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ITRN:NASDAQIturan Location and Control Ltd. Analysis

Data as of 2026-05-19 - not real-time

$57.94

Latest Price

6/10Risk

Risk Level: Medium

Executive Summary

Ituran (ITRN) is trading around $57.94, just above its 20‑day SMA ($57.90) and comfortably above the 50‑day SMA ($54.12), confirming a bullish price trend despite a mildly bearish MACD histogram. The stock offers an eye‑catching dividend yield of over 10% with a payout ratio near 68%, and its forward P/E of ~15 is well below the industry average of 38, suggesting the market is undervaluing the company.
Fundamentally, ITRN posted 12.8% revenue growth, solid gross (≈50%) and operating margins (≈22%), and generates robust cash flow that easily covers its modest debt. The DCF fair value ($57.81) is essentially in line with the current price, reinforcing a fair‑to‑undervalued view, while the upcoming Q1 2026 earnings release adds a short‑term catalyst. The combination of strong cash generation, a sustainable dividend, and expanding telematics demand supports a bullish outlook across medium and long horizons.

Market Outlook

Short Term

< 1 year
Neutral
Model confidence: 6/10

Key Factors

  • Upcoming Q1 2026 earnings release (May 26)
  • Bearish MACD histogram indicating potential short‑term pullback
  • High dividend yield providing downside cushion

Medium Term

1–3 years
Positive
Model confidence: 8/10

Key Factors

  • Revenue growth of ~13% and expanding telematics market
  • Valuation discount vs industry (P/E 19.8 vs 38.2)
  • Sustainable dividend supported by strong cash flow

Long Term

> 3 years
Positive
Model confidence: 9/10

Key Factors

  • Recurring subscription revenue from telematics services
  • Low leverage and ample cash reserves
  • Strategic positioning in high‑growth regions (Israel, Brazil, global fleet management)

Key Metrics & Analysis

Financial Health

Revenue Growth12.80%
Profit Margin16.15%
P/E Ratio19.8
ROE28.86%
ROA13.50%
Debt/Equity3.96
P/B Ratio5.3
Op. Cash Flow$88.6M
Free Cash Flow$47.2M
Industry P/E38.2

Technical Analysis

TrendBullish
RSI55.0
Support$54.64
Resistance$62.31
MA 20$57.90
MA 50$54.12
MA 200$43.92
MACDBearish
VolumeIncreasing
Fear & Greed Index89.21

Valuation

Fair Value$57.81
Target Price$63.50
Upside/Downside9.60%
GradeUndervalued
TypeBlend
Dividend Yield10.36%

Risk Assessment

Beta1.20
Volatility26.93%
Sector RiskMedium
Reg. RiskMedium
Geo RiskMedium
Currency RiskMedium
Liquidity RiskLow

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.