NasdaqGS:ITRI

Stock Analysis Report

Executive Summary

Itron, Inc., a technology and service company, provides end-to-end solutions that measures, manages, and analyzes energy and water use worldwide.

Snowflake

Fundamentals

Moderate growth potential with questionable track record.


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: ITRI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.4%

ITRI

-0.08%

US Electronic

0.9%

US Market


1 Year Return

51.8%

ITRI

22.5%

US Electronic

16.8%

US Market

Return vs Industry: ITRI exceeded the US Electronic industry which returned 22.5% over the past year.

Return vs Market: ITRI exceeded the US Market which returned 16.8% over the past year.


Shareholder returns

ITRIIndustryMarket
7 Day-0.4%-0.08%0.9%
30 Day-0.8%3.9%4.5%
90 Day11.7%11.6%6.2%
1 Year51.8%51.8%23.7%22.5%19.4%16.8%
3 Year17.1%17.1%48.7%44.6%47.5%38.0%
5 Year88.2%88.2%78.1%69.5%62.0%44.1%

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

Valuation

Is Itron undervalued compared to its fair value and its price relative to the market?

51.97x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ITRI ($76.67) is trading above our estimate of fair value ($55.72)

Significantly Below Fair Value: ITRI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ITRI is poor value based on its PE Ratio (52x) compared to the Electronic industry average (20.6x).

PE vs Market: ITRI is poor value based on its PE Ratio (52x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: ITRI is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: ITRI is overvalued based on its PB Ratio (4.1x) compared to the US Electronic industry average (2.1x).


Next Steps

Future Growth

How is Itron forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

55.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ITRI's forecast earnings growth (55.9% per year) is above the savings rate (2.7%).

Earnings vs Market: ITRI's earnings (55.9% per year) are forecast to grow faster than the US market (14.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ITRI's revenue (3.5% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: ITRI's revenue (3.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ITRI's Return on Equity is forecast to be low in 3 years time (16.8%).


Next Steps

Past Performance

How has Itron performed over the past 5 years?

11.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ITRI has large one-off items impacting its financial results.

Growing Profit Margin: ITRI became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ITRI has become profitable over the past 5 years, growing earnings by 11.8% per year.

Accelerating Growth: ITRI has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ITRI has become profitable in the last year, making it difficult to compare its past year earnings growth to the Electronic industry (56.3%).


Return on Equity

High ROE: ITRI's Return on Equity (8.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Itron's financial position?


Financial Position Analysis

Short Term Liabilities: ITRI's short term assets ($967.0M) exceeds its short term liabilities ($684.6M)

Long Term Liabilities: ITRI's short term assets ($967.0M) do not cover its long term liabilities (1.2B)


Debt to Equity History and Analysis

Debt Level: ITRI's debt to equity ratio (127.2%) is considered high.

Reducing Debt: ITRI's debt to equity ratio has increased from 38.1% to 127.2% over the past 5 years.

Debt Coverage: ITRI's debt is not well covered by operating cash flow (17.6%).

Interest Coverage: ITRI's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet

Inventory Level: ITRI has a low level of unsold assets or inventory.

Debt Coverage by Assets: ITRI's debt is not covered by short term assets (assets are 1x debt).


Next Steps

Dividend

What is Itron's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate ITRI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ITRI'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 ITRI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ITRI'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 ITRI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Tom Deitrich (52yo)

0.3yrs

Tenure

US$2,929,664

Compensation

Mr. Philip C. Mezey served as the Chief Executive Officer and President of Itron, Inc. since January 1, 2013 until August 6, 2019. Mr. Mezey served as President and Chief Operating Officer of Energy at Itr ...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD2.93M) is below average for companies of similar size in the US market ($USD5.10M).

Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.1yrs

Average Tenure

56.5yo

Average Age

Experienced Management: ITRI's management team is considered experienced (2.1 years average tenure).


Board Age and Tenure

4.5yrs

Average Tenure

62yo

Average Age

Experienced Board: ITRI's board of directors are considered experienced (4.5 years average tenure).


