IAA INC (IAA) Fundamental Analysis & Valuation

NYSE:IAA • US4492531037

Current stock price

39.89 USD
-0.04 (-0.1%)
At close:
40.1 USD
+0.21 (+0.53%)
After Hours:

This IAA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. IAA Profitability Analysis

1.1 Basic Checks

  • IAA had positive earnings in the past year.
  • IAA had a positive operating cash flow in the past year.
IAA Yearly Net Income VS EBIT VS OCF VS FCFIAA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 100M 200M 300M 400M

1.2 Ratios

  • IAA has a better Return On Assets (8.69%) than 85.00% of its industry peers.
  • With an excellent Return On Equity value of 51.54%, IAA belongs to the best 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.
  • IAA had an Average Return On Invested Capital over the past 3 years of 20.07%. This is significantly above the industry average of 9.78%.
  • 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 RankSector 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
IAA Yearly ROA, ROE, ROICIAA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 0 100 -100 200

1.3 Margins

  • IAA has a Profit Margin of 13.93%. This is amongst the best in the industry. IAA outperforms 93.75% of its industry peers.
  • In the last couple of years the Profit Margin of IAA has remained more or less at the same level.
  • Looking at the Operating Margin, with a value of 19.87%, IAA belongs to the top 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 RankSector 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%
IAA Yearly Profit, Operating, Gross MarginsIAA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 10 20 30

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ROAROEROICOperating and Profit MarginShow most profitable peers

5

2. IAA Health Analysis

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.
IAA Yearly Shares OutstandingIAA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 20M 40M 60M 80M 100M
IAA Yearly Total Debt VS Total AssetsIAA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 1B 2B 3B

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.
  • With a decent Altman-Z score value of 2.57, IAA is doing good in the industry, outperforming 67.50% of the companies in the same industry.
  • 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.
  • The Debt to Equity ratio of IAA (1.95) is worse than 83.75% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.95
Debt/FCF 5.62
Altman-Z 2.57
ROIC/WACC1.31
WACC8.31%
IAA Yearly LT Debt VS Equity VS FCFIAA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 0 500M 1B

2.3 Liquidity

  • A Current Ratio of 1.75 indicates that IAA should not have too much problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 1.75, IAA is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
  • 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 has a Quick ratio of 1.64. This is in the better half of the industry: IAA outperforms 73.75% of its industry peers.
Industry RankSector Rank
Current Ratio 1.75
Quick Ratio 1.64
IAA Yearly Current Assets VS Current LiabilitesIAA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. IAA Growth Analysis

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.
  • The Revenue has grown by 14.23% in the past year. This is quite good.
  • 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

  • IAA is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.56% yearly.
  • IAA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.47% yearly.
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.
IAA Yearly Revenue VS EstimatesIAA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B
IAA Yearly EPS VS EstimatesIAA Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2

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5

4. IAA Valuation Analysis

4.1 Price/Earnings Ratio

  • IAA is valuated rather expensively with a Price/Earnings ratio of 17.05.
  • IAA's Price/Earnings ratio is a bit cheaper when compared to the industry. IAA is cheaper than 71.25% of the companies in the same industry.
  • IAA is valuated rather cheaply when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 16.99, which indicates a correct valuation of IAA.
  • Based on the Price/Forward Earnings ratio, IAA is valued a bit cheaper than the industry average as 68.75% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 38.20. IAA is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 17.05
Fwd PE 16.99
IAA Price Earnings VS Forward Price EarningsIAA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 RankSector Rank
P/FCF 24.16
EV/EBITDA 12.04
IAA Per share dataIAA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

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 decent 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%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. IAA Dividend Analysis

5.1 Amount

  • IAA does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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IAA Fundamentals: All Metrics, Ratios and Statistics

IAA INC

NYSE:IAA (3/20/2023, 8:15:31 PM)

After market: 40.1 +0.21 (+0.53%)

39.89

-0.04 (-0.1%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)02-21
Earnings (Next)05-08
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 RankSector 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 RankSector 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 Number0 (-100%)
Profitability
Industry RankSector 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 RankSector 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 Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for IAA INC?

ChartMill assigns a fundamental rating of 5 / 10 to IAA.


What is the valuation status for IAA stock?

ChartMill assigns a valuation rating of 2 / 10 to IAA INC (IAA). This can be considered as Overvalued.


How profitable is IAA INC (IAA) stock?

IAA INC (IAA) has a profitability rating of 7 / 10.


Can you provide the financial health for IAA stock?

The financial health rating of IAA INC (IAA) is 6 / 10.


Can you provide the dividend sustainability for IAA stock?

The dividend rating of IAA INC (IAA) is 0 / 10 and the dividend payout ratio is 0%.