IAA INC (IAA)
US4492531037 - Common Stock
We assign a fundamental rating of 6 out of 10 to IAA. 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year IAA was profitable.
IAA had a positive operating cash flow in the past year.
Each year in the past 5 years IAA has been profitable.
Each year in the past 5 years IAA had a positive operating cash flow.
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.
The Return On Invested Capital of IAA (10.86%) is better than 83.75% of its industry peers.
IAA had an Average Return On Invested Capital over the past 3 years of 20.07%. This is significantly above the industry average of 10.00%.
The 3 year average ROIC (20.07%) for IAA is well above the current ROIC(10.86%). The reason for the recent decline needs to be investigated.
| 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.
IAA's Operating Margin of 19.87% is amongst the best of 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.
The Gross Margin of IAA (35.00%) is better than 67.50% of its industry peers.
In the last couple of years the Gross Margin of IAA has remained more or less at the same level.
| 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.
IAA has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, IAA has an improved debt to assets ratio.
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.
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.
The Debt to FCF ratio of IAA is 5.62, which is a neutral value as it means it would take IAA, 5.62 years of fcf income to pay off 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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 5.62 | ||
| Altman-Z | 2.57 |
ROIC/WACC1.31
WACC8.31%
2.3 Liquidity
A Current Ratio of 1.75 indicates that IAA should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.75, IAA is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
A Quick Ratio of 1.64 indicates that IAA should not have too much problems paying 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
The earnings per share for IAA have decreased by -2.50% in the last year.
Measured over the past years, IAA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.69% on average per year.
The Revenue has grown by 14.23% in the past year. This is quite good.
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 growth Q2Q0%
Revenue 1Y (TTM)14.23%
Revenue growth 3Y13.47%
Revenue growth 5Y11.48%
Revenue growth 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.
The Revenue is expected to grow by 4.47% on average over the next years.
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
IAA is valuated rather expensively with a Price/Earnings ratio of 17.05.
Compared to the rest of the industry, the Price/Earnings ratio of IAA indicates a somewhat cheap valuation: IAA is cheaper than 71.25% of the companies listed in the same industry.
IAA is valuated rather cheaply when we compare the Price/Earnings ratio to 24.92, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 16.99, which 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.49, IAA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.05 | ||
| Fwd PE | 16.99 |
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 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 IAA does not grow enough to justify the current Price/Earnings ratio.
The excellent 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%
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)
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