Here's How Much a $1000 Investment in Itron Made 10 Years Ago Would Be Worth Today

For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.

Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.

What if you'd invested in Itron (ITRI) ten years ago? It may not have been easy to hold on to ITRI for all that time, but if you did, how much would your investment be worth today?

Itron's Business In-Depth

With that in mind, let's take a look at Itron's main business drivers.

Founded in 1977 and headquartered in Liberty Lake, WA, Itron Inc is a technology and services company and one of the leading global suppliers of a wide range of standard, advanced, and smart meters and meter communication systems, including networks and communication modules, software, devices, sensors, data analytics and services to the utility and municipal sectors.

Itron solutions (technology, software, and services) are delivered to users as part of a standalone, one-time purchase or end-to-end solution over multiple years.

The company generates revenues from three operating segments namely Device Solutions, Networked Solutions and Outcomes. Itron’s total revenues for 2023 came in $2.174 billion.

Device Solutions (21% of 2023 revenues) include the offerings of standard gas meters, electricity meters, water meters and communicating meters. These are used for measurement, sensing and control purpose.

Networked Solutions (66.7% of 2023 revenues) comprises products and software used for the implementation, installation, and management of communicating devices and data networks. The Industrial Internet of Things (IIoT) solutions supported by this particular segment include advanced metering infrastructure (AMI), automated meter reading (AMR), distributed energy resource management (DERMs), smart grid and distribution automation and several smart city applications (like smart parking, traffic management, air quality monitoring, electric vehicle charging, digital signage, and mitigation for both gas and water systems).

Outcomes (12.3% of 2023 revenues) segment includes value-added, enhanced software and services.  These are used to manage, organize, analyze, and interpret raw and aggregated data to improve decision making, boost operational and resource efficiency along with improvement in grid analytics and deliver improved actionable insights for consumers, utilities, and smart cities.

Itron operates in a competitive space with its primary competitors Landis+Gyr, LM Ericsson Telephone Company,  Mueller Water Products, and Xylem, Inc. (formerly Sensus).

Bottom Line

While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Itron ten years ago, you're probably feeling pretty good about your investment today.

A $1000 investment made in May 2014 would be worth $2,814.49, or a gain of 181.45%, as of May 27, 2024, according to our calculations. This return excludes dividends but includes price appreciation.

Compare this to the S&P 500's rally of 179.12% and gold's return of 77.20% over the same time frame.

Looking ahead, analysts are expecting more upside for ITRI.

Itron's performance is gaining from higher recurring and one-time service revenues, improved component supply and sales of water meter, and communication module sales. The top-line growth was also backed by conversion of previously constrained revenues. Margin performance was bolstered by a favorable product mix and improved cost efficiencies. Management noted that customers are increasingly deploying new digital technology and non-wires grid solutions, which bode well for Itron. The transition to asset light operating model is another positive. It expects book to bill ratio to be at least 1:1 for 2024.  However, rising operating expenses and a leveraged balance sheet amid uncertainty prevailing over global macroeconomic conditions remain concerns. Increasing competition in the electronics segment is a major headwind.

Shares have gained 14.40% over the past four weeks and there have been 7 higher earnings estimate revisions for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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