Ituran Location and Control Ltd ITRN

What the company does

Ituran Location and Control Ltd is a small-cap company in the Technology sector (Scientific & Technical Instruments), with a market value of $1.0B, based in the USA.

It employs about 2,800 people and has been listed since Sep 28, 2005.

Ituran Location and Control Ltd., together with its subsidiaries, provides location-based telematics services and machine-to-machine telematics products in Israel, Brazil, and internationally. It operates in two segments, Telematics Services and Telematics Products. The Telematics services segment offers stolen vehicle recovery and tracking services, which enable it to locate, track, and recover stolen vehicles; fleet management services that enable corporate and individual customers to track and manage their vehicles in real time; and locator services that allow customers to protect valuable merchandise and equipment.

Cheap or expensive? relatively cheap

Its price-to-earnings (P/E) is 15.7 versus 40.6 for the median of the Technology sector in our universe (65 companies) — relatively cheap.

Revenue is growing 21% versus the same quarter last year.

On analysts' next-year forecasts the multiple rises to 20.5 — they expect lower earnings.

The average analyst price target is 74.50, 48% above the current price (their view, not ours).

The stock sits at 51% of its one-year range (0% = the low, 100% = the high).

The risks

• • Low trading volume — hard to buy or sell size without moving the price.

Strengths

• ✅ Profitable — 16 of every 100 dollars of revenue stays as profit.
• ✅ Generates free cash flow — profit becomes cash in the bank.
• ✅ More cash than debt.
• ✅ Revenue is growing 21% a year.

What changed this week

Over the past week the stock rose 0.8% (for comparison: S&P 500 -1.0%, sector ETF XLK -3.6%).

No notable news about the company was found in the past week.

What changed since last week

• New risk flag: low liquidity.

• The price fell 3.5% since the last summary.