ITURAN LOCATION AND CONTROL (ITRN) Stock Fundamental Analysis
NASDAQ:ITRN - Nasdaq - IL0010818685 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to ITRN. ITRN was compared to 49 industry peers in the Communications Equipment industry. ITRN scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ITRN is not valued too expensively and it also shows a decent growth rate. ITRN also has an excellent dividend rating. With these ratings, ITRN could be worth investigating further for dividend and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year ITRN was profitable.
ITRN had a positive operating cash flow in the past year.
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
ITRN's Return On Assets of 16.41% is amongst the best of the industry. ITRN outperforms 93.88% of its industry peers.
The Return On Equity of ITRN (28.97%) is better than 91.84% of its industry peers.
The Return On Invested Capital of ITRN (23.63%) is better than 95.92% 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 13.68%.
The 3 year average ROIC (23.44%) for ITRN is below the current ROIC(23.63%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.41% | ||
| ROE | 28.97% | ||
| ROIC | 23.63% |
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
The Profit Margin of ITRN (15.96%) is better than 87.76% of its industry peers.
In the last couple of years the Profit Margin of ITRN has grown nicely.
ITRN has a better Operating Margin (21.17%) than 89.80% of its industry peers.
In the last couple of years the Operating Margin of ITRN has grown nicely.
ITRN's Gross Margin of 47.77% is fine compared to the rest of the industry. ITRN outperforms 63.27% of its industry peers.
ITRN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.17% | ||
| PM (TTM) | 15.96% | ||
| GM | 47.77% |
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.
Compared to 1 year ago, ITRN has about the same amount of shares outstanding.
The number of shares outstanding for ITRN has been increased compared to 5 years ago.
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/WACC2.62
WACC9.02%
2.3 Liquidity
A Current Ratio of 2.25 indicates that ITRN has no problem at all paying its short term obligations.
The Current ratio of ITRN (2.25) is better than 69.39% of its industry peers.
A Quick Ratio of 1.98 indicates that ITRN should not have too much problems paying its short term obligations.
The Quick ratio of ITRN (1.98) is better than 73.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.25 | ||
| Quick Ratio | 1.98 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.92% 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.
Looking at the last year, ITRN shows a small growth in Revenue. The Revenue has grown by 5.09% in the last year.
The Revenue has been growing slightly by 3.78% on average over the past years.
EPS 1Y (TTM)12.92%
EPS 3Y15.47%
EPS 5Y10.57%
EPS Q2Q%16.67%
Revenue 1Y (TTM)5.09%
Revenue growth 3Y7.47%
Revenue growth 5Y3.78%
Sales Q2Q%6.52%
3.2 Future
ITRN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.86% yearly.
The Revenue is expected to grow by 8.98% 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 Year9.37%
Revenue Next 2Y9.33%
Revenue Next 3Y8.98%
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
Based on the Price/Earnings ratio of 13.75, the valuation of ITRN can be described as correct.
Based on the Price/Earnings ratio, ITRN is valued cheaply inside the industry as 81.63% of the companies are valued more expensively.
ITRN is valuated rather cheaply when we compare the Price/Earnings ratio to 25.91, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 12.71, the valuation of ITRN can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ITRN indicates a somewhat cheap valuation: ITRN is cheaper than 77.55% of the companies listed in the same industry.
ITRN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.75 | ||
| Fwd PE | 12.71 |
4.2 Price Multiples
91.84% of the companies in the same industry are more expensive than ITRN, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ITRN indicates a somewhat cheap valuation: ITRN is cheaper than 79.59% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.22 | ||
| EV/EBITDA | 7.27 |
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)1.67
PEG (5Y)1.3
EPS Next 2Y10.34%
EPS Next 3Y10.86%
5. Dividend
5.1 Amount
ITRN has a Yearly Dividend Yield of 4.50%, which is a nice return.
ITRN's Dividend Yield is rather good when compared to the industry average which is at 3.58. ITRN pays more dividend than 95.92% of the companies in the same industry.
ITRN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.5% |
5.2 History
The dividend of ITRN has a limited annual growth rate of 4.85%.
ITRN has been paying a dividend for at least 10 years, so it has 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 52.28% 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.