Insider Trading

Insider Buying: ITRI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$234,28916 Sep 19
Sarah Elizabeth McConnell
EntityIndividual
Shares3,195
Max PriceUS$73.33
SellUS$12,710,51613 Sep 19
Scopia Capital Management LP
EntityCompany
Shares180,479
Max PriceUS$73.16
SellUS$28,583,12220 Aug 19
Scopia Capital Management LP
EntityCompany
Shares423,075
Max PriceUS$70.81
SellUS$199,12512 Aug 19
Thomas Glanville
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$66.78
SellUS$25,750,21403 Jul 19
Scopia Capital Management LP
EntityCompany
Shares421,316
Max PriceUS$63.23
SellUS$20,87224 Jun 19
Joan Hooper
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares336
Max PriceUS$62.12
SellUS$16,884,45810 Jun 19
Scopia Capital Management LP
EntityCompany
Shares292,800
Max PriceUS$58.94
SellUS$20,77013 May 19
Joan Hooper
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares341
Max PriceUS$60.91
SellUS$3,434,92813 Mar 19
Scopia Capital Management LP
EntityCompany
Shares69,105
Max PriceUS$49.98
SellUS$1,375,57102 Mar 19
Philip Mezey
EntityIndividual
Role
Senior Key Executive
Consultant
Shares22,645
Max PriceUS$60.75
SellUS$587,76902 Mar 19
Thomas Deitrich
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares9,676
Max PriceUS$60.75
SellUS$203,49602 Mar 19
Michel Cadieux
EntityIndividual
Role
Head of Human Resources
Senior Vice President of Human Resources
Shares3,350
Max PriceUS$60.75
SellUS$23,15402 Mar 19
Joan Hooper
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares377
Max PriceUS$61.42
SellUS$75,78902 Mar 19
Michel Cadieux
EntityIndividual
Role
Head of Human Resources
Senior Vice President of Human Resources
Shares1,234
Max PriceUS$61.42
SellUS$281,96502 Mar 19
Philip Mezey
EntityIndividual
Role
Senior Key Executive
Consultant
Shares4,591
Max PriceUS$61.42
SellUS$183,26802 Mar 19
Thomas Deitrich
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares2,984
Max PriceUS$61.42
SellUS$221,79727 Feb 19
Philip Mezey
EntityIndividual
Role
Senior Key Executive
Consultant
Shares3,657
Max PriceUS$60.65

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Joan Hooper (61yo)

    Senior VP & CFO

    • Tenure: 2.4yrs
    • Compensation: US$1.65m
  • Michel Cadieux (62yo)

    Senior Vice President of Human Resources

    • Tenure: 5.8yrs
    • Compensation: US$1.36m
  • Philip Mezey (59yo)

    Consultant

    • Tenure: 0.3yrs
    • Compensation: US$4.97m
  • Tom Deitrich (52yo)

    CEO, President & Director

    • Tenure: 0.3yrs
    • Compensation: US$2.93m
  • Chuck McAtee

    VP of Information Technology & Chief Information Officer

    • Tenure: 13.8yrs
  • Simon Pontin

    Chief Technology Officer

    • Tenure: 8.8yrs
  • Sharelynn Moore

    Senior Vice President of Network Solutions

    • Tenure: 2.3yrs
  • Ken Gianella (46yo)

    Vice President of Investor Relations

    • Tenure: 1.3yrs
  • Marina Donovan

    Vice President of Global Marketing & Public Affairs

    • Tenure: 1.8yrs
  • Sarah Hlavinka (54yo)

    Senior VP

    • Tenure: 1.3yrs
    • Compensation: US$2.16m

Board Members

  • Frank Jaehnert (62yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$186.35k
  • Thomas Glanville (61yo)

    Independent Director

    • Tenure: 18.5yrs
    • Compensation: US$184.85k
  • Gary Pruitt (69yo)

    Independent Director

    • Tenure: 13.8yrs
    • Compensation: US$177.50k
  • Diana Tremblay (60yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$182.35k
  • Lynda Ziegler (66yo)

    Chair of the Board

    • Tenure: 3.2yrs
    • Compensation: US$249.89k
  • Tim Leyden (68yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: US$179.85k
  • Tom Deitrich (52yo)

    CEO, President & Director

    • Tenure: 0.3yrs
    • Compensation: US$2.93m
  • Dan Pelino (62yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: US$176.35k
  • Jerome Lande (43yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$77.50k

Company Information

Itron, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Itron, Inc.
  • Ticker: ITRI
  • Exchange: NasdaqGS
  • Founded: 1977
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: US$2.985b
  • Shares outstanding: 39.57m
  • Website: https://www.itron.com/na

Number of Employees


Location

  • Itron, Inc.
  • 2111 North Molter Road
  • Liberty Lake
  • Washington
  • 99019
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ITRINasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDNov 1993
IT6DB (Deutsche Boerse AG)YesCommon SharesDEEURNov 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 Solutio ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/19 23:39
End of Day Share Price2019/11/19 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.