Ituran Location and Control Ltd. Fundamental Analysis
Ituran Location and Control Ltd. (ITRN) shows moderate financial fundamentals with a PE ratio of 20.71, profit margin of 16.03%, and ROE of 28.54%. The company generates $0.4B in annual revenue with moderate year-over-year growth of 6.77%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 73.7/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze ITRN's fundamental strength across five key dimensions:
Efficiency Score
ExcellentITRN demonstrates superior asset utilization.
Valuation Score
ModerateITRN shows balanced valuation metrics.
Growth Score
ModerateITRN shows steady but slowing expansion.
Financial Health Score
ExcellentITRN maintains a strong and stable balance sheet.
Profitability Score
ExcellentITRN achieves industry-leading margins.
Key Financial Metrics
Is ITRN Expensive or Cheap?
P/E Ratio
ITRN trades at 20.71 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ITRN's PEG of 2.21 indicates potential overvaluation.
Price to Book
The market values Ituran Location and Control Ltd. at 6.00 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 13.61 times EBITDA. This signals the market has high growth expectations.
How Well Does ITRN Make Money?
Net Profit Margin
For every $100 in sales, Ituran Location and Control Ltd. keeps $16.03 as profit after all expenses.
Operating Margin
Core operations generate 21.41 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $28.54 in profit for every $100 of shareholder equity.
ROA
Ituran Location and Control Ltd. generates $14.99 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ituran Location and Control Ltd. generates strong operating cash flow of $96.97M, reflecting robust business health.
Free Cash Flow
Ituran Location and Control Ltd. generates strong free cash flow of $75.15M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.78 in free cash annually.
FCF Yield
ITRN converts 5.97% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.71
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.21
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.004
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.33
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.90
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.29
vs 25 benchmark
ROA
Return on assets percentage
0.15
vs 25 benchmark
ROCE
Return on capital employed
0.30
vs 25 benchmark
How ITRN Stacks Against Its Sector Peers
| Metric | ITRN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.71 | 36.36 | Better (Cheaper) |
| ROE | 28.54% | 980.00% | Weak |
| Net Margin | 16.03% | 5969454258.00% | Weak |
| Debt/Equity | 0.02 | 0.36 | Strong (Low Leverage) |
| Current Ratio | 1.90 | 5.04 | Neutral |
| ROA | 14.99% | -298400.00% (disorted) | Strong |
ITRN outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ituran Location and Control Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
53.07%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
276.52%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
54.43%
Industry Style: Growth, Innovation, High Beta
High Growth