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Itron (ITRI) has been active on the product and customer front, rolling out the Locusview Connector for SAP S/4HANA and supporting new digital water projects with utilities in Australia and India.
See our latest analysis for Itron.
Despite fresh contract wins in Australia and India, plus the new SAP-integrated Locusview Connector, Itron’s share price is down 12.7% year to date and the 1 year total shareholder return has declined 29.2%. However, the 3 year total shareholder return remains positive at 19.6%.
If this mix of utility technology and digital infrastructure interests you, it could be worth broadening your watchlist with a dedicated power grid and infrastructure screen such as 33 power grid technology and infrastructure stocks
With Itron’s share price down despite contract wins, positive 3 year returns and growth in both revenue and net income, the key question for you is simple: is this stock being undervalued, or is the market already pricing in future growth?
Most Popular Narrative: 38.9% Undervalued
Itron’s most followed narrative pegs fair value at $135 per share, which sits well above the recent close at $82.48. This puts the focus firmly on growth and cash flow assumptions that support that gap.
Expected acceleration in global demand for smart grid infrastructure and advanced metering solutions driven by government decarbonization mandates, increasing electrification, and urbanization supports a long-run, expanding addressable market for Itron, providing a clear path to sustained top-line revenue growth.
Curious what underpins that fair value gap? The core of this narrative is how modest top line expansion, improving margins and a future earnings multiple all work together. The key is how those moving parts compound over time.
Result: Fair Value of $135 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, the story can change quickly if large utility projects are delayed by regulators or if growth in Itron’s higher margin software and Outcomes segment remains muted.
Find out about the key risks to this Itron narrative.
Next Steps
Seeing both optimism and concern in this story, it makes sense to move quickly, review the data for yourself, and weigh the 4 key rewards and 2 important warning signs.
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