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Ituran Location and Control

Nasdaq:ITRN
Snowflake Description

Solid track record with adequate balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ITRN
Nasdaq
$740M
Market Cap
  1. Home
  2. US
  3. Software
Company description

Ituran Location and Control Ltd., together with its subsidiaries, provides location-based services and wireless communications products in Israel, Brazil, Argentina, and the United States. The last earnings update was 8 days ago. More info.


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ITRN Share Price and Events
7 Day Returns
-0.5%
NasdaqGS:ITRN
2%
US IT
1.6%
US Market
1 Year Returns
-0.9%
NasdaqGS:ITRN
15.4%
US IT
3.2%
US Market
ITRN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Ituran Location and Control (ITRN) -0.5% 0.8% 7% -0.9% 90.5% 36.8%
US IT 2% 4.7% 20.1% 15.4% 79.5% 95.3%
US Market 1.6% 2.1% 12.8% 3.2% 38.6% 43.6%
1 Year Return vs Industry and Market
  • ITRN underperformed the IT industry which returned 15.4% over the past year.
  • ITRN underperformed the Market in United States of America which returned 3.2% over the past year.
Price Volatility
ITRN
Industry
5yr Volatility vs Market

ITRN Value

 Is Ituran Location and Control undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Ituran Location and Control to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our intrinsic value calculation method has changed recently, learn more here.

Below are the data sources, inputs and calculation used to determine the intrinsic value for Ituran Location and Control.

NasdaqGS:ITRN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 1 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:ITRN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
IT Unlevered Beta Simply Wall St/ S&P Global 1.06
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.063 (1 + (1- 23%) (9.88%))
1.097
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.097 * 5.96%)
9.27%

Discounted Cash Flow Calculation for NasdaqGS:ITRN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Ituran Location and Control is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:ITRN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.27%)
2019 52.61 Analyst x1 48.14
2020 55.60 Analyst x1 46.57
2021 58.20 Est @ 4.68% 44.62
2022 60.59 Est @ 4.1% 42.50
2023 62.82 Est @ 3.69% 40.33
2024 64.96 Est @ 3.4% 38.17
2025 67.03 Est @ 3.2% 36.05
2026 69.08 Est @ 3.06% 34.00
2027 71.13 Est @ 2.96% 32.04
2028 73.19 Est @ 2.89% 30.17
Present value of next 10 years cash flows $392.60
NasdaqGS:ITRN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $73.19 × (1 + 2.73%) ÷ (9.27% – 2.73%)
$1,150.33
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1,150.33 ÷ (1 + 9.27%)10
$474.22
NasdaqGS:ITRN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $392.60 + $474.22
$866.82
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $866.82 / 21.34
$40.62
NasdaqGS:ITRN Discount to Share Price
Calculation Result
Value per share (USD) From above. $40.62
Current discount Discount to share price of $34.69
= -1 x ($34.69 - $40.62) / $40.62
14.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Ituran Location and Control is available for.
Intrinsic value
15%
Share price is $34.69 vs Future cash flow value of $40.62
Current Discount Checks
For Ituran Location and Control to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Ituran Location and Control's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Ituran Location and Control's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Ituran Location and Control's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Ituran Location and Control's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:ITRN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $3.06
NasdaqGS:ITRN Share Price ** NasdaqGS (2019-03-19) in USD $34.69
United States of America IT Industry PE Ratio Median Figure of 78 Publicly-Listed IT Companies 30.24x
United States of America Market PE Ratio Median Figure of 3,056 Publicly-Listed Companies 17.77x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Ituran Location and Control.

NasdaqGS:ITRN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:ITRN Share Price ÷ EPS (both in USD)

= 34.69 ÷ 3.06

11.33x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ituran Location and Control is good value based on earnings compared to the US IT industry average.
  • Ituran Location and Control is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Ituran Location and Control's expected growth come at a high price?
Raw Data
NasdaqGS:ITRN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 11.33x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
-9.6%per year
United States of America IT Industry PEG Ratio Median Figure of 64 Publicly-Listed IT Companies 2.42x
United States of America Market PEG Ratio Median Figure of 2,107 Publicly-Listed Companies 1.49x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Ituran Location and Control, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Ituran Location and Control's assets?
Raw Data
NasdaqGS:ITRN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $7.88
NasdaqGS:ITRN Share Price * NasdaqGS (2019-03-19) in USD $34.69
United States of America IT Industry PB Ratio Median Figure of 121 Publicly-Listed IT Companies 4.38x
United States of America Market PB Ratio Median Figure of 5,154 Publicly-Listed Companies 1.89x
NasdaqGS:ITRN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:ITRN Share Price ÷ Book Value per Share (both in USD)

