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Relative to Consumer Staples Sector Median (N=180)
Metric
ITRN
Benchmark
P/E Ratio
19.8x
-40%
EV/EBITDA
2.7x
-61%
Price / Book
5.7x
Implied Value Audit
UNDERVALUED
Implied Fair Value (vs Sector)
+25.9%
$67.39Spot: $53.54
Spot
Implied
-50% Delta+50% Delta
Relative valuation derived from Consumer Staples sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 48.4GRADE C
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
122.1%
Sector: 7.7%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, Ituran Location & Control Ltd. (ITRN) receives a "Buy" rating with a composite score of 60.3/100, ranked #18 out of 4446 stocks. Key factor scores: Quality 48/100, Value 82/100, Momentum 70/100. This is quantitative analysis only — not investment advice.
Ituran Location & Control Ltd. (ITRN) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Ituran Location & Control Ltd. Do?
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. Ituran Location & Control Ltd. (ITRN) is classified as a small-cap stock in the Consumer Staples sector, specifically within the Wholesale industry. The company is led by CEO Eyal Sheratzky and employs approximately 2,810 people. With a market capitalization of $1.0B, ITRN is one of the notable companies in the Consumer Staples sector.
As of April 2026, Ituran Location & Control Ltd. receives a Buy rating with a composite score of 60.3/100 and 4 out of 5 stars from the Blank Capital Research quantitative model.ITRN ranks #18 out of 4,446 stocks in our coverage universe. Within the Consumer Staples sector, Ituran Location & Control Ltd. ranks #1 of 180 stocks, placing it in the top 10% of its Consumer Staples peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
ITRN Stock Price and 52-Week Range
Ituran Location & Control Ltd. (ITRN) currently trades at $53.54. The stock gained $0.50 (0.9%) in the most recent trading session. The 52-week high for ITRN is $51.58, which means the stock is currently trading 3.8% from its annual peak. The 52-week low is $30.06, putting the stock 78.1% above its annual trough. Recent trading volume was 140K shares, suggesting relatively thin trading activity.
Is ITRN Overvalued or Undervalued? — Valuation Analysis
Ituran Location & Control Ltd. (ITRN) carries a value factor score of 82/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 19.83x, compared to the Consumer Staples sector average of 33.11x — a discount of 40%. The price-to-book ratio stands at 5.69x, versus the sector average of 1.74x. The price-to-sales ratio is 0.78x, compared to 0.35x for the average Consumer Staples stock. On an enterprise value basis, ITRN trades at 2.67x EV/EBITDA, versus 6.93x for the sector.
Based on these multiples, Ituran Location & Control Ltd. appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
Ituran Location & Control Ltd. Profitability — ROE, Margins, and Quality Score
Ituran Location & Control Ltd. (ITRN) earns a quality factor score of 48/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is 122.1%, compared to the Consumer Staples sector average of 7.7%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 69.2% versus the sector average of 3.1%.
On a margin basis, Ituran Location & Control Ltd. reports gross margins of 47.8%, compared to 26.2% for the sector. The operating margin is 21.2% (sector: 2.9%). Net profit margin stands at 16.8%, versus 1.6% for the average Consumer Staples stock. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
ITRN Debt, Balance Sheet, and Financial Health
Ituran Location & Control Ltd. has a debt-to-equity ratio of 0.0%, compared to the Consumer Staples sector average of 72.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. Total debt on the balance sheet is $114,000. Cash and equivalents stand at $77M.
ITRN has a beta of 0.91, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for Ituran Location & Control Ltd. is 64/100, reflecting average volatility within the normal range for its sector.
Ituran Location & Control Ltd. Revenue and Earnings History — Quarterly Trend
In TTM 2026, Ituran Location & Control Ltd. reported revenue of $336M and earnings per share (EPS) of $2.70. Net income for the quarter was $57M. Gross margin was 47.8%. Operating income came in at $71M.
