Ituran Location and Control Ltd.
Find Ratings Reports
-0.26 |
-1.00%
ITURAN LOCATION & CONTROL's gross profit margin for the second quarter of its fiscal year 2021 has decreased when compared to the same period a year ago. The company grew its sales and net income significantly quarter versus same quarter a year prior, and was able to outpace the average competitor in the subsector when comparing revenue growth, but not when comparing net income growth. ITURAN LOCATION & CONTROL has average liquidity. Currently, the Quick Ratio is 1.00 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has increased by 22.45% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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| Income Statement | Q2 FY21 | Q2 FY20 |
|---|---|---|
| Net Sales ($mil) | 67.46 | 53.31 |
| EBITDA ($mil) | 18.08 | 13.93 |
| EBIT ($mil) | 13.7 | 9.32 |
| Net Income ($mil) | 9.11 | -6.33 |
| Balance Sheet | Q2 FY21 | Q2 FY20 |
|---|---|---|
| Cash & Equiv. ($mil) | 71.79 | 57.16 |
| Total Assets ($mil) | 310.09 | 296.7 |
| Total Debt ($mil) | 40.17 | 68.74 |
| Equity ($mil) | 132.28 | 108.03 |
| Profitability | Q2 FY21 | Q2 FY20 |
|---|---|---|
| Gross Profit Margin | 52.18 | 60.51 |
| EBITDA Margin | 26.79 | 26.12 |
| Operating Margin | 20.3 | 17.49 |
| Sales Turnover | 0.83 | 0.86 |
| Return on Assets | 10.78 | -2.97 |
| Return on Equity | 25.29 | -8.17 |
| Debt | Q2 FY21 | Q2 FY20 |
|---|---|---|
| Current Ratio | 1.51 | 1.7 |
| Debt/Capital | 0.23 | 0.39 |
| Interest Expense | 0.0 | 0.0 |
| Interest Coverage | 0.0 | 0.0 |
| Share Data | Q2 FY21 | Q2 FY20 |
|---|---|---|
| Shares outstanding (mil) | 20.81 | 20.81 |
| Div / share | 0.14 | 0.0 |
| EPS | 0.44 | -0.3 |
| Book value / share | 6.36 | 5.19 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 34149.0 | 61380.0 |
BUY. ITURAN LOCATION & CONTROL's P/E ratio indicates a significant discount compared to an average of 41.60 for the Telecommunications subsector and a significant discount compared to the S&P 500 average of 34.70. To use another comparison, its price-to-book ratio of 4.01 indicates a discount versus the S&P 500 average of 4.62 and a significant discount versus the subsector average of 324.13. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, ITURAN LOCATION & CONTROL proves to trade at a discount to investment alternatives.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ITRN 15.72 | Peers 29.37 | ITRN 9.09 | Peers 17.38 | |||||||||||||||||||||
|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. ITRN is trading at a significant discount to its peers. |
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 |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| ITRN 12.33 | Peers 20.44 | ITRN 0.13 | Peers 0.76 | |||||||||||||||||||||
|
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. |
Discount. 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. ITRN trades at a significant discount to its peers. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| ITRN 4.01 | Peers 324.13 | ITRN 485.71 | Peers 100.83 | |||||||||||||||||||||
|
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. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. ITRN is expected to have an earnings growth rate that significantly exceeds its peers. |
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| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| ITRN 2.05 | Peers 4.57 | ITRN 1.01 | Peers 6.79 | |||||||||||||||||||||
|
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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