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olivLaw · US equity research

Ituran Location and Control Ltd. ITRN

Wholesale-Electronic Parts & Equipment, NEC · SIC 5065 · Vertical: Wholesale-Electronic Parts & Equipment, NEC (SIC 5065)

53.15USD+0.68% · 1 dayClose 04 Nov 2026

Ituran Location and Control is a telematics provider focused on stolen vehicle recovery, fleet management, connected cars, usage-based insurance and tracking services, active in Israel, Brazil and other Latin American markets. It has been expanding OEM partnerships with European and Japanese car makers, which could support growth in the coming years.

The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).

At the close of 04 Nov 2026, Ituran Location and Control Ltd. (ITRN) stock was 53.15 USD (+0.68% on the day), with market capitalisation 1.1 bn USD, P/E 18.2 on diluted EPS of 2.92 USD over the last 12 months, dividend yield 3.57%, beta 1.00, 52-week range 36.06–66.37 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
1.1 bn USD
shares as of 31 Dec 2025
P/E (TTM)
18.2
Diluted EPS TTM 2.92 · TTM to 31 Dec 2025
E/P (TTM)
5.49%
TTM to 31 Dec 2025
Dividend yield
3.57%
DPS 12m 1.90
Beta (2y)
1.00
Volatility (1y) 30%
52-week range
36.0666.37

Price history

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Technical reading

RSI (14)
59.7
strong (55–70)
Bollinger (20, 2)
49.27 – 53.74
in the upper half of the band · %B 0.87 · band width 8.7%
SMA 50 / 200
51.67 / 53.72
mixed trend
MACD (12, 26, 9)
0.31 / 0.06
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month+1.2%−1.1%+2.3 pp—
3 months−4.6%−0.5%−4.1 pp—
6 months−9.7%+4.4%−14.1 pp—
Year to date+23.6%+12.3%+11.3 pp—
1 year+39.1%+13.5%+25.6 pp+83.7%
3 years+109.8%+76.4%+33.4 pp+69.5%
5 years+99.1%+63.7%+35.4 pp—
Max drawdown (1y)
−25.1%
02 Jun 2026 → 16 Oct 2026
Max drawdown (5y)
−31.0%
16 Nov 2021 → 02 May 2023
Compound annual growth (5y)
+14.8%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

ESEF annual reports carry no quarters: the results are annual (below).

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 83 percentile of its own 6-quarter history (min 11.3, median 13.2, max 24.7; quarters with earnings only).

Fiscal years

Fiscal year20182019202020212022202320242025
Revenue253.3 m279.3 m245.6 m270.9 m293.1 m320.0 m336.3 m359.0 m
Revenue YoY+8.0%+10.3%−12.1%+10.3%+8.2%+9.2%+5.1%+6.8%
Net income60.7 m6.9 m16.1 m34.3 m37.1 m48.1 m53.7 m58.0 m
Net income YoY+38.5%−88.6%+134.0%+112.5%+8.3%+29.7%+11.5%+8.0%
Diluted EPSunavailableunavailable0.771.651.822.412.702.92
Diluted EPS YoYunavailableunavailableunavailable+114.3%+10.3%+32.4%+12.0%+8.1%
net %24.0%2.5%6.6%12.6%12.7%15.0%16.0%16.1%
Free cash flow31.5 m41.4 m49.8 m39.2 m18.6 m63.0 m60.6 m66.8 m

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2025 · 31 Dec 2025

Cash
107.6 m USD
Financial debt
0 USD
Net debt
-107.6 m USD
Equity
224.5 m USD
Total assets
386.2 m USD
Debt / equity
0.00x
Current ratio
2.28x
ROE
27.9%
ROA
16.3%
FCF margin
18.6%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2023
320.0 m
2024
336.3 m
2025
359.0 m

