Itron (ITRI) AI Stock Analysis

• Market Cap: $5.13B
• Dividend Yield: N/A
• Average Volume (3M): 536.00K
• Price to Earnings (P/E): 20.5
• Beta (1Y): 1.18
• Revenue Growth: 7.10%
• EPS Growth: 58.52%
• Country: US
• Employees: 5,040
• Sector: Technology
• Sector Strength: 76
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 1.52
• Shares Outstanding: 45,588,070
• 10 Day Avg. Volume: 457,365
• 30 Day Avg. Volume: 536,002
• PEG Ratio: 3.31
• Price to Book (P/B): 3.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.89
• Enterprise Value/Market Cap: 0.86
• Enterprise Value/Revenue: 0.46
• Enterprise Value/Gross Profit: 5.24
• Enterprise Value/Ebitda: 3.32
• 1Y Price Target: $131.63
• Price Target Upside: 16.87% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 74 Outperform
• Price Target: ―

Itron scores a solid 74 due to strong financial performance and positive earnings call sentiment, highlighting robust income growth and profitability improvements. Technical indicators support a moderate bullish stance, though caution is advised due to potential tariff impacts. The valuation is fair, but the absence of dividends could deter some investors.

Positive Factors

Collaborations and Partnerships

The company's recently announced expanded collaborations with Microsoft, Schneider Electric, and Norgesnett, as well as awards with the City of Helsingborg, are highlighted as positive developments.

Financial Performance

Itron issued Q4/24 results, reporting revenues of ~$613M (up ~6% y/y) and Adj. EBITDA of $81M (up ~19% y/y), with both top- and bottom-line numbers exceeding estimates and Street consensus.

Market Position

Itron has a 2+ year lead in the grid modernization market, which has consolidated from 5 players to 2, positioning the company advantageously.

Negative Factors

Tariff Impact

Management issued relatively conservative guidance, indicating that tariff impacts were more likely to impact margins in the second half of the year.

Trade Policy Uncertainty

Trade policy dynamic creates uncertainty given exposure to proposed tariffs on Mexican imports.

Itron Business Overview & Revenue Model

Company Description

Itron, Inc., a technology and service company, provides end-to-end solutions that help manage operations in the energy, water, and smart city space worldwide. The company operates through three segments: Device Solutions, Networked Solutions, and Outcomes. The Device Solutions segment offers hardware products that are used for measurement, control, or sensing. The Networked Solutions segment provides a combination of communicating devices, such as smart meters, modules, endpoints, and sensors; network infrastructure; and associated application software for acquiring and transporting application-specific data. The Outcomes segment offers value-added, enhanced software and services for managing, organizing, analyzing, and interpreting data to enhance decision making, maximize operational profitability, drive resource efficiency, and deliver results for consumers, utilities, and smart cities. In addition, it offers implementation, project management, installation, consulting, and post-sale maintenance support services, as well as cloud and software-as-a-service; and extended or customer-specific warranties. It offers its products and services under the Itron brand. The company markets its products directly through its sales force, as well as through indirect sales force consisting of distributors, sales representatives, partners, and meter manufacturer representatives to utilities and municipalities. Itron, Inc. was incorporated in 1977 and is headquartered in Liberty Lake, Washington.

How the Company Makes Money

Itron makes money by selling its hardware and software solutions to utility companies. Its primary revenue streams include the sale of smart meters and network communication devices, which are used to measure and transmit energy and water consumption data. Additionally, Itron generates revenue through its software and services segment, which includes data analytics, managed services, and consulting. The company also engages in long-term contracts and partnerships with utility providers, offering solutions that help them modernize their infrastructure and improve operational efficiency. These partnerships often involve recurring revenue through service agreements and software subscriptions.

Itron Financial Statement Overview

Summary

Overall, Itron exhibits a strong financial performance with a solid income growth trajectory, efficient balance sheet management, and robust cash flow generation. The company has successfully improved profitability and reduced leverage, positioning itself well for future growth. Areas for improvement include optimizing operational leverage and maintaining prudent capital expenditure.

