Quality Investor

Itron, Inc.

Rank #321Value

ITRI · Nasdaq · Technology

Itron, Inc. (ITRI) — Rank #321 by gross profitability (GP/assets 0.22) · ROE 18.6% · Piotroski F-Score 6 / 9.

As-of 2026-09-15 · CIK 0000780571 · all metrics point-in-time as of the filing date.

About

Itron, Inc., a technology, solutions, and service company, provides end-to-end solutions that help manage energy, water, and smart city operations worldwide.

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It operates in four segments: Device Solutions, Networked Solutions, Outcomes, and Resiliency Solution. The Device Solutions segment offers hardware products that are used for measurement, control, or sensing, such as standard gas, electricity, water, and communicating meters, as well as heat and allocation products. The Networked Solutions segment provides communicating devices, such as smart meters, modules, endpoints, and sensors; network infrastructure; network design services; and associated heat-end management and application software for acquiring and transporting application-specific data. This segment also products and software for the implementation, installation, and management of communicating devices and data networks; offers industrial internet of things solutions, including automated meter reading; advanced metering infrastructure for electricity, water, and gas; distributed energy resource management; grid edge devices; distribution automation communications; smart lighting; and smart city sensors and applications. The Outcomes segment provides value-added, enhanced software and services, artificial intelligence, and machine learning, statistical modeling, and other analytics. The Resiliency Solutions segment offers software and services. The company offers implementation, project management, installation, consulting, and post-sale maintenance support services, as well as cloud and software-as-a-service; and extended or customer-specific warranties. It offers its products and services under the Itron brand. The company serves utility and smart city customers, and municipalities through its sales force, distributors, agents, partners, and meter manufacturer representatives. Itron, Inc.

was incorporated in 1977 and is headquartered in Liberty Lake, Washington.

Industry
Scientific & Technical Instruments
Sector
Technology
State
WA
Filer Category
Large accelerated filer
Fiscal Year End
December 31

Price History

ITRI+14.3% · +2.7% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E and dividend yield are the primary valuation lenses for mature businesses.

Market Cap

$4.00B

P/E (annual)

14.1

P/S (annual)

1.7

P/B

2.5

P/OCF (annual)

9.9

Shareholder Yield

-0.3%

Employees

4,987

Industry

Scientific & Technical Instruments

Exchange

Nasdaq

Signal Flags

2 green1 red
Operating leverage expandingOperating income growing faster than revenue
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak
Revenue declining YoYRevenue contracted year over year

Quality Profile

Profitability

1/1 pass
GP / assets
0.22
Return on equity
18.6%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.44
Current ratio
2.75×
Net cash
-$830.01M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
2.6%

Growth

1/2 pass
Revenue growth
-3.0%
Piotroski F-Score
6 / 9
Share dilution
0.3%

Terry Smith quality gate

Passes 1/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

-0.5%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 0.3% — per-share value needs a total required return of -0.2% once share-count change is priced in.

vs. own 6-year median revenue growth: -5.9%

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

-4.3%

r = 10% (base)

-0.5%

r = 12%

2.8%

Net debt / market cap: 19.6%

Note: current FCF margin is 2.4σ above its historical mean — implied growth may understate valuation risk if the margin reverts.

Base FCF: $383.1M3Y mean FCF: $229.6M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

14.8xCheap
14.8xmed 40.0x64.6x

P / S

Price / revenue per share

1.9xFair
0.9xmed 1.3x2.1x

P / B

Price / book value per share

2.6xCheap
1.9xmed 3.1x5.7x

P / GP

Price / gross profit per share

5.0xFair
2.8xmed 4.2x7.7x

P / FCF

Price / free cash flow per share

11.7xCheap
11.7xmed 27.6x491.0x

Dividend yield and payout ratio are the primary reads at this stage (trailing P/E — see valuation above).

Profitability

Gross profitability (GP / assets)

0.22

Primary signal (Novy-Marx).

22nd pctl of 37 SIC 38 peers

Return on equity

18.6%

Gross margin

37.7%

22nd pctl of 37 SIC 38 peers

Revenue growth (YoY)

-3.0%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

9.7%

Revenue CAGR (5Y)

1.7%

Earnings CAGR (3Y)

FCF CAGR (3Y)

331.9%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.44

18th pctl of 35 SIC 38 peers (best = lowest)

Current ratio

2.75×

60th pctl of 36 SIC 38 peers

Quick ratio

1.88×

Net cash

-$830.01M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$383.06M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.27

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

2.6%

Stock-based comp intensity.

Piotroski F-Score

F-Score

6 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20202025
Decline
Hypergrowth
Op. Leverage
Value