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Ituran Location And Control Ltd (ITRN)
NASDAQ:ITRN
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Ituran Location And Control
(NASDAQ:ITRN)
82Outperform
Ituran Location And Control (ITRN) vs. S&P 500 (SPY)
Market Cap
$741.60M
Dividend Yield4.23%
Average Volume (3M)294.10K
Price to Earnings (P/E)13.7
Beta (1Y)0.72
Revenue Growth5.09%
EPS Growth12.45%
CountryUS
Employees2,800
SectorTechnology
Sector Strength50
IndustryCommunication Equipment
Share Statistics
EPS (TTM)2.70
Shares Outstanding20,108,498
10 Day Avg. Volume107,609
30 Day Avg. Volume294,101
Financial Highlights & Ratios
PEG Ratio1.10
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 Upside36.69% 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 exhibits strong financial performance with consistent revenue growth and improved profitability. The stable gross profit margin and low debt-to-equity ratio underscore operational efficiency and prudent financial management. Despite significant total liabilities, the company's robust cash flow generation supports strategic initiatives.Income Statement
The company shows strong and consistent growth in revenue over the years. The gross profit margin has remained stable, indicating good cost management. Net profit margins have improved, reflecting increased profitability. EBIT and EBITDA margins are healthy, signaling operational efficiency.82
Very Positive
Balance Sheet
The balance sheet reflects a low debt-to-equity ratio, which indicates prudent financial leverage. Return on equity is strong, suggesting effective use of equity. The equity ratio is stable, showing a solid capital structure. However, total liabilities are still significant compared to assets.78
Positive
Cash Flow
Operating cash flow has consistently exceeded net income, highlighting strong cash-generating ability. Free cash flow has grown, supporting future investments and debt servicing. However, fluctuations in investing and financing cash flows indicate variability in capital allocation.80
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 331.18M | 319.98M | 293.07M | 270.88M | 245.63M | 279.33M |
| Gross Profit | |||||
| 157.90M | 153.16M | 137.56M | 126.48M | 115.52M | 130.52M |
| EBIT | |||||
| 69.42M | 65.95M | 58.77M | 54.62M | 56.23M | 74.67M |
| EBITDA | |||||
| 90.51M | 87.37M | 75.54M | 69.31M | 50.06M | 48.66M |
| Net Income Common Stockholders | |||||
| 51.84M | 48.14M | 37.10M | 34.26M | 16.12M | 10.97M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 53.30M | 53.55M | 28.17M | 54.71M | 78.85M | 54.32M |
| Total Assets | |||||
| 384.47M | 318.69M | 290.57M | 293.02M | 312.47M | 339.24M |
| Total Debt | |||||
| 73.18M | 8.66M | 18.76M | 33.18M | 57.15M | 80.54M |
| Net Debt | |||||
| 21.78M | -44.77M | -9.09M | -17.13M | -15.04M | 26.57M |
| Total Liabilities | |||||
| 209.77M | 138.44M | 137.72M | 155.22M | 182.57M | 203.32M |
| Stockholders Equity | |||||
| 168.19M | 174.45M | 145.80M | 132.46M | 127.19M | 129.33M |
| Cash Flow | Free Cash Flow | ||||
| 59.15M | 62.98M | 18.61M | 39.16M | 49.83M | 41.37M |
| Operating Cash Flow | |||||
| 72.11M | 77.22M | 45.12M | 55.79M | 60.07M | 59.68M |
| Investing Cash Flow | |||||
| -15.62M | -17.23M | -27.35M | -18.52M | -11.48M | -18.29M |
| Financing Cash Flow | |||||
| -27.94M | -32.93M | -36.36M | -58.67M | -29.45M | -38.93M |
Ituran Location And Control Technical Analysis
Positive
36.58
Price Trends
36.37
Positive
32.73
Positive
29.15
Positive
Market Momentum
<0.01
Positive
46.58
Neutral
24.04
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 36.58 is below the 20-day moving average (MA) of 37.38, above the 50-day MA of 36.37, and above the 200-day MA of 29.15, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 46.58 is Neutral, neither overbought nor oversold. The STOCH value of 24.04 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 (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $741.60M | 13.66 | 29.83% | 4.23% | 5.09% | 12.45% | |
79 Outperform | $5.52B | 18.44 | 49.85% | 0.76% | 58.03% | 80.93% | |
76 Outperform | $116.50B | 94.96 | 28.91% | ― | 18.36% | ― | |
75 Outperform | $41.74B | 29.69 | 19.00% | 1.37% | 20.44% | 9.05% | |
70 Outperform | $16.71B | 11.15 | 29.37% | ― | -3.04% | 388.42% | |
61 Neutral | $1.14B | 88.16 | 24.98% | ― | 11.85% | -90.54% | |
58 Neutral | $21.06B | 10.51 | -17.38% | 2.43% | 4.55% | -24.07% |
* Technology Sector Average
Performance Comparison
ITRN
Ituran Location And Control
36.58
10.14
38.35%
GRMN
Garmin
213.66
68.62
47.31%
IDCC
InterDigital
210.04
113.94
118.56%
TRMB
Trimble
65.52
2.35
3.72%
GOGO
Gogo
8.61
0.21
2.50%
SPOT
Spotify
561.16
294.73
110.62%
Ituran Location And Control Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -7.72% | 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.