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Ituran Location And Control Ltd (ITRN)
NASDAQ:ITRN
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Ituran Location And Control
(NASDAQ:ITRN)
Rating:70Outperform
Price Target:
$40.00
▲(8.81% Upside)
Ituran Location And Control (ITRN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$731.29M
Dividend Yield4.84%
Average Volume (3M)94.69K
Price to Earnings (P/E)13.0
Beta (1Y)0.86
Revenue Growth3.30%
EPS Growth9.66%
CountryUS
Employees2,892
SectorTechnology
Sector Strength85
IndustryCommunication Equipment
Share Statistics
EPS (TTM)0.67
Shares Outstanding19,893,580
10 Day Avg. Volume130,113
30 Day Avg. Volume94,691
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.95
Enterprise Value/Revenue2.04
Enterprise Value/Gross Profit4.17
Enterprise Value/Ebitda7.52
Forecast
1Y Price Target
$45.00Price Target Upside22.42% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Ituran Location And Control Business Overview & Revenue Model
Company DescriptionIturan Location and Control Ltd. (ITRN) is a leading provider of location-based services and advanced telematics solutions, primarily focused on the automotive sector. Established in 1995, the company operates in various regions, including North America, South America, and Europe. Ituran specializes in vehicle tracking, recovery services, and fleet management solutions, leveraging cutting-edge technology to enhance security and operational efficiency for its clients. The company's core offerings include GPS-based tracking systems, mobile applications, and data analytics services tailored for both individual consumers and businesses.
How the Company Makes MoneyIturan generates revenue through multiple channels, primarily from subscription-based services for its vehicle tracking and telematics solutions. Customers pay a monthly or annual fee for access to real-time tracking, location data, and additional features such as route optimization and driver behavior analysis. The company also earns revenue from the sale of hardware, including GPS devices and installation services. Significant partnerships with automotive manufacturers and insurance companies further bolster its revenue, as these collaborations often involve bundling Ituran's services with new vehicles or insurance policies. Additionally, Ituran benefits from recurring revenue streams through long-term contracts with fleet management clients, enhancing its financial stability.
Ituran Location And Control Earnings Call Summary
Earnings Call Date:Aug 19, 2025
(Q2-2025)
| % Change Since: -8.74%|
Next Earnings Date:Nov 19, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with steady subscriber growth, record revenues, and strong cash flow despite challenges from geopolitical conflicts and currency fluctuations. Expansion into new markets like motorcycle telematics shows promise.Q2-2025 Updates
Positive Updates
Steady Subscriber Growth
Ituran added 40,000 net subscribers in Q2 2025, with a target of 220,000 to 240,000 net subscribers for the year.
Record Revenue Achievement
Q2 2025 revenues reached a record $86.8 million, showing a 2% increase year-over-year, and a 4% increase in local currency terms.
Strong Cash Flow and Dividend Policy
Operating cash flow was $22.4 million in Q2 2025, and a $10 million dividend was declared, representing a 5% annualized return.
Expansion in Motorcycle Market
The partnership with BMW Motorrad in Brazil is expected to bring tens of thousands of new subscribers annually, expanding Ituran's market reach.
Negative Updates
Impact of Israel-Iran Conflict
A 2-week suspension of economic activities in Israel due to the conflict impacted new car sales and delayed product sales.
Decrease in Product Revenues
Product revenues decreased by 6% year-over-year in Q2 2025, affected by the conflict-related suspension of sales.
Increased Finance Expenses
Finance expenses of $1.3 million were recorded due to a stronger Israeli shekel affecting U.S. dollar-linked deposits, resulting in noncash expenses.
