$Ituran Location & Control (ITRN.US)$In the 2023.2.23 analys...

The Israeli company, which was listed in 2005, is mainly engaged in vehicle positioning business. The main markets are Israel and Brazil, and the current price is 27.52.

It is very interesting to look at this company's long-term profit before tax. Every time I feel that profits will continue to grow, management expenses will skyrocket again and again, putting pressure on pre-tax profits. In the past 5 years, with the exception of 2020, revenue has grown at an average rate of 4.8%. Operating profit shrank in the first two years, and increased by only 6.5% in the next three years. This is due to the impact of the management expenses mentioned above. Net profit has increased dramatically in the past 4 years due to the gradual decline in capital asset impairment, but it is still below the level of 2018.

The current price-earnings ratio is 11.4 and the price-earnings ratio is TTM10.98, which is unattractive considering the long-term performance of management expenses.