Quality Investor

Ituran Location and Control Ltd.

Rank #96Capital Return

ITRN · Nasdaq · Technology

Ituran Location and Control Ltd. (ITRN) — Rank #96 by gross profitability (GP/assets 0.46) · ROE 26.6% · Piotroski F-Score N/A.

As-of 2026-09-15 · CIK 0001337117 · all metrics point-in-time as of the filing date.

About

Ituran Location and Control Ltd., together with its subsidiaries, provides location-based telematics services and machine-to-machine telematics products in Israel, Brazil, and internationally.

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It operates in two segments, Telematics Services and Telematics Products. The Telematics services segment offers stolen vehicle recovery and tracking services, which enable it to locate, track, and recover stolen vehicles; fleet management services that enable corporate and individual customers to track and manage their vehicles in real time; and locator services that allow customers to protect valuable merchandise and equipment. This segment also delivers 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 provides Connected Car, a service platform that includes a back-office application, a telematics device installed in the vehicle, mobile apps for IOS and Android users, and interface using the car infotainment screen, as well as usage based insurance and auto financing services. It serves insurance companies and agents, car manufacturers, dealers and importers, cooperative sales channels, private fleet subscribers, and finance institutions. The Telematics Products segment offers a system for automatic vehicle location was based on terrestrial network triangulation technology and GPS/GPRS; 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; GPS/GPRS, a 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.

The company was incorporated in 1994 and is headquartered in Azor, Israel.

Industry
Scientific & Technical Instruments
Sector
Technology
State
L3
Filer Category
Accelerated filer
Fiscal Year End
December 31
Website
ituran.com

Price History

ITRN+145.1% · +19.6% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

$1.01B

P/E (annual)

17.5

P/S (annual)

2.8

P/B

4.6

P/OCF (annual)

11.4

Shareholder Yield

3.8%

Employees

2,800

Industry

Scientific & Technical Instruments

Exchange

Nasdaq

Signal Flags

3 green
Revenue growth acceleratingGrowth rate increasing year over year
Operating leverage expandingOperating income growing faster than revenue
Deferred revenue growingRevenue and deferred revenue both growing — retention signal

Quality Profile

Profitability

1/1 pass
GP / assets
0.46
Return on equity
26.6%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.72
Current ratio
2.28×
Net cash
$107.55M

Cash Flow

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

Growth

2/2 pass
Revenue growth
6.8%
Piotroski F-Score
N/A
Share dilution
-0.1%

Terry Smith quality gate

Passes 3/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

3.9%

incredible deal

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

Buyback tailwind: -0.1% — per-share value needs a total required return of 3.8% once share-count change is priced in.

vs. own 6-year median revenue growth: 7.5%

within its own history

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

r = 8%

-0.1%

r = 10% (base)

3.9%

r = 12%

7.5%

Net debt / market cap: -10.6%

Base FCF: $66.8M3Y mean FCF: $63.5M

Valuation History

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

P / E

Price / diluted EPS

19.2xExpensive
10.4xmed 11.9x19.2x

P / S

Price / revenue per share

3.1xFair
1.3xmed 2.1x3.6x

P / B

Price / book value per share

5.1xFair
2.8xmed 4.1x7.0x

P / GP

Price / gross profit per share

6.2xExpensive
2.8xmed 4.5x7.1x

P / FCF

Price / free cash flow per share

16.7xFair
7.9xmed 15.2x27.4x

FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.46

Primary signal (Novy-Marx).

3rd of 9 SIC 50 peers

Return on equity

26.6%

Gross margin

49.7%

1st of 9 SIC 50 peers

Revenue growth (YoY)

6.8%

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)

7.0%

Revenue CAGR (5Y)

7.9%

Earnings CAGR (3Y)

16.0%

FCF CAGR (3Y)

53.1%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.72

3rd of 9 SIC 50 peers (best = lowest)

Current ratio

2.28×

4th of 9 SIC 50 peers

Quick ratio

1.60×

Net cash

$107.55M

Cash & equivalents minus total debt.

Recession resistance

Revenue through recessions

Worst single-year YoY revenue decline, 17 years of history

Weak
2008-2009 (GFC)
N/AN/A
2020 (COVID)
-12.1%Significant decline
Worst year on record(any fiscal year, not recession-limited)
-12.1%Significant decline

Cash-flow health

Free cash flow

$66.80M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.15

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

Stock-based comp intensity.

Dividend safety

Composite score

2.2 / 5

Fair
Payout ratio
64.8%2/5 Fair
FCF coverage
1.78×3/5 Good
Dividend growth streak
3 yr2/5 Fair
Balance-sheet health
D/E 0.72 · IC N/A2/5 Fair

Piotroski F-Score

F-Score

N/A

Only 8/9 components determinable.

Lifecycle Phase History

20202025
Value
Capital Return