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Ituran Location And Control
(NASDAQ:ITRN)
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Rating:86Outperform
Price Target:
$61.00
▲(11.37% Upside)
Action:Reiterated
Date:05/27/26
The score is driven primarily by strong financial performance (high margins, very low leverage, solid free cash flow). Technicals are supportive with clear trend strength above major moving averages. Valuation is appealing given the moderate P/E and high dividend yield, while the earnings call adds confidence via upbeat guidance but is tempered by slight margin pressure, FX sensitivity, and a subscriber-reporting inconsistency.
Positive Factors
Recurring subscription revenue
A high and growing subscription mix (73% of revenues, +21% YoY) creates predictable, recurring cash flows that scale with unit additions. This supports higher lifetime value, margin leverage, and durable revenue visibility, enabling long-term investments in product and customer retention.
Negative Factors
Margin pressure
A trend of margin erosion, even modest, can materially reduce free cash flow over time if persistent. If driven by cost inflation, product mix shifts, or competitive pricing, reduced margins constrain reinvestment, shareholder returns and the company’s buffer against adverse market conditions.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring subscription revenue
A high and growing subscription mix (73% of revenues, +21% YoY) creates predictable, recurring cash flows that scale with unit additions. This supports higher lifetime value, margin leverage, and durable revenue visibility, enabling long-term investments in product and customer retention.
Read all positive factors
Ituran Location And Control (ITRN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.08B
Dividend Yield5.59%
Average Volume (3M)145.03K
Price to Earnings (P/E)16.6
Beta (1Y)0.86
Revenue Growth15.79%
EPS Growth15.69%
CountryUS
Employees2,800
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)3.04
Shares Outstanding19,893,580
10 Day Avg. Volume148,653
30 Day Avg. Volume145,031
Financial Highlights & Ratios
PEG Ratio1.81
Price to Book (P/B)3.93
Price to Sales (P/S)2.38
P/FCF Ratio12.80
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$80.00Price Target Upside46.07% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)3.53
Revenue Forecast (FY)$409.34M
Ituran Location And Control Business Overview & Revenue Model
Company Description
Ituran Location and Control Ltd., together with its associated companies, specializes in providing a full range of location-based telematics services and machine-to-machine (M2M) telematics products. The company's operations are divided into two m...
How the Company Makes Money
Ituran primarily makes money through recurring subscription revenue for telematics services. Customers (individual drivers, fleets, and other organizations) pay periodic fees for services such as stolen vehicle recovery, real-time vehicle tracking...
Ituran Location And Control Earnings Call Summary
Earnings Call Date:Aug 12, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Mar 03, 2027
Earnings Call Sentiment Positive
The call communicated a strongly positive operational and financial quarter with record revenue, profitability, margin expansion, record operating cash flow, healthy subscriber additions, and active OEM ramp and growth initiatives. The main negatives are early‑stage monetization of new growth areas (big data, IturanMob), limited ARPU in UBI, and modest FX and net cash headwinds. Overall, the positives materially outweigh the listed challenges, which are mainly product maturation and timing risks rather than core operational weaknesses.Positive Updates
Record Revenue and Year‑Over‑Year Growth
Total revenue reached $104.8 million, a 21% increase year‑over‑year (from $86.8 million in Q2 2025), described as a company record for the quarter.
Negative Updates
Big Data Monetization Early and Limited So Far
Big data activities are at an early stage: initial Israeli Ministry of Transportation project closed in Q1 for a few million shekels and current big data engagements are mostly pilots and discussions; material revenue contribution is not yet realized.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Revenue and Year‑Over‑Year Growth
Total revenue reached $104.8 million, a 21% increase year‑over‑year (from $86.8 million in Q2 2025), described as a company record for the quarter.
