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Itron Inc (ITRI)
:ITRI
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Itron
(NASDAQ:ITRI)78Outperform
Positive Factors
Business growth
Itron finished the year with a record backlog of $4.7B, reflecting a B2B of 2.29:1 on record quarterly bookings of $1.4B.
Financial performance
Itron issued Q4/24 results, reporting revenues of ~$613M (up ~6% y/y) and Adj. EBITDA of $81M (up ~19% y/y), with both top- and bottom-line numbers exceeding estimates and Street consensus.
Negative Factors
Market challenges
Trade policy dynamic creates uncertainty given exposure to proposed tariffs on Mexican imports.
Itron (ITRI) vs. S&P 500 (SPY)
Market Cap
$4.78B
Dividend YieldN/A
Average Volume (3M)717.96K
Price to Earnings (P/E)20.6
Beta (1Y)1.29
Revenue Growth12.29%
EPS Growth147.67%
CountryUS
Employees5,081
SectorTechnology
Sector Strength48
IndustryHardware & Equipment
Share Statistics
EPS (TTM)5.18
Shares Outstanding45,179,770
10 Day Avg. Volume1,134,147
30 Day Avg. Volume717,964
Financial Highlights & Ratios
PEG Ratio0.14
Price to Book (P/B)N/A
Price to Sales (P/S)1.96
Price to Cash Flow (P/CF)15.00
P/FCF Ratio17.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$131.50Price Target Upside22.92% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
Itron Business Overview & Revenue Model
Company DescriptionItron, Inc. is a technology and services company that provides solutions to optimize the delivery and use of energy and water. The company operates primarily in the utility sector, offering products such as smart meters, network communication solutions, and data analytics software. Itron's solutions are designed to help utilities manage resources more efficiently, improve service delivery, and enhance customer engagement.
How the Company Makes MoneyItron makes money by selling its hardware and software solutions to utility companies. Its primary revenue streams include the sale of smart meters and network communication devices, which are used to measure and transmit energy and water consumption data. Additionally, Itron generates revenue through its software and services segment, which includes data analytics, managed services, and consulting. The company also engages in long-term contracts and partnerships with utility providers, offering solutions that help them modernize their infrastructure and improve operational efficiency. These partnerships often involve recurring revenue through service agreements and software subscriptions.
Itron Financial Statement Overview
Summary
Itron demonstrates strong financial health with robust revenue and profit growth, a solid balance sheet, and strong cash generation. The company's financial statements reveal improved margins and financial stability, though maintaining growth rates and managing leverage will be crucial.Income Statement
Itron's income statement reflects a strong recovery and growth trajectory. The gross profit margin is robust, and the net profit margin has improved significantly from negative figures to a healthy positive margin. Revenue growth is strong, with a noteworthy increase from the previous year. Both EBIT and EBITDA margins have shown substantial improvement, indicating an efficient operation and a return to profitability.85
Very Positive
Balance Sheet
The balance sheet is solid, with a low debt-to-equity ratio reflecting good financial leverage management. The return on equity has improved significantly, indicating better profitability for shareholders. The equity ratio indicates a strong position, with a healthy proportion of assets funded by equity, reducing financial risk.80
Positive
Cash Flow
Itron's cash flow statement shows strong operating cash flow, which has supported solid free cash flow generation. The free cash flow growth rate is impressive, and the operating cash flow to net income ratio indicates that the company efficiently converts its profits into cash. The free cash flow to net income ratio is favorable, showing good cash generation relative to income.78
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.44B | 2.17B | 1.80B | 1.98B | 2.17B | Gross Profit |
| 839.32M | 713.91M | 522.19M | 573.17M | 602.17M | EBIT |
| 264.11M | 128.87M | 19.34M | 23.74M | 84.19M | EBITDA |
| 356.19M | 191.50M | 57.74M | 7.07M | 96.09M | Net Income Common Stockholders |
| 239.10M | 96.92M | -9.55M | -78.30M | -56.88M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.05B | 302.05M | 202.01M | 162.58M | 206.93M | Total Assets |
| 3.41B | 2.60B | 2.38B | 2.39B | 2.61B | Total Debt |
| 157.56M | 502.46M | 515.10M | 507.54M | 987.76M | Net Debt |
| -893.67M | 200.41M | 313.09M | 344.96M | 780.83M | Total Liabilities |
| 2.00B | 1.27B | 1.19B | 1.25B | 1.77B | Stockholders Equity |
| 1.39B | 1.31B | 1.17B | 1.12B | 816.55M |
| Cash Flow | Free Cash Flow | |||
| 238.18M | 98.09M | 4.75M | 120.11M | 63.31M | Operating Cash Flow |
| 238.18M | 124.97M | 24.50M | 154.79M | 109.51M | Investing Cash Flow |
| -63.41M | -23.31M | 40.52M | -34.88M | -41.04M | Financing Cash Flow |
| 579.57M | -3.51M | -18.74M | -152.89M | -11.58M |
Itron Technical Analysis
Positive
106.98
Price Trends
105.12
Positive
109.03
Negative
105.84
Positive
Market Momentum
0.31
Negative
56.23
Neutral
82.25
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ITRI, the sentiment is Positive. The current price of 106.98 is above the 20-day moving average (MA) of 102.03, above the 50-day MA of 105.12, and above the 200-day MA of 105.84, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 56.23 is Neutral, neither overbought nor oversold. The STOCH value of 82.25 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ITRI.
