Logo image of IAA

IAA INC (IAA) Stock Fundamental Analysis

USA - NYSE:IAA - US4492531037 - Common Stock

39.89 USD
-0.04 (-0.1%)
Last: 3/20/2023, 8:15:31 PM
40.1 USD
+0.21 (+0.53%)
After Hours: 3/20/2023, 8:15:31 PM
Fundamental Rating

6

Overall IAA gets a fundamental rating of 6 out of 10. We evaluated IAA against 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 correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

Quickly go to:

9

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.
Each year in the past 5 years IAA had a positive operating cash flow.
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 2015 2016 2017 2018 2019 2020 2021 2022 100M 200M 300M 400M

1.2 Ratios

With an excellent Return On Assets value of 8.69%, IAA belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
IAA has a Return On Equity of 51.54%. This is amongst the best in the industry. IAA outperforms 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 10.38%.
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 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 2015 2016 2017 2018 2019 2020 2021 2022 0 100 -100 200

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.
The Operating Margin of IAA (19.87%) is better than 96.25% of its industry peers.
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.
In the last couple of years the Gross Margin of IAA has remained more or less at the same level.
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 2015 2016 2017 2018 2019 2020 2021 2022 10 20 30

More info and screens

5

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), IAA is creating value.
The number of shares outstanding for IAA has been reduced compared to 1 year ago.
IAA has a better debt/assets ratio than last year.
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

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.
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.
IAA has a Debt to FCF ratio of 5.62. This is in the better half of the industry: IAA outperforms 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 worse Debt to Equity ratio (1.95) 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 2015 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.
IAA has a better Current ratio (1.75) 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.
Looking at the Quick ratio, with a value of 1.64, IAA is in the better half of the industry, outperforming 73.75% of the companies in the same industry.
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

More info and screens

4

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

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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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

More info and screens

5

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 17.05, the valuation of IAA can be described as rather expensive.
Based on the Price/Earnings ratio, IAA is valued a bit cheaper than 71.25% of the companies in the same industry.
When comparing the Price/Earnings ratio of IAA to the average of the S&P500 Index (27.40), we can say IAA is valued slightly cheaper.
A Price/Forward Earnings ratio of 16.99 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.
IAA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.94.
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.
Based on the Price/Free Cash Flow ratio, IAA is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
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.
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%

More info and screens

0

5. Dividend

5.1 Amount

No dividends for IAA!.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

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 2023-02-21/amc
Earnings (Next)05-08 2023-05-08/amc
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 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
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
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 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%