In FY 2024, Ituran Location & Control Ltd. reported revenue of $336M and earnings per share (EPS) of $2.70. Net income for the quarter was $57M. Gross margin was 47.8%. Revenue grew 5.1% year-over-year compared to FY 2023. Operating income came in at $71M.
In FY 2023, Ituran Location & Control Ltd. reported revenue of $320M and earnings per share (EPS) of $2.41. Net income for the quarter was $50M. Gross margin was 47.9%. Revenue grew 9.2% year-over-year compared to FY 2022. Operating income came in at $66M.
In FY 2022, Ituran Location & Control Ltd. reported revenue of $293M and earnings per share (EPS) of $1.82. Net income for the quarter was $40M. Gross margin was 46.9%. Revenue grew 8.2% year-over-year compared to FY 2021. Operating income came in at $59M.
Over the past 8 quarters, Ituran Location & Control Ltd. has demonstrated a growth trajectory, with revenue expanding from $253M to $336M. Investors analyzing ITRN stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
ITRN Dividend Yield and Income Analysis
Ituran Location & Control Ltd. (ITRN) does not currently pay a dividend. This is common among smaller companies in the Wholesale industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Consumer Staples dividend stocks may want to explore other Consumer Staples stocks or use the stock screener to filter by dividend yield.
ITRN Momentum and Technical Analysis Profile
Ituran Location & Control Ltd. (ITRN) has a momentum factor score of 70/100, indicating strong price momentum with the stock outperforming the majority of the market over recent periods. Stocks with high momentum scores have historically tended to continue their outperformance in the near term. The investment factor score is 49/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 46/100 reflects moderate short selling activity.
ITRN vs Competitors — Consumer Staples Sector Ranking and Peer Comparison
Comparing ITRN against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full ITRN vs S&P 500 (SPY) comparison to assess how Ituran Location & Control Ltd. stacks up against the broader market across all factor dimensions.
ITRN Next Earnings Date
No upcoming earnings date has been announced for Ituran Location & Control Ltd. (ITRN) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy ITRN? — Investment Thesis Summary
The bull case for Ituran Location & Control Ltd. rests on several quantitative strengths. The value score of 82/100 suggests attractive pricing relative to fundamentals. Price momentum is positive at 70/100, suggesting the trend favors buyers. Low volatility (stability score 64/100) reduces downside risk.
In summary, Ituran Location & Control Ltd. (ITRN) earns a Buy rating with a composite score of 60.3/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on ITRN stock.
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Institutional Research Dossier
Ituran Location & Control Ltd. (ITRN) Deep Dive Analysis
Published on March 24, 2026
Action RatingBuy
Sections
Executive Summary
We maintain a Buy rating on Ituran Location & Control Ltd. (ITRN), driven by its compelling valuation relative to its profitability and growth prospects. The company's strong free cash flow generation, high return on equity, and dominant position in the stolen vehicle recovery (SVR) market, particularly in Latin America, underpin our positive outlook. While challenges exist, including competition and macroeconomic headwinds, Ituran's demonstrated ability to innovate and expand its service offerings, coupled with its attractive valuation multiples, make it an appealing investment.
The most critical takeaway is Ituran's undervaluation. Despite its superior profitability metrics compared to the Consumer Staples sector, the company trades at a significantly lower P/E and EV/EBITDA multiple. This discrepancy suggests that the market is not fully appreciating Ituran's growth potential and competitive advantages, presenting a potential opportunity for investors.
Business Strategy & Overview
Ituran operates in the telematics industry, providing location-based services and machine-to-machine (M2M) telematics products. Its core business revolves around stolen vehicle recovery (SVR) and fleet management, primarily targeting insurance companies, car manufacturers, and individual subscribers. The company generates revenue through subscription fees for its telematics services and sales of its telematics products, including base sites, control centers, and tracking devices.
