Ituran Location and Control Ltd. revenue dropped on 34.5%
03/03/2021 • About Ituran Location and Control Ltd. (
$ITRN) • By InTwits
Ituran Location and Control Ltd. reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts: It operates with high leverage: Net Debt/EBITDA is 32.2x while industry average is 0.1x.
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue dropped on 34.5%. Annual revenue decline showed slowdown in FY20Q4 - revenue dropped on 30.1%.
Net Income margin increased on 2.2 pp from 2.5% to 4.7% in FY2020.
Financial and operational results
Ituran Location and Control Ltd. ($ITRN) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 199.6 | 234.6 | 253.3 | 279.3 | 182.9 | -34.5% |
| Gross Profit | 102.0 | 119.4 | 127.3 | 130.5 | | |
| SG&A | 50.3 | 59.8 | 59.0 | 67.9 | | |
| EBITDA | 59.6 | 70.1 | 77.0 | 49.7 | | |
| Net Income | 32.1 | 43.8 | 60.7 | 6.9 | 8.6 | 24.8% |
Balance Sheet
|
|---|
| Cash | 31.1 | 36.9 | 51.4 | 54.0 | | |
| Short Term Debt | 0.0 | 0.0 | 10.6 | 19.9 | | |
| Long Term Debt | 0.0 | 0.0 | 62.6 | 60.6 | | |
Cash flow
|
|---|
| Capex | 13.6 | 16.2 | 21.7 | 18.3 | | |
Ratios
|
|---|
| Revenue growth | 13.6% | 17.6% | 8.0% | 10.3% | -34.5% | |
| EBITDA growth | 11.4% | 17.5% | 9.9% | -35.5% | | |
|
|---|
| Gross Margin | 51.1% | 50.9% | 50.3% | 46.7% | | |
| EBITDA Margin | 29.9% | 29.9% | 30.4% | 17.8% | |
| SG&A, % of revenue | 25.2% | 25.5% | 23.3% | 24.3% | | |
| Net Income Margin | 16.1% | 18.7% | 24.0% | 2.5% | 4.7% | 2.2% |
| CAPEX, % of revenue | 6.8% | 6.9% | 8.6% | 6.6% | | |
|
|---|
| ROIC | 50.1% | 48.5% | 35.1% | 10.2% | | |
| ROE | 34.6% | 38.4% | 43.4% | 4.9% | | |
| Net Debt/EBITDA | -0.5x | -0.5x | 0.3x | 0.5x | |
Ituran Location and Control Ltd. ($ITRN) key quoterly financial indicators
| mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 68 | 53 | 60 | 46 | | -7.1% | -25.2% | -12.6% | -30.1% |
| Net Income | 6 | -6 | 9 | 18 | | -21.0% | -182.3% | 44.8% | - |
Balance Sheet
|
|---|
Ratios
|
|---|
| Net Income Margin | 9.3% | -11.9% | 15.4% | 39.1% | | -1.6% | -22.7% | 6.1% | 62.4% |
Peers in Communications Equipment
Below we provide Ituran Location and Control Ltd. benchmarking against other companies in Communications Equipment industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Resonant Inc. ($RESN) | - | 116.2% | -19.8% | 40.3% | 329.9% |
| Franklin Wireless Corp ($FKWL) | - | -18.8% | -38.1% | 21.3% | 105.9% |
| Ribbon Communications Inc. ($RBBN) | - | 30.6% | 75.2% | -2.6% | 49.8% |
| Inseego Corp. ($INSG) | - | -10.0% | -7.7% | 8.4% | 43.0% |
| Casa Systems, Inc. ($CASA) | - | 11.2% | -15.5% | -5.0% | 39.3% |
