Ituran Location and Control has had a strong share price run over the past few years, and the question for anyone looking at the stock today is whether that move is properly backed by the cash the business can generate. With the valuation lens set squarely on its cash flows, investors are asking if the current price fairly reflects the stream of money the company can return over time.
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Over the last 3 years the share price has gained 150.2%, which puts real pressure on the case that the underlying cash flows are strong enough to support that kind of re-rating.
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Recent coverage highlighting Ituran Location and Control as a high return on invested capital business with solid cash conversion and no debt suggests that much of the investment story now hinges on how reliably those cash flows can keep funding operations and shareholder returns without fresh capital.
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Prefer to judge Ituran Location and Control on earnings? See
The issue now is whether Ituran Location and Control's current share price can be justified by the intrinsic value suggested by a Discounted Cash Flow (DCF) view of its cash flows.
To stress test whether Ituran Location and Control's cash flow story really holds ...