Ituran's strategic positioning centers on leveraging its proprietary technology and established infrastructure to offer comprehensive telematics solutions. The company has a strong presence in Latin America, particularly in Brazil and Argentina, where vehicle theft rates are high, creating a strong demand for its SVR services. Ituran's expansion strategy involves diversifying its service offerings beyond SVR to include fleet management, connected car solutions, and usage-based insurance (UBI) programs. This diversification aims to capture a larger share of the telematics market and reduce reliance on the SVR business.
The company's product pipeline focuses on developing advanced telematics devices and software platforms that enhance its service capabilities. This includes integrating GPS tracking, cellular communication, and data analytics to provide real-time vehicle location, driver behavior monitoring, and predictive maintenance alerts. Ituran also invests in developing mobile apps and web portals that allow customers to access and manage their telematics data.
The telematics industry is characterized by intense competition, with numerous players offering similar services. Key competitors include LoJack, CalAmp, and various regional telematics providers. Ituran differentiates itself through its established brand reputation, extensive network of base sites, and strong relationships with insurance companies and car manufacturers. The company's focus on innovation and customer service also contributes to its competitive advantage.
Execution Benchmarks audit
Gross Margin
Core pricing power
47.8%
Sector: 26.2%
+82% VS SCTR
Economic Moat Analysis
Ituran possesses a narrow economic moat, primarily derived from switching costs and intangible assets. The switching costs arise from the integration of Ituran's telematics solutions into its customers' operations, particularly for fleet management and insurance companies. Once a customer has integrated Ituran's platform into their systems, switching to a competitor would involve significant costs and disruption, creating a degree of customer stickiness.
The company's brand reputation and established network of base sites also contribute to its moat. Ituran has built a strong brand name in the SVR market, particularly in Latin America, where it is recognized as a reliable and effective provider. The company's extensive network of base sites provides a competitive advantage in terms of coverage and responsiveness, making it difficult for new entrants to replicate its infrastructure.
However, the moat is considered narrow due to the relatively low barriers to entry in the telematics industry. While Ituran has a strong position in the SVR market, the industry is becoming increasingly competitive, with new players emerging and existing players expanding their service offerings. The commoditization of telematics hardware and the increasing availability of cloud-based platforms are also reducing the barriers to entry.
Furthermore, the network effects in the telematics industry are limited. While a larger network of subscribers can provide more data and insights, the benefits are not as pronounced as in other industries with strong network effects, such as social media or e-commerce. The value of Ituran's services is primarily derived from its ability to track and recover stolen vehicles or manage fleets, rather than from the size of its network.
The company's ability to maintain and widen its moat will depend on its continued innovation and its ability to differentiate its services from competitors. This includes developing advanced telematics solutions, expanding its service offerings, and strengthening its relationships with key customers.
Financial Health & Profitability
Ituran's financial health is robust, characterized by consistent revenue growth, strong profitability, and healthy cash flow generation. The company has demonstrated a track record of increasing revenue over the past decade, with revenue growing from $175.63 million in FY2015 to $336.26 million in FY2024. This represents a compound annual growth rate (CAGR) of approximately 7.5%, indicating a steady expansion of its business.
The company's profitability metrics are also impressive. Ituran consistently generates high gross margins, operating margins, and net margins compared to the Consumer Staples sector. In FY2024, the company reported a gross margin of 47.8%, an operating margin of 21.2%, and a net margin of 16.8%. These margins are significantly higher than the sector averages, indicating Ituran's ability to efficiently manage its costs and generate profits.
Ituran's return on equity (ROE) is exceptionally high, at 122.1%, compared to the sector average of 7.8%. This indicates that the company is effectively utilizing its equity to generate profits. The company's strong ROE is driven by its high net margin and efficient asset utilization.
The company's balance sheet is also healthy, with a low debt-to-equity ratio of 0.00. This indicates that Ituran is not heavily leveraged and has a strong financial position. The company's total cash of $77.36 million provides a buffer against unforeseen circumstances and allows it to invest in growth opportunities.
Ituran's free cash flow (FCF) generation is also strong. The company has consistently generated positive FCF over the past decade, with FCF fluctuating depending on investment cycles. In FY2024, the company generated $68.97 million in FCF, demonstrating its ability to convert its profits into cash. The FCF trend has been volatile, with a significant dip in FY2022, but has recovered strongly in subsequent years.
