IAA INC (IAA) Stock Fundamental Analysis
NYSE:IAA - New York Stock Exchange, Inc. - US4492531037 - Common Stock - Currency: USD
Taking everything into account, IAA scores 6 out of 10 in our fundamental rating. IAA was compared to 83 industry peers in the Commercial Services & Supplies industry. IAA scores excellent on profitability, but there are some minor concerns on its financial health. IAA is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
IAA had positive earnings in the past year.
IAA had a positive operating cash flow in the past year.
In the past 5 years IAA has always been profitable.
In the past 5 years IAA always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of IAA (8.69%) is better than 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.
The Average Return On Invested Capital over the past 3 years for IAA is significantly above the industry average of 11.67%.
The 3 year average ROIC (20.07%) for IAA is well above the current ROIC(10.86%). The reason for the recent decline needs to be investigated.
| 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's Profit Margin of 13.93% is amongst the best of the industry. IAA outperforms 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.
In the last couple of years the Operating Margin of IAA has remained more or less at the same level.
The Gross Margin of IAA (35.00%) is better than 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.
Compared to 1 year ago, IAA has less shares outstanding
IAA has a better debt/assets ratio than last year.
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.
IAA has a Altman-Z score of 2.57. This is in the better half of the industry: IAA outperforms 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.
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.
A Debt/Equity ratio of 1.95 is on the high side and indicates that IAA has dependencies on debt financing.
The Debt to Equity ratio of IAA (1.95) is worse than 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.
The Current ratio of IAA (1.75) is better than 65.00% of its industry peers.
A Quick Ratio of 1.64 indicates that IAA should not have too much problems paying 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
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%.
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
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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 71.25% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.41, IAA is valued a bit cheaper.
IAA is valuated correctly with a Price/Forward Earnings ratio of 16.99.
Based on the Price/Forward Earnings ratio, IAA is valued a bit cheaper than 68.75% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of IAA to the average of the S&P500 Index (35.19), we can say 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.
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
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
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
ROICexcg growth 3Y-5.39%
ROICexcg 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%