# Ituran Location and Control (ITRN.US)

Canonical: https://gigainvestors.com/s/ITRN

Analysis as of: 2026-10-16T07:29:26.140Z. Financial observations: FY2001–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at a fair price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: yes.

Share price: $49.96 per share; close as of 2026-10-15.

Estimated value: low $51.31 per share, central $72.63 per share, high $84.52 per share. Buy at or below the central value $72.63 per share. Valuation as of 2026-10-16T07:29:26.140Z; scenarios are not confidence intervals.

Expected annual return: 13.3% at the stated quote. About 13.3% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.11×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.24×

- FY2018: 0.24×

- FY2019: 0.17×

- FY2020: 0.17×

- FY2021: 0.20×

- FY2022: 0.20×

- FY2023: 0.21×

- FY2024: 0.21×

- FY2025: 0.21×

- LTM to Jun 2026: 0.22×

### moat: pass

- ROIC, median of available years: 50.4%

- ROIC, second-lowest year: 39.9%

- Typical minus recent gross margin: -0.0 pp

- Typical gross margin (annual median): 47.8%

- Recent gross margin (lower of latest and 3-year median): 47.9%

- Years with nonpositive capital: 0

- Capital spending / revenue: 6.3%

- ROIC including acquisitions, ten-year median: 37.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 50.8%

- FY2017: 50.0%

- FY2018: 43.8%

- FY2019: 30.0%

- FY2020: 39.9%

- FY2021: 55.7%

- FY2022: 44.3%

- FY2023: 57.8%

- FY2024: 72.8%

- FY2025: 78.0%

### economics: pass

- Owner earnings / net income, 5-yr: 1.05×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $244M

- Net income, five-year total: $231M

- Return on incremental invested capital: 133.4%

- Working capital / revenue, annual change: 0.0 pp

- Working capital / revenue, change between three-year averages: -0.8 pp

- Working capital / revenue, final three-year average: 16.4%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.04×

- FY2022: 0.94×

- FY2023: 1.14×

- FY2024: 1.12×

- FY2025: 1.00×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 50.0% vs 72.8%

- Per-share earnings: 1.53 to 2.70 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.5%

- Ordinary dilution, 5-year annual growth: -0.9%

- Market cap gain: $299M

- Cumulative retained earnings: $173M

- Diluted shares, 10-year annual growth: -0.5%

- Diluted shares, 5-year annual growth: -0.9%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 7.3%

- Per-share value change: $1.16

- Per-share value, starting three-year median: $1.53

- Per-share value, ending three-year median: $2.70

- Buybacks concentrated in cheaper years (correlation): 0.49

- Average buyback yield: 1.0%

- Buyback history: 6 years

- Debt-funded buybacks: No

- Acquisition spending: $99M

- Cumulative net income, 10 years: $395M

- ROIC, first three-year median: 50.0%

- ROIC, last three-year median: 72.8%

Chart: Earnings per share; fiscal year observations.

- FY2016: $1.53

- FY2017: $2.09

- FY2018: $3.02

- FY2019: $0.33

- FY2020: $0.77

- FY2021: $1.65

- FY2022: $1.82

- FY2023: $2.41

- FY2024: $2.70

- FY2025: $2.92

### accounting: pass

- Sloan accruals: -7.9%

- Receivables to sales index (DSRI): 1.15×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.53×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.22×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -5.2%

- FY2017: -0.1%

- FY2018: 3.0%

- FY2019: -15.6%

- FY2020: -14.1%

- FY2021: -7.3%

- FY2022: -2.8%

- FY2023: -9.1%

- FY2024: -6.3%

- FY2025: -7.9%

## Holders

- [Sarah Ketterer](https://gigainvestors.com/CAU): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Bill Miller](https://gigainvestors.com/LMM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [C.T. Fitzpatrick](https://gigainvestors.com/VVP): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 24% since May 2026 · sales +9.5%

Story as of 2026-10-16T09:58:58.401Z; price observation 2026-10-15.

Price needs cash profits to grow 2.5% a year for ten years

### Sales · FY2025–2026

sales +9.5%; source https://www.sec.gov/Archives/edgar/data/1337117/000117891326002205/zk2635065.htm; observed 2026-04-23.

- FY2017: $239M 

- FY2018: $253M 

- FY2019: $279M 

- FY2020: $246M 

- FY2021: $271M 

- FY2022: $293M 

- FY2023: $320M 

- FY2024: $336M 

- FY2025: $359M 

- FY2026: $393M 

### Gross margin · FY2025

gross margin 49.7%; source https://www.sec.gov/Archives/edgar/data/1337117/000117891326002205/zk2635065.htm; observed 2026-04-23.

- FY2016: 51.1% 

- FY2017: 50.1% 

- FY2018: 50.3% 

- FY2019: 46.7% 

- FY2020: 47.4% 

- FY2021: 47.2% 

- FY2022: 46.9% 

- FY2023: 47.9% 

- FY2024: 47.8% 

- FY2025: 49.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in scientific & technical instruments; annual sales are USD 359 million.

