Ituran Location And Control Ltd (ITRN)
NASDAQ:ITRN
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Ituran Location And Control
(NASDAQ:ITRN)
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Rating:82Outperform
Price Target:
$61.00
▲(15.22% Upside)
Action:ReiteratedDate:03/07/26
The score is driven primarily by strong financial quality (high and stable margins, very low leverage, strong returns) supported by a constructive technical uptrend and reasonable valuation with a solid dividend yield. The main offsets are cash-flow conversion trailing earnings, limited formal forward guidance, and execution/regulatory risks for new initiatives with minimal expected 2026 financial impact.
Positive Factors
High and Stable Margins
Sustained high gross and operating margins indicate durable pricing power and efficient service delivery in telematics. Margins near 20%+ EBIT and mid-20s EBITDA support long-term profitability, allow reinvestment in R&D and partnerships, and provide resilience to input cost swings over multiple years.
Negative Factors
Cash Conversion Volatility
Earnings that outpace cash generation indicate potential working‑capital or timing effects that can constrain sustainable free cash flow. Persistent sub‑1.0 cash coverage and past FCF volatility increase execution risk for steady capital returns or funding accelerated expansion without tapping reserves or altering payout policy.
Read all positive and negative factors
Positive Factors
Negative Factors
High and Stable Margins
Sustained high gross and operating margins indicate durable pricing power and efficient service delivery in telematics. Margins near 20%+ EBIT and mid-20s EBITDA support long-term profitability, allow reinvestment in R&D and partnerships, and provide resilience to input cost swings over multiple years.
Read all positive factors
Ituran Location And Control (ITRN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.06B
Dividend Yield4.38%
Average Volume (3M)115.94K
Price to Earnings (P/E)14.7
Beta (1Y)0.81
Revenue Growth5.20%
EPS Growth9.14%
CountryUS
Employees2,892
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)0.77
Shares Outstanding19,893,580
10 Day Avg. Volume125,638
30 Day Avg. Volume115,940
Financial Highlights & Ratios
PEG Ratio1.81
Price to Book (P/B)3.93
Price to Sales (P/S)2.38
P/FCF Ratio12.80
Enterprise Value/Market Cap0.90
Enterprise Value/Revenue2.65
Enterprise Value/Gross Profit5.33
Enterprise Value/Ebitda9.86
Forecast
1Y Price Target
$62.50Price Target Upside18.06% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)3.31
Revenue Forecast (FY)$400.10M
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 servi...
How the Company Makes Money
Ituran primarily makes money by selling subscription-based telematics services and related solutions, supplemented by revenue from selling and installing telematics hardware. A core revenue stream is recurring service fees for stolen vehicle recov...
Ituran Location And Control Earnings Call Summary
Earnings Call Date:Mar 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 26, 2026
Earnings Call Sentiment Positive
The call presented a strongly positive operational and financial performance with record revenue, EBITDA, subscriber growth, and cash generation in 2025, alongside a very strong balance sheet and generous capital returns. Management highlighted multiple new strategic initiatives (IturanMob U.S. rollout, Credit Carbon, big-data monetization) that could materially expand revenue and ARPU over the medium term, but emphasized these are early-stage with limited contribution in 2026. Key near-term concerns include slow product revenue growth, modest full-year EBITDA expansion, geographic concentration (55% of revenue from Israel) and commercialization/regulatory risks for the new initiatives. On balance, the positive results, cash strength, and visible growth drivers outweigh the near-term limitations and risks.Positive Updates
Record Quarterly and Annual Revenues
Q4 revenue $93.5M, up 13% year-over-year (record quarter); FY 2025 revenue $359M, up 7% vs $336.3M in 2024.
Negative Updates
Slower Product Revenue Growth
FY product revenues $94.5M, up only 1% YoY; Q4 product revenues $22.4M, up 5% YoY, indicating product sales growth lagging subscription growth.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Quarterly and Annual Revenues
Q4 revenue $93.5M, up 13% year-over-year (record quarter); FY 2025 revenue $359M, up 7% vs $336.3M in 2024.
