Itron Inc. Common Stock (ITRI)

FairStock Score: 69/100 — STEADY

Key Financials

Strengths

• Generates $268 million in annual free cash flow (6.8% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Solid return on equity of 19.3% above cost of capital

Concerns

• Revenue declining at 6.7% year-over-year signals potential demand weakness or market share loss
• Altman Z-Score of 1.7 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Itron Inc. Common Stock is a small-cap technology company valued at $3.9 billion. The business generates $2.4 billion in annual revenue with a 4.3% net margin and $268 million in free cash flow. From a quality standpoint, Itron shows solid Piotroski F-Score of 7/9 and distressed Altman Z-Score of 1.7 warrants caution. On valuation, the stock is attractively valued at 13.6x earnings, with trades above its Graham Number with a negative 19% margin. Growth dynamics show revenue growing at -6.7% and profit growth of 74.9%. Our composite FairStock Score of 69/100 reflects above-average fundamentals overall. This combination of reasonable valuation, solid returns, and conservative leverage makes it worth a closer look for value-oriented portfolios.

Bull Case

The market underappreciates Itron's consistent 19% ROE at just 14x earnings—a re-rating toward sector peers could unlock 30-50% upside. With $268 million in annual free cash flow (6.8% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the technology space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer