IAA INC (IAA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IAA - US4492531037 - Common Stock
39.89 USD
-0.04 (-0.1%)
40.1 USD
+0.21 (+0.53%)
Overall IAA gets a fundamental rating of 6 out of 10. We evaluated IAA 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year IAA was profitable.
IAA had a positive operating cash flow in the past year.
IAA had positive earnings in each of the past 5 years.
In the past 5 years IAA always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.69%, IAA belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
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.
Measured over the past 3 years, the Average Return On Invested Capital for IAA is significantly above the industry average of 10.51%.
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
With an excellent Profit Margin value of 13.93%, IAA belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
IAA's Profit Margin has been stable in the last couple of years.
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.
With a decent Gross Margin value of 35.00%, IAA is doing good in the industry, outperforming 67.50% of the companies in the same industry.
In the last couple of years the Gross Margin of IAA has remained more or less at the same level.
| 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
IAA has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for IAA has been reduced compared to 1 year ago.
The debt/assets ratio for IAA has been reduced compared to a year ago.
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 better Altman-Z score (2.57) 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.
With a decent Debt to FCF ratio value of 5.62, IAA is doing good in 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.
IAA has a worse Debt to Equity ratio (1.95) 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
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.
A Quick Ratio of 1.64 indicates that IAA should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.64, IAA is doing good in the industry, outperforming 73.75% of the companies in the same industry.
| 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.
Measured over the past years, IAA shows a quite strong growth in Revenue. The Revenue has been growing by 11.48% on average per year.
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.
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.
Based on the Price/Earnings ratio, IAA is valued a bit cheaper than 71.25% of the companies in the same industry.
IAA is valuated rather cheaply when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 16.99, IAA is valued correctly.
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.
IAA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.05 | ||
| Fwd PE | 16.99 |
4.2 Price Multiples
IAA's Enterprise Value to EBITDA is on the same level as the industry average.
IAA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. IAA is cheaper than 75.00% of the companies 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
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%.