Ituran Location & Control Ltd. (ITRN) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Napco Security Technologies, Inc.

Ituran Location & Control Ltd.

Digi International, Inc.

Iridium Communications, Inc.

EchoStar Corp.

AST Spacemobile, Inc.

Harmonic, Inc.

Cambium Networks Corp.

Kaleyra, Inc.

Why is Ituran Location & Control Ltd. ?

High Management Efficiency with a high ROE of 27.70%

Company has a low Debt to Equity ratio (avg) at times

With a growth in Net Profit of 8.86%, the company declared Very Positive results in Sep 25

The company has declared positive results for the last 5 consecutive quarters
OPERATING CASH FLOW(Y) Highest at USD 84.81 MM
DEBT-EQUITY RATIO (HY) Lowest at -41.61 %
INVENTORY TURNOVER RATIO(HY) Highest at 7.09 times

With ROE of 27.84%, it has a very attractive valuation with a 5.38 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 29.95%, its profits have risen by 8.9% ; the PEG ratio of the company is 2.2

High Institutional Holdings at 72.95%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 4.07% over the previous quarter.

Market Beating performance in long term as well as near term

Along with generating 29.95% returns in the last 1 year, the stock has outperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Ituran Location & Control Ltd. should be less than 10%
Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Ituran Location & Control Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Ituran Location & Control Ltd.

29.95%

2.58

33.04%

S&P 500

14.9%

0.77

19.29%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.08%

EBIT Growth (5y)

13.45%

EBIT to Interest (avg)

30.16

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.40

Sales to Capital Employed (avg)

1.80

Tax Ratio

20.74%

Dividend Payout Ratio

57.84%

Pledged Shares

Institutional Holding

72.95%

ROCE (avg)

51.55%

ROE (avg)

27.70%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

5.38

EV to EBIT

14.05

EV to EBITDA

11.23

EV to Capital Employed

8.81

EV to Sales

3.01

PEG Ratio

2.17

Dividend Yield

0.07%

ROCE (Latest)

62.75%

ROE (Latest)

27.84%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

16What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 84.81 MM

DEBT-EQUITY RATIO (HY)

Lowest at -41.61 %

INVENTORY TURNOVER RATIO(HY)

Highest at 7.09 times

DIVIDEND PAYOUT RATIO(Y)

Highest at 67.91%

RAW MATERIAL COST(Y)

Fallen by -4.69% (YoY

CASH AND EQV(HY)

Highest at USD 181.81 MM

DIVIDEND PER SHARE(HY)

Highest at USD 6.34

NET SALES(Q)

Highest at USD 92.28 MM

OPERATING PROFIT(Q)

Highest at USD 24.63 MM

PRE-TAX PROFIT(Q)

Highest at USD 19.29 MM

NET PROFIT(Q)

Highest at USD 14.65 MM

EPS(Q)

Highest at USD 0.74

-7What is not working for the Company

INTEREST(9M)

At USD 1.67 MM has Grown at inf%

ROCE(HY)

Lowest at 28.62%

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.34 times

Here's what is working for Ituran Location & Control Ltd.

Operating Cash Flow

Highest at USD 84.81 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Debt-Equity Ratio

Lowest at -41.61 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 7.09 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

Highest at USD 92.28 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 24.63 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Pre-Tax Profit

Highest at USD 19.29 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 14.65 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 0.74

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Cash and Eqv

Highest at USD 181.81 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at USD 6.34

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 67.91%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -4.69% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 5.01 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Ituran Location & Control Ltd.

Interest

At USD 1.67 MM has Grown at inf%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debtors Turnover Ratio

Lowest at 6.34 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio