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Ituran Location And Control (ITRN)
NASDAQ:ITRN
US Market
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Ituran Location And Control (ITRN) AI Stock Analysis

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ITRN

Ituran Location And Control

(NASDAQ:ITRN)

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Outperform 86 (OpenAI - 5.2)
Rating:86Outperform
Price Target:
$65.00
▲(18.68% Upside)
Action:Reiterated
Date:05/27/26
The score is driven primarily by strong financial performance (high margins, very low leverage, solid free cash flow). Technicals are supportive with clear trend strength above major moving averages. Valuation is appealing given the moderate P/E and high dividend yield, while the earnings call adds confidence via upbeat guidance but is tempered by slight margin pressure, FX sensitivity, and a subscriber-reporting inconsistency.
Positive Factors
Recurring subscription revenue
High and growing subscription mix (73% of revenues, +21% YoY) means durable recurring cash flows and greater revenue predictability. This strengthens customer lifetime value economics, supports margin stability, and underpins scalable unit economics for multi‑year growth investments.
Negative Factors
Early‑stage growth initiatives
Promising new products and data monetization efforts are still immature; revenue contribution and margins remain uncertain. Execution and commercialization risk could delay meaningful incremental recurring revenue, limiting near‑term upside despite strategic long‑term potential.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring subscription revenue
High and growing subscription mix (73% of revenues, +21% YoY) means durable recurring cash flows and greater revenue predictability. This strengthens customer lifetime value economics, supports margin stability, and underpins scalable unit economics for multi‑year growth investments.
Read all positive factors

Ituran Location And Control (ITRN) vs. SPDR S&P 500 ETF (SPY)

Ituran Location And Control Business Overview & Revenue Model

Company Description
Ituran Location and Control Ltd., together with its associated companies, specializes in providing a full range of location-based telematics services and machine-to-machine (M2M) telematics products. The company's operations are divided into two m...
How the Company Makes Money
Ituran primarily makes money through recurring subscription revenue for telematics services. Customers (individual drivers, fleets, and other organizations) pay periodic fees for services such as stolen vehicle recovery, real-time vehicle tracking...

Ituran Location And Control Earnings Call Summary

Earnings Call Date:May 26, 2026
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive operational and financial quarter: record revenues, double‑digit growth in revenue, subscription revenue, EBITDA, and net income, solid cash generation, a meaningful dividend, and expanded OEM partnerships. Offsetting items include modest margin compression, early‑stage nature and uncertain sizing of new growth initiatives (IturanMob, big data, Credit Carbon), dependence on potentially transient FX tailwinds, and a notable inconsistency in the reported subscriber total that needs clarification. On balance, the positive financial performance, cash strength, and clear OEM traction outweigh the execution and reporting caveats.
Positive Updates
Record Revenue Milestone
Total revenue reached $102.7 million for Q1 2026, the first time the company crossed the $100 million mark, representing a 19% year‑over‑year increase from $86.5 million.
Negative Updates
Margin Compression
EBITDA margin declined to 26.0% from 26.9% in the prior year quarter (a 0.9 percentage‑point decrease). Net income margin decreased to 16.3% from 16.9% (a 0.6 percentage‑point decline), signaling slight margin pressure despite top‑line growth.
Read all updates
Q1-2026 Updates
Negative
Record Revenue Milestone
Total revenue reached $102.7 million for Q1 2026, the first time the company crossed the $100 million mark, representing a 19% year‑over‑year increase from $86.5 million.
Read all positive updates
Company Guidance
Management's forward guidance called for 2026 net subscriber additions of 160,000–180,000 and reiterated expectations for continued double‑digit growth and profitability, supported by Q1 results of revenue $102.7M (+19% YoY), subscription revenue $75.4M (+21%, 73% of total), product revenue $27.3M (+12%), EBITDA $26.7M (26% margin, +15% YoY), net income $16.8M (16.3% margin; diluted EPS $0.85, +15% YoY), cash flow from operations $18.2M and net cash including marketable securities of $108M; the board declared a $10M dividend ($0.50/share) and repurchased $0.5M of shares (≈$13M buyback authorization remaining), while highlighting OEM expansion (Stellantis Connect Fiat initial 3‑year term + 2‑year option), rollout of IturanMob, and early big‑data projects as additional growth drivers.