= 34.69 ÷ 7.88

4.4x

* Primary Listing of Ituran Location and Control.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ituran Location and Control is overvalued based on assets compared to the US IT industry average.
X
Value checks
We assess Ituran Location and Control's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. Ituran Location and Control has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

ITRN Future Performance

 How is Ituran Location and Control expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

  • No analysts cover Ituran Location and Control, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-9.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Ituran Location and Control expected to grow at an attractive rate?
  • Ituran Location and Control's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Ituran Location and Control's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • Ituran Location and Control's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:ITRN Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:ITRN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts -9.6%
NasdaqGS:ITRN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 22.6%
United States of America IT Industry Earnings Growth Rate Market Cap Weighted Average 15.7%
United States of America IT Industry Revenue Growth Rate Market Cap Weighted Average 9.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:ITRN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:ITRN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 410 84 1
2019-12-31 380 79 1
NasdaqGS:ITRN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 253 53 65
2018-09-30 235 49 59
2018-06-30 242 47 44
2018-03-31 242 48 42
2017-12-31 235 44 44
2017-09-30 228 44 43
2017-06-30 217 44 41
2017-03-31 209 39 38
2016-12-31 200 41 32
2016-09-30 193 35 29
2016-06-30 184 32 27
2016-03-31 179 33 25

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Ituran Location and Control's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Ituran Location and Control's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:ITRN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from Ituran Location and Control Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:ITRN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31
2019-12-31
NasdaqGS:ITRN Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 3.06
2018-09-30 2.82
2018-06-30 2.08
2018-03-31 2.01
2017-12-31 2.09
2017-09-30 2.06
2017-06-30 1.95
2017-03-31 1.81
2016-12-31 1.53
2016-09-30 1.39
2016-06-30 1.29
2016-03-31 1.20

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Ituran Location and Control will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Ituran Location and Control's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Ituran Location and Control has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

ITRN Past Performance

  How has Ituran Location and Control performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Ituran Location and Control's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Ituran Location and Control's year on year earnings growth rate has been positive over the past 5 years.
  • Ituran Location and Control's 1-year earnings growth exceeds its 5-year average (47.4% vs 18.1%)
  • Ituran Location and Control's earnings growth has exceeded the US IT industry average in the past year (47.4% vs 15.3%).
Earnings and Revenue History
Ituran Location and Control's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Ituran Location and Control Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:ITRN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 253.34 64.54 59.03 6.22
2018-09-30 234.75 59.17 57.00 4.44
2018-06-30 241.98 43.65 59.24 3.49
2018-03-31 241.66 42.09 60.98 3.54
2017-12-31 234.64 43.79 59.84 3.16
2017-09-30 227.60 43.23 57.37 3.26
2017-06-30 216.57 40.85 54.51 3.26
2017-03-31 209.49 38.03 52.24 3.00
2016-12-31 199.57 32.14 50.30 2.90
2016-09-30 193.00 29.06 49.10 2.78
2016-06-30 184.07 27.07 47.57 2.72
2016-03-31 178.63 25.26 46.39 2.59
2015-12-31 175.63 24.97 47.10 2.40
2015-09-30 175.38 25.80 47.74 2.33
2015-06-30 178.05 28.32 48.24 2.37
2015-03-31 180.87 29.91 48.75 2.43
2014-12-31 182.13 30.43 47.88 2.53
2014-09-30 182.21 27.46 46.66 2.52
2014-06-30 178.10 25.77 45.51 2.49
2014-03-31 174.65 25.09 44.59 2.42
2013-12-31 170.17 23.76 44.20 2.41
2013-09-30 164.77 24.12 43.77 3.36
2013-06-30 159.19 22.37 43.24 2.89
2013-03-31 153.56 25.78 42.76 2.47
2012-12-31 150.32 24.88 42.41 2.07
2012-09-30 149.07 22.05 41.99 0.65
2012-06-30 153.93 23.46 43.00 0.69
2012-03-31 157.51 19.90 43.34 0.68

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Ituran Location and Control has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Ituran Location and Control used its assets more efficiently than the US IT industry average last year based on Return on Assets.
  • Ituran Location and Control's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Ituran Location and Control's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Ituran Location and Control has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

ITRN Health

 How is Ituran Location and Control's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Ituran Location and Control's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Ituran Location and Control is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Ituran Location and Control's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Ituran Location and Control's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Ituran Location and Control Company Filings, last reported 2 months ago.

