Ituran Location and Control Ltd. Ordinary Shares (ITRN)

FairStock Score: 70/100 — STEADY

Key Financials

Strengths

• Generates $51 million in annual free cash flow (4.6% yield on market cap)
• Strong Piotroski F-Score of 8/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• High return on equity of 28.9% demonstrating efficient capital deployment
• Conservative balance sheet with debt-to-equity of just 0.02, providing financial flexibility
• Altman Z-Score of 5.1 confirms minimal bankruptcy risk and strong solvency

Concerns

• Trades significantly above Graham Number ($26) with negative 114% margin of safety—limited downside protection

AI Analysis

Ituran Location and Control Ltd. Ordinary Shares is a micro-cap technology company valued at $1.1 billion. Revenue stands at $359 million. From a quality standpoint, Ituran shows near-perfect Piotroski F-Score of 8/9 indicating exceptional financial health and Altman Z-Score of 5.1 confirms fortress-level solvency. On valuation, the stock is reasonably priced at 19.2x earnings, with trades far above its Graham Number ($26) with no margin of safety. Growth dynamics show revenue growing at 10.5% and profit growth of 7.3%. The 10.8% dividend yield adds an income component for patient holders. Our composite FairStock Score of 70/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $51 million in annual free cash flow (4.6% 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