DP52.28%
EPS Next 2Y10.34%
EPS Next 3Y10.86%
37.26
+0.51 (+1.39%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners63.85%
Inst Owner Change-5.27%
Ins Owners0.27%
Ins Owner ChangeN/A
Market Cap741.10M
Analysts80
Price Target47.43 (27.29%)
Short Float %0.45%
Short Ratio0.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.5% |
Yearly Dividend1.19
Dividend Growth(5Y)4.85%
DP52.28%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.75%
Min EPS beat(2)6.4%
Max EPS beat(2)9.11%
EPS beat(4)4
Avg EPS beat(4)7.63%
Min EPS beat(4)6.08%
Max EPS beat(4)9.11%
EPS beat(8)7
Avg EPS beat(8)6.43%
EPS beat(12)8
Avg EPS beat(12)1.91%
EPS beat(16)11
Avg EPS beat(16)2.39%
Revenue beat(2)0
Avg Revenue beat(2)-3.43%
Min Revenue beat(2)-5.06%
Max Revenue beat(2)-1.81%
Revenue beat(4)0
Avg Revenue beat(4)-3.24%
Min Revenue beat(4)-5.06%
Max Revenue beat(4)-1.81%
Revenue beat(8)0
Avg Revenue beat(8)-3.42%
Revenue beat(12)2
Avg Revenue beat(12)-2.78%
Revenue beat(16)4
Avg Revenue beat(16)-2.33%
PT rev (1m)0%
PT rev (3m)26.19%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.4%
EPS NY rev (1m)0%
EPS NY rev (3m)1.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.75 | ||
| Fwd PE | 12.71 | ||
| P/S | 2.2 | ||
| P/FCF | 12.22 | ||
| P/OCF | 9.98 | ||
| P/B | 4 | ||
| P/tB | 5.41 | ||
| EV/EBITDA | 7.27 |
EPS(TTM)2.71
EY7.27%
EPS(NY)2.93
Fwd EY7.87%
FCF(TTM)3.05
FCFY8.18%
OCF(TTM)3.73
OCFY10.02%
SpS16.91
BVpS9.31
TBVpS6.88
PEG (NY)1.67
PEG (5Y)1.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.41% | ||
| ROE | 28.97% | ||
| ROCE | 29.76% | ||
| ROIC | 23.63% | ||
| ROICexc | 34.93% | ||
| ROICexgc | 49.81% | ||
| OM | 21.17% | ||
| PM (TTM) | 15.96% | ||
| GM | 47.77% | ||
| FCFM | 18.03% |
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)30.47%
ROICexgc(3y)44.05%
ROICexgc(5y)48.28%
ROCE(3y)29.54%
ROCE(5y)27.73%
ROICexcg growth 3Y-3.75%
ROICexcg growth 5Y7.17%
ROICexc growth 3Y2.69%
ROICexc growth 5Y10.57%
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 Turnover1.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 67.88% | ||
| Cap/Sales | 4.05% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.39% | ||
| Profit Quality | 113.01% | ||
| Current Ratio | 2.25 | ||
| Quick Ratio | 1.98 | ||
| Altman-Z | N/A |
F-Score7
WACC9.02%
ROIC/WACC2.62
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)12.92%
EPS 3Y15.47%
EPS 5Y10.57%
EPS Q2Q%16.67%
EPS Next Y8.21%
EPS Next 2Y10.34%
EPS Next 3Y10.86%
EPS Next 5YN/A
Revenue 1Y (TTM)5.09%
Revenue growth 3Y7.47%
Revenue growth 5Y3.78%
Sales Q2Q%6.52%
Revenue Next Year9.37%
Revenue Next 2Y9.33%
Revenue Next 3Y8.98%
Revenue Next 5YN/A
EBIT growth 1Y7.9%
EBIT growth 3Y9.24%
EBIT growth 5Y7.79%
EBIT Next Year37.56%
EBIT Next 3Y19.43%
EBIT Next 5YN/A
FCF growth 1Y-3.72%
FCF growth 3Y15.69%
FCF growth 5Y7.95%
OCF growth 1Y-3.82%
OCF growth 3Y10.01%
OCF growth 5Y4.47%