Itron (ITRI) Valuation Check After New Grid Modernization And Wildfire Mitigation Projects

Itron (ITRI) has been in focus after unveiling new grid edge and wildfire mitigation projects with Pacific Gas and Electric Company, Toumetis and San Diego Gas & Electric, alongside showcasing AI and resiliency offerings at DTECH 2026.

See our latest analysis for Itron.

These wildfire mitigation and grid edge projects come as Itron’s share price sits at US$99.81, with a 5.65% year to date share price return and a 72.32% three year total shareholder return, which may indicate that longer term momentum has been stronger than recent daily moves.

If these grid modernization moves have your attention, you may also want to scan a broader set of power and grid names through our 25 power grid technology and infrastructure stocks as a next step.

With Itron trading at US$99.81 alongside solid recent profitability metrics and a value score of 6, the key question is whether today’s price still reflects a discount or if the market is already pricing in future growth.

Most Popular Narrative: 26.9% Undervalued

Based on the most followed narrative, Itron's fair value sits at $136.56 versus the last close of $99.81. This frames the wildfire and grid edge projects against a valuation that still screens as below that fair value estimate.

Ongoing industry wide digitalization and increased adoption of IoT by utilities are driving higher uptake of Itron's Outcomes (software and analytics) offerings, which are higher margin and boost recurring revenue, supporting continued net margin and earnings expansion.

Read the complete narrative.

Curious what sits behind that expected shift toward higher margin software and analytics, the projected revenue lift, and the chosen profit multiple that supports this fair value call? The full narrative lays out the earnings roadmap, the margin profile and the valuation bridge in a lot more detail than the headline number suggests.

Result: Fair Value of $136.56 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, you should keep an eye on potential delays in large utility projects and slower Outcomes software growth, which could challenge those higher margin and earnings assumptions.

Find out about the key risks to this Itron narrative.

Build Your Own Itron Narrative

If you see the numbers differently or want to test your own assumptions, you can build a custom Itron view in just a few minutes with Do it your way

A great starting point for your Itron research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

If you want to keep your edge, do not stop at one company. Broaden your watchlist now and let fresh ideas challenge your current portfolio.

• Target potential mispricings by reviewing our 51 high quality undervalued stocks and see which companies still trade below their assessed worth.
• Strengthen your income stream by checking out 13 dividend fortresses that focus on sizeable yields supported by robust payouts.
• Reduce portfolio stress by scanning 85 resilient stocks with low risk scores that score well on resilience and financial stability.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com