- Source: https://www.sec.gov/Archives/edgar/data/1337117/000117891326002205/zk2635065.htm (filed 2026-04-23); FY2025: revenue 359023000; grossProfit 178577000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); ITRN.US: Ituran Location and Control Ltd., together with its subsidiaries, provides location-based telematics services and machine-to-machine telematics products in Israel, Brazil, and internationally. It operates in two segments, Telematics Services and Telematics Products. The Telematics services segment offers stolen vehicle recovery and tracking services, which enable it to locate, track, and recover stolen vehicles; 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. This segment also delivers 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 provides 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 services. It serves insurance companies and agents, car manufacturers, dealers and importers, cooperative sales channels, private fleet subscribers, and finance institutions. The Telematics Products segment offers a system for automatic vehicle location was based on terrestrial network triangulation technology and GPS/GPRS; 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; GPS/GPRS, a 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.

### Why customers stay

Margins ranged from 47.8% to 49.7% during 2023–25; it earns 50.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-23); FY2023: grossProfit / revenue = 47.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-23); FY2024: grossProfit / revenue = 47.8%.

- Source: https://www.sec.gov/Archives/edgar/data/1337117/000117891326002205/zk2635065.htm (filed 2026-04-23); FY2025: grossProfit / revenue = 49.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-23); 10-year return on capital observations [[2016,0.5076881848718298],[2017,0.500084055004144],[2018,0.43767186599510993],[2019,0.2999179791581722],[2020,0.3988852061675038],[2021,0.5573944497368515],[2022,0.44271088965969213],[2023,0.5776207163148542],[2024,0.7276602182903277],[2025,0.7795918120779365]]; median 0.5038861199379869. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 47% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1337117/000117891326002205/zk2635065.htm (filed 2026-04-23); Gross margin observations: [[2021,0.4719289437545222],[2022,0.46937953813397393],[2023,0.47866103294601503]]; range within 2 percentage points.

### Where the cash goes

Spends 4.5% of cash earnings on expansion; earns over 100% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-23); FY2016: growth capex 2010000; upkeep 11635000; owner earnings 32139000. Growth capex / owner earnings = 0.0625408382339214.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-23); FY2017: growth capex 2639999; upkeep 13519000; owner earnings 43794000. Growth capex / owner earnings = 0.060282207608348175.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-23); FY2018: growth capex 2654300.7657710537; upkeep 19089699.234228946; owner earnings 60053300.765771054. Growth capex / owner earnings = 0.04419908201422197.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-23); FY2019: growth capex 0; upkeep 18310000; owner earnings 11422000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-23); FY2020: growth capex 0; upkeep 10234000; owner earnings 24720000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-23); FY2021: growth capex 0; upkeep 16626000; owner earnings 35726000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-23); FY2022: growth capex 4137214.8957232237; upkeep 22367785.104276776; owner earnings 34869214.89572322. Growth capex / owner earnings = 0.11864949951111922.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-23); FY2023: growth capex 0; upkeep 14243000; owner earnings 54962000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-23); FY2024: growth capex 0; upkeep 13632000; owner earnings 60105000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1337117/000117891326002205/zk2635065.htm (filed 2026-04-23); FY2025: growth capex 2606000; upkeep 19170000; owner earnings 57967000. Growth capex / owner earnings = 0.04495661324546725.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-23); Incremental return on capital 1.334075923074924, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-23); Dividend observations: [[2016,17088000],[2017,22645000],[2018,20219000],[2019,19848000],[2020,9967000],[2021,15809000],[2022,11465000],[2023,11561000],[2024,28050000],[2025,37585000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1337117/000117891326002205/zk2635065.htm (filed 2026-04-23); FY2025: cash repurchases 3100000 USD.

### Are managers owners

Insiders own 19.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); ITRN.US SharesStats.PercentInsiders = 19.63 percentage points; cache date 2026-10-15.

### What the price says

The price assumes cash profits grow 2.5% yearly over ten years; actual growth was 13.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-23); Ten-year compound average after fade. Initial solved rate 0.019615097263903425. Price 49.955; FX 1; discount 0.1; same compounder ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.8241129339946586 → FY2025 2.9167253698299285. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $26.60 per share

