Ituran Location And Control (ITRN) AI Stock Analysis

• Market Cap: $785.80M
• Dividend Yield: 4.47%
• Average Volume (3M): 79.19K
• Price to Earnings (P/E): 14.2
• Beta (1Y): 0.78
• Revenue Growth: 3.73%
• EPS Growth: 11.24%
• Country: US
• Employees: 2,892
• Sector: Technology
• Sector Strength: 98
• Industry: Communication Equipment
• EPS (TTM): 0.73
• Shares Outstanding: 19,893,580
• 10 Day Avg. Volume: 71,984
• 30 Day Avg. Volume: 79,191
• PEG Ratio: 5.42
• Price to Book (P/B): 4.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.68
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 0.52
• Enterprise Value/Gross Profit: 4.28
• Enterprise Value/Ebitda: 1.92
• 1Y Price Target: $50.00
• Price Target Upside: 26.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 82 Outperform
• Price Target: $47.00 ▲(18.99%Upside)

The overall stock score of 82 reflects Ituran's strong financial performance and positive earnings call sentiment. Technical indicators show a bullish trend, although the stock is nearing overbought levels. The valuation is fair, with a solid dividend yield enhancing attractiveness.

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 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 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.

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.

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.

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 Price: 39.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 39.5 is above the 20-day moving average (MA) of 39.49, above the 50-day MA of 37.98, and above the 200-day MA of 33.62, indicating a bullish trend. The MACD of 0.63 indicates Positive momentum. The RSI at 54.40 is Neutral, neither overbought nor oversold. The STOCH value of 51.43 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITRN	82 Outperform	$785.80M	14.23	30.02%	4.47%	3.73%	11.24%
DGII	71 Outperform	$1.25B	29.40	7.30%	―	-4.47%	195.28%
GILT	69 Neutral	$431.05M	30.95	4.79%	―	13.49%	-39.61%
ADTN	66 Neutral	$761.11M	―	-66.95%	―	-10.18%	75.30%
NTGR	65 Neutral	$722.18M	30.34	12.97%	―	0.68%	―
Sector *	62 Neutral	$35.05B	6.90	-11.57%	2.06%	6.28%	-15.90%
AIOT	56 Neutral	$565.49M	―	-17.72%	―	168.61%	79.82%