Quality Investor

Ituran Location and Control Ltd.

Rank #101Capital ReturnWatchlistCompare with other stocks

ITRN · Nasdaq · Technology

Ituran Location and Control Ltd. (ITRN) — Rank #101 by gross profitability (GP/assets 0.46) · ROE 26.6% · Piotroski F-Score N/A.

As-of 2026-10-30 · 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

Company Snapshot

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

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

2,800

Industry

Scientific & Technical Instruments

Exchange

Nasdaq

11/11

Flags passed

ITRN passes 11/11 quality flags

  • PASS
    Gross margin holding
  • PASS
    Dilution within 2%
  • PASS
    FCF not negative from investment
  • PASS
    Disclosure consistent
  • PASS
    Revenue not declining
  • PASS
    Operating margin holding
  • PASS
    Free cash flow intact
  • PASS
    Passes safety gate
  • PASS
    Balance sheet stable
  • PASS
    No competitive retreat
  • PASS
    No valuation convergence

Strengths Revenue growth accelerating · Operating leverage expanding · Deferred revenue growing

No data SBC and margin — not counted as a pass.

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

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%

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

Profitability

Does it make money well?

No warning flags · GP/assets 0.46

Gross profitability (GP / assets)

0.46

Primary signal (Novy-Marx).

5th 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%

Cash Flow Health

Is the cash real?

No warning flags · FCF 15% above net income

Free cash flow

$66.80M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF vs net income

15.2%

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

—

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

No warning flags · net cash $107.55M

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.72

4th of 9 SIC 50 peers (best = lowest)

Current ratio

2.28×

5th of 9 SIC 50 peers

Quick ratio

1.60×

Net cash

$107.55M

Cash & equivalents minus total debt.

Piotroski F-Score

N/A

Only 8/9 components determinable.

Valuation

Is the price reasonable?

No warning flags

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

Capital allocation quality

Composite score

3.3 / 5

Good
Share count trend(net buybacks)
-0.1%3/5 Good
Buyback timing
N/AN/A
Dividend growth consistency
3 yr2/5 Fair
Net debt trajectory(deleveraging)
8.0%5/5 Strong

Lifecycle Phase History

20202025
Value
Capital Return

Price History

ITRN+142.6% · +19.3% CAGRSPY+82.9% · +12.8% CAGR