Ituran Location And Control (ITRN) AI Stock Analysis

• Market Cap: $663.45M
• Dividend Yield: 5.01%
• Average Volume (3M): 110.32K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.78
• Revenue Growth: 5.09%
• EPS Growth: 12.45%
• Country: US
• Employees: 2,892
• Sector: Technology
• Sector Strength: 46
• Industry: Communication Equipment
• EPS (TTM): 2.70
• Shares Outstanding: 19,893,580
• 10 Day Avg. Volume: 96,845
• 30 Day Avg. Volume: 110,319
• PEG Ratio: 0.99
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.30
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $50.00
• Price Target Upside: 49.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Ituran Location And Control is performing well financially, with strong growth and profitability metrics. The recent earnings call highlights a positive outlook with robust subscriber growth and strategic partnerships, despite some currency-related challenges. The stock is reasonably valued with a good dividend yield, though technical indicators suggest a need for cautious optimism given the neutral momentum.

Ituran Location And Control Business Overview & Revenue Model

Company Description

Ituran Location and Control Ltd., together with its subsidiaries, provides location-based telematics services and machine-to-machine telematics products. The company's Telematics services segment provides stolen vehicle recovery and tracking services, which locate, track, and recover stolen vehicles for its subscribers; fleet management services that enable corporate and individual customers to track and manage their vehicles in real time; and locator services that allow customers to protect valuable merchandise and equipment. It also offers on-demand navigation guidance, information, and assistance, including the provision of traffic reports and directions, as well as information on the location of gas stations, car repair shops, post offices, hospitals, and other facilities; and Connected Car, a service platform that includes a back-office application, a telematics device installed in the vehicle, mobile apps for IOS and Android users, and interface using the car infotainment screen, as well as usage based insurance and auto financing. This segment serves insurance companies and agents, car manufacturers, dealers and importers, cooperative sales channels, and private subscribers. Its Telematics Products segment provides Base Site, a radio receiver that includes a processor and a data computation unit to collect and send data to and from transponders, and to control centers; Control Center, a center consisting of software used to collect data from various base sites, conduct location calculations, and transmit location data to various customers and law enforcement agencies; navigation and tracking devices installed in vehicles; and SMART, a portable transmitter installed in vehicles that sends a signal to the base site enabling the location of vehicles, equipment, or an individual. The company was incorporated in 1994 and is headquartered in Azor, Israel.

How the Company Makes Money

Ituran makes money through a variety of revenue streams centered around its telematics and vehicle tracking services. Its primary revenue comes from subscription fees for its location-based services, which include vehicle tracking and recovery, fleet management, and personal safety features. These subscription services are offered to individual consumers, businesses, and insurance companies. The company also generates income from the sale and installation of telematics devices that enable these services. Additionally, Ituran has significant partnerships with insurance companies, which use its services to offer 'usage-based insurance' products, further contributing to its revenue. The company's international operations, particularly in regions like Latin America, also play a crucial role in its financial performance.

Ituran Location And Control Financial Statement Overview

Summary

Ituran Location And Control demonstrates excellent financial health, characterized by consistent revenue and profit growth, strong profitability margins, low leverage, and robust cash flow metrics. The company's financial position is stable with minimal debt, high equity levels, and effective cash generation, positioning it well for future growth and resilience against potential market fluctuations.

Income Statement

Ituran Location And Control has shown consistent revenue growth, with a 5.09% increase from 2023 to 2024. The company maintains strong profitability, with a gross profit margin of 47.76% and a net profit margin of 15.96% in 2024. EBIT and EBITDA margins are also solid at 21.16% and 27.13%, respectively, indicating efficient operations and cost management.

Balance Sheet

The company exhibits a healthy balance sheet with an equity ratio of 56.66%, suggesting a strong reliance on equity for financing. The debt-to-equity ratio is low at 0.03, indicating minimal leverage, which reduces financial risk. The return on equity is robust at 28.96%, reflecting effective use of shareholder investments to generate profits.

Cash Flow

Cash flow analysis reveals a strong free cash flow growth rate of -3.71%, which, despite being negative, is manageable given the high starting point. The operating cash flow to net income ratio of 1.38 indicates efficient conversion of profits into cash. The free cash flow to net income ratio of 1.13 underscores the company's ability to generate cash relative to its net income.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
336.26M	319.98M	293.07M	270.88M	245.63M
	Gross Profit
160.62M	153.16M	137.56M	126.48M	115.52M
	EBIT
71.17M	65.95M	58.77M	54.62M	56.23M
	EBITDA
91.25M	87.37M	75.54M	69.31M	50.06M
	Net Income Common Stockholders
53.65M	48.14M	37.10M	34.26M	16.12M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
77.37M	53.55M	28.17M	54.71M	78.85M
	Total Assets
326.88M	318.69M	290.57M	293.02M	312.47M
	Total Debt
5.68M	8.66M	18.76M	33.18M	57.15M
	Net Debt
-71.68M	-44.77M	-9.09M	-17.13M	-15.04M
	Total Liabilities
135.62M	138.44M	137.72M	155.22M	182.57M
	Stockholders Equity
185.23M	174.45M	145.80M	132.46M	127.19M
Cash Flow		Free Cash Flow
60.63M	62.98M	18.61M	39.16M	49.83M
	Operating Cash Flow
74.27M	77.22M	45.12M	55.79M	60.07M
	Investing Cash Flow
-15.94M	-17.23M	-27.35M	-18.52M	-11.48M
	Financing Cash Flow
-31.77M	-32.93M	-36.36M	-58.67M	-29.45M

Ituran Location And Control Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 33.35
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ITRN, the sentiment is Positive. The current price of 33.35 is below the 20-day moving average (MA) of 34.23, below the 50-day MA of 36.60, and above the 200-day MA of 29.97, indicating a neutral trend. The MACD of -0.83 indicates Negative momentum. The RSI at 49.82 is Neutral, neither overbought nor oversold. The STOCH value of 66.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ITRN.

Ituran Location And Control Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITRN	80 Outperform	$663.45M	12.37	29.83%	5.01%	5.09%	12.45%
GILT	71 Outperform	$354.65M	14.36	8.58%	―	14.79%	5.04%
DGII	68 Neutral	$977.46M	27.99	6.29%	―	-4.49%	119.80%
Sector *	59 Neutral	$9.97B	10.09	-6.54%	3.08%	7.41%	-11.60%
AIOT	55 Neutral	$606.89M	―	-20.95%	―	67.20%	-165.24%
NTGR	55 Neutral	$632.05M	56.63	2.30%	―	-8.65%	―
ADTN	40 Underperform	$597.32M	―	-123.20%	―	-19.70%	-70.40%