SEC (XBRL)· 23 Apr 2026verified

Cost of revenue
2023
166.8 m
2024
175.6 m
2025
180.4 m

SEC (XBRL)· 23 Apr 2026verified

Gross profit
2023
153.2 m
2024
160.6 m
2025
178.6 m

SEC (XBRL)· 23 Apr 2026verified

Research & development
2023
17.0 m
2024
18.1 m
2025
20.8 m

SEC (XBRL)· 23 Apr 2026verified

Operating income
2023
66.0 m
2024
71.2 m
2025
77.0 m

SEC (XBRL)· 23 Apr 2026verified

Depreciation & amortisation
2023
14.8 m
2024
14.9 m
2025
13.8 m

SEC (XBRL)· 23 Apr 2026verified

EBITDA
2023
80.7 m ≈
2024
86.0 m ≈
2025
90.8 m ≈

SEC (XBRL)· 23 Apr 2026derived

Pre-tax income
2023
64.4 m
2024
71.2 m
2025
74.9 m

SEC (XBRL)· 23 Apr 2026verified

Income tax
2023
13.4 m
2024
14.6 m
2025
14.9 m

SEC (XBRL)· 23 Apr 2026verified

Net income
2023
48.1 m
2024
53.7 m
2025
58.0 m

SEC (XBRL)· 23 Apr 2026verified

Diluted EPS
2023
2.41
2024
2.70
2025
2.92

SEC (XBRL)· 23 Apr 2026verified

Weighted average diluted shares
2023
20.0 m
2024
19.9 m
2025
19.9 m

SEC (XBRL)· 23 Apr 2026verified

Dividend per share
2023
0.68
2024
1.56
2025
1.90

SEC (XBRL)· 23 Apr 2026derived

Balance sheet · USD

Cash
2023
53.4 m
2024
77.4 m
2025
107.6 m

SEC (XBRL)· 23 Apr 2026verified

Receivables
2023
45.4 m
2024
47.7 m
2025
58.5 m

SEC (XBRL)· 23 Apr 2026verified

Inventories
2023
26.9 m
2024
23.4 m
2025
23.2 m

SEC (XBRL)· 23 Apr 2026verified

Current assets
2023
178.5 m
2024
194.6 m
2025
237.6 m

SEC (XBRL)· 23 Apr 2026verified

Property, plant & equipment, net
2023
42.0 m
2024
33.1 m
2025
39.4 m

SEC (XBRL)· 23 Apr 2026verified

Goodwill
2023
39.4 m
2024
39.3 m
2025
39.8 m

SEC (XBRL)· 23 Apr 2026verified

Intangibles (excl. goodwill)
2023
10.8 m
2024
9.0 m
2025
8.8 m

SEC (XBRL)· 23 Apr 2026verified

Total assets
2023
318.7 m
2024
326.9 m
2025
386.2 m

SEC (XBRL)· 23 Apr 2026verified

Accounts payable
2023
20.8 m
2024
18.8 m
2025
19.1 m

SEC (XBRL)· 23 Apr 2026verified

Short-term debt
2023
355.0 k
2024
114.0 k
2025
0

SEC (XBRL)· 23 Apr 2026verified

Long-term debt
2023
592.0 k
2024
—
2025
—

SEC (XBRL)· 18 Apr 2024verified

Current liabilities
2023
92.5 m
2024
87.7 m
2025
104.1 m

SEC (XBRL)· 23 Apr 2026verified

Equity
2023
180.2 m
2024
191.3 m
2025
224.5 m

SEC (XBRL)· 23 Apr 2026verified

Shares outstanding at year end
2023
19.9 m
2024
19.9 m
2025
19.8 m

SEC (XBRL)· 23 Apr 2026verified

Cash flow · USD

Operating cash flow
2023
77.2 m
2024
74.3 m
2025
88.6 m

SEC (XBRL)· 23 Apr 2026verified

Capex
2023
14.2 m
2024
13.6 m
2025
21.8 m

SEC (XBRL)· 23 Apr 2026verified

Free cash flow
2023
63.0 m ≈
2024
60.6 m ≈
2025
66.8 m ≈

SEC (XBRL)· 23 Apr 2026derived

Investing cash flow
2023
-17.2 m
2024
-15.9 m
2025
-24.2 m

SEC (XBRL)· 23 Apr 2026verified

Financing cash flow
2023
-32.9 m
2024
-31.8 m
2025
-42.7 m

SEC (XBRL)· 23 Apr 2026verified

Dividends paid
2023
11.6 m
2024
28.1 m
2025
37.6 m

SEC (XBRL)· 23 Apr 2026verified

Computed indicators

Growth

Revenue growth (YoY)
6.8%
computed by olivLawFY 2025
Revenue CAGR 3Y
7.0%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
7.9%
computed by olivLawFY 2020 → FY 2025
EBIT growth (YoY)
8.2%
computed by olivLawFY 2025
Net income growth (YoY)
8.0%
computed by olivLawFY 2025
Net income CAGR 3Y
16.0%
computed by olivLawFY 2022 → FY 2025
Net income CAGR 5Y
29.2%
computed by olivLawFY 2020 → FY 2025
EPS growth (YoY)
8.1%
computed by olivLawFY 2025
EPS CAGR 3Y
17.1%
computed by olivLawFY 2022 → FY 2025
EPS CAGR 5Y
30.6%
computed by olivLawFY 2020 → FY 2025
FCF growth (YoY)
10.2%
computed by olivLawFY 2025

Profitability

Gross margin
49.7%
computed by olivLawFY 2025
EBITDA margin
25.3%
computed by olivLawFY 2025
EBIT margin
21.5%
computed by olivLawFY 2025
Net margin
16.1%
computed by olivLawFY 2025
FCF margin
18.6%
computed by olivLawFY 2025

Returns

ROE
28.8%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
ROA
16.3%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
