Itron, Inc.

ITRI

Instruments For Meas & Testing of Electricity & Elec Signals

Mkt Cap

$5.037B

PE

31.35

Debt

$460M

Cash

$300.6M

EV

$5.196B

FCF

$137.7M

Market Cap

$5.037B

P/E Ratio

31.35

Debt

$460M

Cash

$300.6M

EV

$5.196B

FCF

$137.7M

Charts data: {"Earnings":[{"time":"2014-12-30","value":-22920000},{"time":"2015-12-30","value":12678000},{"time":"2016-12-30","value":31770000},{"time":"2017-12-30","value":57298000},{"time":"2018-12-30","value":-99250000},{"time":"2019-12-30","value":49006000},{"time":"2020-12-30","value":-57955000},{"time":"2021-12-30","value":-81255000},{"time":"2022-12-30","value":-9732000},{"time":"2023-12-30","value":96923000}],"Sales":[{"time":"2014-12-30","value":1970697000},{"time":"2015-12-30","value":1883533000},{"time":"2016-12-30","value":2013186000},{"time":"2017-12-30","value":2018197000},{"time":"2018-12-30","value":2376117000},{"time":"2019-12-30","value":2502470000},{"time":"2020-12-30","value":2173350000},{"time":"2021-12-30","value":1981572000},{"time":"2022-12-30","value":1795564000},{"time":"2023-12-30","value":2173633000}],"Net Margins":[{"time":"2014-12-30","value":-0.011630402847317471},{"time":"2015-12-30","value":0.006730967814208724},{"time":"2016-12-30","value":0.015780956156063074},{"time":"2017-12-30","value":0.02839068733131602},{"time":"2018-12-30","value":-0.04176982867426141},{"time":"2019-12-30","value":0.01958305194467866},{"time":"2020-12-30","value":-0.0266662065474958},{"time":"2021-12-30","value":-0.04100532304655092},{"time":"2022-12-30","value":-0.0054200240147385444},{"time":"2023-12-30","value":0.04459032412555385}],"Assets":[{"time":"2014-12-30","value":1710305000},{"time":"2015-12-30","value":1681363000},{"time":"2016-12-30","value":1577811000},{"time":"2017-12-30","value":2106147000},{"time":"2018-12-30","value":2608982000},{"time":"2019-12-30","value":2707841000},{"time":"2020-12-30","value":2607023000},{"time":"2021-12-30","value":2393790000},{"time":"2022-12-30","value":2378078000},{"time":"2023-12-30","value":2604263000}],"Stockholders Equity":[{"time":"2014-12-30","value":714481000},{"time":"2015-12-30","value":622703000},{"time":"2016-12-30","value":650353000},{"time":"2017-12-30","value":805632000},{"time":"2018-12-30","value":734048000},{"time":"2019-12-30","value":800815000},{"time":"2020-12-30","value":840273000},{"time":"2021-12-30","value":1142759000},{"time":"2022-12-30","value":1191556000},{"time":"2023-12-30","value":1331431000}],"ROE":[{"time":"2014-12-30","value":-0.03207922953864414},{"time":"2015-12-30","value":0.02035962569635926},{"time":"2016-12-30","value":0.04885039355549986},{"time":"2017-12-30","value":0.07112180251032729},{"time":"2018-12-30","value":-0.13520914163651424},{"time":"2019-12-30","value":0.06119515743336476},{"time":"2020-12-30","value":-0.06897163183870005},{"time":"2021-12-30","value":-0.07110423107584364},{"time":"2022-12-30","value":-0.008167471776399935},{"time":"2023-12-30","value":0.07279611185258568}],"ROA":[{"time":"2014-12-30","value":0.002240536044740558},{"time":"2015-12-30","value":0.0314304525554565},{"time":"2016-12-30","value":0.06097751885365231},{"time":"2017-12-30","value":0.07189716577237962},{"time":"2018-12-30","value":-0.019046509328159412},{"time":"2019-12-30","value":0.04899955351883659},{"time":"2020-12-30","value":-0.003987306594533305},{"time":"2021-12-30","value":-0.033126966024588624},{"time":"2022-12-30","value":-0.0031281564355752837},{"time":"2023-12-30","value":0.04948309752125649}]}

Itron, Inc., a technology and service company, provides end-to-end solutions that help manage operations in the energy, water, and smart city space worldwide. It operates through three segments: Device Solutions, Networked Solutions, and Outcomes. The Device Solutions segment offers hardware products that are used for measurement, control, or sensing. The Networked Solutions segment provides a combination of communicating devices, such as smart meters, modules, endpoints, and sensors; network infrastructure; and associated application software for acquiring and transporting application-specific data. The Outcomes segment offers value-added, enhanced software and services for managing, organizing, analyzing, and interpreting data to enhance decision making, maximize operational profitability, drive resource efficiency, and deliver results for consumers, utilities, and smart cities. In addition, it offers implementation, project management, installation, consulting, and post-sale maintenance support services, as well as cloud and software-as-a-service; and extended or customer-specific warranties. It offers its products and services under the Itron brand. The company markets its products directly through its sales force, as well as through indirect sales force consisting of distributors, agents, partners, and meter manufacturer representatives to utilities and municipalities. Itron, Inc. was incorporated in 1977 and is headquartered in Liberty Lake, Washington.

Sector

10-Q
9/30/23
10-Q
6/30/23
10-Q
3/31/23
10-K
12/31/22
10-Q
9/30/22
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6/30/22
10-Q
3/31/22
10-K
12/31/21
10-Q
9/30/21
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6/30/21
10-Q
3/31/21
10-K
12/31/20
10-Q
9/30/20
10-Q
6/30/20
10-Q
3/31/20
10-K
12/31/19
10-Q
9/30/19
10-Q
6/30/19
10-Q
3/31/19
10-K
12/31/18
10-Q
9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Itron, Inc.

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$137.7M	$132.4M	$127.4M	$122.5M	$117.8M	$113.3M	$108.9M	$104.7M	$100.7M	$96.84M	$93.13M	$931.3M
DCF		$115.2M	$96.3M	$80.53M	$67.34M	$56.31M	$47.08M	$39.37M	$32.92M	$27.53M	$23.02M	$230.2M
Value	$815.7M

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 16%

Earnings Stability -11%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	0.67%	1.6%	2.8%	-4.2%	2%	-2.7%	-4.1%	-0.54%	4.5%	7%
ROA	3.1%	6.1%	7.2%	-1.9%	4.9%	-0.4%	-3.3%	-0.31%	4.9%	7.6%
ROE	2%	4.9%	7.1%	-14%	6.1%	-6.9%	-7.1%	-0.82%	7.3%	12%

What is the average Net Margin?

The average Net Margin over the past 5 years is -0.84%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.98%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +0.65%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +0.45%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is -2.49%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +2.37%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	12.99	4.42	4.32	20.41	8.48	15.08	3.83	96.78	4.69	3.34
Debt Equity	0.61	0.49	0.76	1.38	1.19	1.14	0.40	0.39	0.35	0.33
MIN
Graham Stability	-	-	100%	-290%	-	-2.5K%	-	-	-	-2.5K%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 3.34.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 5.00.

What is the Graham’s Stability?

Graham’s Stability measure stands at -24.65.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	1.1%	-1.8%	0.0043%	21%	0.068%
Net Income	17%	-	-	-	-70%
Stockholders Equity	11%	13%	17%	12%	2.3%
FCF	4.5%	15%	16%	2K%	120%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is -1.77%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +0.07%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -70.24%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +12.65%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +2.26%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +14.52%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +123.42%.