Ituran Location And Control (ITRN) AI Stock Analysis

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Ituran Location And Control

(NASDAQ:ITRN)

Rating:80Outperform

Price Target:

$41.00

▲(3.80%Upside)

Ituran Location And Control is rated highly due to its strong financial performance and effective cash management, complemented by a robust dividend yield and attractive valuation. While technical indicators suggest some volatility, the company's solid earnings performance and strategic growth initiatives underscore its potential. Challenges such as currency fluctuations and ARPU concerns are noted, but the overall outlook remains positive.

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

Market Cap

$785.80M

Dividend Yield5.06%

Average Volume (3M)97.22K

Price to Earnings (P/E)14.2

Beta (1Y)0.80

Revenue Growth3.73%

EPS Growth11.24%

CountryUS

Employees2,892

SectorTechnology

Sector Strength87

IndustryCommunication Equipment

Share Statistics

EPS (TTM)0.73

Shares Outstanding19,893,580

10 Day Avg. Volume86,705

30 Day Avg. Volume97,222

Financial Highlights & Ratios

PEG Ratio1.13

Price to Book (P/B)2.96

Price to Sales (P/S)0.00

P/FCF Ratio23.18

Enterprise Value/Market Cap0.54

Enterprise Value/Revenue0.32

Enterprise Value/Gross Profit2.63

Enterprise Value/Ebitda1.17

Forecast

1Y Price Target

$50.00

Price Target Upside26.58% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

Ituran Location And Control Business Overview & Revenue Model

Company DescriptionIturan Location and Control Ltd. is a global leader in providing innovative telematics solutions, focusing primarily on vehicle location-based services and wireless communication products. Headquartered in Israel, the company operates in various sectors, including automotive, insurance, and fleet management, offering a wide array of services such as stolen vehicle recovery, fleet management, and tracking services for both corporate and individual clients.

How the Company Makes MoneyIturan Location and Control makes money through multiple revenue streams. The primary source is subscription-based services, where customers pay regular fees for vehicle tracking and recovery services, fleet management solutions, and other telematics services. Another significant revenue stream comes from the sale of hardware devices related to location-based services, such as GPS tracking units. The company also partners with insurance companies to offer integrated solutions that help reduce risk and improve vehicle security, contributing to its earnings. Additionally, Ituran generates revenue through its international operations and collaborations with automotive manufacturers and distributors, expanding its market reach and customer base.

Ituran Location And Control Earnings Call Summary

Earnings Call Date:May 28, 2025

(Q1-2025)

% Change Since: 2.09%|

Next Earnings Date:Sep 02, 2025

Earnings Call Sentiment Positive

The earnings call highlighted significant achievements including a major milestone in subscriber growth, a new strategic OEM agreement, and record financial performance. However, challenges such as currency fluctuations and a lower ARPU from the new Stellantis agreement were noted.

Q1-2025 Updates

Positive Updates

Subscriber Base Milestone

Ituran achieved a major milestone by crossing 2.5 million subscribers, with a net addition of 99,000 new subscribers in Q1 2025.

New OEM Agreement with Stellantis

Ituran signed a new telematics service agreement with Stellantis, the largest car manufacturer in Latin America, contributing significantly to subscriber growth.

Record Revenue and Profit Growth

First quarter revenues reached a record $86.5 million, a 2% increase year-over-year, and in local currencies, a 7% increase. EBITDA increased by 4% to $23.3 million.

Strong Cash Flow and Dividend

Operating cash flow for Q1 2025 was $15.5 million, and a dividend of $10 million was declared, representing a 6% annualized dividend yield.

Negative Updates

Impact of Currency Fluctuations

The strengthening of the U.S. dollar had a deflating impact on financial results, affecting revenues when translated into U.S. dollars.

Lower ARPU for New OEM Deal

The initial OEM agreement with Stellantis contributed lower ARPU than the Ituran average due to the nature of the service agreement.

Company Guidance

During the Ituran First Quarter 2025 Results Conference Call, management provided guidance on key business metrics, highlighting a significant increase in the subscriber base, which grew by 99,000 net new subscribers in Q1, reaching 2.5 million. This growth was driven by a new telematics service agreement with car manufacturer Stellantis. Consequently, Ituran revised its 2025 subscriber growth expectations to 220,000-240,000 net new subscribers, implying the addition of 120,000-140,000 subscribers over the next three quarters. Financially, the company reported record revenues of $86.5 million, a 2% year-over-year increase, with subscription fees accounting for $62.2 million. In local currencies, revenue grew by 7%, and net income rose by 12% to $14.6 million. EBITDA was $23.3 million, representing 26.9% of revenues. Ituran also announced a $10 million dividend, reflecting a 6% annualized dividend yield, continuing its strong focus on shareholder value creation.

Ituran Location And Control Financial Statement Overview

Summary

Ituran Location And Control demonstrates excellent financial health with consistent revenue growth, strong profitability margins, low leverage, and robust cash flow metrics. The company maintains strong profitability, with a gross profit margin of 47.76% and a net profit margin of 15.96% in 2024. Strong cash flow metrics and a healthy balance sheet further bolster its financial position.

Income Statement

Very Positive

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

Very Positive

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

Very Positive

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
EBITDA	93.35M	87.37M	75.54M	69.31M	50.06M
Net Income	53.65M	48.14M	37.10M	34.26M	16.12M
Balance Sheet
Total Assets	326.88M	318.69M	290.57M	293.02M	312.47M
Cash, Cash Equivalents and Short-Term Investments	77.37M	53.55M	28.17M	54.71M	78.85M
Total Debt	9.06M	8.66M	18.76M	33.18M	57.15M
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 Price39.50

Price Trends

50DMA

36.45

Positive

100DMA

36.27

Positive

200DMA

32.29

Positive

Market Momentum

MACD

0.69

Negative

RSI

71.48

Negative

STOCH

85.04

Negative

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 39.5 is above the 20-day moving average (MA) of 36.84, above the 50-day MA of 36.45, and above the 200-day MA of 32.29, indicating a bullish trend. The MACD of 0.69 indicates Negative momentum. The RSI at 71.48 is Negative, neither overbought nor oversold. The STOCH value of 85.04 is Negative, 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 (50)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITRN	80 Outperform	$785.80M	14.23	30.02%	5.06%	3.73%	11.24%
DGII	79 Outperform	$1.33B	31.80	7.30%	―	-4.47%	195.28%
GILT	73 Outperform	$411.09M	29.60	4.79%	―	13.49%	-39.61%
AIOT	65 Neutral	$578.83M	―	-17.72%	―	168.61%	79.82%
NTGR	64 Neutral	$846.53M	36.18	4.78%	―	-6.97%	―
ADTN	60 Neutral	$765.11M	―	-66.95%	―	-10.18%	75.30%
Sector *	50 Neutral	AU$1.49B	1.75	-28.24%	3.26%	16.24%	-7.89%

* Technology Sector Average

Performance Comparison

ITRN

Ituran Location And Control

39.50

16.29

70.19%

ADTN

Adtran

9.56

4.33

82.79%

DGII

Digi International

35.94

13.19

57.98%

GILT

Gilat

7.21

2.74

61.30%

AIOT

Powerfleet

4.34

0.08

1.88%

NTGR

Netgear

29.41

14.88

102.41%

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: Jun 24, 2025