| |
|---|
| Median (35 companies) | 7.5% | 5.1% | 2.8% | 3.7% | 4.4% |
|---|
| Ituran Location and Control Ltd. ($ITRN) | - | 17.6% | 8.0% | 10.3% | -34.5% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| F5 Networks, Inc. ($FFIV) | 83.1% | 83.1% | 83.3% | 84.1% | 82.6% |
| Radware Ltd. ($RDWR) | 81.8% | 81.3% | 82.2% | 82.1% | 82.0% |
| Radcom Ltd. ($RDCM) | 69.6% | 71.8% | 74.0% | 70.0% | 71.4% |
| AudioCodes Ltd. ($AUDC) | 60.7% | 62.4% | 62.8% | 47.4% | 67.9% |
| Arista Networks, Inc. ($ANET) | 64.0% | 64.5% | 63.8% | 64.1% | 63.9% |
| |
|---|
| Median (34 companies) | 43.7% | 41.0% | 40.5% | 43.2% | 45.9% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| InterDigital, Inc. ($IDCC) | 73.6% | 67.3% | 41.9% | 37.5% | 39.5% |
| EchoStar Corporation ($SATS) | 40.3% | 38.1% | 37.4% | 36.4% | 35.0% |
| Arista Networks, Inc. ($ANET) | 23.3% | 29.8% | 14.0% | 35.7% | 33.1% |
| Motorola Solutions, Inc. ($MSI) | 22.2% | 25.5% | 22.0% | 26.7% | 25.9% |
| F5 Networks, Inc. ($FFIV) | 30.3% | 29.9% | 30.1% | 26.2% | 22.9% |
| |
|---|
| Median (33 companies) | 5.5% | 6.0% | 4.6% | 3.1% | 9.2% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Resonant Inc. ($RESN) | 132.5% | 124.8% | 245.2% | 109.7% | 22.3% |
| EchoStar Corporation ($SATS) | 39.9% | 30.9% | 26.5% | 22.2% | 21.7% |
| KVH Industries, Inc. ($KVHI) | 3.2% | 8.0% | 9.3% | 7.9% | 8.9% |
| Harmonic Inc. ($HLIT) | 3.7% | 3.2% | 1.7% | 2.6% | 8.5% |
| Applied Optoelectronics, Inc. ($AAOI) | 19.0% | 17.5% | 26.9% | 15.1% | 6.7% |
| |
|---|
| Median (33 companies) | 1.9% | 1.8% | 1.6% | 2.4% | 2.1% |
|---|
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Franklin Wireless Corp ($FKWL) | 12.2% | 4.7% | -14.9% | -13.0% | 37.5% |
| Motorola Solutions, Inc. ($MSI) | 26.4% | 39.5% | 35.3% | 34.0% | 26.4% |
| Arista Networks, Inc. ($ANET) | 25.7% | 33.9% | 14.5% | 33.3% | 23.5% |
| AudioCodes Ltd. ($AUDC) | 6.1% | 8.6% | 16.1% | -7.7% | 20.8% |
| F5 Networks, Inc. ($FFIV) | 43.1% | 46.9% | 47.9% | 34.1% | 16.5% |
| |
|---|
| Median (35 companies) | 2.2% | 2.1% | 0.3% | -1.6% | 2.1% |
|---|
| Ituran Location and Control Ltd. ($ITRN) | 50.1% | 48.5% | 35.1% | 10.2% | - |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Inseego Corp. ($INSG) | - | - | 3.9x | 82.5x | 26.9x |
| CommScope Holding Company, Inc. ($COMM) | 4.3x | 4.6x | 4.4x | 27.0x | 10.5x |
| Harmonic Inc. ($HLIT) | - | - | 3.4x | 1.9x | 6.5x |
| Ribbon Communications Inc. ($RBBN) | -17.2x | - | - | - | 3.5x |
| Casa Systems, Inc. ($CASA) | -0.2x | 0.3x | 0.2x | 32.1x | 3.2x |
| |
|---|
| Median (25 companies) | -0.9x | -0.8x | -0.3x | -0.4x | -0.4x |
|---|
