Ituran Location And Control (ITRN) AI Stock Analysis

• Market Cap: $796.54M
• Dividend Yield: 5.15%
• Average Volume (3M): 65.77K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.87
• Revenue Growth: 5.20%
• EPS Growth: 9.14%
• Country: US
• Employees: 2,892
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.74
• Shares Outstanding: 19,893,580
• 10 Day Avg. Volume: 83,998
• 30 Day Avg. Volume: 65,765
• PEG Ratio: 0.96
• Price to Book (P/B): 3.35
• Price to Sales (P/S): 1.84
• P/FCF Ratio: 10.22
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: 1.80
• Enterprise Value/Gross Profit: 3.65
• Enterprise Value/Ebitda: 6.69
• 1Y Price Target: $50.00
• Price Target Upside: 24.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 2.84
• Revenue Forecast (FY): $342.56M

• Rating: 79 Outperform
• Price Target: $47.00 ▲(17.32% Upside)

Ituran Location And Control's strong financial performance and positive earnings call are the most significant factors driving the score. The company's robust revenue growth, subscriber expansion, and strategic initiatives in new markets are key strengths. Technical indicators suggest a positive trend, though caution is advised due to overbought signals. Valuation metrics are favorable, with a reasonable P/E ratio and attractive dividend yield.

Positive Factors

Subscriber Base Expansion

A growing subscriber base enhances recurring revenue streams and strengthens market position, supporting long-term business stability.

Strong Financial Health

A strong balance sheet with low leverage and high ROE indicates financial stability and efficient use of capital, supporting sustainable growth.

U.S. Market Expansion

Entering the U.S. market with new products opens significant growth opportunities, diversifying revenue sources and enhancing competitive positioning.

Negative Factors

Operating Expenses Increase

Rising operating expenses due to FX effects can pressure margins, potentially impacting profitability if not managed effectively.

Slow Growth in India

Slow growth in India limits expansion potential in a large market, affecting long-term revenue growth prospects in the region.

Free Cash Flow Conversion

Suboptimal free cash flow conversion indicates challenges in translating profits into cash, which could affect liquidity and investment capacity.

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 streams, primarily by charging subscription fees for its telematics and tracking services. The company offers various service packages that include features such as real-time location tracking, driver behavior analysis, and fleet management tools. In addition to subscription revenues, Ituran also earns money from the sale of hardware devices used in tracking and monitoring vehicles. Significant partnerships with automotive manufacturers and insurance companies further enhance its revenue potential, as these collaborations often lead to bundled service offerings and increased customer acquisition. Furthermore, the company benefits from a growing demand for vehicle security solutions and advancements in IoT technology, contributing to its overall earnings.

Ituran Location And Control Financial Statement Overview

Summary

Ituran Location And Control demonstrates strong financial health with consistent revenue and profit growth, a robust balance sheet with low leverage, and solid cash flow generation. The company is well-positioned in the communication equipment industry, with effective cost management and capital utilization. Continued focus on improving cash flow conversion will further enhance financial stability.

Income Statement

Ituran Location And Control has demonstrated strong financial performance with consistent revenue growth and robust profit margins. The TTM (Trailing-Twelve-Months) data shows a gross profit margin of 49.51% and a net profit margin of 16.22%, indicating efficient cost management and profitability. Revenue growth is steady, with a 2.59% increase in the latest period, showcasing resilience in the competitive communication equipment industry.

Balance Sheet

The company's balance sheet is solid, with a low debt-to-equity ratio of 0.02 in the TTM period, reflecting prudent financial leverage. The return on equity is impressive at 28.48%, indicating effective use of shareholder funds to generate profits. The equity ratio stands at 56.38%, suggesting a strong capital structure with a significant portion of assets financed by equity.