ROIC
53.4%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
ROCE
27.3%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
Payout ratio (EPS)
65.0%
computed by olivLawFY 2025
Payout ratio (FCF)
56.3%
computed by olivLawFY 2025

Balance sheet

Net debt
-107.6 m USD
computed by olivLawbalance sheet at 31 Dec 2025
Net debt / EBITDA
-1.2x
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
Debt / equity
0.0x
computed by olivLawbalance sheet at 31 Dec 2025
Interest coverage
unavailable
input data missing

Liquidity

Current ratio
2.3x
computed by olivLawbalance sheet at 31 Dec 2025
Quick ratio
2.1x
computed by olivLawbalance sheet at 31 Dec 2025
Cash ratio
1.0x
computed by olivLawbalance sheet at 31 Dec 2025

Cash

Operating cash flow
88.6 m USD
computed by olivLawFY 2025
Capital expenditure
21.8 m USD
computed by olivLawFY 2025
Free cash flow
66.8 m USD
computed by olivLawFY 2025
FCF conversion
115.2%
computed by olivLawFY 2025
Cash conversion
97.5%
computed by olivLawFY 2025

Efficiency

Days sales outstanding
54 days
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
Days inventory outstanding
47 days
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
Days payables outstanding
38 days
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
Cash conversion cycle
63 days
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025

Market and valuation

Market capitalisation
1.1 bn USD
computed by olivLawbalance sheet at 31 Dec 2025
Enterprise value
945.3 m USD
computed by olivLawbalance sheet at 31 Dec 2025
Market cap / net income TTM
18.2x
computed by olivLawFY 2025
P/E (TTM)
18.2x
computed by olivLawFY 2025
Earnings yield
5.5%
computed by olivLawFY 2025
P/B
4.8x
computed by olivLawbalance sheet at 31 Dec 2025
P/S
2.9x
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
EV/EBITDA
10.4x
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
EV/EBIT
12.3x
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
EV/Sales
2.6x
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
P/FCF
15.8x
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
FCF yield
6.3%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
Dividend yield
3.6%
computed by olivLawFY 2025
Shareholder yield (distributions)
3.6%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025

1 indicators that do not apply to the sector.

Valuation

olivLaw classification

Attractive profile

Score: 79 / 100

A scoring methodology on indicators and valuation, not investment advice.

score >= 65 · margin_of_safety >= 0.15 · agreement in ['high', 'medium']

Closing price

53.15 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 1.1 bn USD

Key indicators

Market capitalisation
1.1 bn USD
computed by olivLawbalance sheet at 31 Dec 2025
P/E (TTM)
18.2x
computed by olivLawFY 2025
P/B
4.8x
computed by olivLawbalance sheet at 31 Dec 2025
EV/EBITDA
10.4x
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
ROE
28.8%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
Net margin
16.1%
computed by olivLawFY 2025
Revenue growth (YoY)
6.8%
computed by olivLawFY 2025
Dividend yield
3.6%
computed by olivLawFY 2025

Coverage and freshness

33/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 31 Dec 2025
Latest balance sheet date: 31 Dec 2025
Share count (cover of the latest filing), as of: 31 Dec 2025
Source: SEC (XBRL)published 23 Apr 2026
verified 531derived 11

Score by group

  • Valuation57
  • Balance sheet100
  • Quality100
  • Growth79
  • Returns67

Estimated value range

Low
55.06
USD per share
Mid
63.14
USD per share
High
67.89
USD per share
Price: 53.15 USD
The price is below the range
Potential to the central value: 18.8% (value / price − 1)
Margin of safety: 15.8% (1 − price / value)
Agreement between methods: medium · 3 methods used · 2 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 24.93 – 74.24 USD.

