Is Ituran Location & Control Ltd. (ITRN) Halal?

NASDAQ Technology Israel $1.0B
✓ HALAL
Confidence: 95/100
Ituran Location & Control Ltd. (ITRN) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 0.9% against the AAOIFI threshold of 30%, Ituran Location & Control Ltd. comfortably passes the key financial ratio tests. The company operates in the Technology sector (Scientific & Technical Instruments), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2024

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 0.9%
/ 30%
7.9%
/ 30%
4.8%
/ 30%
0.6%
/ 5%
✓ HALAL
DJIM 0.9%
/ 33%
7.9%
/ 33%
4.8%
/ 33%
0.6%
/ 5%
✓ HALAL
MSCI 2.8%
/ 33%
23.7%
/ 33%
14.6%
/ 33%
0.6%
/ 5%
✓ HALAL
S&P 0.9%
/ 33%
7.9%
/ 33%
4.8%
/ 33%
0.6%
/ 5%
✓ HALAL
FTSE 2.8%
/ 33%
23.7%
/ 33%
14.6%
/ 50%
0.6%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
17.3
Forward: 13.1
EPS
$2.92
Dividend Yield
1187.0%
Payout: 68.5%
P/B Ratio
4.6
EV/EBITDA
9.4
EV: $907M
Beta
0.7
Low volatility
Current Ratio
2.3

Profitability

Gross Margin 49.7%
Operating Margin 21.8%
Net Margin 16.1%
Return on Equity (ROE) 28.9%
Return on Assets (ROA) 13.5%

Cash Flow & Balance Sheet

Operating Cash Flow$74M
Free Cash Flow$61M
Total Debt$9M
Debt-to-Equity2.1
Current Ratio2.3
Total Assets$327M

Price & Trading

Last Close$50.95
50-Day MA$47.62
200-Day MA$40.89
Avg Volume111K
Beta0.7
52-Week Range
$30.06
$53.33

About Ituran Location & Control Ltd. (ITRN)

CEO
Mr. Nir Sheratzky
Employees
2,800
Sector
Technology
Industry
Scientific & Technical Instruments
Country
Israel
Exchange
NASDAQ
Market Cap
$1.0B
Currency
USD

Ituran Location and Control Ltd., together with its subsidiaries, provides location-based telematics services and machine-to-machine telematics products in Israel, Brazil, and internationally. It operates in two segments: Telematics Services and Telematics Products. The Telematics services segment offers stolen vehicle recovery and tracking services, which enable it to locate, track, and recover stolen vehicles; fleet management services that enable corporate and individual customers to track and manage their vehicles in real time; and locator services that allow customers to protect valuable merchandise and equipment. It also delivers on-demand navigation guidance, information, and assistance, including the provision of traffic reports and directions, as well as information on the location of gas stations, car repair shops, post offices, hospitals, and other facilities; and connected car, a service platform that includes a back-office application, a telematics device installed in the vehicle, mobile apps for IOS and Android users, and interface using the car infotainment screen, as well as usage based insurance and auto financing services. It serves insurance companies and agents, car manufacturers, dealers and importers, cooperative sales channels, and private subscribers. The Telematics Products segment offers base site, a radio receiver that includes a processor and a data computation unit to collect and send data to and from transponders, and to control centers; control center, a center consisting of software used to collect data from various base sites, conduct location calculations, and transmit location data to various customers and law enforcement agencies; navigation and tracking devices installed in vehicles; and SMART, a portable transmitter installed in vehicles that sends a signal to the base site enabling the location of vehicles, equipment, or an individual. The company was incorporated in 1994 and is headquartered in Azor, Israel.

Purification Calculator

As a halal stock with 0.60% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is Ituran Location & Control Ltd. (ITRN) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Ituran Location & Control Ltd. is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Ituran Location & Control Ltd.'s debt ratio?

Ituran Location & Control Ltd.'s debt ratio is 0.9% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 2.8%.

Does Ituran Location & Control Ltd. require dividend purification?

Yes, Ituran Location & Control Ltd. has an impermissible income ratio of 0.60%, which means 0.60% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are Ituran Location & Control Ltd.'s key financial metrics?

Ituran Location & Control Ltd. has a market capitalization of $1.0B, trailing P/E ratio of 17.3. The company maintains a gross margin of 49.7% and a net margin of 16.1%. Return on equity stands at 28.9%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.