Ituran Location And Control Financial Statement Overview

Summary
High-quality fundamentals: strong profitability (gross margin ~49.7%, EBIT margin ~21.6%, net margin ~16.1%), very conservative leverage (debt-to-equity ~0.02), and robust/free-cash-flow generation (~$74.8M TTM). Key watch-outs are steadier recent revenue growth and some variability in cash conversion (FCF ~75% of net income).
Income Statement
86
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
80
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue375.23M359.02M336.26M319.98M293.07M270.88M
Gross Profit186.00M178.58M160.62M153.16M137.56M127.84M
EBITDA99.92M95.92M93.35M87.37M75.54M69.31M
Net Income60.15M57.97M53.65M48.14M37.10M34.26M
Balance Sheet
Total Assets401.20M386.21M326.88M318.69M290.93M293.02M
Cash, Cash Equivalents and Short-Term Investments107.97M107.55M77.37M53.55M28.17M54.71M
Total Debt4.32M8.88M9.06M8.66M22.09M36.12M
Total Liabilities187.45M161.73M135.62M138.44M137.72M155.22M
Stockholders Equity207.45M217.56M185.23M174.45M145.80M132.46M
Cash Flow
Free Cash Flow74.82M66.80M60.63M62.98M18.61M39.16M
Operating Cash Flow96.55M88.58M74.27M77.22M45.12M55.79M
Investing Cash Flow-25.12M-24.18M-15.94M-17.23M-27.35M-18.52M
Financing Cash Flow-48.02M-42.71M-31.77M-32.93M-36.36M-58.67M

Ituran Location And Control Technical Analysis

Technical Analysis Sentiment
Positive
Last Price54.77
Price Trends
50DMA
59.91
Negative
100DMA
56.75
Negative
200DMA
48.82
Positive
Market Momentum
MACD
-1.18
Negative
RSI
45.20
Neutral
STOCH
37.50
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 54.77 is below the 20-day moving average (MA) of 55.55, below the 50-day MA of 59.91, and above the 200-day MA of 48.82, indicating a neutral trend. The MACD of -1.18 indicates Negative momentum. The RSI at 45.20 is Neutral, neither overbought nor oversold. The STOCH value of 37.50 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
86
Outperform
$1.10B18.1428.54%5.48%11.12%9.16%
67
Neutral
$835.87M21.247.33%46.26%111.78%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
60
Neutral
$526.17M-25.47-4.35%22.42%64.09%
56
Neutral
$265.00M35.933.37%0.23%
55
Neutral
$572.17M-611.50-1.56%-9.43%-103.56%
46
Neutral
$689.29M-19.01-24.02%18.84%77.12%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ITRN
Ituran Location And Control
55.86
18.72
50.40%
ADTN
Adtran
8.86
-0.61
-6.44%
AVNW
Aviat Networks
20.45
-0.86
-4.04%
FEIM
Frequency Electronics
60.30
32.57
117.45%
GILT
Gilat
11.70
4.24
56.84%
AIOT
Powerfleet
4.08
0.21
5.43%

Ituran Location And Control Corporate Events

Ituran Location and Control Sets August 12 Date for Q2 2026 Results and Investor Call
Jul 20, 2026
Ituran Location and Control Ltd., a Nasdaq-listed leader in mobility technology and connected-car services, offers location-based solutions such as stolen vehicle recovery, fleet management and mobile asset control to retail, insurance, financing ...
Ituran Sets Israeli Withholding Tax Procedures for July 8, 2026 Dividend
Jun 25, 2026
On June 25, 2026, Ituran Location and Control announced that, in connection with a previously declared $0.50 per share dividend (about $10 million) payable on July 8, 2026 to shareholders of record as of June 24, 2026, it obtained a ruling from th...
Ituran Location and Control Declares $10 Million Q1 2026 Dividend
May 26, 2026
Ituran Location and Control, a leading provider of connected-car and location-based mobility services, reported a subscriber base of more than 2.6 million users and a strong presence in Israel and Latin America as of March 31, 2026. Founded in 199...
Ituran Location & Control Delivers Double-Digit Growth in Q1 2026 Results
May 26, 2026
On May 26, 2026, Ituran Location and Control reported first-quarter 2026 results showing revenue of $102.7 million, up 19% year over year, driven by 21% growth in higher-margin subscription revenue to $75.4 million and a 40,000 net increase in sub...
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.Date of analysis: May 27, 2026