IAA INC (IAA) Fundamental Analysis & Valuation

NYSE:IAA • US4492531037

Current stock price

39.89 USD
-0.04 (-0.1%)
At close:
40.1 USD
+0.21 (+0.53%)
After Hours:

This IAA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. IAA Profitability Analysis

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 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 2016 2017 2018 2019 2020 2021 2022 100M 200M 300M 400M

1.2 Ratios

  • IAA has a better Return On Assets (8.69%) than 85.00% of its industry peers.
  • With an excellent Return On Equity value of 51.54%, IAA belongs to the best of the industry, outperforming 98.75% of the companies in the same industry.
  • IAA has a better Return On Invested Capital (10.86%) than 83.75% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for IAA is significantly above the industry average of 10.58%.
  • 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
IAA Yearly ROA, ROE, ROICIAA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 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.
  • In the last couple of years the Profit Margin of IAA has remained more or less at the same level.
  • IAA has a better Operating Margin (19.87%) than 96.25% of its industry peers.
  • IAA's Operating Margin has been stable in the last couple of years.
  • Looking at the Gross Margin, with a value of 35.00%, IAA is in the better half of 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 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 2016 2017 2018 2019 2020 2021 2022 10 20 30

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5

2. IAA Health Analysis

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.
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.
  • Looking at the Altman-Z score, with a value of 2.57, IAA is in the better half of 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's Debt to FCF ratio of 5.62 is fine compared to the rest of the industry. IAA outperforms 80.00% of its industry peers.
  • IAA has a Debt/Equity ratio of 1.95. This is a high value indicating a heavy dependency on external financing.
  • IAA has a Debt to Equity ratio of 1.95. This is amonst the worse of the industry: IAA underperforms 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 2016 2017 2018 2019 2020 2021 2022 0 500M 1B

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.
  • With a decent Current ratio value of 1.75, IAA is doing good in the industry, outperforming 65.00% of the companies in the same industry.
  • 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.
  • IAA's Quick ratio of 1.64 is fine compared to the rest of the industry. IAA outperforms 73.75% of its industry peers.
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

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. IAA Growth Analysis

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

  • The Earnings Per Share is expected to decrease by -1.56% on average over the next years.
  • Based on estimates for the next years, IAA will show a small growth in Revenue. The Revenue will grow by 4.47% on average per year.
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

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4

4. IAA Valuation Analysis

4.1 Price/Earnings Ratio

  • IAA is valuated rather expensively with a Price/Earnings ratio of 17.05.
  • IAA's Price/Earnings ratio is a bit cheaper when compared to the industry. IAA is cheaper than 71.25% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 25.23. IAA is valued slightly cheaper when compared to this.
  • Based on the Price/Forward Earnings ratio of 16.99, the valuation of IAA can be described as correct.
  • 68.75% of the companies in the same industry are more expensive than IAA, based on the Price/Forward Earnings ratio.
  • IAA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.28, which is the current average of the S&P500 Index.
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 5 10 15 20 25

4.2 Price Multiples

  • IAA's Enterprise Value to EBITDA ratio is in line with 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 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 an expensive valuation of the company.
  • The decent profitability rating of IAA 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

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. IAA Dividend Analysis

5.1 Amount

  • IAA does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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IAA Fundamentals: All Metrics, Ratios and Statistics

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
Earnings (Next)05-08
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 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
Graham NumberN/A
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
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 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%

IAA INC / IAA Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for IAA INC?

ChartMill assigns a fundamental rating of 5 / 10 to IAA.


What is the valuation status of IAA INC (IAA) stock?

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.


What are the PE and PB ratios of IAA INC (IAA) stock?

The Price/Earnings (PE) ratio for IAA INC (IAA) is 17.05 and the Price/Book (PB) ratio is 9.41.


Is the dividend of IAA INC sustainable?

The dividend rating of IAA INC (IAA) is 0 / 10 and the dividend payout ratio is 0%.