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • DCF (discounted cash flow)unavailable · input data missing
  • Peers: EV/EBITDA55.06 – 67.89 (Mid 63.14)
    3 companies used · median multiple 12.6x · quartiles 10.8x – 13.6x
    ARW, AVT, TEL
  • Peers: P/E56.24 – 74.24 (Mid 67.33)
    4 companies used · median multiple 23.1x · quartiles 19.3x – 25.4x
    ARW, AVT, RELL, TEL
  • Dividend discount (DDM)24.93 – 33.53 (Mid 28.60)
Multiple comparisons use the SIC vertical: Wholesale-Electronic Parts & Equipment, NEC (SIC 5065)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Attractive profile · Score 79/100

FactorValueScoreWeight used
ROIC · Quality53.4%100 (on a fixed band)11%
Net margin · Quality16.1%100 (vs peers)7%
FCF conversion · Quality115.2%100 (on a fixed band)7%
Revenue CAGR 3Y · Growth7.0%58 (on a fixed band)9%
EPS CAGR 3Y · Growth17.1%100 (on a fixed band)9%
Net debt / EBITDA · Balance sheet-1.2x100 (on a fixed band)11%
Interest coverage · Balance sheetunavailableunavailable—
Current ratio · Balance sheet2.3x100 (on a fixed band)4%
P/E (TTM) · Valuation18.2x54 (on a fixed band)11%
EV/EBITDA · Valuation10.4x42 (on a fixed band)11%
FCF yield · Valuation6.3%79 (on a fixed band)9%
Shareholder yield (distributions) · Returns3.6%51 (on a fixed band)7%
Payout ratio (FCF) · Returns56.3%91 (on a fixed band)4%

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet100/100 · 2/3 factors with a value
  • Growth79/100 · 2/2 factors with a value
  • Quality100/100 · 3/3 factors with a value
  • Returns67/100 · 2/2 factors with a value
  • Valuation57/100 · 3/3 factors with a value

Memo

Ituran Location & Control Ltd. (ITRN). Latest full fiscal year: 2025; data up to 2025-12-31.

Figures computed from the financial statements: revenue 359.0 m USD in 2025; YoY growth 6.8%; net margin 16.1%; ROE 28.8%; net debt/EBITDA -1.2x.

The estimated value range is 55.06–67.89 USD per share (median of 3 methods, agreement: medium); assumptions are illustrative. Against the central value of 63.14 USD, the price of 53.15 USD leaves a potential of 18.8% (value / price − 1) and a margin of safety of 15.8% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

olivLaw score 79/100, methodological classification: attractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • ROIC: 53.4%
  • Net margin: 16.1%
  • FCF conversion: 115.2%
  • EPS CAGR 3Y: 17.1%
  • Net debt / EBITDA: -1.2x
  • Current ratio: 2.3x
  • FCF yield: 6.3%
  • Payout ratio (FCF): 56.3%
  • The price is below the estimated value range

What contradicts it

No signal among the computed factors. That is not an absence of risk: factors without data were not assessed, and business risks (margins, inventory, demand) are in the source-based analysis.

Not assessed (insufficient data or a ratio without meaning): Interest coverage.

Versus the vertical median

Wholesale-Electronic Parts & Equipment, NEC (SIC 5065) · same industry (4-digit SIC) · compared with 5 companies

Multiples and returns vs the median

P/E
18.2x
vertical median 23.1x
below median (−21.1%)
EV/EBITDA
10.4x
vertical median 12.6x
below median (−17.3%)
P/S
2.9x
vertical median 0.9x
above median (+231.7%)
P/B
4.8x
vertical median 1.5x
above median (+228.6%)
ROE
28.8%
vertical median 6.7%
above median (+331.8%)
Net margin
16.1%
vertical median 2.3%
above median (+614.7%)
EBIT margin
21.5%
vertical median 3.4%
above median (+535.9%)
Revenue YoY
6.8%
vertical median 9.4%
below median (−28.0%)
Net debt/EBITDA
-1.2x
vertical median 1.4x
below median (−183.0%)
Dividend yield
3.6%
vertical median 1.6%
above median (+118.1%)

