IAA INC (IAA) Stock Fundamental Analysis
USA - NYSE:IAA - US4492531037 - Common Stock
39.89 USD
-0.04 (-0.1%)
40.1 USD
+0.21 (+0.53%)
IAA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 82 industry peers in the Commercial Services & Supplies industry. IAA has an excellent profitability rating, but there are some minor concerns on its financial health. IAA has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
IAA had positive earnings in the past year.
In the past year IAA had a positive cash flow from operations.
In the past 5 years IAA has always been profitable.
IAA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
IAA's Return On Assets of 8.69% is amongst the best of the industry. IAA outperforms 85.00% of its industry peers.
Looking at the Return On Equity, with a value of 51.54%, IAA belongs to the top of the industry, outperforming 98.75% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 10.86%, IAA belongs to the top of the industry, outperforming 83.75% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for IAA is significantly above the industry average of 10.49%.
The last Return On Invested Capital (10.86%) for IAA is well below the 3 year average (20.07%), which needs to be investigated, but indicates that IAA had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.69% | ||
| ROE | 51.54% | ||
| ROIC | 10.86% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)20.07%
ROIC(5y)N/A
1.3 Margins
IAA has a better Profit Margin (13.93%) than 93.75% of its industry peers.
IAA's Profit Margin has been stable in the last couple of years.
IAA has a Operating Margin of 19.87%. This is amongst the best in the industry. IAA outperforms 96.25% of its industry peers.
IAA's Operating Margin has been stable in the last couple of years.
IAA has a Gross Margin of 35.00%. This is in the better half of the industry: IAA outperforms 67.50% of its industry peers.
IAA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.87% | ||
| PM (TTM) | 13.93% | ||
| GM | 35% |
OM growth 3Y-3.51%
OM growth 5Y0.63%
PM growth 3Y1.19%
PM growth 5Y1.03%
GM growth 3Y-2.86%
GM growth 5Y-0.66%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so IAA is creating value.
IAA has less shares outstanding than it did 1 year ago.
Compared to 1 year ago, IAA has an improved debt to assets ratio.
2.2 Solvency
IAA has an Altman-Z score of 2.57. This is not the best score and indicates that IAA is in the grey zone with still only limited risk for bankruptcy at the moment.
IAA has a better Altman-Z score (2.57) than 67.50% of its industry peers.
The Debt to FCF ratio of IAA is 5.62, which is a neutral value as it means it would take IAA, 5.62 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of IAA (5.62) is better than 80.00% of its industry peers.
A Debt/Equity ratio of 1.95 is on the high side and indicates that IAA has dependencies on debt financing.
IAA has a Debt to Equity ratio of 1.95. This is amonst the worse of the industry: IAA underperforms 83.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 5.62 | ||
| Altman-Z | 2.57 |
ROIC/WACC1.31
WACC8.31%
2.3 Liquidity
IAA has a Current Ratio of 1.75. This is a normal value and indicates that IAA is financially healthy and should not expect problems in meeting its short term obligations.
IAA has a Current ratio of 1.75. This is in the better half of the industry: IAA outperforms 65.00% of its industry peers.
IAA has a Quick Ratio of 1.64. This is a normal value and indicates that IAA is financially healthy and should not expect problems in meeting its short term obligations.
IAA's Quick ratio of 1.64 is fine compared to the rest of the industry. IAA outperforms 73.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
The earnings per share for IAA have decreased by -2.50% in the last year.
IAA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.69% yearly.
Looking at the last year, IAA shows a quite strong growth in Revenue. The Revenue has grown by 14.23% in the last year.
The Revenue has been growing by 11.48% on average over the past years. This is quite good.
EPS 1Y (TTM)-2.5%
EPS 3Y14.83%
EPS 5Y12.69%
EPS Q2Q%0%
Revenue 1Y (TTM)14.23%
Revenue growth 3Y13.47%
Revenue growth 5Y11.48%
Sales Q2Q%-4.49%
3.2 Future
The Earnings Per Share is expected to decrease by -1.56% on average over the next years.
The Revenue is expected to grow by 4.47% on average over the next years.
EPS Next Y0.35%
EPS Next 2Y1.07%
EPS Next 3Y-1.56%
EPS Next 5YN/A
Revenue Next Year1.27%
Revenue Next 2Y2.88%
Revenue Next 3Y4.47%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
IAA is valuated rather expensively with a Price/Earnings ratio of 17.05.
Based on the Price/Earnings ratio, IAA is valued a bit cheaper than the industry average as 71.25% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of IAA to the average of the S&P500 Index (25.67), we can say IAA is valued slightly cheaper.
With a Price/Forward Earnings ratio of 16.99, IAA is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IAA indicates a somewhat cheap valuation: IAA is cheaper than 68.75% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 31.86, IAA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.05 | ||
| Fwd PE | 16.99 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as IAA.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IAA indicates a somewhat cheap valuation: IAA is cheaper than 75.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.16 | ||
| EV/EBITDA | 12.04 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates IAA does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of IAA may justify a higher PE ratio.
