Ituran Location and Control Ltd.
Find Ratings ReportsITURAN LOCATION & CONTROL's gross profit margin for the third quarter of its fiscal year 2020 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased. ITURAN LOCATION & CONTROL has weak liquidity. Currently, the Quick Ratio is 0.95 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has decreased by 22.48% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q3 FY20 | Q3 FY19 |
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Net Sales ($mil) | 60.33 | 69.0 |
EBITDA ($mil) | 15.04 | 17.45 |
EBIT ($mil) | 10.56 | 11.82 |
Net Income ($mil) | 9.27 | 6.4 |
Balance Sheet | Q3 FY20 | Q3 FY19 |
---|---|---|
Cash & Equiv. ($mil) | 61.94 | 56.49 |
Total Assets ($mil) | 301.32 | 364.19 |
Total Debt ($mil) | 64.11 | 80.85 |
Equity ($mil) | 116.29 | 150.03 |
Profitability | Q3 FY20 | Q3 FY19 |
---|---|---|
Gross Profit Margin | 52.81 | 54.36 |
EBITDA Margin | 24.93 | 25.29 |
Operating Margin | 17.5 | 17.14 |
Sales Turnover | 0.82 | 0.8 |
Return on Assets | -1.97 | 9.19 |
Return on Equity | -5.13 | 22.32 |
Debt | Q3 FY20 | Q3 FY19 |
---|---|---|
Current Ratio | 1.49 | 1.74 |
Debt/Capital | 0.36 | 0.35 |
Interest Expense | 0.0 | 0.0 |
Interest Coverage | 0.0 | 0.0 |
Share Data | Q3 FY20 | Q3 FY19 |
---|---|---|
Shares outstanding (mil) | 20.81 | 21.34 |
Div / share | 0.0 | 0.24 |
EPS | 0.45 | 0.3 |
Book value / share | 5.59 | 7.03 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 56965.0 | 38798.0 |
HOLD. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 3.48 indicates a discount versus the S&P 500 average of 4.02 and a discount versus the subsector average of 4.85. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. After reviewing these and other key valuation criteria, ITURAN LOCATION & CONTROL proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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ITRN NM | Peers 27.98 | ITRN 6.57 | Peers 16.61 | |||||||||||||||||||||
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. ITRN's P/E is negative making this valuation measure meaningless. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. ITRN is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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ITRN 11.83 | Peers 19.65 | ITRN NA | Peers 0.78 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. ITRN is trading at a significant discount to its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
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Price/Book |
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Earnings Growth |
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ITRN 3.48 | Peers 4.85 | ITRN -117.08 | Peers 43.72 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. ITRN is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, ITRN is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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ITRN 1.64 | Peers 4.14 | ITRN -15.53 | Peers -1.17 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. ITRN is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. ITRN significantly trails its peers on the basis of sales growth. |
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