Itron (ITRI) AI Stock Analysis

• Market Cap: $6.20B
• Dividend Yield: N/A
• Average Volume (3M): 508.30K
• Price to Earnings (P/E): 24.8
• Beta (1Y): 1.14
• Revenue Growth: 7.10%
• EPS Growth: 58.52%
• Country: US
• Employees: 5,040
• Sector: Technology
• Sector Strength: 92
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 1.52
• Shares Outstanding: 45,588,070
• 10 Day Avg. Volume: 484,144
• 30 Day Avg. Volume: 508,303
• PEG Ratio: 4.13
• Price to Book (P/B): 4.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 23.60
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 0.74
• Enterprise Value/Gross Profit: 10.18
• Enterprise Value/Ebitda: 11.90
• 1Y Price Target: $139.30
• Price Target Upside: 2.20% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 74 Outperform
• Price Target: $149.00 ▲(9.32%Upside)

Itron's overall stock score of 74 is supported by strong financial performance and positive earnings call sentiment. The bullish technical indicators contribute positively, though the overbought signals and relatively high valuation warrant caution. The absence of dividend yield limits its attractiveness for income investors.

Positive Factors

Financial Profile

Revenue and margins are poised to accelerate as distributed intelligence grows, offering double the average selling price compared to previous solutions.

Market Position

Itron has a 2+ year lead in the market, and the 5 player market has consolidated to 2, with Itron having a significant advantage.

Recurring Revenue

With 70% of Itron's Outcomes segment being recurring revenue, there is a strong foundation for consistent future earnings.

Negative Factors

Book-to-Bill Ratio

Book-to-bill ratio of 0.87:1 was below that 1:1 target for FY25.

Macro Uncertainty

Macro uncertainty may slow demand and regulatory delays and supply chain constraints have limited the company’s ability to convert backlog to revenue.

Tariff Impact

On Itron's 1Q25 earning call, management estimated a $15mn EBITDA tariff headwind in 2025.

Itron Business Overview & Revenue Model

Company Description

Itron, Inc. is a technology company that specializes in providing solutions for energy and water resource management. Operating in sectors such as utilities and municipalities, Itron develops and delivers a wide array of products and services aimed at optimizing energy and water usage. Their core offerings include smart meters, data management software, and analytics solutions that enable their clients to efficiently manage and analyze resource consumption.

How the Company Makes Money

Itron makes money primarily through the sale of its products and services to utility companies and municipalities. Key revenue streams include the sale of smart meters, which are used for measuring electricity, gas, and water usage, as well as the provision of data management and analytics software that helps clients optimize their resource management. Additionally, Itron offers managed services, consulting, and support that contribute to its revenue. The company's earnings are bolstered by partnerships with various technology firms and utility providers, which help expand its market reach and solution offerings.

Itron Financial Statement Overview

Summary

Itron shows strong financial performance with robust income growth, improved profitability, and efficient balance sheet management. The company has reduced leverage and exhibits strong cash flow generation. However, there is room for optimizing operational leverage and maintaining prudent capital expenditures.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.44B	2.17B	1.80B	1.98B	2.17B
Gross Profit	839.32M	713.91M	522.19M	573.17M	602.17M
EBITDA	356.19M	191.50M	57.74M	7.07M	96.09M
Net Income	239.10M	96.92M	-9.55M	-78.30M	-56.88M
Balance Sheet
Total Assets	3.41B	2.60B	2.38B	2.39B	2.61B
Cash, Cash Equivalents and Short-Term Investments	1.05B	302.05M	202.01M	162.58M	206.93M
Total Debt	1.27B	502.46M	515.10M	507.54M	987.76M
Total Liabilities	2.00B	1.27B	1.19B	1.25B	1.77B
Stockholders Equity	1.39B	1.31B	1.17B	1.12B	816.55M
Cash Flow
Free Cash Flow	207.61M	98.09M	4.75M	120.11M	63.31M
Operating Cash Flow	238.18M	124.97M	24.50M	154.79M	109.51M
Investing Cash Flow	-63.41M	-23.31M	40.52M	-34.88M	-41.04M
Financing Cash Flow	579.57M	-3.51M	-18.74M	-152.89M	-11.58M

Itron Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 136.30
• 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 136.3 is above the 20-day moving average (MA) of 135.01, above the 50-day MA of 126.49, and above the 200-day MA of 112.46, indicating a bullish trend. The MACD of 2.57 indicates Positive momentum. The RSI at 64.55 is Neutral, neither overbought nor oversold. The STOCH value of 40.09 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	$5.88B	16.20	35.88%	0.25%	-3.59%	-11.30%
ITRI	74 Outperform	$6.20B	24.79	17.73%	―	7.10%	58.52%
MKSI	74 Outperform	$6.67B	29.65	9.50%	0.88%	-1.14%	―
LFUS	72 Outperform	$5.69B	53.42	4.39%	1.22%	-3.43%	-50.48%
CGNX	71 Outperform	$5.72B	49.84	8.02%	0.91%	8.56%	18.99%
Sector *	69 Neutral	¥230.42B	14.66	7.50%	2.60%	9.31%	5.75%
NOVT	68 Neutral	$4.48B	63.76	9.73%	―	6.52%	1.60%

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.