MeritValue

Ituran Location & Control Ltd.

ITRNdata completeness 100%17 fiscal years on file

Data notes: no data for concept 'interestExpense'

The thesis, from the filings

Ituran Location & Control Ltd. earns about 40% on invested capital, far above its ~9% cost of capital, and has bought back 4% of its shares over 5 years — the marks of a durable business run for its owners. The estimate methods put fair value between $25.1 and $158.3 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$270.9M1$293.1M2$320M3$336.3M3$359M3
Net income$34.3M4$37.1M5$48.1M6$53.7M6$58M6
Operating cash flow$55.8M7$45.1M8$77.2M9$74.3M9$88.6M9
Capital expenditure$16.6M10$26.5M11$14.2M12$13.6M12$21.8M12
Free cash flow (derived)$39.2M7$18.6M8$63M9$60.6M9$66.8M9
Total debt$66.7M13$35.7M13$947,00014$114,00015$015
Cash & equivalents$50.3M16$27.9M17$53.4M18$77.4M19$107.6M19
Diluted shares20.8M20.4M20.0M19.9M19.9M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$109.47
your share of equity
Profit it earned you last year
$29.17
Free cash flow it threw off
$33.61
Debt you’d be carrying
$0

10 shares is a claim on $109.47 of net worth that earned you $29.17 and generated $33.61 of cash last year, against $0 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
40% avg · 5y
FY21 25%FY22 26%FY23 42%FY24 52%FY25 55%

It earned about 40% on invested capital, year after year, against a ~9% cost of capital — the footprint of real pricing power. Competition usually drags returns like this back down; here it hasn't.

seeing a moat in the numbers →
Management signal · capital allocation
−4% shares · 5y

Share count is down 4% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has fallen 100% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $25.1 and $158.3 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$158.3
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth17.2%
  • fcfBase$63M
DCF · Growth Exit 5Y
$97.89
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth17.2%
  • fcfBase$63M
Earnings Power Value
$25.1
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$48.1M
  • growthAssumed0.0%
Graham Number
$26.82
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years17.2%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $97.89
The three cases
Bear0.0%$50.69
Base17.2%$97.89
Bull20.0%$108.72

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 17.2%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 20-F · period ending 2021-12-31 · accession 0001178913-24-001363 (Revenues)
  2. 20-F · period ending 2022-12-31 · accession 0001178913-25-001365 (Revenues)
  3. 20-F · period ending 2023-12-31 · accession 0001178913-26-002205 (Revenues)
  4. 20-F · period ending 2021-12-31 · accession 0001178913-24-001363 (NetIncomeLoss)
  5. 20-F · period ending 2022-12-31 · accession 0001178913-25-001365 (NetIncomeLoss)
  6. 20-F · period ending 2023-12-31 · accession 0001178913-26-002205 (NetIncomeLoss)
  7. 20-F · period ending 2021-12-31 · accession 0001178913-24-001363 (NetCashProvidedByUsedInOperatingActivities)
  8. 20-F · period ending 2022-12-31 · accession 0001178913-25-001365 (NetCashProvidedByUsedInOperatingActivities)
  9. 20-F · period ending 2023-12-31 · accession 0001178913-26-002205 (NetCashProvidedByUsedInOperatingActivities)
  10. 20-F · period ending 2021-12-31 · accession 0001178913-24-001363 (PaymentsToAcquireProductiveAssets)
  11. 20-F · period ending 2022-12-31 · accession 0001178913-25-001365 (PaymentsToAcquireProductiveAssets)
  12. 20-F · period ending 2023-12-31 · accession 0001178913-26-002205 (PaymentsToAcquireProductiveAssets)
  13. 20-F · period ending 2021-12-31 · accession 0001178913-23-001449 (LongTermDebtCurrent)
  14. 20-F · period ending 2023-12-31 · accession 0001178913-24-001363 (LongTermDebt)
  15. 20-F · period ending 2024-12-31 · accession 0001178913-26-002205 (ShortTermBorrowings)
  16. 20-F · period ending 2021-12-31 · accession 0001178913-23-001449 (CashAndCashEquivalentsAtCarryingValue)
  17. 20-F · period ending 2022-12-31 · accession 0001178913-24-001363 (CashAndCashEquivalentsAtCarryingValue)
  18. 20-F · period ending 2023-12-31 · accession 0001178913-25-001365 (CashAndCashEquivalentsAtCarryingValue)
  19. 20-F · period ending 2024-12-31 · accession 0001178913-26-002205 (CashAndCashEquivalentsAtCarryingValue)