Itron, Inc.
Itron, Inc. Fundamental Analysis
Itron, Inc. (ITRI) shows strong financial fundamentals with a PE ratio of 14.37, profit margin of 12.72%, and ROE of 18.49%. The company generates $2.4B in annual revenue with strong year-over-year growth of 12.29%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 74.5/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze ITRI's fundamental strength across five key dimensions:
Efficiency Score
WeakITRI struggles to generate sufficient returns from assets.
Valuation Score
ExcellentITRI trades at attractive valuation levels.
Growth Score
ModerateITRI shows steady but slowing expansion.
Financial Health Score
ExcellentITRI maintains a strong and stable balance sheet.
Profitability Score
ModerateITRI maintains healthy but balanced margins.
Key Financial Metrics
Is ITRI Expensive or Cheap?
P/E Ratio
ITRI trades at 14.37 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ITRI's PEG of 0.85 indicates potential undervaluation.
Price to Book
The market values Itron, Inc. at 2.52 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.74 times EBITDA. This signals the market has high growth expectations.
How Well Does ITRI Make Money?
Net Profit Margin
For every $100 in sales, Itron, Inc. keeps $12.72 as profit after all expenses.
Operating Margin
Core operations generate 13.48 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $18.49 in profit for every $100 of shareholder equity.
ROA
Itron, Inc. generates $8.09 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Itron, Inc. produces operating cash flow of $408.86M, showing steady but balanced cash generation.
Free Cash Flow
Itron, Inc. generates strong free cash flow of $385.69M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $8.42 in free cash annually.
FCF Yield
ITRI converts 8.75% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.37
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.85
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.52
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.85
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.75
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.80
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How ITRI Stacks Against Its Sector Peers
| Metric | ITRI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.37 | 34.79 | Better (Cheaper) |
| ROE | 18.49% | 1185.00% | Weak |
| Net Margin | 12.72% | -131296.00% (disorted) | Strong |
| Debt/Equity | 0.75 | 0.43 | Weak (High Leverage) |
| Current Ratio | 1.80 | 4.90 | Neutral |
| ROA | 8.09% | -325472.00% (disorted) | Weak |
ITRI outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Itron, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-14.96%
Industry Style: Growth, Innovation, High Beta
DecliningEPS CAGR
325.40%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
20.15%
Industry Style: Growth, Innovation, High Beta
High Growth