ITURAN LOCATION AND CONTROL (ITRN) Stock Fundamental Analysis
NASDAQ:ITRN - Nasdaq - IL0010818685 - Common Stock - Currency: USD
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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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
ITRN had positive earnings in the past year.
ITRN had a positive operating cash flow in the past year.
In the past 5 years ITRN has always been profitable.
Each year in the past 5 years ITRN had a positive operating cash flow.
1.2 Ratios
ITRN has a Return On Assets of 16.40%. This is amongst the best in the industry. ITRN outperforms 93.75% of its industry peers.
ITRN's Return On Equity of 28.96% is amongst the best of the industry. ITRN outperforms 91.67% of its industry peers.
ITRN's Return On Invested Capital of 23.77% is amongst the best of the industry. ITRN outperforms 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 14.22%.
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 has a better Profit Margin (16.35%) than 89.58% of its industry peers.
In the last couple of years the Profit Margin of ITRN has grown nicely.
With an excellent Operating Margin value of 21.56%, ITRN belongs to the best of the industry, outperforming 89.58% of the companies in the same industry.
ITRN's Operating Margin has improved in the last couple of years.
The Gross Margin of ITRN (48.30%) 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 | 21.56% | ||
| 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
ITRN has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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
ITRN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | N/A |
ROIC/WACC2.62
WACC9.07%
2.3 Liquidity
ITRN has a Current Ratio of 2.16. This indicates that ITRN is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.16, ITRN is in the better half of the industry, outperforming 64.58% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 1.91, ITRN is in the better half of the industry, outperforming 72.92% of the companies in the same industry.
| 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
Based on estimates for the next years, ITRN will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.76% on average per year.
ITRN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.03% yearly.
EPS Next Y11.97%
EPS Next 2Y9.23%
EPS Next 3Y10.76%
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
ITRN is valuated correctly with a Price/Earnings ratio of 14.14.
ITRN's Price/Earnings ratio is rather cheap when compared to the industry. ITRN is cheaper than 81.25% of the companies in the same industry.
ITRN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.52.
A Price/Forward Earnings ratio of 12.16 indicates a correct valuation of ITRN.
ITRN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ITRN is cheaper than 77.08% of the companies in the same industry.
ITRN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.58.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.14 | ||
| Fwd PE | 12.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ITRN is valued cheaply inside the industry as 85.42% of the companies are valued more expensively.
79.17% of the companies in the same industry are more expensive than ITRN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.78 | ||
| EV/EBITDA | 7.67 |
4.3 Compensation for Growth
The 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)1.18
PEG (5Y)1.34
EPS Next 2Y9.23%
EPS Next 3Y10.76%
5. Dividend
5.1 Amount
ITRN has a Yearly Dividend Yield of 4.44%, which is a nice return.
ITRN's Dividend Yield is rather good when compared to the industry average which is at 3.53. ITRN pays more dividend than 95.83% of the companies in the same industry.
ITRN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.44% |
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.
ITRN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP56.21%
EPS Next 2Y9.23%
EPS Next 3Y10.76%
39.32
-0.03 (-0.08%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners61%
Inst Owner Change0%
Ins Owners0.27%
Ins Owner ChangeN/A
Market Cap782.07M
Analysts82.5
Price Target47.94 (21.92%)
Short Float %0.52%
Short Ratio0.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.44% |
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)0%
PT rev (3m)1.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.71%
EPS NY rev (1m)3.48%
EPS NY rev (3m)3.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.11%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.14 | ||
| Fwd PE | 12.16 | ||
| P/S | 2.32 | ||
| P/FCF | 12.78 | ||
| P/OCF | 9.99 | ||
| P/B | 4.1 | ||
| P/tB | 5.48 | ||
| EV/EBITDA | 7.67 |
EPS(TTM)2.78
EY7.07%
EPS(NY)3.23
Fwd EY8.22%
FCF(TTM)3.08
FCFY7.83%
OCF(TTM)3.94
OCFY10.01%
SpS16.98
BVpS9.59
TBVpS7.18
PEG (NY)1.18
PEG (5Y)1.34
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
WACC9.07%
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)11.2%
EPS 3Y15.47%
EPS 5Y10.57%
EPS Q2Q%10.61%
EPS Next Y11.97%
EPS Next 2Y9.23%
EPS Next 3Y10.76%
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%