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
TELTe Connectivity PLC63.8 bn27.518.5%12.6%+8.9%−3% / +68%
ARWArrow Electronics, Inc.10.3 bn12.912.2%2.3%+10.5%+88% / +71%
AVTAvnet, Inc.7.0 bn21.46.7%1.2%+24.5%+80% / +83%
ITRNIturan Location & Control Ltd.1.1 bn18.228.8%16.1%+6.8%+39% / +110%
RELLRichardson Electronics, Ltd.211.2 m24.75.2%3.6%+9.4%+87% / +50%
DCMDeFi Capital Markets, Inc.10.0 m—-95.0%-437.8%−79.4%unavailable / unavailable

1- and 3-year price returns: for ITRN from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
32.28
Total return -36% · Per year -36%
56.99
Total return 11% · Per year 11%
85.76
Total return 66% · Per year 66%
3 years
32.92
Total return -29% · Per year -11%
65.25
Total return 35% · Per year 11%
107.57
Total return 118% · Per year 30%
5 years
33.57
Total return -22% · Per year -5%
74.71
Total return 63% · Per year 10%
134.94
Total return 183% · Per year 23%
What moves the 3-year price the most
  • Exit P/E± 16.31
  • Net margin± 11.42
  • Annual revenue growth± 9.15
  • Annual dilution± 0.96

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

Possibly outdated: the newest document it read is from 23 Apr 2026; since then the company filed 6-K (20 Oct 2026), 6-K (29 Sept 2026), 6-K (23 Sept 2026), 6-K (09 Sept 2026), 6-K (12 Aug 2026).

In brief

Ituran Location and Control is a telematics provider focused on stolen vehicle recovery, fleet management, connected cars, usage-based insurance and tracking services, active in Israel, Brazil and other Latin American markets. It has been expanding OEM partnerships with European and Japanese car makers, which could support growth in the coming years.

SWOT

Strengths

  • Established position in Israel and Brazil, with a large subscriber base and recurring subscription revenue 1.
  • Direct agreements with several car manufacturers whose vehicles embed or approve the company's products 1.
  • Technology partly derived from applications originally developed for defence forces, with emphasis on secure data transmission 1.

Weaknesses

  • Heavy dependence on insurance companies and car manufacturers, which can change their policies 1.
  • Product manufacturing is outsourced and not backed by large inventories against unexpected interruptions 1.
  • Some radio frequency licences are non-exclusive or can be granted to third parties, which could disrupt operations 1.

Opportunities

  • Expanding partnerships with European and Japanese car makers, with possible contract extensions 1.
  • Growing auto financing in Latin America, where location providers can monitor vehicles and driver behaviour 1.
  • Extending connected car and UBI services to other markets after success in Israel 1.

Threats

  • A decline in vehicle theft rates could reduce demand for recovery services 1.
  • Competition from cheaper security devices and new tracking technologies 1.
  • Vehicle recovery depends on local law enforcement response, which the company cannot control 1.

Risks

  • Dependence on insurers and car makershigh

    A change in insurer policies or car maker relationships could reduce revenue and growth 1.

  • Declining theft ratesmedium

    If theft falls or is perceived to fall, demand for recovery services could slow 1.

  • Decline in new car salesmedium

    Products are often installed at first sale, so lower new vehicle sales could affect the addressable market 1.

  • Competition and new technologymedium

    Better or cheaper alternatives could make products less competitive or obsolete 1.

  • Radio licences and third-party supplylow

    Loss of frequency licences or interruption of outsourced manufacturing could raise costs and reduce revenue 1.

Investment thesis

What would need to be true (bull case)

  • If the new car maker contracts extend across more countries, recurring revenue could grow further 1.
  • The subscriber base grew across the main markets in 2025, suggesting sustained demand in Israel and Brazil 1.
  • If connected car and UBI services extend beyond Israel, the company could diversify its revenue sources 1.

What would break the thesis

  • If insurers or car makers change their policies, demand for services could fall quickly 1.
  • Lower theft rates or new car sales could shrink the company's core market 1.
  • Competition from cheaper devices could limit pricing and margin growth 1.