NasdaqGS:ITRN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 174.70 73.18 53.30
2018-09-30 168.23 84.92 57.42
2018-06-30 131.76 0.00 37.43
2018-03-31 134.43 0.00 38.19
2017-12-31 133.23 0.05 40.47
2017-09-30 130.23 0.15 35.36
2017-06-30 123.32 0.00 28.57
2017-03-31 117.23 0.41 27.31
2016-12-31 108.17 0.00 31.49
2016-09-30 103.65 0.00 26.02
2016-06-30 99.31 0.01 25.82
2016-03-31 91.70 0.00 27.16
2015-12-31 87.82 0.16 29.05
2015-09-30 89.34 0.45 31.99
2015-06-30 93.54 0.01 33.41
2015-03-31 89.09 0.00 35.29
2014-12-31 94.58 0.00 40.78
2014-09-30 97.20 0.00 45.52
2014-06-30 98.49 0.00 44.03
2014-03-31 93.65 1.24 43.70
2013-12-31 95.49 0.04 41.70
2013-09-30 97.02 0.60 36.62
2013-06-30 93.68 0.09 33.66
2013-03-31 92.76 0.48 33.84
2012-12-31 92.01 0.22 29.45
2012-09-30 88.52 0.57 23.69
2012-06-30 89.06 0.94 18.98
2012-03-31 86.82 0.97 39.02
  • Ituran Location and Control's level of debt (41.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0.1% vs 41.9% today).
  • Debt is well covered by operating cash flow (72.8%, greater than 20% of total debt).
  • Ituran Location and Control earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Ituran Location and Control's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Ituran Location and Control has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

ITRN Dividends

 What is Ituran Location and Control's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.65%
Current annual income from Ituran Location and Control dividends. Estimated to be 2.77% next year.
If you bought $2,000 of Ituran Location and Control shares you are expected to receive $53 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Ituran Location and Control's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • Ituran Location and Control's dividend is below the markets top 25% of dividend payers in United States of America (3.63%).
Upcoming dividend payment

Purchase Ituran Location and Control on or before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:ITRN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
United States of America IT Industry Average Dividend Yield Market Cap Weighted Average of 33 Stocks 1.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2004 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:ITRN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 0.96 1.00
2019-12-31 0.96 1.00
NasdaqGS:ITRN Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-03-11 0.920 2.663
2018-11-26 0.920 2.736
2018-02-27 0.960 2.918
2017-02-27 0.950 2.893
2016-04-20 0.760 3.095
2016-02-24 0.760 4.091
2015-04-28 0.930 4.293
2014-04-10 0.860 3.849
2014-02-19 0.860 3.594
2013-02-19 1.320 7.357
2012-11-19 0.480 3.515
2012-05-30 0.480 4.143
2012-02-22 1.230 9.038
2011-03-02 1.000 7.293
2010-02-17 1.500 9.829
2009-03-20 0.170 1.712

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Ituran Location and Control's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.5x coverage).
X
Income/ dividend checks
We assess Ituran Location and Control's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Ituran Location and Control afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Ituran Location and Control has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

ITRN Management

 What is the CEO of Ituran Location and Control's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Nir Sheratzky
COMPENSATION $1,929,000
AGE 46
TENURE AS CEO 16.2 years
CEO Bio

Mr. Nir Sheratzky serves as a Senior Vice President at Ituran Group. Mr. Sheratzky has been a Co-Chief Executive Officer at Ituran Location & Control Ltd. since 2003. He served as an Alternate Chief Executive Officer at Ituran Location & Control Ltd. from 1995 to 2003. He serves as the Chairman of E.R.M. Electronic Systems Ltd. He serves as a Director of Mapa Internet Ltd and Mapa-Mapping and Publications Ltd. He has been a Director at Ituran Location & Control Ltd. since 1995. He serves as a Director of Telematics Wireless and Moked Ituran Ltd. Mr. Sheratzky served as a Director of D Medical Industries Ltd. from February 2006 to October 14, 2010. Mr. Sheratzky holds a B.A. and an M.A. degrees in Economics from Tel Aviv University.

