ITRN - Ituran Location And Control: Recurring-Revenue Automotive IoT Trading At Steep Discount

• ITRN is a recurring-revenue Israeli automotive IoT business that has consistently generated recurring free cashflow for last 15 years and returned majority of them to shareholders through dividends.
• Shares have declined since FY19 because of exposure to auto industry cyclicality, 1Q20 dividend cut, and significant depreciation of LATAM currencies since COVID.
• However, business fundamentals remained resilient through the pandemic due to the company's predictable subscription revenue model.
• High margin of safety imbedded in current price presents compelling buy opportunity.
• Dividend resumption and continued strengthening of LATAM currencies are possible catalysts in the next 6-month.

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