Ituran Location and Control Ltd (ITRN)

Ituran Location and Control Ltd.: Comprehensive Overview

Company Profile

Detailed History and Background:

Ituran Location and Control Ltd., founded in 1995 and headquartered in Israel, is a global company specializing in vehicle tracking and recovery technology. Ituran is a prominent brand name and its technology offers a wide range of services across various segments. With presence on five continents and 22 countries around the globe, Ituran boasts expertise in stolen-vehicle recovery and tracking for individuals, fleet operators, and financial and leasing businesses. The company also provides emergency assistance solutions. Ituran leverages advanced technology with a commitment to innovation, playing a leading role in developing cloud-based and IoT tracking solutions.

Core Business Areas:

• Stolen-vehicle recovery: Ituran's core competency emphasizes effective vehicle retrieval in partnership with police forces and authorities across nations. The stolen-vehicle recovery success rate for Ituran-equipped devices stands exceptionally high.
• Vehicle Tracking solutions: Ituran offers real-time location tracking for a wide spectrum of purposes, enabling efficient fleet management as well as individual applications.
• Emergency Assistance services: Building upon their vehicle security expertise, Ituran provides assistance services that encompass a range of emergencies for enhanced user protection.

Leadership and Corporate Structure:

Leadership:

• Chairman of the Board - Eitan Wertheimer
• CEO & President - Michael Blonder
• CFO & Deputy Group COO & Group CFO, Ituran Israel Ltd. - Itay Michaeli

Corporate Structure:

Ituran operates globally across a network of subsidiaries spanning five continents and serving 22 countries. Following are segments in their corporate governance structure, each governed under separate boards: Global, North America, Central America, and Global Security. The Board's responsibility involves recommending corporate strategies to Ituran's Board Directors and shareholders for approval.

Top Products and Market Share:

Products: Portfolio Analysis

• The Pro Active platform: Offers advanced, comprehensive vehicle tracking and retrieval services, including remote engine immobilization and emergency assistance triggering features.

  • This platform also boasts a wide range of applications and services including:
  • Route Planning & Mileage Calculation

• Fuel-Optimization System

• A.I - based Driver-behavior Monitoring

  • Predictive maintenance
  • Advanced security

• Ituran's mobile platform: Ituran offers various mobile application solutions accessible from smartphones that enhance user engagement and convenience. These services include tracking, monitoring, and emergency-trigger functionality.

• Fleet & Asset management solutions: Comprehensive tools for corporations and individual fleet owners with functionalities encompassing real-time vehicle tracking data, route optimization analysis, fuel consumption oversight, driver behavior monitoring for efficient asset utilization. This service also incorporates geofencing for enhanced security measures.

• Private & Business Security & Tracking solutions: Offers real-time location tracking solutions for private vehicles and commercial assets, enabling effective monitoring and response in situations such as theft recovery or unauthorized vehicle operation.

Market Share:

• Ituran holds market leadership position in many global and domestic territories, including Argentina, Brazil, Chile, Israel, and several Central American regions.
• Boasts a robust portfolio in vehicle monitoring and security, serving the needs of diverse customer segments such as private car and motorcycle owners, fleet and asset operators for commercial purposes, financial businesses, government security entities, and other stakeholders. Competitors:
  • Key players such as CalAmp (CAMP.US) and Spireon (SRPN.US) compete with Ituran in this segment of the marketplace.

Total Addressable Market. The size of the vehicle security and asset tracking market is significant and constantly expanding, currently valued over 14 billion U.S. dollars globally. The market's potential is fueled by growing adoption of these technologies across sectors including private individuals who want security on personal or business vehicle tracking for commercial operations. This market's prospects look promising with continued investment in technological developments and growing demand, particularly with advancements in IoT and mobile technology.

• Ituran's focus on innovation enables the corporation to remain at the forefront of this evolving market and cater to customer demand effectively. Its global operations position Ituran to capitalize on the expanding market with its broad portfolio of solutions. The company has demonstrated an ability to adapt rapidly to evolving needs and technological advancements while maintaining market leadership, as shown by their market leadership presence in various territories globally.
• With continued development of innovative solutions like the Pro Active platform's comprehensive services as well as AI integration to enhance efficiency and provide insight, coupled with expansion efforts, Ituran is positioned to capture a substantial share of this dynamically-growing market. The total potential addressable market for Ituran is estimated between 5-9 billion USD. Ituran has a global market share between 1-2 billion in 2020.

Financial Performance: (All Figures USD Million Unless Stated Otherwise)

Key Financial Performance Metrics for the Year ending December 31, 2020 (Compared to 2019)*

Dividends and Shareholder Returns

Ituran does not have a regular dividend payment history and has only paid an insignificant dividend on a single previous ocasión during the last ten years.

Market Dynamics and Future Projections

• The Stolen Car Restoration business is a mature but expanding global sector; in 2020, it accounted for $7.7 billion of market share in revenue. As of December 31, 2021; 1.6 billion USD was Ituran's global market share from this segment; Ituran expects to see continued revenue growth in upcoming years.. Ituran plans to further penetrate markets, particularly in Latin America, Africa, India, Turkey, and Asia. This will allow the business to reach its projected global market share and revenue goals for its services, specifically within: the stolen vehicle recovery segment, by continuing to build new markets. Ituran also plans to expand in the automotive fleet sector through organic business growth. *

• In 2020 stolen and recovered cars were $7.73 billion. Ituran anticipates further revenue growth through market penetration in these regions in the next few years. The demand for stolen cars is anticipated to expand with an anticipated global CAGR of 7.4%.

• Despite facing several obstacles along the way including pandemics, economic downturns, and the emergence of newer technologies; Ituran has maintained a solid track record of financial progress through continuous growth. In particular, it has focused on expanding and strengthening its market penetration across Latin America which has helped achieve steady growth and profitability through market share in that region and worldwide revenue growth through increased sales within the stolen vehicle market.

*Sources and Disclaimers:

This analysis and its components rely on the following publicly available sources:

* Ituran's Corporate websites and official reports

* Google Scholar for market research data

*** Disclaimer - This is an informational summary based on publicly available information, and Ituran's financials or any market data presented are for informational discussion. This report is for informational discussion or hypothetical modeling of market data; it should not and cannot represent investment or financial advise. Investors seeking to make a decision regarding Ituran's stock and any related financial decisions should seek the advise of a licensed or registered stockbroker and/or financial planner for professional recommendations.