Logo image of IAA

IAA INC (IAA) Stock Fundamental Analysis

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 84 industry peers in the Commercial Services & Supplies industry. While IAA belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. IAA has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

Quickly go to:

9

1. Profitability

1.1 Basic Checks

In the past year IAA was profitable.
IAA had a positive operating cash flow in the past year.
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.
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

Looking at the Return On Assets, with a value of 8.69%, IAA belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
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 11.08%.
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 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.
With an excellent Operating Margin value of 19.87%, IAA belongs to the best of the industry, outperforming 96.25% of the companies in the same industry.
In the last couple of years the Operating Margin of IAA has remained more or less at the same level.
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 2015 2016 2017 2018 2019 2020 2021 2022 10 20 30

More info and screens

5

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.
Compared to 1 year ago, IAA has less shares outstanding
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

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's Altman-Z score of 2.57 is fine compared to the rest 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.
Looking at the Debt to FCF ratio, with a value of 5.62, IAA is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
IAA has a Debt/Equity ratio of 1.95. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.95, IAA is not doing good in the industry: 83.75% of the companies in the same industry are doing better.
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

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 has a Current ratio of 1.75. This is in the better half of the industry: IAA outperforms 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.
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

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%.
The Earnings Per Share has been growing by 12.69% on average over the past years. This is quite good.
Looking at the last year, IAA shows a quite strong growth in Revenue. The Revenue has grown by 14.23% in the last year.
IAA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.48% yearly.
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

Based on estimates for the next years, IAA will show a decrease in Earnings Per Share. The EPS will decrease by -1.56% on average per year.
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

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

With a Price/Earnings ratio of 17.05, IAA is valued on the expensive side.
71.25% of the companies in the same industry are more expensive than IAA, based on the Price/Earnings ratio.
IAA is valuated rather cheaply when we compare the Price/Earnings ratio to 27.24, which is the current average of the S&P500 Index.
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 68.75% of the companies in the same industry.
IAA is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.82, 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 10 20 30 40 50

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IAA is on the same level as its industry peers.
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.
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%