On February 28, 2025, Vulcan Value Partners, LLC (Trades, Portfolio) made a strategic decision to reduce its holdings in Ituran Location and Control Ltd (NASDAQ: ITRN). The firm decreased its position by 235,726 shares at a transaction price of $41.88 per share. This move resulted in a 0.17% reduction in the firm's overall portfolio holdings. Following this transaction, Vulcan Value Partners now holds 795,275 shares of Ituran, representing 0.56% of its portfolio. This adjustment reflects the firm's ongoing strategy to optimize its investment portfolio in line with its long-term objectives.
Vulcan Value Partners, LLC (Trades, Portfolio): A Profile
Founded in 2007 by C. T. Fitzpatrick, Vulcan Value Partners, LLC (Trades, Portfolio) is an investment management firm based in Birmingham, Alabama. The firm is renowned for its investment philosophy that emphasizes minimizing capital loss and maintaining long-term ownership. Vulcan Value Partners employs a bottom-up investment approach, focusing on small and large-cap companies across various sectors, with a significant emphasis on the financial services and technology sectors. The firm manages approximately $11 billion in assets across over 1,600 accounts, primarily catering to high-net-worth individuals. Vulcan Value Partners is committed to thorough internal research and careful evaluation of business risks, competitive strengths, and management quality before making investment decisions.
Details of the Stock Transaction
The recent transaction involved a reduction of 235,726 shares in Ituran Location and Control Ltd at a price of $41.88 per share. This decision led to a 0.17% decrease in Vulcan Value Partners' portfolio holdings. The firm's current position in Ituran now stands at 795,275 shares, accounting for 0.56% of its total portfolio. This adjustment reflects Vulcan Value Partners' strategic approach to managing its investments, ensuring alignment with its long-term goals and market conditions.
Overview of Ituran Location and Control Ltd
Ituran Location and Control Ltd is a prominent provider of location-based services, operating in two main segments: Telematics services and Telematics products. The company's Telematics services include stolen vehicle recovery, fleet management, and personal locator services, while its Telematics products encompass wireless communication solutions for vehicle location and identification. Ituran has a significant geographical presence in Israel, Brazil, and other regions, contributing to its diverse revenue streams and market reach.
Financial Metrics and Valuation of Ituran Location and Control Ltd
As of March 5, 2025, Ituran Location and Control Ltd has a market capitalization of $792.156 million and a price-to-earnings (PE) ratio of 14.69. The stock is currently considered significantly overvalued, with a GF Value of $28.73, indicating a price-to-GF Value ratio of 1.39. Despite this valuation, Ituran's financial metrics remain robust, with a return on equity (ROE) of 29.97% and a return on assets (ROA) of 16.70%. The company's balance sheet is strong, with a [Financial Strength](https://www.gurufocus.com/term/rank-balancesheet/ITRN) rank of 10/10, reflecting its solid financial position.
Performance and Growth Indicators
Ituran Location and Control Ltd boasts a [GF Score](https://www.gurufocus.com/term/gf-score/ITRN) of 87/100, indicating good outperformance potential. The company's [Profitability Rank](https://www.gurufocus.com/term/rank-profitability/ITRN) is 8/10, and its [Growth Rank](https://www.gurufocus.com/term/rank-growth/ITRN) is 9/10, highlighting its strong growth trajectory. Ituran's [Operating Margin](https://www.gurufocus.com/term/operating-margin/ITRN) growth is 4.60%, and its revenue growth over the past three years is 9.00%. These metrics underscore the company's ability to generate consistent returns and maintain a competitive edge in the market.
Implications for Value Investors
For value investors, the decision by Vulcan Value Partners to reduce its holdings in Ituran Location and Control Ltd may signal a reassessment of the stock's valuation and growth potential. Despite the stock's strong financial metrics and growth indicators, its current valuation suggests limited upside potential. The firm's decision to adjust its position could be influenced by the stock's significant overvaluation and the need to optimize its portfolio in line with its investment philosophy. Value investors should consider these factors when evaluating Ituran's potential as a long-term investment opportunity.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