What to watch

  • Progress of new contracts with Stellantis, BMW Motorrad and Renault2026
  • Subscriber count in Israel and Brazil and churn rateQ1 2027
  • Split of services versus products revenue in the annual report2027
  • Changes in insurer policies in Israel and Brazilnext 10-K

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

Possibly outdated: the newest document it read is from 23 Apr 2026; since then the company filed 6-K (20 Oct 2026), 6-K (29 Sept 2026), 6-K (23 Sept 2026), 6-K (09 Sept 2026), 6-K (12 Aug 2026).

The business

Ituran Location and Control Ltd. is an Israeli company incorporated in 1994 as a subsidiary of Tadiran Ltd., quoted on Nasdaq under ITRN after voluntarily delisting from the Tel Aviv Stock Exchange in 2016 1. Its main business is telematics services: stolen vehicle recovery, fleet management, connected cars, usage-based insurance and other tracking services 1. Revenues come from subscription fees and from the sale or lease of telematics products; in 2025, 74% of revenues came from services and 26% from products 1. The company operates control centers in several countries and acquired Latin American operations through the RTH transaction in 2018 and 2021 1.

The subscriber base has grown steadily over the last three years: at 31 December 2025 the company had about 2.63 million telematics services subscribers, up from 2.41 million at the end of 2024 1. The company notes that a large part of its subscription revenue recurs, since customers may cancel at any time but subscriptions continue automatically unless terminated 1. Capital expenditures were 21.8 million USD in 2025, financed from operating cash flows 1.

In 2025 and early 2026 Ituran announced new contracts with Stellantis, BMW Motorrad and Renault, the latter in Latin America 1. The company has direct agreements with six major car manufacturers whose vehicles embed or approve its products 1. Revenues nevertheless depend heavily on relationships with insurance companies and car manufacturers, and changes in their practices could affect demand 1.

Segments

Telematics products

This segment covers location and tracking devices installed in vehicles and sold or leased to customers, at about 26% of revenues in 2025 1. Growth in the subscriber base is the main driver of product sales 1. Manufacturing is outsourced to third parties, which can affect costs and margins 1.

Market context

Ituran operates in stolen vehicle recovery and fleet management markets, where demand depends on theft rates and insurance company practices 1. The company says its markets, especially Israel, are characterized by high vehicle theft, so insurers and car makers seek solutions 1. Demand could fall if theft rates decline or new car sales slow 1.

Latin America, particularly Brazil, offers potential through auto financing and the second-hand car market, where banks and fintech start-ups need location technology 1. Market share and competitive positions in these areas are not detailed in the analyzed source.

Trends

  • OEM partnerships with car makerstailwind

    New contracts with Stellantis, BMW Motorrad and Renault could widen the customer base and recurring revenue if implemented as planned 1.

  • Declining vehicle theftheadwind

    If theft rates fall because of better security systems or law enforcement, demand for SVR services could decline 1.

  • New car salesheadwind

    Products are often installed right after a new vehicle sale, so a drop in sales caused by taxes or energy prices would shrink the addressable market 1.

  • Connected car and UBI growthmixed

    Connected car and UBI services, already adopted by most insurers in Israel, could open new revenue if extended to other markets 1.

Competitive position

The telematics services market is highly competitive, and Ituran competes mainly on technological innovation, quality and price 1. The company mentions competing service providers as well as simpler devices such as car alarms and steering wheel locks, some cheaper and with greater brand recognition 1. New competitors could enter the market or extend their offerings into the regions where Ituran operates 1.

The analyzed source does not explicitly name US-listed competitors, so no ticker symbols are given for competitors.

  • Telematics and tracking service providers in Ituran's operating regions

    The company says competing providers could extend offerings into its markets or new entrants could appear 1.

  • Traditional security devices (car alarms, immobilizers, steering wheel locks)

    These can be cheaper and often have greater brand recognition than telematics products 1.

  • Alternative location and protection technologies

    Various solutions with different levels of protection and tracking compete with SVR services 1.

  • Location technology providers for auto financing

    Banks and fintech firms in Latin America may build in-house or choose other vendors for vehicle monitoring 1.

News & filings

Sources

  1. [1] Form 20-F, fiscal year ended 2025-12-31 · SEC / Ituran Location and Control Ltd. · 23 Apr 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.