Itron Risk Analysis
Itron disclosed 35 risk factors in its most recent earnings report. Itron 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
Itron Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $4.78B | 20.65 | 17.70% | ― | 12.29% | 147.67% | |
74 Outperform | $30.94B | 34.84 | 8.55% | 1.14% | 16.23% | 34.42% | |
73 Outperform | $14.78B | 23.96 | 18.45% | 1.05% | -0.53% | 0.13% | |
73 Outperform | $2.96B | 24.50 | 14.01% | 2.35% | -0.04% | -5.82% | |
71 Outperform | $18.88B | 24.47 | 23.80% | 1.44% | 4.76% | 2.27% | |
59 Neutral | $22.39B | 11.53 | -18.05% | 2.31% | 5.00% | -25.89% | |
39 Underperform | $457.60M | ― | -166.29% | ― | 0.37% | -20.49% |
* Technology Sector Average
Performance Comparison
ITRI
Itron
106.98
11.13
11.61%
AWR
American States Water
77.52
7.52
10.74%
HUBB
Hubbell B
353.85
-34.16
-8.80%
PNR
Pentair
91.19
10.48
12.98%
XYL
Xylem
129.67
4.11
3.27%
SENS
Senseonics Holdings
0.69
0.10
16.95%
Itron Earnings Call Summary
Earnings Call Date: Feb 25, 2025 | % Change Since: 15.53% | Next Earnings Date: May 5, 2025
Earnings Call Sentiment Positive
Itron's earnings call highlights significant financial achievements with record revenues, strong bookings, and improved margins. However, challenges such as the decline in device solutions and back-end loaded bookings present some concerns. Overall, the positive aspects outweigh the negatives, indicating a solid financial and strategic position.Highlights
Record Full-Year Revenue
Itron achieved record full-year revenue in its growth segments of network solutions and outcomes, with total revenue for 2024 at $2.44 billion, a 12% increase compared to 2023.
Strong Q4 Financial Performance
Q4 revenue reached $613 million, a 6% increase year-over-year, with adjusted EBITDA of $81 million, reflecting a 19% increase. The free cash flow for Q4 was $70 million, compared to $39 million in the previous year.
Record Quarterly Bookings
Q4 2024 bookings were at $1.4 billion, contributing to a record total backlog of $4.7 billion. The full-year 2024 bookings were $2.7 billion, leading to a 2024 book-to-bill ratio of 1.11.
Improved Margins and Free Cash Flow
Itron achieved a new record in gross margin at 34.4% for the year, up 160 basis points from the previous year, and a record free cash flow of $208 million, up from $98 million in 2023.
Partnerships and Expansion
Significant partnerships such as with Potomac Electric Power Company and successful expansion in outcomes segment, with 13.4 million distributed intelligence endpoints shipped and over 15 million applications licensed.
Lowlights
Decline in Device Solutions Revenue
Device solutions revenue decreased by 5% on a constant currency basis, primarily driven by an expected decline in legacy electric meter sales.
Challenges in European Water Market
Cautious outlook in the European water market due to economic difficulties, which may not sustain the above-expected performance seen in 2024.
Back-End Loaded Bookings
The back-end loaded nature of 2024 bookings means that most of the new bookings will translate to revenue beyond 2025, affecting near-term revenue growth.
Company Guidance
During Itron's Fourth Quarter 2024 Earnings Release Conference Call, the company reported robust financial performance, with fourth quarter revenue reaching $613 million, adjusted EBITDA at $81 million, non-GAAP earnings per share of $1.35, and free cash flow of $70 million. The company achieved record quarterly bookings of $1.4 billion, leading to a total backlog of $4.7 billion. Full-year 2024 bookings totaled $2.7 billion, with a book-to-bill ratio of 1.11. Itron anticipates 2025 revenue between $2.4 billion and $2.5 billion and non-GAAP EPS ranging from $5.20 to $5.60 per share. The company remains focused on efficiency to drive cash flow and profitability growth, confident in meeting 2027 targets for revenue growth and margin expansion.Itron Corporate Events
Executive/Board ChangesShareholder Meetings
Itron Announces Retirement of Two Board Members
Neutral
Feb 24, 2025
On February 19, 2025, Itron, Inc. announced the upcoming retirement of two board members, Lynda L. Ziegler and Mary C. Hemmingsen, at the end of their terms during the 2025 Annual Meeting of Shareholders. Lynda L. Ziegler, who has served on the board since 2013, and Mary C. Hemmingsen, a member since 2022, both decided not to stand for re-election due to personal reasons unrelated to any disagreements with the company. Consequently, the board will reduce its size from nine to seven directors effective May 8, 2025.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.