Executive Summary
Itron, Inc., a technology and service company, provides end-to-end solutions that measures, manages, and analyzes energy and water use worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Fair value with moderate growth potential.
Similar Companies
Share Price & News
How has Itron's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: IT6's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
14.0%
IT6
4.2%
DE Electronic
7.3%
DE Market
1 Year Return
25.3%
IT6
-26.3%
DE Electronic
-17.7%
DE Market
Return vs Industry: IT6 exceeded the German Electronic industry which returned -26.3% over the past year.
Return vs Market: IT6 exceeded the German Market which returned -17.7% over the past year.
Shareholder returns
| IT6 | Industry | Market | |
|---|---|---|---|
| 7 Day | 14.0% | 4.2% | 7.3% |
| 30 Day | -21.8% | -20.8% | -17.9% |
| 90 Day | -29.7% | -24.0% | -25.8% |
| 1 Year | 25.3%25.3% | -24.8%-26.3% | -15.1%-17.7% |
| 3 Year | -7.1%-7.1% | -2.4%-5.6% | -18.7%-25.6% |
| 5 Year | 54.8%54.8% | 55.0%43.6% | -17.7%-29.0% |
Price Volatility Vs. Market
How volatile is Itron's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Valuation
Is Itron undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: IT6 (€55.5) is trading below our estimate of fair value (€138.73)
Significantly Below Fair Value: IT6 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: IT6 is poor value based on its PE Ratio (46.2x) compared to the Electronic industry average (15.8x).
PE vs Market: IT6 is poor value based on its PE Ratio (46.2x) compared to the German market (16.4x).
Price to Earnings Growth Ratio
PEG Ratio: IT6 is good value based on its PEG Ratio (0.9x)
Price to Book Ratio
PB vs Industry: IT6 is overvalued based on its PB Ratio (2.9x) compared to the DE Electronic industry average (1.1x).
Next Steps
Future Growth
How is Itron forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
50.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: IT6's forecast earnings growth (50% per year) is above the savings rate (-0.4%).
Earnings vs Market: IT6's earnings (50% per year) are forecast to grow faster than the German market (14.3% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: IT6's revenue (3.1% per year) is forecast to grow slower than the German market (4.1% per year).
High Growth Revenue: IT6's revenue (3.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: IT6's Return on Equity is forecast to be low in 3 years time (12.3%).
Next Steps
Past Performance
How has Itron performed over the past 5 years?
5.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: IT6 has a large one-off loss of $32.9M impacting its December 31 2019 financial results.
Growing Profit Margin: IT6 became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: IT6 has become profitable over the past 5 years, growing earnings by 5.8% per year.
Accelerating Growth: IT6 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: IT6 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Electronic industry (-7.4%).
Return on Equity
High ROE: IT6's Return on Equity (6.5%) is considered low.
Next Steps
Financial Health
How is Itron's financial position?
Financial Position Analysis
Short Term Liabilities: IT6's short term assets ($997.3M) exceed its short term liabilities ($671.4M).
Long Term Liabilities: IT6's short term assets ($997.3M) do not cover its long term liabilities ($1.2B).
Debt to Equity History and Analysis
Debt Level: IT6's debt to equity ratio (116.4%) is considered high.
Reducing Debt: IT6's debt to equity ratio has increased from 47.3% to 116.4% over the past 5 years.
Balance Sheet
Inventory Level: IT6 has a low level of unsold assets or inventory.
Debt Coverage by Assets: IT6's debt is covered by short term assets (assets are 1.1x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: IT6 is profitable, therefore cash runway is not a concern.
Forecast Cash Runway: IT6 is profitable, therefore cash runway is not a concern.
Next Steps
Dividend
What is Itron's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate IT6's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate IT6's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if IT6's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if IT6's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of IT6's dividend in 3 years as they are not forecast to pay a notable one for the German market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.4yrs
Average management tenure
CEO
Tom Deitrich (52yo)
0.58
Tenure
US$6,564,242
Compensation
Mr. Thomas L. Deitrich serves as the Chief Executive Officer, President and Director of Itron, Inc. since August 6, 2019. Mr. Deitrich joined Itron in October 2015, serving as Itron’s Executive Vice Presid ...
