Ituran Location And Control (ITRN) AI Stock Analysis

• Market Cap: $706.82M
• Dividend Yield: 4.99%
• Average Volume (3M): 143.98K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.89
• Revenue Growth: 3.30%
• EPS Growth: 9.66%
• Country: US
• Employees: 2,892
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.67
• Shares Outstanding: 19,893,580
• 10 Day Avg. Volume: 107,442
• 30 Day Avg. Volume: 143,978
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 2.04
• Enterprise Value/Gross Profit: 4.17
• Enterprise Value/Ebitda: 7.52
• 1Y Price Target: $45.00
• Price Target Upside: 26.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 70 Outperform
• Price Target: $40.00 ▲(12.14% Upside)

Ituran Location And Control's strong financial performance and positive earnings call outlook are significant strengths, contributing to a solid stock score. However, bearish technical indicators and negative free cash flow growth present challenges. The reasonable valuation and attractive dividend yield provide additional support to the stock's overall appeal.

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 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 Financial Statement Overview

Summary

Ituran Location And Control shows strong financial health with robust revenue growth and profitability. The company maintains a stable balance sheet with low leverage and high return on equity. While cash flow generation is solid, the negative free cash flow growth warrants attention. Overall, the financial position is strong, with potential for continued growth and stability.

Income Statement

Ituran Location And Control demonstrates strong revenue growth with a TTM increase of 57%, indicating robust demand and market expansion. The company maintains healthy profitability with a gross profit margin of 48.9% and a net profit margin of 16.4%, showcasing efficient cost management. EBIT and EBITDA margins are solid at 21.6% and 27.1%, respectively, reflecting strong operational performance.

Balance Sheet

The balance sheet is stable with a low debt-to-equity ratio of 0.025, indicating minimal leverage and financial risk. Return on equity is impressive at 29%, highlighting effective use of shareholder funds. The equity ratio stands at 56.5%, suggesting a strong equity base relative to total assets, which enhances financial stability.

Cash Flow

Cash flow performance is solid, with an operating cash flow to net income ratio of 0.79, indicating good cash generation relative to earnings. However, free cash flow growth is negative at -3.9%, suggesting potential challenges in cash flow expansion. The free cash flow to net income ratio of 0.75 reflects a healthy conversion of profits into cash.

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

• Technical Analysis Sentiment: Negative
• Last Price: 35.67
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 35.67 is above the 20-day moving average (MA) of 35.09, below the 50-day MA of 37.91, and above the 200-day MA of 35.50, indicating a neutral trend. The MACD of -0.62 indicates Negative momentum. The RSI at 47.52 is Neutral, neither overbought nor oversold. The STOCH value of 82.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ITRN.

Ituran Location And Control Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DGII	78 Outperform	1.39B	32.95	6.87%	―	-2.37%	147.46%
ITRN	70 Outperform	$706.82M	12.73	29.11%	4.99%	3.30%	9.66%
NTGR	70 Outperform	844.73M	13.52	12.18%	―	0.76%	0.00%
GILT	69 Neutral	747.29M	29.65	8.16%	―	19.67%	12.32%
AIOT	57 Neutral	712.59M	-18.00	-11.42%	―	119.36%	86.58%
ADTN	56 Neutral	760.50M	-7.19	-64.24%	―	3.52%	81.33%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%