CEO Compensation
  • Nir's compensation has been consistent with company performance over the past year.
  • Nir's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Ituran Location and Control management team in years:

16.2
Average Tenure
51
Average Age
  • The average tenure for the Ituran Location and Control management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Nir Sheratzky

TITLE
Co-CEO & Director
COMPENSATION
$2M
AGE
46
TENURE
16.2 yrs

Eyal Sheratzky

TITLE
Co-CEO & Director
COMPENSATION
$2M
AGE
49
TENURE
16.2 yrs

Izzy Sheratzky

TITLE
Co-Founder
COMPENSATION
$2M
AGE
71

Ami Saranga

TITLE
Deputy Chief Executive Officer
COMPENSATION
$383K
AGE
54
TENURE
8.2 yrs

Gil Sheratzky

TITLE
Intl. Activity & Business Development Officer and Director
COMPENSATION
$1M
AGE
40
TENURE
16.2 yrs

Yehuda Kahane

TITLE
Co-Founder & Director
AGE
74

Eli Kamer

TITLE
Executive VP of Finance & CFO
AGE
51
TENURE
20.2 yrs

Guy Aharonov

TITLE
General Counsel
AGE
52
TENURE
20.2 yrs

Udi Mizrahi

TITLE
Vice President of Finance
AGE
46
TENURE
19.2 yrs
Board of Directors Tenure

Average tenure and age of the Ituran Location and Control board of directors in years:

24.2
Average Tenure
67.5
Average Age
  • The average tenure for the Ituran Location and Control board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Ze'ev Koren

TITLE
Chairman of the Board
COMPENSATION
$200K
AGE
72
TENURE
8.2 yrs

Nir Sheratzky

TITLE
Co-CEO & Director
COMPENSATION
$2M
AGE
46
TENURE
24.2 yrs

Eyal Sheratzky

TITLE
Co-CEO & Director
COMPENSATION
$2M
AGE
49
TENURE
24.2 yrs

Izzy Sheratzky

TITLE
Co-Founder
COMPENSATION
$2M
AGE
71
TENURE
24.2 yrs

Gil Sheratzky

TITLE
Intl. Activity & Business Development Officer and Director
COMPENSATION
$1M
AGE
40
TENURE
24.2 yrs

Yehuda Kahane

TITLE
Co-Founder & Director
AGE
74
TENURE
24.2 yrs

Israel Baron

TITLE
External Director
AGE
64
TENURE
16.2 yrs

Yigal Shani

TITLE
Director
AGE
73
TENURE
4.1 yrs

Yoav Kahane

TITLE
Independent Director
COMPENSATION
$144K
AGE
44
TENURE
21.2 yrs

Gidon Kotler

TITLE
External Director
AGE
77
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Ituran Location and Control's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Ituran Location and Control has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

ITRN News

Simply Wall St News

What Can We Make Of Ituran Location and Control Ltd.’s (NASDAQ:ITRN) High Return On Capital?

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … What is Return On Capital Employed (ROCE)? … Analysts use this formula to calculate return on capital employed:

Simply Wall St -

Is Ituran Location and Control Ltd (NASDAQ:ITRN) A High Quality Stock To Own?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … To keep the lesson grounded in practicality, we'll use ROE to better understand Ituran Location and Control Ltd (NASDAQ:ITRN). … Ituran Location and Control has a ROE of 35%, based on the last twelve months.

Simply Wall St -

Is Ituran Location and Control Ltd's (NASDAQ:ITRN) PE Ratio A Signal To Buy For Investors?

Ituran Location and Control Ltd (NASDAQ:ITRN) is trading with a trailing P/E of 16.6x, which is lower than the industry average of 24.8x. … Although some investors may jump to the conclusion that this is a great buying opportunity, understanding the assumptions behind the P/E ratio might change your mind. … View our latest analysis for Ituran Location and Control

Simply Wall St -

Should You Worry About Ituran Location and Control Ltd's (NASDAQ:ITRN) CEO Pay Check?

Recognizing whether CEO incentives are aligned with shareholders is a crucial part of investing. … This is because, if incentives are aligned, more value is created for shareholders which directly impacts your returns as an investor. … CEOs leading companies of similar size and profitability

Simply Wall St -

Who Are The Major Shareholders In Ituran Location and Control Ltd (NASDAQ:ITRN)?

In this article, I'm going to take a look at Ituran Location and Control Ltd’s (NASDAQ:ITRN) latest ownership structure, a non-fundamental factor which is important, but remains a less discussed subject among investors. … Therefore, it is beneficial for us to examine ITRN's ownership structure in more detail. … See our latest analysis for Ituran Location and Control

Simply Wall St -

What You Must Know About Ituran Location and Control Ltd's (NASDAQ:ITRN) Financial Strength

The direct benefit for Ituran Location and Control Ltd (NASDAQ:ITRN), which sports a zero-debt capital structure, to include debt in its capital structure is the reduced cost of capital. … Does ITRN's growth rate justify its decision for financial flexibility over lower cost of capital … Debt capital generally has lower cost of capital compared to equity funding.