CEO Compensation Analysis
Compensation vs Market: Tom's total compensation ($USD6.56M) is above average for companies of similar size in the German market ($USD1.86M).
Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Director | 0.58yr | US$6.56m | 0.34% $6.8m | |
| Senior VP & CFO | 2.75yrs | US$2.13m | 0.076% $1.5m | |
| Senior VP | 1.58yrs | US$1.36m | no data | |
| Senior Vice President of Human Resources | 6yrs | US$1.38m | 0.070% $1.4m | |
| Senior Vice President of OutComes | 1.5yrs | US$915.90k | 0.022% $430.7k | |
| Chief Technology Officer | 9.17yrs | no data | no data | |
| VP of Information Technology & Chief Information Officer | 14.17yrs | no data | no data | |
| Vice President of Investor Relations | 1.58yrs | no data | no data | |
| Vice President of Global Marketing & Public Affairs | 2.17yrs | no data | no data | |
| Senior Vice President of Networked Solutions | 2.67yrs | no data | 0.0085% $170.2k |
2.4yrs
Average Tenure
52yo
Average Age
Experienced Management: IT6's management team is considered experienced (2.4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Director | 0.58yr | US$6.56m | 0.34% $6.8m | |
| Independent Director | 4.83yrs | US$186.44k | 0.025% $502.3k | |
| Independent Director | 18.83yrs | US$184.94k | 0.028% $569.7k | |
| Independent Director | 14.17yrs | US$175.00k | 0.11% $2.2m | |
| Independent Director | 4.83yrs | US$179.94k | 0.025% $502.3k | |
| Independent Chair of the Board | 3.5yrs | US$249.92k | 0.030% $608.1k | |
| Independent Director | 5yrs | US$174.94k | 0.027% $533.7k | |
| Independent Director | 5.33yrs | US$176.44k | 0.034% $685.2k | |
| Independent Director | 4.25yrs | US$75.00k | 0.030% $609.1k |
4.8yrs
Average Tenure
62yo
Average Age
Experienced Board: IT6's board of directors are considered experienced (4.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: IT6 insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Itron, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Itron, Inc.
- Ticker: IT6
- Exchange: DB
- Founded: 1977
- Industry: Electronic Equipment and Instruments
- Sector: Tech
- Market Cap: US$2.206b
- Listing Market Cap: US$2.000b
- Shares outstanding: 40.16m
- Website: https://www.itron.com/na
Number of Employees
Location
- Itron, Inc.
- 2111 North Molter Road
- Liberty Lake
- Washington
- 99019
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ITRI | NasdaqGS (Nasdaq Global Select) | Yes | Common Shares | US | USD | Nov 1993 |
| IT6 | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Nov 1993 |
Biography
Itron, Inc., a technology and service company, provides end-to-end solutions that measures, manages, and analyzes energy and water use worldwide. The company operates through three segments: Device Solutions, Networked Solutions, and Outcomes. The Device Solutions segment offers hardware products that are used for measurement, control, or sensing. The Networked Solutions segment provides a combination of communicating devices, such as smart meters, modules, endpoints, and sensors; network infrastructure; and associated application software for acquiring and transporting application-specific data. The Outcomes segment offers enhanced software and services for managing, organizing, analyzing, and interpreting data to enhance decision making, maximize operational profitability, drive resource efficiency, and deliver results for consumers, utilities, and smart cities. In addition, it offers software implementation, project management, installation, consulting, and post-sale maintenance support services, as well as cloud and software-as-a-service; and extended or non-customary warranties. The company markets its products directly through its sales force, as well as through indirect sales force consisting of distributors, sales representatives, partners, and meter manufacturer representatives to utilities and municipalities. Itron, Inc. was founded in 1977 and is headquartered in Liberty Lake, Washington.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/30 22:37 |
| End of Day Share Price | 2020/03/30 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.