Valuation Assessment
Ituran's valuation appears attractive based on several key metrics. The company's P/E ratio of 18.0x is significantly lower than the Consumer Staples sector average of 34.2x, suggesting that the stock is undervalued relative to its earnings. Similarly, the company's EV/EBITDA multiple of 2.4x is substantially lower than the sector average of 7.3x, further indicating undervaluation.
The company's high ROE of 122.1% also supports the argument for undervaluation. Companies with high ROEs typically trade at premium valuations, reflecting their ability to generate superior returns for shareholders. However, Ituran's P/E ratio does not reflect its high ROE, suggesting that the market is not fully appreciating its profitability.
The company's free cash flow yield is also attractive. With a market cap of $966.63 million and FCF of $68.97 million, the company's FCF yield is approximately 7.1%. This is a relatively high FCF yield, indicating that the company is generating a significant amount of cash relative to its market value.
However, it is important to consider the company's growth prospects when assessing its valuation. While Ituran has demonstrated consistent revenue growth in the past, the telematics industry is becoming increasingly competitive, which could impact its future growth rate. If the company's growth rate slows down, its valuation may need to be adjusted accordingly.
Overall, Ituran's valuation appears attractive based on its P/E ratio, EV/EBITDA multiple, ROE, and FCF yield. The stock is trading at a discount to its sector peers, despite its superior profitability metrics. This suggests that the market is not fully appreciating Ituran's growth potential and competitive advantages.
Risk & Uncertainty
Several risks and uncertainties could impact Ituran's business and financial performance. One of the primary risks is competition in the telematics industry. The industry is becoming increasingly crowded, with numerous players offering similar services. This increased competition could put pressure on Ituran's pricing and margins, potentially impacting its profitability.
Another risk is macroeconomic headwinds, particularly in Latin America, where Ituran has a significant presence. Economic instability, currency fluctuations, and political uncertainty in these regions could negatively impact demand for Ituran's services and products. A slowdown in economic growth could also lead to increased vehicle theft rates, which could benefit Ituran's SVR business, but could also increase its operating costs.
Regulatory risks also pose a threat to Ituran's business. Changes in regulations related to data privacy, vehicle tracking, and telematics services could impact the company's operations and compliance costs. For example, stricter data privacy regulations could limit the company's ability to collect and use customer data, which could impact its ability to provide personalized services.
Customer concentration is another potential risk. While the data is not provided, if a significant portion of Ituran's revenue is derived from a small number of customers, the loss of one or more of these customers could have a material impact on its financial performance. Maintaining strong relationships with key customers is crucial for mitigating this risk.
Bulls Say / Bears Say
The Bull Case
BULL VIEWIturan's dominant position in the Latin American SVR market, coupled with rising vehicle theft rates, provides a strong and sustainable revenue stream.
BULL VIEWThe company's attractive valuation, with a P/E ratio significantly below the sector average, offers substantial upside potential as the market recognizes its true value.
BULL VIEWIturan's expansion into connected car solutions and usage-based insurance creates new growth opportunities beyond its core SVR business.
The Bear Case
BEAR VIEWIncreased competition in the telematics industry will erode Ituran's market share and put downward pressure on its pricing and margins.
BEAR VIEWEconomic instability and currency fluctuations in Latin America will negatively impact Ituran's revenue and profitability.
BEAR VIEWThe company's reliance on the SVR market makes it vulnerable to technological advancements that could reduce vehicle theft rates.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score ITRN and 4,400+ other equities.
Ituran Location & Control Ltd. exhibits a 62% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
69.2%
Sector: 3.1%
Gross Margin
Pricing power and cost efficiency
47.8%
Sector: 26.2%
Operating Margin
Core business profitability
21.2%
Sector: 2.9%
Net Margin
Bottom-line profitability
16.8%
Sector: 1.6%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
