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Ituran Location And Control Ltd (ITRN)
NASDAQ:ITRN
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Ituran Location And Control
(NASDAQ:ITRN)
80Outperform
Ituran Location And Control (ITRN) vs. S&P 500 (SPY)
Market Cap
$663.45M
Dividend Yield4.83%
Average Volume (3M)110.32K
Price to Earnings (P/E)12.4
Beta (1Y)0.78
Revenue Growth5.09%
EPS Growth12.45%
CountryUS
Employees2,892
SectorTechnology
Sector Strength45
IndustryCommunication Equipment
Share Statistics
EPS (TTM)2.70
Shares Outstanding19,893,580
10 Day Avg. Volume96,845
30 Day Avg. Volume110,319
Financial Highlights & Ratios
PEG Ratio0.99
Price to Book (P/B)N/A
Price to Sales (P/S)2.30
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$50.00Price Target Upside49.93% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Ituran Location And Control Business Overview & Revenue Model
Company DescriptionIturan Location and Control (ITRN) is a global leader in providing innovative telematics, vehicle tracking, and advanced fleet management solutions. The company operates primarily in the automotive and insurance sectors, offering a range of products and services that include stolen vehicle recovery, real-time tracking, and various telemetry services. Ituran leverages its expertise in wireless communication technologies to deliver comprehensive location-based services to consumers and businesses worldwide.
How the Company Makes MoneyIturan makes money through a variety of revenue streams centered around its telematics and vehicle tracking services. Its primary revenue comes from subscription fees for its location-based services, which include vehicle tracking and recovery, fleet management, and personal safety features. These subscription services are offered to individual consumers, businesses, and insurance companies. The company also generates income from the sale and installation of telematics devices that enable these services. Additionally, Ituran has significant partnerships with insurance companies, which use its services to offer 'usage-based insurance' products, further contributing to its revenue. The company's international operations, particularly in regions like Latin America, also play a crucial role in its financial performance.
Ituran Location And Control Financial Statement Overview
Summary
Ituran Location And Control demonstrates excellent financial health, characterized by consistent revenue and profit growth, strong profitability margins, low leverage, and robust cash flow metrics. The company's financial position is stable with minimal debt, high equity levels, and effective cash generation, positioning it well for future growth and resilience against potential market fluctuations.Income Statement
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.88
Very Positive
Balance Sheet
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.82
Very Positive
Cash Flow
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.91
Very Positive
| 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 | EBIT |
| 71.17M | 65.95M | 58.77M | 54.62M | 56.23M | EBITDA |
| 91.25M | 87.37M | 75.54M | 69.31M | 50.06M | Net Income Common Stockholders |
| 53.65M | 48.14M | 37.10M | 34.26M | 16.12M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 77.37M | 53.55M | 28.17M | 54.71M | 78.85M | Total Assets |
| 326.88M | 318.69M | 290.57M | 293.02M | 312.47M | Total Debt |
| 5.68M | 8.66M | 18.76M | 33.18M | 57.15M | Net Debt |
| -71.68M | -44.77M | -9.09M | -17.13M | -15.04M | 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
Positive
33.35
Price Trends
36.61
Negative
33.97
Positive
30.02
Positive
Market Momentum
-0.69
Negative
50.98
Neutral
77.06
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 33.35 is below the 20-day moving average (MA) of 34.12, below the 50-day MA of 36.61, and above the 200-day MA of 30.02, indicating a neutral trend. The MACD of -0.69 indicates Negative momentum. The RSI at 50.98 is Neutral, neither overbought nor oversold. The STOCH value of 77.06 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 (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $663.45M | 12.37 | 29.83% | 4.83% | 5.09% | 12.45% | |
71 Outperform | $354.65M | 14.36 | 8.58% | ― | 14.79% | 5.04% | |
68 Neutral | $977.46M | 27.99 | 6.29% | ― | -4.49% | 119.80% | |
59 Neutral | $10.59B | 10.09 | -6.37% | 3.05% | 7.44% | -10.67% | |
55 Neutral | $606.89M | ― | -20.95% | ― | 67.20% | -165.24% | |
52 Neutral | $645.58M | 57.73 | 2.30% | ― | -8.65% | ― | |
40 Underperform | $597.32M | ― | -123.20% | ― | -19.70% | -70.40% |
* Technology Sector Average
Performance Comparison
ITRN
Ituran Location And Control
34.79
10.51
43.29%
ADTN
Adtran
7.71
3.14
68.71%
DGII
Digi International
27.51
-3.08
-10.07%
GILT
Gilat
6.30
1.22
24.02%
AIOT
Powerfleet
5.13
0.80
18.48%
NTGR
Netgear
22.43
7.61
51.35%
Ituran Location And Control Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -15.87% | Next Earnings Date: May 27, 2025
Earnings Call Sentiment Positive
The earnings call reflects a generally positive outlook for Ituran, with strong subscriber growth, new partnerships, and increased dividends being key highlights. However, currency fluctuations and product mix affecting gross margins were noted challenges.Highlights
Subscriber Growth
Ituran reported a high level of 40,000 net subscriber adds for the quarter, at the top end of their expectations, marking the third consecutive quarter of strong subscriber growth. They anticipate this number to accelerate to between 180,000 and 200,000 in 2025, which is over 20% ahead of the 2024 rates.
Partnerships and Contracts
New agreements, such as the JV in India with Lumax and a five-year contract with Nissan in Chile, are expected to contribute significantly to future growth. The company also received an award from Nissan in Mexico, highlighting strong relationships.
Dividend Increase
The board decided to increase the quarterly dividend payment by 25% from $8 million to $10 million per quarter, indicating strong cash flow and profitability.
Record Financial Performance
2024 was a record year in terms of top-line revenue and subscriber growth, with revenues for 2024 reaching a record $336 million, a 5% increase over 2023.
Lowlights
Currency Impact
The strengthening of the US dollar negatively impacted financial results when denominated in US dollars, affecting revenue and EBITDA calculations.
Gross Margin Variability
The gross margin was affected by the product mix, leading to some volatility between quarters.
Company Guidance
During the Ituran Location and Control Ltd. Q4 2024 results call, the company reported a year-over-year revenue growth of 7% to $82.9 million, despite negative effects from currency fluctuations. In local currencies, revenue grew by 11%, with subscription fees increasing by 9% and product revenues by 16%. The subscriber base grew by 40,000, reaching 2,409,000, and the company expects this growth to accelerate to between 180,000 and 200,000 new subscribers in 2025. EBITDA for the quarter was $22.5 million, representing 27.2% of revenue, while net income rose 15% to $13.8 million. The company also announced a 25% increase in its quarterly dividend to $10 million, reflecting its strong cash position of $77.3 million. Looking ahead, Ituran aims to continue expanding its subscriber base and services across its regions, despite currency challenges, with plans to grow its OEM partnerships and insurance offerings.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.