We came across an upward thesis on ituran location and control ltd. (Itrn) on Subk by Silba. In this article, we will summarize the thesis of the Bulls on the ITRN. The action of ituran location and control ltd. (ITRN) was negotiated at $ 37.82 in May 16th. The P / E of ITRN’s leak was 14.01 according to Yahoo Finance.
A technician in a workstation, welding electronic components for vehicle monitoring devices.
In the mid -1990s, the flight of a crawling vehicle from Tel Aviv created an expensive burden of bonuses and insurance losses. Izzy and Eyal Sheratzky, taking advantage of their history in insurance surveys, acquired advanced but underused military quality monitoring technology and transformed it into a pioneer of a rental model based on a subscription. This sale of sales of costly initial equipment with affordable and recurring monthly costs has established an early “security as a service” company, transforming a major flight problem into a predictable and scalable source of income. As their network has developed in Israeli cities, flight rates have decreased due to deterrence and network effects, while partnerships with insurance companies and banks have reduced customer acquisition costs, accelerating growth.
Represented as an Ituran, the company has strategically focused on Latin America – in particular Brazil and Argentina – where high crime rates and an increasing middle class have made an urgent request for vehicle safety. Brazil alone represented approximately 25% of income by 2024. The vertically integrated model of Ituran, which includes the manufacture, installation and physical recovery of vehicles, distinguishes it from competitors mainly offering software solutions. Financially, the 2.4 million Ituran subscribers generated $ 336 million in revenue with growth of 7% in 2024, supported by strong gross subscription margins close to 59% and Ebitda margins of around 27%. The company’s assessment is healthy with more than $ 77 million in cash and minimum debt, helped by a favorable cash conversion cycle that effectively uses “other money” to finance operations. Ituran commands around 80% market share in Israel supported by government prices and installers’ certification monopolies, while Brazil offers growth despite more strict margins. The challenges include costly material upgrades in the 2G closure and the risks of partners between internalization services. Despite this, Ituran is evolving towards a strong growth subscription company with gains from acceleration subscribers, an operating lever effect and a clear route to $ 100 million in Ebitda, positioning it for potential recovery by re -evaluating its single growth model and resilient treasury flows.
