One-glance verdict
Undervalued
$119.91 our estimate vs market $52.40
Wall Street consensus: $74.50 (-37.9% lower than our fair-value estimate)
56% below our estimate, below the bear case
Fundamentals snapshot
Ituran Location and Control Ltd.
ITRN · NMS · Technology · Scientific & Technical Instruments
Current price
$52.40
52-week range
$33.98 - $68.30
Market cap
$1.04B
Balance sheet
Healthy
41.81x Strong cushion
Net cash $99.55M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 6.8% last year.
- Reward Returns 30.2% on equity, ahead of 80% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Stock trades 31.8% above its 5-year average P/E.
What this company does
Ituran Location and Control Ltd.
Ituran provides tracking technology and services for vehicles, acting like a "Find My iPhone" but for cars and commercial fleets. The company makes most of its money from subscription fees for services like stolen vehicle recovery and helping businesses manage their delivery trucks. This creates recurring revenue (income that is predictable and comes in regularly, like a utility bill), which investors often see as a sign of a stable business.
How the company got here
Ituran was started in Israel in 1994, spinning out of a defense electronics company to adapt military tracking technology for civilian use. Its first main service was helping to find and recover stolen vehicles. To grow, the company went public on the Tel Aviv Stock Exchange in 1998, which helped it expand into countries like Brazil and Argentina. A second listing on the Nasdaq stock exchange in 2005 gave it more capital (money for investment) to focus on building subscription-based services, which now form the core of its business.
What it actually does
Ituran provides services that track the location of vehicles using small devices installed in cars, trucks, and motorcycles. Think of it like a "Find My iPhone" feature, but for your vehicle. This technology is used to recover stolen cars, help businesses manage their fleets (groups of vehicles), and provide data to insurance companies. Customers pay for the tracking hardware and then a recurring subscription fee for the monitoring and data services.
Telematics Services
This is the company's largest business, making up about three-quarters of its revenue (the total money it brings in). It's a subscription-based service where customers like car owners, businesses with vehicle fleets, and insurance companies pay a regular fee. For this fee, Ituran provides services like stolen vehicle recovery, real-time tracking for delivery trucks, and monitoring driver behavior for insurance purposes. This segment also includes its 'Connected Car' platform, which offers navigation, traffic reports, and roadside assistance information directly to the car's dashboard.
Telematics Products
This smaller part of the business involves the one-time sale of the physical tracking devices and related hardware. These are the small boxes installed in vehicles that use GPS and other technologies to determine their location. The customers for these products are often the same as for the services—car manufacturers, dealers, and companies that manage large fleets of vehicles. While it's a smaller slice of the company's total sales, it's the essential hardware that enables the larger subscription services business.
What management is betting on now
The company's leadership is focused on growing its subscriber base, especially in emerging markets like Latin America and Asia. They are also heavily invested in forming partnerships directly with car manufacturers, known as OEMs (Original Equipment Manufacturers), to have their tracking technology built into new cars from the start. Another key priority is developing new technologies, including using the vast amounts of data they collect to offer new services to insurance companies and other businesses. Finally, they are expanding into new vehicle types, such as motorcycles, through partnerships with brands like Yamaha and BMW.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$60.63M
FY2025 Q4
$66.80M
Revenue
$359.02M
Net income
$57.97M
Diluted EPS
2.92
Operating cash flow
$88.58M
Free cash flow
$66.80M
Fetching…
Sources
Revenue
$336.26M
Net income
$53.65M
Diluted EPS
2.70
Operating cash flow
$74.27M
Free cash flow
$60.63M
Fetching…
Sources
Is it cheap or expensive?
Fair value $119.91 vs current price $52.40
Wall Street consensus is the average analyst price target: $74.50 (-37.9% lower than our fair-value estimate).
Our most-likely fair value is $119.91 a share — about 128.8% above today's price of $52.40, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $99.5M - more cash than debt. Interest coverage 41.8x.
Net debt
$-99.55M
Interest coverage
41.81x
Ituran Location and Control Ltd.'s profit covers its interest bill about 41.8 times over. which is stronger than every peer shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
ITRN
BASELINE
Ituran Location and Control Ltd.
Total debt $4.16M Interest coverage 41.81x This is the baseline the peer rows are being compared against.
Total debt $66.17M Interest coverage 18.31x -56% vs ITRN Carries about 2.3x less debt cushion than ITRN.
Total debt $1.09B Interest coverage 3.69x -91% vs ITRN Carries about 11.3x less debt cushion than ITRN.
Total debt $9.69M Interest coverage -11.71x -100% vs ITRN This peer has almost no interest-payment cushion compared with ITRN.
Total debt $5.72M Interest coverage 1.11x -97% vs ITRN Carries about 37.5x less debt cushion than ITRN.
What you should know
The case for and against ITRN
3 Rewards
1 Risk
Rewards
-
Revenue grew 6.8% last year.
-
Returns 30.2% on equity, ahead of 80% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 31.8% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
16.22x
Forward P/E
13.83x
P/B
4.74x
P/S
2.64x
EV/EBITDA
9.01x
PEG ratio
3.41x
Profitability
How much profit each dollar creates
Gross margin
50.0%
Operating margin
22.7%
Net margin
16.3%
ROE
30.2%
ROA
13.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.02x
Current ratio
2.03x
Quick ratio
1.39x
Total debt
$4.16M
Total cash
$103.70M
Growth
How the business has been compounding
Revenue TTM
$1.31B
Revenue 5Y CAGR
7.3%
EPS TTM
3.23
EPS 5Y CAGR
17.1%
Cash flow
How much cash the business throws off
Operating CF TTM
$285.18M
Free CF TTM
$66.80M
FCF margin
5.1%
Dividend
Shareholder payout
Yield
3.8%
Payout ratio
92.9%
Last ex-div date
2026-09-29