Ituran Location and Control Ltd. ITRN

Ituran looks like a “compounder‑lite”: a regionally entrenched, cash‑rich operator that grows steadily by adding subscribers through insurer and OEM channels and then layering on higher‑margin services like UBI and connected‑car features. The numbers back it up — ~72–73% recurring revenue, ~21–22% operating margins, ~18% free‑cash‑flow margin, ~22–23% ROIC, and net cash. The swing factor for faster compounding is execution: turning the motorcycle opportunity into mass‑market OEM wins and deepening insurer programs in Israel and Latin America. Regulatory and FX noise are part of the package, but the core engine is resilient. At a price below our scenario‑weighted fair value and with a ~5% dividend, the setup offers a sensible balance of quality and upside without needing heroics to work.