Income Statement

Itron has demonstrated strong growth in its income statement, with revenue increasing from $1.80 billion in 2022 to $2.44 billion in TTM (Trailing-Twelve-Months). Gross profit margin improved to 34.6% from previous levels, reflecting operational efficiency. The net profit margin also strengthened to 10.4% in TTM, indicating enhanced profitability. However, the EBIT and EBITDA margins, at 11.3% and 14.4% respectively, suggest there is room for improved operational leverage.

Balance Sheet

Itron's balance sheet is solid, with a favorable debt-to-equity ratio improving significantly due to reduced debt levels and increased equity. The debt-to-equity ratio is a manageable 0.41, indicating low leverage. The return on equity (ROE) is robust at 17.0%, showcasing effective use of shareholders' equity to generate profits. However, the equity ratio stands at 42.5%, suggesting a moderate reliance on liabilities to finance assets.

Cash Flow

Itron's cash flow position is strong, with free cash flow growing by 28.4% from the previous year, driven by improved operating cash flows. The operating cash flow to net income ratio is 1.06, indicating that the company is effectively converting profits into cash. The free cash flow to net income ratio is 1.05, further highlighting the company's cash generation capability. Despite these strengths, the firm should continue monitoring capital expenditures to sustain cash flow growth.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.44B	2.44B	2.17B	1.80B	1.98B	2.17B
	Gross Profit
846.65M	839.32M	713.91M	522.19M	573.17M	602.17M
	EBIT
277.36M	264.11M	128.87M	19.34M	23.74M	84.19M
	EBITDA
352.55M	356.19M	191.50M	57.74M	7.07M	96.09M
	Net Income Common Stockholders
252.86M	239.10M	96.92M	-9.55M	-78.30M	-56.88M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
300.61M	1.05B	302.05M	202.01M	162.58M	206.93M
	Total Assets
2.68B	3.41B	2.60B	2.38B	2.39B	2.61B
	Total Debt
487.10M	1.27B	502.46M	515.10M	507.54M	987.76M
	Net Debt
186.50M	216.54M	200.41M	313.09M	344.96M	780.83M
	Total Liabilities
1.29B	2.00B	1.27B	1.19B	1.25B	1.77B
	Stockholders Equity
1.36B	1.39B	1.31B	1.17B	1.12B	816.55M
Cash Flow		Free Cash Flow
262.01M	207.61M	98.09M	4.75M	120.11M	63.31M
	Operating Cash Flow
269.19M	238.18M	124.97M	24.50M	154.79M	109.51M
	Investing Cash Flow
-26.90M	-63.41M	-23.31M	40.52M	-34.88M	-41.04M
	Financing Cash Flow
580.05M	579.57M	-3.51M	-18.74M	-152.89M	-11.58M

Itron Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 112.63
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ITRI, the sentiment is Positive. The current price of 112.63 is above the 20-day moving average (MA) of 111.17, above the 50-day MA of 106.62, and above the 200-day MA of 106.57, indicating a bullish trend. The MACD of 2.31 indicates Positive momentum. The RSI at 57.01 is Neutral, neither overbought nor oversold. The STOCH value of 58.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ITRI.

Itron Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VNT	75 Outperform	$5.21B	14.36	35.88%	0.28%	-3.59%	-11.30%
ITRI	74 Outperform	$5.13B	20.54	17.73%	―	7.10%	58.52%
NOVT	74 Outperform	$4.32B	61.45	9.73%	―	6.52%	1.60%
MKSI	71 Outperform	$5.62B	24.98	9.50%	1.05%	-1.14%	―
LFUS	70 Outperform	$5.08B	47.64	4.39%	1.34%	-3.43%	-50.48%
CGNX	64 Neutral	$4.99B	43.46	8.02%	1.04%	8.56%	18.99%
Sector *	61 Neutral	$11.29B	10.07	-7.05%	2.96%	7.47%	-10.75%

Itron Corporate Events

Itron Shareholders Approve Key Proposals at Annual Meeting

Itron, Inc. held its 2025 Annual Meeting of Shareholders on May 8, 2025, where six proposals were voted upon and each passed. The proposals included the election of Diana D. Tremblay as a director, approval of executive compensation, amendments to the company’s articles of incorporation, and the ratification of Deloitte & Touche LLP as the independent accounting firm. These decisions reflect the company’s ongoing governance and operational strategies, potentially impacting its market operations and stakeholder relations.