About Ituran Location & Control Ltd.
Ituran Location and Control Ltd., together with its subsidiaries, provides location-based telematics services and machine-to-machine telematics products. The company's Telematics services segment provides stolen vehicle recovery and tracking services, which locate, track, and recover stolen vehicles for its subscribers; 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. It also offers 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 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.
This segment serves insurance companies and agents, car manufacturers, dealers and importers, cooperative sales channels, and private subscribers. Its Telematics Products segment provides Base Site, a radio receiver that includes a processor and a data computation unit to collect and send data to and from transponders, and to control centers; 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; 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.
ITRN operates in the Wholesale Trade | Wholesale | approximately 2,810 employees | led by CEO Eyal Sheratzky.
$612 million 11.4x P/E 3.3x P/B 5.9x EV/EBITDA 30.4% ROE 5.1% rev. growth 5.1% yield
Ituran Location & Control Ltd. earns a Buy rating from our quantitative model with a composite score of 75/100, ranking #11 among 7,333 U.S. stocks. The model sees a stock with an above-average factor profile — not without risks, but with enough quantitative support to warrant a constructive outlook.
The strongest dimension is value at 97/100, which places ITRN in the top 3 percent of all stocks on this measure. quality at 95/100 provides secondary support. No single factor falls below the average threshold, which is a constructive sign.
Within the Wholesale Trade sector, ITRN ranks 1st out of 50 peers, placing it in the 98th percentile. At $612 million, the company is a small-cap stock with higher potential but also higher risk.
Quality Analysis
Ituran Location & Control Ltd.'s quality score of 95/100 places it among the top profitability performers in the market. The quality factor evaluates margins, return on equity, return on assets, and earnings consistency — the fundamental building blocks of a durable business.
Return on equity of 30.4% exceeds the sector median of 9.0%. Gross margins of 47.8% are competitive for the sector. Operating margins of 21.2% sit above the 3.0% sector average.
Net margins of 16.8% demonstrate that the company efficiently converts revenue into bottom-line profit.
Valuation Assessment
A value score of 97/100 puts ITRN in the top 3 percent of all stocks on cheapness — suggesting the market is significantly underpricing the company's fundamentals. Key valuation metrics include a P/E ratio of 11.4x, an EV/EBITDA of 5.9x, a price-to-book of 3.3x, a price-to-sales of 1.8x. Deep value scores like this historically correlate with above-average forward returns, though they can also reflect legitimate concerns about business quality that the value factor does not capture.
Momentum & Timing
A momentum score of 70/100 shows ITRN is trending above average, with its stock price outperforming the majority of the market. This is not explosive, meme-stock-style momentum — it is the gradual, fundamental-driven kind that tends to persist.
Revenue growth of 5.1% provides a moderate fundamental underpinning. A beta of 0.82 means Ituran Location & Control Ltd. moves roughly in line with the broader market.
Our entry timing model currently signals Favorable, which warrants caution despite the price trend.
Risk Factors
No investment comes without risks, and honest analysis requires flagging them clearly:
- Small-cap illiquidity. At $612 million, ITRN has lower trading volume and wider bid-ask spreads than large-cap peers. This can amplify short-term price volatility and make it harder for larger investors to build or exit positions without moving the stock.
- Model limitations. Quantitative models measure what is measurable — financial ratios, price trends, leverage — but cannot capture qualitative factors like management quality, competitive positioning, or pending litigation. This analysis should be supplemented with fundamental due diligence.
- Market regime risk. Factor-based strategies perform differently across market regimes. The current factor exposures that support Ituran Location & Control Ltd.'s rating may become headwinds if the macro environment shifts — for example, if interest rates move sharply or if sector rotation accelerates.
Bottom Line
Ituran Location & Control Ltd. earns a Buy rating with a composite score of 75/100 and 4 out of 5 stars, ranking #11 among 7,333 stocks. The factor profile is constructive — not without blemishes, but with enough quantitative support to position ITRN above the majority of the market.
Explore the full ITRN analysis page for interactive factor breakdowns, or view the complete stock rankings.
Analysis is for informational purposes only and does not constitute investment advice. Always conduct your own research before making investment decisions.
