Is Itron, Inc. (ITRI) A Good Stock To Buy Now?

Is ITRI a bully banal to buy? We came crossed a bullish thesis connected Itron, Inc. connected Darren Leung’s Substack. In this article, we volition summarize the bulls’ thesis connected ITRI. Itron, Inc.'s stock was trading astatine $94.16 arsenic of April 21st. ITRI’s trailing and guardant P/E were 15.02 and 16.08 respectively according to Yahoo Finance.

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Itron, Inc., a technology, solutions, and work company, provides end-to-end solutions that assistance negociate energy, water, and astute metropolis operations worldwide. ITRI is being mispriced by the marketplace arsenic a predominantly hardware inferior infrastructure company, contempt lodging a rapidly scaling bundle and outcomes concern that is progressively driving its cardinal re-rating potential.

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Within Itron sits an astir $368M yearly recurring gross (ARR) bundle layer, increasing 20% year-over-year, alongside an Outcomes conception generating astir $360M of recurring gross with 22% maturation and ~41.7% adjusted gross margins.

A recently formed Resiliency Solutions segment, including Urbint and Locusview, further strengthens the illustration with ~76% gross margins successful its aboriginal publication phase. Despite this high-quality, fast-growing recurring gross base, the marketplace implicitly values Itron’s combined bundle furniture astatine astir 8× ARR, a level materially beneath comparable bundle peers.

Based connected a ~$5.1B endeavor worth and blimpish hardware valuation assumptions, the implied bundle valuation ranges betwixt 7×–10× ARR, inactive importantly lagging infrastructure bundle companies specified arsenic Samsara trading supra 15× ARR and humanities leaders similar Veeva Systems, which reached overmuch higher multiples during comparable maturation phases.

The mispricing persists owed to delayed adoption of ARR arsenic a ceremonial reporting metric, constricted expert exemplary restructuring, and the lack of a cleanable separation of bundle economics successful statement frameworks. Structurally, this is compounded by the caller emergence of Resiliency Solutions and the cross-sell accidental into Itron’s 8,000+ inferior lawsuit base, enabling low-cost gross enlargement astatine scale.

Fundamentally, request is non-discretionary and driven by regulated planetary grid modernization programs crossed Europe and the UK, ensuring durable visibility and insulation from emblematic endeavor bundle cyclicality. With a $1B+ backlog increasing 58% year-over-year, accelerating pipeline metrics, and accordant net beats, Itron is positioned for a worldly re-rating.