PEG (NY)48.35
PEG (5Y)1.34
EPS Next 2Y1.07%
EPS Next 3Y-1.56%
5. Dividend
5.1 Amount
No dividends for IAA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
39.89
-0.04 (-0.1%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst OwnersN/A
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner Change0%
Market Cap5.34B
Revenue(TTM)2.10B
Net Income(TTM)292.40M
Analysts48.57
Price Target45.9 (15.07%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.19%
Min EPS beat(2)-11.45%
Max EPS beat(2)11.06%
EPS beat(4)3
Avg EPS beat(4)5.19%
Min EPS beat(4)-11.45%
Max EPS beat(4)13.17%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.25%
Min Revenue beat(2)-2.85%
Max Revenue beat(2)3.35%
Revenue beat(4)2
Avg Revenue beat(4)0.32%
Min Revenue beat(4)-2.85%
Max Revenue beat(4)3.5%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-2.17%
PT rev (3m)-3.91%
EPS NQ rev (1m)2.11%
EPS NQ rev (3m)3.58%
EPS NY rev (1m)-0.5%
EPS NY rev (3m)-0.5%
Revenue NQ rev (1m)-2.23%
Revenue NQ rev (3m)-1.72%
Revenue NY rev (1m)-0.69%
Revenue NY rev (3m)-0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.05 | ||
| Fwd PE | 16.99 | ||
| P/S | 2.54 | ||
| P/FCF | 24.16 | ||
| P/OCF | 13.37 | ||
| P/B | 9.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.04 |
EPS(TTM)2.34
EY5.87%
EPS(NY)2.35
Fwd EY5.89%
FCF(TTM)1.65
FCFY4.14%
OCF(TTM)2.98
OCFY7.48%
SpS15.68
BVpS4.24
TBVpS-2.88
PEG (NY)48.35
PEG (5Y)1.34
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.69% | ||
| ROE | 51.54% | ||
| ROCE | N/A | ||
| ROIC | 10.86% | ||
| ROICexc | 11.62% | ||
| ROICexgc | 17.57% | ||
| OM | 19.87% | ||
| PM (TTM) | 13.93% | ||
| GM | 35% | ||
| FCFM | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)20.07%
ROIC(5y)N/A
ROICexc(3y)12.72%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y-5.39%
ROICexgc growth 5Y-11.2%
ROICexc growth 3Y-4.05%
ROICexc growth 5Y-4.32%
OM growth 3Y-3.51%
OM growth 5Y0.63%
PM growth 3Y1.19%
PM growth 5Y1.03%
GM growth 3Y-2.86%
GM growth 5Y-0.66%
F-Score6
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 5.62 | ||
| Debt/EBITDA | 2.38 | ||
| Cap/Depr | 168.85% | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 75.58% | ||
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.64 | ||
| Altman-Z | 2.57 |
F-Score6
WACC8.31%
ROIC/WACC1.31
Cap/Depr(3y)137.23%
Cap/Depr(5y)111.53%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)86.17%
Profit Quality(5y)95.71%
High Growth Momentum
Growth
EPS 1Y (TTM)-2.5%
EPS 3Y14.83%
EPS 5Y12.69%
EPS Q2Q%0%
EPS Next Y0.35%
EPS Next 2Y1.07%
EPS Next 3Y-1.56%
EPS Next 5YN/A
Revenue 1Y (TTM)14.23%
Revenue growth 3Y13.47%
Revenue growth 5Y11.48%
Sales Q2Q%-4.49%
Revenue Next Year1.27%
Revenue Next 2Y2.88%
Revenue Next 3Y4.47%
Revenue Next 5YN/A
EBIT growth 1Y-6.48%
EBIT growth 3Y9.48%
EBIT growth 5Y12.18%
EBIT Next Year29.32%
EBIT Next 3Y8.88%
EBIT Next 5YN/A
FCF growth 1Y25.93%
FCF growth 3Y2.92%
FCF growth 5Y8.59%
OCF growth 1Y28.35%
OCF growth 3Y13.76%
OCF growth 5Y14.68%
IAA INC / IAA FAQ
Can you provide the ChartMill fundamental rating for IAA INC?
ChartMill assigns a fundamental rating of 5 / 10 to IAA.
Can you provide the valuation status for IAA INC?
ChartMill assigns a valuation rating of 2 / 10 to IAA INC (IAA). This can be considered as Overvalued.
What is the profitability of IAA stock?
IAA INC (IAA) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for IAA stock?
The Price/Earnings (PE) ratio for IAA INC (IAA) is 17.05 and the Price/Book (PB) ratio is 9.41.
How sustainable is the dividend of IAA INC (IAA) stock?
The dividend rating of IAA INC (IAA) is 0 / 10 and the dividend payout ratio is 0%.