11/07/2010

Iteris, Inc. (ITI)

ITI :Iteris, Inc



Large insider purchases during November 2010 by 10% value investor Lloyd Miller. Over 100,000 were spent on indirect share purchases around 1.40.




From Yahoo

“Iteris, Inc. operates in the traffic management market that focuses on the development and application of technologies that reduce traffic congestion, minimize the environmental impact of traffic congestion, and improve the safety of surface transportation systems. The company operates in three segments: Roadway Sensors, Vehicle Sensors, and Transportation Systems. The Roadway Sensors segment includes Vantage vehicle detection systems, the video vehicle detection systems that detect the presence of vehicles on roadways. Its Vantage systems are also used at signalized intersections to enable the allocation of green signal time; for incident detection and highway traffic data collection applications; and for traffic intersection control that are sold through indirect sales channels, such as independent dealers in the United States and Canada.”

EV = 55 million

Market cap = 50 million

Improving capital structure:

Debt reduction from 2005 and 2007 versus the current debt

Stable share count over the past few years

Average 3 year share count/TTM = .99

High historical productivity

High historical average ROIC 07 to 09 (+16.08%) but recent TTM dropped to (+4.50%)

Reasonable profitability

EBITDA + average Capital expenditures /EV = 8.65%

OI/EV = 7.89%

YOY quarterly revenue change -5.20%

Sound balance sheet as measured by Enterprise value / Market Cap = 1.10

Negligible short position

16% off 52 week low

54% off 52 week high

1 comment:

Adam said...

I've been following Iteris for awhile and just recently put up a writeup on their Q2 earnings:

http://www.valueuncovered.com/iteris-inc-iti-second-quarter-earnings-update

While I'm always leery about so much intangibles on the balance sheet, the sustained insider buying is a hugely positive sign.

-Adam