Taking everything into account, IAG scores 5 out of 10 in our fundamental rating. IAG was compared to 157 industry peers in the Metals & Mining industry. There are concerns on the financial health of IAG while its profitability can be described as average. An interesting combination arises when we look at growth and value: IAG is growing strongly while it also seems undervalued.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year IAG was profitable.
IAG had a positive operating cash flow in the past year.
In multiple years IAG reported negative net income over the last 5 years.
IAG had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

IAG has a Return On Assets of 6.40%. This is in the better half of the industry: IAG outperforms 77.71% of its industry peers.
Looking at the Return On Equity, with a value of 9.65%, IAG is in the better half of the industry, outperforming 73.25% of the companies in the same industry.
The Return On Invested Capital of IAG (10.85%) is better than 82.17% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IAG is significantly below the industry average of 10.48%.
The last Return On Invested Capital (10.85%) for IAG is above the 3 year average (3.41%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	6.4%
ROE	9.65%
ROIC	10.85%

ROA(3y)5.25%

ROA(5y)2.07%

ROE(3y)8.52%

ROE(5y)3.18%

ROIC(3y)3.41%

ROIC(5y)N/A

1.3 Margins

The Profit Margin of IAG (15.39%) is better than 78.34% of its industry peers.
With an excellent Operating Margin value of 29.64%, IAG belongs to the best of the industry, outperforming 82.17% of the companies in the same industry.
IAG has a Gross Margin of 33.27%. This is in the better half of the industry: IAG outperforms 70.70% of its industry peers.
IAG's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector Rank
OM	29.64%
PM (TTM)	15.39%
GM	33.27%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y67.98%

GM growth 5Y38.81%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so IAG is still creating some value.
The number of shares outstanding for IAG has been increased compared to 1 year ago.
Compared to 5 years ago, IAG has more shares outstanding
Compared to 1 year ago, IAG has a worse debt to assets ratio.

2.2 Solvency

An Altman-Z score of 4.47 indicates that IAG is not in any danger for bankruptcy at the moment.
IAG's Altman-Z score of 4.47 is in line compared to the rest of the industry. IAG outperforms 58.60% of its industry peers.
The Debt to FCF ratio of IAG is 5.03, which is a neutral value as it means it would take IAG, 5.03 years of fcf income to pay off all of its debts.
IAG has a Debt to FCF ratio of 5.03. This is in the better half of the industry: IAG outperforms 69.43% of its industry peers.
A Debt/Equity ratio of 0.30 indicates that IAG is not too dependend on debt financing.
The Debt to Equity ratio of IAG (0.30) is worse than 61.78% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.3
Debt/FCF	5.03
Altman-Z	4.47

ROIC/WACC1.11

WACC9.79%

2.3 Liquidity

A Current Ratio of 1.68 indicates that IAG should not have too much problems paying its short term obligations.
IAG's Current ratio of 1.68 is on the low side compared to the rest of the industry. IAG is outperformed by 66.24% of its industry peers.
IAG has a Quick Ratio of 1.68. This is a bad value and indicates that IAG is not financially healthy enough and could expect problems in meeting its short term obligations.
IAG has a Quick ratio of 0.95. This is in the lower half of the industry: IAG underperforms 71.97% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.68
Quick Ratio	0.95

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 23.53% over the past year.
Measured over the past years, IAG shows a very strong growth in Earnings Per Share. The EPS has been growing by 122.40% on average per year.
Looking at the last year, IAG shows a very strong growth in Revenue. The Revenue has grown by 52.98%.
Measured over the past years, IAG shows a quite strong growth in Revenue. The Revenue has been growing by 8.92% on average per year.

EPS 1Y (TTM)23.53%

EPS 3Y122.4%

EPS 5YN/A

EPS Q2Q%66.67%

Revenue 1Y (TTM)52.98%

Revenue growth 3Y23.1%

Revenue growth 5Y8.92%

Sales Q2Q%61.02%

3.2 Future

The Earnings Per Share is expected to grow by 12.47% on average over the next years. This is quite good.
IAG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.43% yearly.

EPS Next Y73.03%

EPS Next 2Y79.83%

EPS Next 3Y49.83%

EPS Next 5Y12.47%

Revenue Next Year63.31%

Revenue Next 2Y47.18%

Revenue Next 3Y27.76%

Revenue Next 5Y15.43%

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 28.87, the valuation of IAG can be described as expensive.
73.25% of the companies in the same industry are more expensive than IAG, based on the Price/Earnings ratio.
IAG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.41.
IAG is valuated reasonably with a Price/Forward Earnings ratio of 10.23.
87.26% of the companies in the same industry are more expensive than IAG, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.64, IAG is valued rather cheaply.

		Industry Rank	Sector Rank
PE	28.87
Fwd PE	10.23

4.2 Price Multiples

IAG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. IAG is cheaper than 78.98% of the companies in the same industry.
73.25% of the companies in the same industry are more expensive than IAG, based on the Price/Free Cash Flow ratio.

		Industry Rank	Sector Rank
P/FCF	48.28
EV/EBITDA	10.77

4.3 Compensation for Growth

IAG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of IAG may justify a higher PE ratio.
IAG's earnings are expected to grow with 49.83% in the coming years. This may justify a more expensive valuation.