Simply Wall St -

Does Ituran Location and Control Ltd's (NASDAQ:ITRN) PE Ratio Warrant A Buy?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for ITRN Price per share = $31.25 Earnings per share = $2.089 ∴ Price-Earnings Ratio = $31.25 ÷ $2.089 = 15x The P/E ratio itself doesn’t tell you a lot; however, it becomes very insightful when you compare it with other similar companies. … For example, if you accidentally compared higher growth firms with ITRN, then ITRN’s P/E would naturally be lower since investors would reward its peers’ higher growth with a higher price. … Alternatively, if you inadvertently compared less risky firms with ITRN, ITRN’s P/E would again be lower since investors would reward its peers’ lower risk with a higher price as well.

Simply Wall St -

Is Ituran Location and Control Ltd (NASDAQ:ITRN) Undervalued?

Ituran Location and Control Ltd (NASDAQ:ITRN), a it company based in Israel, saw significant share price volatility over the past couple of months on the NasdaqGS, rising to the highs of $35.9 and falling to the lows of $30.9. … Let’s take a look at Ituran Location and Control’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. … This means that the opportunity to buy Ituran Location and Control at a good price has disappeared!

Simply Wall St -

What is Behind Ituran Location and Control Ltd's (NASDAQ:ITRN) Superior ROE?

Ituran Location and Control’s cost of equity is 9.28%. … Since Ituran Location and Control’s return covers its cost in excess of 25.52%, its use of equity capital is efficient and likely to be sustainable. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NasdaqGS:ITRN Last Perf Mar 21st 18 Basically, profit margin measures how much of revenue trickles down into earnings which illustrates how efficient the business is with its cost management.

Simply Wall St -

Should You Be Tempted To Buy Ituran Location and Control Ltd (NASDAQ:ITRN) At Its Current PE Ratio?

It compares a stock’s price per share to the stock’s earnings per share. … Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for ITRN Price per share = $33.5 Earnings per share = $2.062 ∴ Price-Earnings Ratio = $33.5 ÷ $2.062 = 16.2x The P/E ratio isn’t a metric you view in isolation and only becomes useful when you compare it against other similar companies. … For example, if you are inadvertently comparing lower risk firms with ITRN, then ITRN’s P/E would naturally be lower than its peers, since investors would value those with lower risk with a higher price.

Simply Wall St -

ITRN Company Info

Description

Ituran Location and Control Ltd., together with its subsidiaries, provides location-based services and wireless communications products in Israel, Brazil, Argentina, and the United States. The company’s Location-Based Services segment provides stolen vehicle recovery and tracking services, which locate, track, and recover stolen vehicles for its subscribers; fleet management services that enable corporate and individual customers to track and manage their vehicles in real time; and personal locator services that allow customers to protect valuable merchandise and equipment. It also offers on-demand navigation guidance, information, and assistance, including the provision of traffic reports and directions, as well as information on the location of gas stations, car repair shops, post offices, hospitals, and other facilities; and Connect, an Android platform based car service that provides access to Android market applications and various services through manufacturer interface. This segment serves insurance companies and agents, car manufacturers, dealers and importers, cooperative sales channels, and private subscribers. The company’s Wireless Communications Products segment provides Base Site, a radio receiver that includes a processor and a data computation unit to collect and send data to and from transponders, and to control centers; Control Center, a center consisting of software used to collect data from various base sites, conduct location calculations, and transmit location data to various customers and law enforcement agencies; navigation and tracking devices installed in vehicles; and SMART, a portable transmitter installed in vehicles that sends a signal to the base site enabling the location of vehicles, equipment, or an individual. As of December 31, 2017, it served approximately 180,000 end-users through 38,000 corporate customers. The company was founded in 1994 and is headquartered in Azor, Israel.

Details
Name: Ituran Location and Control Ltd.
ITRN
Exchange: NasdaqGS
Founded: 1994
$740,340,312
21,341,606
Website: http://www.ituran.com
Address: Ituran Location and Control Ltd.
3 Hashikma Street,
Azour Industrial Zone,
Azor,
58001,
Israel
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS ITRN Ordinary Shares Nasdaq Global Select US USD 27. Apr 2000
Number of employees
Current staff
Staff numbers
3,000
Ituran Location and Control employees.
Industry
Data Processing and Outsourced Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/19 23:58
End of day share price update: 2019/03/19 00:00
Last estimates confirmation: 2019/03/11
Last earnings filing: 2019/03/11
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.