IAA INC (IAA)

US4492531037 - Common Stock

39.89  -0.04 (-0.1%)

After market: 40.1 +0.21 (+0.53%)

Fundamental Rating

6

Taking everything into account, IAA scores 6 out of 10 in our fundamental rating. IAA was compared to 84 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.



9

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.
IAA had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

IAA's Return On Assets of 8.69% is amongst the best of the industry. IAA outperforms 85.00% of its industry peers.
The Return On Equity of IAA (51.54%) is better than 98.75% of its industry peers.
IAA has a better Return On Invested Capital (10.86%) 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 9.30%.
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 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

1.3 Margins

IAA has a better Profit Margin (13.93%) than 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.
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.
IAA has a better Gross Margin (35.00%) than 67.50% of its industry peers.
IAA's Gross Margin has been stable in the last couple of years.
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%

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 more shares outstanding than it did 5 years ago.
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.
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.
The Debt to FCF ratio of IAA (5.62) is better than 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%

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.
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 RankSector Rank
Current Ratio 1.75
Quick Ratio 1.64

4

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.
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 growth Q2Q0%
Revenue 1Y (TTM)14.23%
Revenue growth 3Y13.47%
Revenue growth 5Y11.48%
Revenue growth Q2Q-4.49%

3.2 Future

The Earnings Per Share is expected to decrease by -1.56% on average over the next years.
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.
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.

5

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.
The average S&P500 Price/Earnings ratio is at 26.42. 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's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.74.
Industry RankSector 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.
75.00% of the companies in the same industry are more expensive than IAA, based on the Price/Free Cash Flow ratio.
Industry RankSector 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 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%

0

5. Dividend

5.1 Amount

No dividends for IAA!.
Industry RankSector 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 RankSector 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 RankSector 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 RankSector 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 RankSector 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)
Growth
EPS 1Y (TTM)-2.5%
EPS 3Y14.83%
EPS 5Y
EPS growth 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
Revenue growth 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