Value
8.1/10data confidence 100%| Component | Sub-score |
|---|---|
| P/E | 8.3 |
| P/S | 9.2 |
| EV/EBITDA | 4.1 |
| Fwd P/E | 8.7 |
| PEG | 8.5 |
| Analyst target | 9.0 |
- ▸Forward P/E: 13.0x
- ▸PEG: 0.76
- ▸Attractively valued
ITRI · Why this verdict
Why Itron (ITRI) is rated SELL
Updated
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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VerdictSELL
Overall score4.8/10
ConfidenceMEDIUM
MacroNEUTRAL
Thesis pillars
| Pillar | Expectation | Trend |
|---|---|---|
The stock is attractively valued at a forward P/E of 12.3x and a PEG of 0.72, screens favorably against peers on a price-to-earnings basis, and carries approximately 37% upside to the analyst-based price target — offering a wide margin of safety if fundamental momentum stabilizes. Valuation breakdown | The stock re-rates toward peer-average multiples as the technical overhang clears, with the valuation discount narrowing over a 12-month horizon. | →Stable |
| CounterWith revenue declining at roughly 3%, a low multiple may persist as a value trap rather than re-rate upward; the case for multiple expansion requires a visible return to revenue growth. | ||
The company has beaten consensus EPS estimates in each of the last 4 quarters, with an average positive surprise of roughly 15% and the most recent quarter delivering a 20% beat — a pattern that reflects consistently conservative guidance and solid operational execution. Earnings | EPS beats continue in each of the next 2 quarters and the average positive surprise remains above 10%. | →Stable |
| CounterThe beat streak has coincided with declining revenues, suggesting that cost management rather than top-line strength may be driving outperformance; any reversal of those cost tailwinds could break the streak. | ||
The stock's short-term moving average has crossed below its long-term moving average and the stock is trading below its 200-day moving average on a declining trend slope of roughly 6.5% over the past 30 days — a confirmed downtrend that blocks actionable entry at this time. Momentum breakdown | The technical setup improves if the stock recrosses and holds above its 200-day moving average for at least 4 weeks with RSI recovering above 50. | →Stable |
| CounterAt current valuation levels, value-oriented investors may step in before a clean technical reversal occurs, reducing the opportunity cost of waiting for a signal that never fully forms. | ||
A put/call ratio of 2.00 — meaning twice as many puts as calls are outstanding — combined with 19% short interest signals that market participants are positioned defensively, amplifying potential downside if negative catalysts materialize. Risk breakdown | The put/call ratio falls below 1.0 and short interest declines below 10%, reflecting a shift in sentiment as fundamental trends stabilize. | →Stable |
| CounterElevated put activity and high short interest could become a contrarian tailwind; if revenue trends stabilize and earnings beats continue, forced covering could accelerate price appreciation meaningfully. | ||
The stock is attractively valued at a forward P/E of 12.3x and a PEG of 0.72, screens favorably against peers on a price-to-earnings basis, and carries approximately 37% upside to the analyst-based price target — offering a wide margin of safety if fundamental momentum stabilizes.
→StableValuation breakdown
- Expectation
- The stock re-rates toward peer-average multiples as the technical overhang clears, with the valuation discount narrowing over a 12-month horizon.
CounterWith revenue declining at roughly 3%, a low multiple may persist as a value trap rather than re-rate upward; the case for multiple expansion requires a visible return to revenue growth.
The company has beaten consensus EPS estimates in each of the last 4 quarters, with an average positive surprise of roughly 15% and the most recent quarter delivering a 20% beat — a pattern that reflects consistently conservative guidance and solid operational execution.
→StableEarnings
- Expectation
- EPS beats continue in each of the next 2 quarters and the average positive surprise remains above 10%.
CounterThe beat streak has coincided with declining revenues, suggesting that cost management rather than top-line strength may be driving outperformance; any reversal of those cost tailwinds could break the streak.
The stock's short-term moving average has crossed below its long-term moving average and the stock is trading below its 200-day moving average on a declining trend slope of roughly 6.5% over the past 30 days — a confirmed downtrend that blocks actionable entry at this time.
→StableMomentum breakdown
- Expectation
- The technical setup improves if the stock recrosses and holds above its 200-day moving average for at least 4 weeks with RSI recovering above 50.
CounterAt current valuation levels, value-oriented investors may step in before a clean technical reversal occurs, reducing the opportunity cost of waiting for a signal that never fully forms.
A put/call ratio of 2.00 — meaning twice as many puts as calls are outstanding — combined with 19% short interest signals that market participants are positioned defensively, amplifying potential downside if negative catalysts materialize.
→StableRisk breakdown
- Expectation
- The put/call ratio falls below 1.0 and short interest declines below 10%, reflecting a shift in sentiment as fundamental trends stabilize.
CounterElevated put activity and high short interest could become a contrarian tailwind; if revenue trends stabilize and earnings beats continue, forced covering could accelerate price appreciation meaningfully.
TrendMatrix Research · core thesis
Engine thesis — one sentence
Itron has beaten consensus EPS in each of the last 4 quarters by an average of roughly 15%, and the stock screens attractively valued at a forward P/E of 12.3x with a PEG below 1.0, leaving approximately 37% potential upside to the analyst-based target. However, a confirmed technical downtrend with a moving-average death cross, declining revenue, and an elevated put/call ratio of 2.00 currently block actionable entry despite the compelling potential reward.