Read all positive updates
Company Guidance
Management gave limited formal forward guidance but provided clear operational and timing expectations: they expect to maintain current ARPU and continue a net‑add run rate in line with recent quarters (40k+ net adds per quarter), implying 160k–188k net new subscribers for 2026 (year‑end 2025 subscribers were 2.63M after +42k in Q4 and +221k in 2025). New initiatives (IturanMob U.S. expansion, big‑data monetization pilots and Credit Carbon) are commercially targeted mid‑to‑end‑2026 with Credit Carbon initial deployment toward year‑end 2026, though management warned 2026 financial contribution from these initiatives will be very low and material contribution is expected in 2027+. They expect continued operating‑leverage to support EBITDA margins but gave no numeric margin guidance; for context Q4‑25 revenue was $93.5M (+13% YoY) with subscription revenue $71.1M (76% of sales, +15%), Q4 EBITDA $25.3M (27.1% margin, +12% YoY), Q4 operating cash flow $29.4M, FY‑25 revenue $359M (+7%), EBITDA $96.2M (26.8%), net income $58M (16.1%), fully diluted EPS $2.92, OCF $88.6M and cash & marketable securities $107.6M. On capital allocation the board signaled continued shareholder returns: a $30M Q4 payout ( $10M regular + $20M special), $60M total dividends for 2025 (~100% of net income, ~7% yield), and an increased buyback authorization leaving $13.5M available after $3.1M repurchased (85k shares) in 2025.Ituran Location And Control Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
78
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 359.02M | 336.26M | 319.98M | 293.07M | 270.88M |
| Gross Profit | 178.58M | 160.62M | 153.16M | 137.56M | 127.84M |
| EBITDA | 96.11M | 93.35M | 87.37M | 75.54M | 69.31M |
| Net Income | 57.97M | 53.65M | 48.14M | 37.10M | 34.26M |
Balance Sheet | |||||
| Total Assets | 386.21M | 326.88M | 318.69M | 290.93M | 293.02M |
| Cash, Cash Equivalents and Short-Term Investments | 107.55M | 77.37M | 53.55M | 28.17M | 54.71M |
| Total Debt | 4.75M | 9.06M | 8.66M | 22.09M | 36.12M |
| Total Liabilities | 161.73M | 135.62M | 138.44M | 137.72M | 155.22M |
| Stockholders Equity | 217.56M | 185.23M | 174.45M | 145.80M | 132.46M |
Cash Flow | |||||
| Free Cash Flow | 66.80M | 60.63M | 62.98M | 18.61M | 39.16M |
| Operating Cash Flow | 88.58M | 74.27M | 77.22M | 45.12M | 55.79M |
| Investing Cash Flow | -24.18M | -15.94M | -17.23M | -27.35M | -18.52M |
| Financing Cash Flow | -42.71M | -31.77M | -32.93M | -36.36M | -58.67M |
Ituran Location And Control Technical Analysis
Positive
52.94
Price Trends
47.27
Positive
43.83
Positive
39.78
Positive
Market Momentum
1.27
Negative
66.40
Neutral
74.67
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 52.94 is above the 20-day moving average (MA) of 49.61, above the 50-day MA of 47.27, and above the 200-day MA of 39.78, indicating a bullish trend. The MACD of 1.27 indicates Negative momentum. The RSI at 66.40 is Neutral, neither overbought nor oversold. The STOCH value of 74.67 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 Risk Analysis
Ituran Location And Control disclosed 35 risk factors in its most recent earnings report. Ituran Location And Control reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ituran Location And Control Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $1.06B | 14.75 | 28.06% | 4.38% | 5.20% | 9.14% | |
67 Neutral | $1.32B | 37.11 | 5.50% | ― | 29.67% | 41.90% | |
64 Neutral | $1.20B | -15.18 | -30.65% | ― | 14.33% | 83.32% | |
63 Neutral | $274.17M | 12.04 | 5.54% | ― | 10.89% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $515.42M | 81.87 | 12.49% | ― | 16.06% | 166.69% | |
52 Neutral | $397.08M | -52.83 | -6.94% | ― | 92.56% | 85.10% |
* Technology Sector Average
ITRN
Ituran Location And Control
53.04
22.28
72.41%
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14.82
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96.55%
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52.37
35.99
219.72%
GILT
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AIOT
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-36.48%
Ituran Location And Control Corporate Events
Ituran Shareholders Overwhelmingly Approve Executive Compensation Policy Change
Mar 31, 2026
Ituran Location and Control, a leading provider of connected-car and location-based mobility services, has built a market-leading position in Israel and Latin America, supplying OEM telematics, vehicle recovery, fleet management, and asset-trackin...
Ituran Location and Control Details Israeli Withholding Tax Framework for April 16 Dividend
Mar 26, 2026
On March 26, 2026, Ituran Location and Control announced it had secured a ruling from the Israeli Tax Authority governing withholding tax procedures for a previously declared $1.50‑per‑share dividend, payable on April 16, 2026 to share...
Ituran Location and Control Declares $30 Million Q4 2025 Dividend
Mar 5, 2026
Ituran Location and Control Ltd., a global provider of connected-car and location-based mobility services, has built a subscriber base of more than 2.6 million users since its founding in 1995. The company operates from Israel with roughly 2,800 e...
Ituran Location and Control Posts Record 2025 Results, Boosts Payouts and Buyback
Mar 5, 2026
On March 5, 2026, Ituran Location and Control reported record results for the fourth quarter and full year 2025, with annual revenue up 7% to $359 million and net income up 8% to $58 million, supported by a subscriber base that grew by 221,000 to ...
Ituran Location and Control Calls March 31, 2026 General Meeting to Vote on Executive Pay Policy Change
Feb 27, 2026
Ituran Location and Control Ltd. has called a General Meeting of Shareholders to be held on March 31, 2026, at its U.S. offices in Fort Lauderdale, Florida, with a record date of March 10, 2026 for determining shareholders entitled to vote. The me...
Ituran Wins Stellantis Deal to Power Fiat Strada Connectivity in South America
Feb 25, 2026
On February 25, 2026, Ituran Location and Control Ltd. announced it was selected to provide the full connectivity solution for the Connect Fiat program in South America, in partnership with Stellantis. The three-year agreement, with an option for ...
Ituran Location and Control Sets March 5, 2026 Date for Q4 and Full-Year 2025 Results
Feb 9, 2026
Ituran Location and Control, a leader in connected-car and location-based mobility services with a major presence in Israel and Latin America, continues to grow its more than 2.5 million-subscriber base across over 20 countries. The company provid...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.