cap717.03M
Analysts82.5
Price Target47.94 (32.98%)
Short Float %0.51%
Short Ratio0.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.94% |
Yearly Dividend1.19
Dividend Growth(5Y)4.85%
DP56.21%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.44%
Min EPS beat(2)4.48%
Max EPS beat(2)6.4%
EPS beat(4)4
Avg EPS beat(4)6.52%
Min EPS beat(4)4.48%
Max EPS beat(4)9.11%
EPS beat(8)7
Avg EPS beat(8)6.55%
EPS beat(12)9
Avg EPS beat(12)3.22%
EPS beat(16)11
Avg EPS beat(16)2.47%
Revenue beat(2)0
Avg Revenue beat(2)-3.36%
Min Revenue beat(2)-4.91%
Max Revenue beat(2)-1.81%
Revenue beat(4)0
Avg Revenue beat(4)-3.78%
Min Revenue beat(4)-5.06%
Max Revenue beat(4)-1.81%
Revenue beat(8)0
Avg Revenue beat(8)-3.75%
Revenue beat(12)2
Avg Revenue beat(12)-2.79%
Revenue beat(16)3
Avg Revenue beat(16)-2.78%
PT rev (1m)1.08%
PT rev (3m)1.08%
EPS NQ rev (1m)0.71%
EPS NQ rev (3m)0.71%
EPS NY rev (1m)0%
EPS NY rev (3m)1.05%
Revenue NQ rev (1m)-1.11%
Revenue NQ rev (3m)-1.11%
Revenue NY rev (1m)-1.09%
Revenue NY rev (3m)-1.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.97 | ||
| Fwd PE | 10.93 | ||
| P/S | 2.12 | ||
| P/FCF | 11.71 | ||
| P/OCF | 9.15 | ||
| P/B | 3.76 | ||
| P/tB | 5.02 | ||
| EV/EBITDA | 6.99 |
EPS(TTM)2.78
EY7.71%
EPS(NY)3.3
Fwd EY9.15%
FCF(TTM)3.08
FCFY8.54%
OCF(TTM)3.94
OCFY10.92%
SpS16.98
BVpS9.59
TBVpS7.18
PEG (NY)1.58
PEG (5Y)1.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.4% | ||
| ROE | 28.96% | ||
| ROCE | 29.93% | ||
| ROIC | 23.77% | ||
| ROICexc | 34.5% | ||
| ROICexgc | 48.33% | ||
| OM | 21.56% | ||
| PM (TTM) | 16.35% | ||
| GM | 48.3% | ||
| FCFM | 18.13% |
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-Score7
Asset Turnover1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 88.14% | ||
| Cap/Sales | 5.07% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.94% | ||
| Profit Quality | 110.87% | ||
| Current Ratio | 2.16 | ||
| Quick Ratio | 1.91 | ||
| Altman-Z | N/A |
F-Score7
WACC9.02%
ROIC/WACC2.63
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)11.2%
EPS 3Y15.47%
EPS 5Y10.57%
EPS Q2Q%10.61%
EPS Next Y8.21%
EPS Next 2Y10.34%
EPS Next 3Y10.86%
EPS Next 5YN/A
Revenue 1Y (TTM)3.73%
Revenue growth 3Y7.47%
Revenue growth 5Y3.78%
Sales Q2Q%1.68%
Revenue Next Year8.18%
Revenue Next 2Y8.9%
Revenue Next 3Y9.03%
Revenue Next 5YN/A
EBIT growth 1Y8.52%
EBIT growth 3Y9.24%
EBIT growth 5Y7.79%
EBIT Next Year37.56%
EBIT Next 3Y19.43%
EBIT Next 5YN/A
FCF growth 1Y89.63%
FCF growth 3Y15.69%
FCF growth 5Y7.95%
OCF growth 1Y40.95%
OCF growth 3Y10.01%
OCF growth 5Y4.47%