AZOUR, Israel - Ituran Location and Control Ltd. (NASDAQ: ITRN), a prominent player in mobility technology and connected-car services, has declared a cash dividend of $0.39 per share, amounting to roughly $8 million in total. Shareholders on record by June 18, 2024, will be eligible for the dividend, which is scheduled for distribution on July 2, 2024, after a 25% tax deduction.
The company's Board of Directors confirmed that the dividend payment aligns with Israeli law and would not affect Ituran's operational sustainability or its ability to fulfill future commitments. Ituran's retained earnings stood at $208.8 million before the distribution and are projected to be $200.8 million post-distribution.
As of March 31, 2024, the company had a cash balance of $54.0 million, not including the $8 million dividend paid in April 2024 for the fourth quarter of 2023. Ituran's current assets, excluding cash, totaled $130.1 million, against current liabilities of $92.9 million, with minimal bank credit of $0.3 million.
Ituran, established in 1995, has grown to over 2.2 million subscribers, maintaining a leading position in Israel and Latin America. The company employs around 2,800 people globally and has offices in several countries, including Brazil, Argentina, Mexico, Ecuador, Columbia, India, Canada, and the United States.
The information provided is based on a press release statement from Ituran Location and Control Ltd.
InvestingPro Insights
Ituran Location and Control Ltd. (NASDAQ: ITRN) continues to demonstrate financial resilience and shareholder value through its latest dividend announcement. As investors consider the implications of this distribution, it is worth noting some key metrics and expert insights from InvestingPro that could further inform investment decisions.
An important highlight for Ituran is its strong balance sheet, as indicated by a market capitalization of $526.19M and a robust cash position. With a PRONEWS24 promo code, investors can access more InvestingPro Tips, including the fact that Ituran holds more cash than debt, which underpins its financial stability and supports its ability to maintain dividend payments, a streak it has kept for 19 consecutive years.
Moreover, the company's commitment to returning value to shareholders is evident in its high shareholder yield and the fact that it trades at a low P/E ratio relative to near-term earnings growth, currently standing at 10.92 based on last twelve months as of Q4 2023. The dividend yield as of mid-April 2024 is a significant 5.9%, reflecting the company's focus on income for its investors.
InvestingPro also provides additional insights into Ituran's performance, including a total of 11 tips for the company. Among these, Ituran's valuation implies a strong free cash flow yield, and its stock generally trades with low price volatility, which may appeal to investors seeking stable returns in uncertain markets.
For those looking to delve deeper into Ituran's financials and future prospects, InvestingPro offers a comprehensive analysis with a fair value estimate of $34.55, which is closely aligned with analyst targets. With the additional tips available on InvestingPro, investors can gain a more nuanced understanding of Ituran's position in the market and its potential for growth.
As Ituran maintains its trajectory, the insights provided by InvestingPro, coupled with the use of the PRONEWS24 promo code for an additional discount on subscriptions, offer valuable resources for investors aiming to make informed decisions in the evolving landscape of mobility technology and connected-car services.
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