Read all positive updates
Company Guidance
Management reiterated guidance for continued growth and profitability through 2026, pointing to Q2 as proof: record revenue of $104.8M (+21% YoY), recurring subscription revenue $79.8M (+25%) or 76% of total, product revenue $25M (+8%), 41,000 net new subscribers (total 2,711,000), EBITDA $28.5M (27.2% margin, +24% YoY), net income $17.3M (16.5% margin, EPS $0.88, +29% YoY), and record operating cash flow of $32.2M; the balance sheet shows net cash and marketable securities of $103.7M with no debt, the Board approved a $10M dividend ($0.50/share) and $3M of buybacks (≈$10M remaining authorization), while management highlighted OEM ramps (e.g., Connect Fiat, Nissan, Renault, GM, Yamaha, BMW), U.S. IturanMob launch and big-data pilots as medium‑to‑longer‑term revenue drivers (rental/big‑data not expected to be material in 2026–2027) and noted an FX impact of roughly $1M on EBIT.Ituran Location And Control Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
80
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 375.23M | 359.02M | 336.26M | 319.98M | 293.07M | 270.88M |
| Gross Profit | 186.00M | 178.58M | 160.62M | 153.16M | 137.56M | 127.84M |
| EBITDA | 99.92M | 95.92M | 93.35M | 87.37M | 75.54M | 69.31M |
| Net Income | 60.15M | 57.97M | 53.65M | 48.14M | 37.10M | 34.26M |
Balance Sheet | ||||||
| Total Assets | 401.20M | 386.21M | 326.88M | 318.69M | 290.93M | 293.02M |
| Cash, Cash Equivalents and Short-Term Investments | 107.97M | 107.55M | 77.37M | 53.55M | 28.17M | 54.71M |
| Total Debt | 4.32M | 8.88M | 9.06M | 8.66M | 22.09M | 36.12M |
| Total Liabilities | 187.45M | 161.73M | 135.62M | 138.44M | 137.72M | 155.22M |
| Stockholders Equity | 207.45M | 217.56M | 185.23M | 174.45M | 145.80M | 132.46M |
Cash Flow | ||||||
| Free Cash Flow | 74.82M | 66.80M | 60.63M | 62.98M | 18.61M | 39.16M |
| Operating Cash Flow | 96.55M | 88.58M | 74.27M | 77.22M | 45.12M | 55.79M |
| Investing Cash Flow | -25.12M | -24.18M | -15.94M | -17.23M | -27.35M | -18.52M |
| Financing Cash Flow | -48.02M | -42.71M | -31.77M | -32.93M | -36.36M | -58.67M |
Ituran Location And Control Technical Analysis
Negative
54.77
Price Trends
58.75
Negative
57.14
Negative
49.46
Positive
Market Momentum
-1.28
Positive
43.49
Neutral
21.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ITRN, the sentiment is Negative. The current price of 54.77 is below the 20-day moving average (MA) of 55.01, below the 50-day MA of 58.75, and above the 200-day MA of 49.46, indicating a neutral trend. The MACD of -1.28 indicates Positive momentum. The RSI at 43.49 is Neutral, neither overbought nor oversold. The STOCH value of 21.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ITRN.
Ituran Location And Control Risk Analysis
Ituran Location And Control disclosed 35 risk factors in its most recent earnings report. Ituran Location And Control reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ituran Location And Control Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
86 Outperform | $1.08B | 16.57 | 28.54% | 5.48% | 15.79% | 15.69% | |
67 Neutral | $878.98M | 24.99 | 6.14% | ― | 39.47% | 14.43% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $858.05M | -823.63 | -1.56% | ― | -9.43% | -103.56% | |
57 Neutral | $421.47M | -22.90 | -3.92% | ― | 15.14% | 52.80% | |
56 Neutral | $282.47M | 38.28 | 3.37% | ― | 0.23% | ― | |
46 Neutral | $664.89M | -25.40 | -18.82% | ― | 15.75% | 78.71% |
* Technology Sector Average
ITRN
Ituran Location And Control
53.69
15.02
38.83%
ADTN
Adtran
8.07
-0.87
-9.73%
AVNW
Aviat Networks
21.82
-0.26
-1.18%
FEIM
Frequency Electronics
78.08
47.64
156.50%
GILT
Gilat
11.50
2.65
29.94%
AIOT
Powerfleet
3.14
-1.30
-29.28%
Ituran Location And Control Corporate Events
Ituran Location and Control Sets August 12 Date for Q2 2026 Results and Investor Call
Jul 20, 2026
Ituran Location and Control Ltd., a Nasdaq-listed leader in mobility technology and connected-car services, offers location-based solutions such as stolen vehicle recovery, fleet management and mobile asset control to retail, insurance, financing ...
Ituran Sets Israeli Withholding Tax Procedures for July 8, 2026 Dividend
Jun 25, 2026
On June 25, 2026, Ituran Location and Control announced that, in connection with a previously declared $0.50 per share dividend (about $10 million) payable on July 8, 2026 to shareholders of record as of June 24, 2026, it obtained a ruling from th...
Ituran Location and Control Declares $10 Million Q1 2026 Dividend
May 26, 2026
Ituran Location and Control, a leading provider of connected-car and location-based mobility services, reported a subscriber base of more than 2.6 million users and a strong presence in Israel and Latin America as of March 31, 2026. Founded in 199...
Ituran Location & Control Delivers Double-Digit Growth in Q1 2026 Results
May 26, 2026
On May 26, 2026, Ituran Location and Control reported first-quarter 2026 results showing revenue of $102.7 million, up 19% year over year, driven by 21% growth in higher-margin subscription revenue to $75.4 million and a 40,000 net increase in sub...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.