Falsifiable statement — pillar-level invalidators below. Engine-derived; not personalized advice.
Per-dimension breakdown
Quality
5.7/10data confidence 100%| Component | Sub-score |
|---|---|
| ROE | 6.2 |
| ROA | 3.4 |
| Gross margin | 3.8 |
| Op margin | 4.6 |
| Net margin | 6.2 |
| Current ratio | 9.0 |
| FCF quality | 7.2 |
| Moat | 4.4 |
| Piotroski F | 6.7 |
- ▸No competitive moat
Growth
0.8/10data confidence 67%| Component | Sub-score |
|---|---|
| Rev growth | 1.7 |
| EPS growth | 0.0 |
- ▸Declining revenue: -3%
Momentum
4.7/10data confidence 100%| Component | Sub-score |
|---|---|
| RSI | 3.4 |
| MACD | 10.0 |
| OBV | 1.0 |
| MA position | 6.0 |
| Volume | 3.1 |
- ▸Volume distribution (falling OBV)
- ▸Below 200-MA, MA slope -5.9%/30d — confirmed downtrend
Sentiment
6.5/10data confidence 100%| Component | Sub-score |
|---|---|
| Analyst rating | 5.0 |
| Price target | 9.5 |
| erm sentiment | 5.0 |
- ▸Analyst upside: 49%
Insider
3.9/10data confidence 75%| Component | Sub-score |
|---|---|
| materiality | 4.5 |
| insider conviction | 2.0 |
| holder change | 5.1 |
- ▸Modest insider selling — $1,403,715 (0.037% of mkt cap)
Peer rank
3.7/10data confidence 80%| Component | Sub-score |
|---|---|
| value rank | 8.8 |
| quality rank | 5.3 |
| growth rank | 0.6 |
- ▸Attractive P/E vs peers
Technical
2.1/10data confidence 100%| Component | Sub-score |
|---|---|
| bollinger | 0.9 |
| support resistance | 3.5 |
| 52w position | 2.0 |
Risk (lower is worse)
4.0/10data confidence 100%| Component | Sub-score |
|---|---|
| short interest | 0.6 |
| days to cover | 0.9 |
| volatility | 5.5 |
| put call | 6.2 |
| implied vol | 3.8 |
| beta | 5.7 |
| debt equity | 5.1 |
- ▸High short interest: 19%
- ▸Concentration risks: 1 HIGH, 1 MED (10-K Item 1A — sized via position_sizing, validated via buy_confidence)
Catalyst
7.5/10data confidence 100%| Component | Sub-score |
|---|---|
| erm | 5.0 |
| earnings history | 10.0 |
| earnings timing | 5.0 |
| surprise avg | 9.8 |
- ▸Perfect beat streak: 4Q
How the verdict was assembled
Engine trigger
Multiple concerning factors. Consider reducing position.
Engine technical detail
verdict_path:
L4:PATH_F_SELLPassed (8)
- MOMENTUM:4.7>=4.5
- ASYMMETRY:3.8>=1.5
- INSIDER:OK
- 8K:CLEAN
- NEWS_EVENTS:NONE_RECENT
- EARNINGS_PROXIMITY:27d clear
- SEMI_CYCLE_PEAK:CLEAR
- MATERIALS_CYCLE_PEAK:CLEAR
Failed (1)
- DEATH_CROSS:HARD_BLOCK
Warning (1)
- MOMENTUM:4.7<5.5 (soft — BUY_NOW allowed but watch)
Reward-to-Risk
3.80
Upside
+29.5%
Downside
7.8%
Sizing output
AVOID
SetupRecovery — Death cross but MACD improving, RSI 66
EdgeCatalyst-Driven — Earnings in 27d with 4/4 beat streak
SuitabilitySpeculative — Drawdown -40% (>40% off 52w high)
Investment implication
The F-path SELL output reflects an overall score of 4.8 below the 5.6 soft trigger — multiple weakening dimensions accumulated rather than a single hard-floor breach. The strongest dimension ( Value at 8.1) was not enough to lift the adjusted overall above the threshold. Co-occurring failed gates ( DEATH_CROSS:HARD_BLOCK) reinforce the read. Current asymmetry R:R is 3.80 — supplementary context, not the trigger for this path.
The strongest dimensions are Value at 8.1, Catalyst at 7.5, and Sentiment at 6.5; the weakest are Growth at 0.8, Technical at 2.1, and Peer rank at 3.7. The V9 engine flagged 1 failed gate with 1 warning, producing an asymmetric reward-to-risk of 3.80 and an engine sizing output of AVOID.
What would invalidate the thesis
Falsifying conditions — when triggered, the corresponding pillar's thesis is invalidated.
- P1Consistent Earnings Outperformance
Trip ifEPS surprise falls below 0% for 2 consecutive quarters.
- P2Attractive Valuation With Upside
Trip ifForward P/E rises above 20x.
- P3Confirmed Technical Downtrend Hard Block
Trip ifStock closes above its 200-day moving average and RSI rises above 50 for 4 consecutive weeks.
- P4Elevated Put Call And Short Interest
Trip ifPut/call ratio falls below 1.0 and short interest declines below 10%.