IAA INC (IAA)
US4492531037 - Common Stock
IAA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 84 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 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.
In the past year IAA had a positive cash flow from operations.
IAA had positive earnings in each of the past 5 years.
IAA had a positive operating cash flow in each of the past 5 years.
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.
IAA's Return On Equity of 51.54% is amongst the best of the industry. IAA outperforms 98.75% of its industry peers.
The Return On Invested Capital of IAA (10.86%) is better than 83.75% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for IAA is significantly above the industry average of 9.88%.
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
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.
The Operating Margin of IAA (19.87%) is better than 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.
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.
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
IAA has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
IAA has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, IAA has more shares outstanding
The debt/assets ratio for IAA has been reduced compared to a year ago.
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.
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.
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.
Looking at the Debt to Equity ratio, with a value of 1.95, IAA is doing worse than 83.75% of the companies in the same industry.
| 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.
IAA's Current ratio of 1.75 is fine compared to the rest of the industry. IAA outperforms 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 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 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%.
The Earnings Per Share has been growing by 12.69% on average over the past years. This is quite good.
The Revenue has grown by 14.23% in the past year. This is quite good.
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.
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.
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
The Price/Earnings ratio is 17.05, which indicates a rather expensive current valuation of IAA.
71.25% of the companies in the same industry are more expensive than IAA, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 29.20. IAA is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 16.99, IAA is valued correctly.
Based on the Price/Forward Earnings ratio, IAA is valued a bit cheaper than 68.75% of the companies in the same industry.
IAA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.00, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.05 | ||
| Fwd PE | 16.99 |
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 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
IAA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.34B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.05 | ||
| Fwd PE | 16.99 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)48.35
PEG (5Y)1.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.69% | ||
| ROE | 51.54% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.87% | ||
| PM (TTM) | 13.93% | ||
| GM | 35% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.64 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-2.5%
EPS 3Y14.83%
EPS 5Y
EPS Q2Q%
EPS Next Y0.35%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)14.23%
Revenue growth 3Y13.47%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y