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%)
Taking everything into account, IAA scores 6 out of 10 in our fundamental rating. IAA was compared to 82 industry peers in the Commercial Services & Supplies industry. While IAA has a great profitability rating, there are some minor concerns on its financial health. IAA has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year IAA was profitable.
IAA had a positive operating cash flow in the past year.
Each year in the past 5 years IAA has been profitable.
Each year in the past 5 years IAA had a positive operating cash flow.
1.2 Ratios
IAA has a Return On Assets of 8.69%. This is amongst the best in the industry. IAA outperforms 85.00% of its industry peers.
The Return On Equity of IAA (51.54%) is better than 98.75% of its industry peers.
With an excellent Return On Invested Capital value of 10.86%, IAA belongs to the best of the industry, outperforming 83.75% of the companies in the same industry.
IAA had an Average Return On Invested Capital over the past 3 years of 20.07%. This is significantly above the industry average of 10.46%.
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
The Profit Margin of IAA (13.93%) is better than 93.75% of its industry peers.
IAA's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 19.87%, IAA belongs to the best of the industry, outperforming 96.25% of the companies in the same industry.
IAA's Operating Margin has been stable in the last couple of years.
IAA's Gross Margin of 35.00% is fine compared to the rest 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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
An Altman-Z score of 2.57 indicates that IAA is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of IAA (2.57) is better than 67.50% of its industry peers.
IAA has a debt to FCF ratio of 5.62. This is a neutral value as IAA would need 5.62 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.62, IAA is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
IAA has a Debt/Equity ratio of 1.95. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.95, IAA is not doing good in the industry: 83.75% of the companies in the same industry are doing better.
| 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.
The Current ratio of IAA (1.75) is better than 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.
The Quick ratio of IAA (1.64) is better than 73.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
IAA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.50%.
IAA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.69% yearly.
IAA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.23%.
IAA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.48% yearly.
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
Based on estimates for the next years, IAA will show a decrease in Earnings Per Share. The EPS will decrease by -1.56% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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.
Compared to the rest of the industry, the Price/Earnings ratio of IAA indicates a somewhat cheap valuation: IAA is cheaper than 71.25% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.89. IAA is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 16.99 indicates a correct valuation of IAA.
IAA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. IAA is cheaper than 68.75% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, IAA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.05 | ||
| Fwd PE | 16.99 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IAA is on the same level as its industry peers.
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 an expensive valuation of the company.
IAA has an outstanding profitability rating, which 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
IAA does not give a dividend.
| 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%.