Cash Flow

Cash flow performance is healthy, with a 5.87% growth in free cash flow in the TTM period, highlighting effective cash management. The operating cash flow to net income ratio is 0.82, indicating good cash conversion from earnings. However, the free cash flow to net income ratio of 0.73 suggests room for improvement in translating profits into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	348.41M	336.26M	319.98M	293.07M	270.88M	245.63M
Gross Profit	172.48M	160.62M	153.16M	137.56M	127.84M	115.52M
EBITDA	93.93M	93.35M	87.37M	75.54M	69.31M	50.06M
Net Income	56.53M	53.65M	48.14M	37.10M	34.26M	16.12M
Balance Sheet
Total Assets	376.06M	326.88M	318.69M	290.93M	293.02M	312.47M
Cash, Cash Equivalents and Short-Term Investments	93.07M	77.37M	53.55M	28.17M	54.71M	78.85M
Total Debt	4.85M	9.06M	8.66M	22.09M	36.12M	60.00M
Total Liabilities	157.55M	135.62M	138.44M	137.72M	155.22M	182.57M
Stockholders Equity	212.00M	185.23M	174.45M	145.80M	132.46M	127.19M
Cash Flow
Free Cash Flow	62.06M	60.63M	62.98M	18.61M	39.16M	49.83M
Operating Cash Flow	84.44M	74.27M	77.22M	45.12M	55.79M	60.07M
Investing Cash Flow	-24.51M	-15.94M	-17.23M	-27.35M	-18.52M	-11.48M
Financing Cash Flow	-40.07M	-31.77M	-32.93M	-36.36M	-58.67M	-29.45M

Ituran Location And Control Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 40.06
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 40.06 is above the 20-day moving average (MA) of 38.23, above the 50-day MA of 37.15, and above the 200-day MA of 36.61, indicating a bullish trend. The MACD of 0.64 indicates Negative momentum. The RSI at 62.70 is Neutral, neither overbought nor oversold. The STOCH value of 89.26 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITRN	79 Outperform	$796.54M	14.09	28.62%	5.15%	5.20%	9.14%
FEIM	76 Outperform	$279.22M	12.54	49.16%	―	18.30%	262.72%
GILT	72 Outperform	$801.90M	31.82	6.95%	―	29.67%	41.90%
AVNW	63 Neutral	$273.18M	20.41	5.24%	―	10.89%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AIOT	61 Neutral	$665.11M	―	-8.98%	―	92.56%	85.10%
ADTN	41 Neutral	$635.32M	―	-48.44%	―	14.33%	83.32%

Ituran Location And Control Corporate Events

Ituran Signs OEM Agreement with Renault in Latin America

On November 24, 2025, Ituran Location and Control Ltd. announced a new three-year service agreement with Renault, a major European OEM, to provide vehicle telematics services in Latin America. This agreement is expected to enhance Ituran’s market presence in the region and potentially expand to other markets globally, aligning with Renault’s strategy to offer high-quality services and accelerate Ituran’s subscriber growth.

Ituran Announces $10 Million Dividend for Q3 2025

On November 18, 2025, Ituran Location and Control Ltd. announced a dividend distribution of $10 million for the third quarter of 2025, with a dividend of $0.50 per share to be paid on January 15, 2026. The company’s board confirmed that this distribution aligns with Israeli law and will not affect its operational capabilities or future plans. As of September 30, 2025, Ituran had retained earnings of $239 million and a cash balance of $93.1 million, ensuring financial stability despite the dividend payout.

Ituran Reports Record Q3 2025 Revenue and Expands U.S. Operations

Ituran Location and Control Ltd. reported its Q3 2025 financial results, showing a record revenue of $92.3 million, an 11% increase year-over-year, and a net profit of $14.6 million, up 7% from the previous year. The company added 40,000 net new subscribers, bringing its total subscriber base to over 2.5 million. Ituran also launched its smart-mobility solution, IturanMOB, in the United States, aiming to tap into the shared-mobility and rental-fleet market. The company declared a quarterly dividend of $10.0 million and continued its share buy-back program, reflecting its strong financial performance and strategic growth initiatives.

Ituran Location and Control Ltd. Announces Annual General Meeting for December 2025

On October 30, 2025, Ituran Location and Control Ltd. announced its Annual General Meeting of Shareholders, scheduled for December 16, 2025, in Fort Lauderdale, Florida. The meeting will address several key matters, including the discussion of the company’s audited financial statements, the renewal of its independent auditors, and the election of directors and external directors. Shareholders are encouraged to participate in person or by proxy, with voting on significant proposals that could impact the company’s governance and strategic direction.

Ituran Announces Q3 2025 Results Release and Conference Call

On October 20, 2025, Ituran Location and Control Ltd. announced it will release its third quarter 2025 financial results on November 18, 2025, followed by a conference call. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor relations.