- 2016-11: $24.95 per share

- 2016-12: $26.50 per share

- 2017-01: $27.55 per share

- 2017-02: $28.00 per share

- 2017-03: $30.85 per share

- 2017-04: $31.30 per share

- 2017-05: $32.20 per share

- 2017-06: $31.30 per share

- 2017-07: $30.50 per share

- 2017-08: $33.40 per share

- 2017-09: $36.05 per share

- 2017-10: $35.50 per share

- 2017-11: $35.60 per share

- 2017-12: $34.20 per share

- 2018-01: $34.90 per share

- 2018-02: $34.55 per share

- 2018-03: $31.10 per share

- 2018-04: $31.35 per share

- 2018-05: $33.00 per share

- 2018-06: $30.35 per share

- 2018-07: $34.05 per share

- 2018-08: $34.10 per share

- 2018-09: $34.40 per share

- 2018-10: $34.12 per share

- 2018-11: $33.11 per share

- 2018-12: $32.06 per share

- 2019-01: $32.95 per share

- 2019-02: $36.90 per share

- 2019-03: $34.15 per share

- 2019-04: $36.77 per share

- 2019-05: $31.11 per share

- 2019-06: $30.09 per share

- 2019-07: $29.18 per share

- 2019-08: $25.74 per share

- 2019-09: $24.79 per share

- 2019-10: $24.53 per share

- 2019-11: $24.00 per share

- 2019-12: $25.13 per share

- 2020-01: $25.48 per share

- 2020-02: $22.89 per share

- 2020-03: $14.21 per share

- 2020-04: $17.70 per share

- 2020-05: $17.11 per share

- 2020-06: $16.02 per share

- 2020-07: $13.23 per share

- 2020-08: $14.50 per share

- 2020-09: $13.92 per share

- 2020-10: $14.15 per share

- 2020-11: $18.39 per share

- 2020-12: $19.05 per share

- 2021-01: $19.14 per share

- 2021-02: $21.68 per share

- 2021-03: $21.23 per share

- 2021-04: $21.85 per share

- 2021-05: $24.21 per share

- 2021-06: $27.24 per share

- 2021-07: $25.39 per share

- 2021-08: $26.09 per share

- 2021-09: $25.39 per share

- 2021-10: $26.01 per share

- 2021-11: $26.33 per share

- 2021-12: $26.67 per share

- 2022-01: $24.06 per share

- 2022-02: $20.57 per share

- 2022-03: $23.02 per share

- 2022-04: $22.44 per share

- 2022-05: $25.06 per share

- 2022-06: $24.49 per share

- 2022-07: $25.40 per share

- 2022-08: $24.86 per share

- 2022-09: $23.34 per share

- 2022-10: $23.98 per share

- 2022-11: $23.37 per share

- 2022-12: $21.13 per share

- 2023-01: $21.95 per share

- 2023-02: $22.34 per share

- 2023-03: $21.78 per share

- 2023-04: $20.80 per share

- 2023-05: $22.84 per share

- 2023-06: $23.34 per share

- 2023-07: $27.81 per share

- 2023-08: $30.28 per share

- 2023-09: $29.90 per share

- 2023-10: $24.73 per share

- 2023-11: $26.84 per share

- 2023-12: $27.24 per share

- 2024-01: $24.88 per share

- 2024-02: $26.12 per share

- 2024-03: $27.96 per share

- 2024-04: $25.68 per share

- 2024-05: $27.69 per share

- 2024-06: $24.64 per share

- 2024-07: $26.47 per share

- 2024-08: $28.25 per share

- 2024-09: $26.54 per share

- 2024-10: $26.73 per share

- 2024-11: $30.16 per share

- 2024-12: $31.15 per share

- 2025-01: $33.39 per share

- 2025-02: $41.88 per share

- 2025-03: $36.16 per share

- 2025-04: $35.94 per share

- 2025-05: $38.09 per share

- 2025-06: $38.73 per share

- 2025-07: $39.50 per share

- 2025-08: $33.72 per share

- 2025-09: $35.72 per share

- 2025-10: $38.51 per share

- 2025-11: $40.04 per share

- 2025-12: $43.01 per share

- 2026-01: $44.63 per share

- 2026-02: $48.00 per share

- 2026-03: $49.01 per share

- 2026-04: $57.60 per share

- 2026-05: $65.55 per share

- 2026-06: $61.01 per share

- 2026-07: $55.16 per share

- 2026-08: $50.96 per share

- 2026-09: $51.22 per share

- 2026-10: $49.96 per share

## Annual estimated value (USD per share)

- FY2016: low $23.57 per share, central $33.78 per share, high $39.47 per share

- FY2017: low $26.80 per share, central $36.25 per share, high $42.22 per share

- FY2018: low $30.20 per share, central $43.02 per share, high $50.17 per share

- FY2019: low $29.87 per share, central $37.65 per share, high $43.64 per share

- FY2020: low $25.32 per share, central $29.57 per share, high $33.85 per share

- FY2021: low $22.84 per share, central $27.84 per share, high $32.09 per share

- FY2022: low $25.86 per share, central $37.19 per share, high $43.52 per share

- FY2023: low $30.00 per share, central $42.68 per share, high $49.75 per share

- FY2024: low $35.92 per share, central $50.77 per share, high $59.05 per share

- FY2025: low $47.40 per share, central $66.83 per share, high $77.67 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 20-F filing](https://www.sec.gov/Archives/edgar/data/1337117/000117891326002205/zk2635065.htm); period 2025-12-31, filed 2026-04-23.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.