Company Guidance
During the call, Ituran provided guidance for continued growth in 2025, aiming to add between 220,000 and 240,000 net subscribers despite economic disruptions caused by the Israel-Iran conflict. The company reported a subscriber base increase to 2.548 million, with 40,000 net additions in Q2. Revenues for the second quarter reached $86.8 million, a 2% increase from the previous year, with subscription fees contributing $63.8 million, a 6% year-over-year rise. However, product revenues declined by 6% due to halted sales during the 12-day war. The strengthening dollar slightly deflated financial results in USD terms, though local currency revenues grew by 4%. Ituran declared a $10 million dividend, reflecting a 5% annualized yield. The company's cash flow from operations was $22.4 million, with net cash holdings of $88.7 million by the quarter's end. The partnership with BMW Motorrad in Brazil was highlighted as a key growth driver, potentially adding tens of thousands of new subscribers annually.Ituran Location And Control Financial Statement Overview
Summary
Ituran Location And Control exhibits strong financial performance across all verticals. The income statement shows impressive growth and profitability. The balance sheet is solid with low leverage and strong equity returns, while the cash flow statement demonstrates effective cash management and conversion. The company's financial health is robust, with minimal risks and a positive growth trajectory.Income Statement
Ituran Location And Control has demonstrated strong revenue growth with a 14.4% increase from 2022 to 2023 and a consistent upward trend in profitability metrics. The gross profit margin is robust at 48.3% for the TTM, reflecting efficient cost management. The net profit margin has improved to 16.3% in TTM, indicating enhanced profitability. The EBIT and EBITDA margins are solid at 21.6% and 27.3% respectively, showcasing effective operational performance. Overall, the company exhibits a strong income statement with positive growth and profitability trends.88
Very Positive
Balance Sheet
The company's balance sheet is stable with a low debt-to-equity ratio of 0.03 in TTM, highlighting minimal leverage risk. Return on Equity stands at 28.9%, indicating efficient use of equity to generate profits. The equity ratio is healthy at 56.7%, reflecting a strong capital structure. However, stockholders' equity growth has been moderate, which slightly tempers the otherwise positive outlook. Overall, Ituran's balance sheet demonstrates strong financial health with low leverage and solid returns on equity.82
Very Positive
Cash Flow
Ituran's cash flow statements show a robust free cash flow growth rate of 0.6% in TTM, supported by strong operating cash flow generation. The operating cash flow to net income ratio at 1.41 indicates excellent cash conversion efficiency. The free cash flow to net income ratio is strong at 1.10, suggesting effective cash management. Despite a slight decline in operating cash flow compared to previous periods, the company maintains strong cash flow metrics overall.85
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 339.61M | 336.26M | 319.98M | 293.07M | 270.88M | 245.63M |
| Gross Profit | 166.21M | 160.62M | 153.16M | 137.56M | 126.48M | 115.52M |
| EBITDA | 92.05M | 93.35M | 87.37M | 75.54M | 69.31M | 50.06M |
| Net Income | 55.54M | 53.65M | 48.14M | 37.10M | 34.26M | 16.12M |
Balance Sheet | ||||||
| Total Assets | 364.45M | 326.88M | 318.69M | 290.57M | 293.02M | 312.47M |
| Cash, Cash Equivalents and Short-Term Investments | 88.74M | 77.37M | 53.55M | 28.17M | 54.71M | 78.85M |
| Total Debt | 5.17M | 9.06M | 8.66M | 18.76M | 33.18M | 57.15M |
| Total Liabilities | 152.78M | 135.62M | 138.44M | 137.72M | 155.22M | 182.57M |
| Stockholders Equity | 206.04M | 185.23M | 174.45M | 145.80M | 132.46M | 127.19M |
Cash Flow | ||||||
| Free Cash Flow | 58.62M | 60.63M | 62.98M | 18.61M | 39.16M | 49.83M |
| Operating Cash Flow | 77.81M | 74.27M | 77.22M | 45.12M | 55.79M | 60.07M |
| Investing Cash Flow | -20.89M | -15.94M | -17.23M | -27.35M | -18.52M | -11.48M |
| Financing Cash Flow | -36.77M | -31.77M | -32.93M | -36.36M | -58.67M | -29.45M |
Ituran Location And Control Technical Analysis
Negative
36.76
Price Trends
38.91
Negative
37.11
Negative
34.89
Positive
Market Momentum
-0.82
Positive
37.55
Neutral
20.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ITRN, the sentiment is Negative. The current price of 36.76 is below the 20-day moving average (MA) of 39.36, below the 50-day MA of 38.91, and above the 200-day MA of 34.89, indicating a neutral trend. The MACD of -0.82 indicates Positive momentum. The RSI at 37.55 is Neutral, neither overbought nor oversold. The STOCH value of 20.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.26B | 29.86 | 7.21% | ― | -2.37% | 147.46% | |
70 Outperform | $731.29M | 13.04 | 29.11% | 4.84% | 3.30% | 9.66% | |
70 Outperform | $785.84M | 12.57 | 12.97% | ― | 0.76% | ― | |
69 Neutral | $567.81M | 25.37 | 7.49% | ― | 19.67% | 12.32% | |
61 Neutral | $35.62B | 8.22 | -10.94% | 1.88% | 8.86% | -10.36% | |
57 Neutral | $742.88M | ― | -53.68% | ― | 3.52% | 81.33% | |
53 Neutral | $624.51M | ― | -9.14% | ― | 119.36% | 86.58% |
* Technology Sector Average
Performance Comparison
ITRN
Ituran Location And Control
36.76
9.43
34.50%
ADTN
Adtran
9.34
3.95
73.28%
DGII
Digi International
34.04
5.76
20.37%
GILT
Gilat
9.95
5.42
119.65%
AIOT
Powerfleet
4.80
-0.09
-1.84%
NTGR
Netgear
27.12
10.91
67.30%
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.