Itron, Inc. (ITRI) stock analysis

P/E below its 5-year median

Itron's P/E of 15.9 is below its own 5-year median of 22.0.

P/E below the industry

Itron's P/E of 15.9 is below the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median of 36.5.

EV/EBITDA below its 5-year median

Itron's EV/EBITDA of 13.1 is below its 5-year median of 18.0.

P/B below the industry

Itron's price-to-book of 2.54 is below the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median of 3.17.

Trading below fair value

The share price of $98.50 is below our fair value estimate of $149.03.

Margin of safety over 20%

The price is 33.9% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 9.7% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew -3.6% over the last twelve months; the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median is 8.4%.

Guidance raised

Itron raised its full year 2026 Non-GAAP diluted EPS outlook on Jul 28, 2026.

Gross margin improving

Gross margin was 40.7% over the last twelve months, against 36.3% a year earlier.

Return on equity under 15%

Return on equity was 16.5% over the last twelve months and averaged 7.1% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 13.4%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Itron's return on equity of 16.5% is above the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median of 1.1%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 12.1% over the last twelve months, against a 5-year average of 4.5%.

Net margin above the industry

Itron's net margin of 12.1% is above the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median of -1.3%.

High debt

Debt is 92.8% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 113% five years ago to 92.8%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 25.0% of total debt.

Interest well covered

Operating income covers interest expense 13.8 times.

Short-term assets cover short-term debts

Current assets are 2.83 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.32; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Itron has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.