IAC INC (IAC) Stock Fundamental Analysis
NASDAQ:IAC - Nasdaq - US44891N2080 - Common Stock - Currency: USD
Overall IAC gets a fundamental rating of 3 out of 10. We evaluated IAC against 71 industry peers in the Interactive Media & Services industry. IAC scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. IAC has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year IAC has reported negative net income.
In the past year IAC had a positive cash flow from operations.
In multiple years IAC reported negative net income over the last 5 years.
IAC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
IAC's Return On Assets of -11.16% is on the low side compared to the rest of the industry. IAC is outperformed by 66.20% of its industry peers.
The Return On Equity of IAC (-17.01%) is worse than 60.56% of its industry peers.
IAC has a Return On Invested Capital (0.97%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -11.16% | ||
| ROE | -17.01% | ||
| ROIC | 0.97% |
ROA(3y)-4.78%
ROA(5y)-1.34%
ROE(3y)-8.34%
ROE(5y)-2.58%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Operating Margin, with a value of 2.63%, IAC is in line with its industry, outperforming 57.75% of the companies in the same industry.
IAC's Operating Margin has declined in the last couple of years.
IAC's Gross Margin of 71.19% is in line compared to the rest of the industry. IAC outperforms 56.34% of its industry peers.
In the last couple of years the Gross Margin of IAC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.63% | ||
| PM (TTM) | N/A | ||
| GM | 71.19% |
OM growth 3YN/A
OM growth 5Y-27.32%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.7%
GM growth 5Y-1.59%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), IAC is destroying value.
IAC has more shares outstanding than it did 1 year ago.
IAC has more shares outstanding than it did 5 years ago.
IAC has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.24, we must say that IAC is in the distress zone and has some risk of bankruptcy.
IAC has a Altman-Z score (1.24) which is comparable to the rest of the industry.
The Debt to FCF ratio of IAC is 6.27, which is on the high side as it means it would take IAC, 6.27 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.27, IAC is in line with its industry, outperforming 56.34% of the companies in the same industry.
IAC has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.30, IAC perfoms like the industry average, outperforming 42.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 6.27 | ||
| Altman-Z | 1.24 |
ROIC/WACC0.11
WACC8.82%
2.3 Liquidity
IAC has a Current Ratio of 2.70. This indicates that IAC is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.70, IAC is doing good in the industry, outperforming 61.97% of the companies in the same industry.
A Quick Ratio of 2.70 indicates that IAC has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.70, IAC is doing good in the industry, outperforming 63.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.7 | ||
| Quick Ratio | 2.7 |
3. Growth
3.1 Past
The earnings per share for IAC have decreased strongly by -479.04% in the last year.
Looking at the last year, IAC shows a very negative growth in Revenue. The Revenue has decreased by -18.11% in the last year.
Measured over the past years, IAC shows a quite strong growth in Revenue. The Revenue has been growing by 8.69% on average per year.
EPS 1Y (TTM)-479.04%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-617.65%
Revenue 1Y (TTM)-18.11%
Revenue growth 3Y0.96%
Revenue growth 5Y8.69%
Sales Q2Q%-38.64%
3.2 Future
The Earnings Per Share is expected to grow by 21.81% on average over the next years. This is a very strong growth
Based on estimates for the next years, IAC will show a small growth in Revenue. The Revenue will grow by 1.30% on average per year.
EPS Next Y93.9%
EPS Next 2Y46.69%
EPS Next 3Y30.97%
EPS Next 5Y21.81%
Revenue Next Year-29.42%
Revenue Next 2Y-15.42%
Revenue Next 3Y-10.14%
Revenue Next 5Y1.3%
3.3 Evolution
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.
4. Valuation
4.1 Price/Earnings Ratio
IAC reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
IAC is valuated quite expensively with a Price/Forward Earnings ratio of 36.74.
IAC's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of IAC to the average of the S&P500 Index (22.30), we can say IAC is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 36.74 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IAC indicates a somewhat cheap valuation: IAC is cheaper than 76.06% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, IAC is valued a bit cheaper than the industry average as 73.24% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.43 | ||
| EV/EBITDA | 9.71 |
4.3 Compensation for Growth
IAC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as IAC's earnings are expected to grow with 30.97% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y46.69%
EPS Next 3Y30.97%
5. Dividend
5.1 Amount
No dividends for IAC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
36.33
+0.71 (+1.99%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners93.84%
Inst Owner Change-0.12%
Ins Owners2.13%
Ins Owner Change-132.39%
Market Cap2.90B
Analysts80
Price Target64.18 (76.66%)
Short Float %6.86%
Short Ratio4.1
Dividend
| Industry Rank | Sector 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)0
Avg EPS beat(2)-642.79%
Min EPS beat(2)-1090.55%
Max EPS beat(2)-195.02%
EPS beat(4)0
Avg EPS beat(4)-689.18%
Min EPS beat(4)-1212.01%
Max EPS beat(4)-195.02%
EPS beat(8)2
Avg EPS beat(8)-163.68%
EPS beat(12)5
Avg EPS beat(12)-48.99%
EPS beat(16)8
Avg EPS beat(16)5.3%
Revenue beat(2)1
Avg Revenue beat(2)-10.84%
Min Revenue beat(2)-26.51%
Max Revenue beat(2)4.83%
Revenue beat(4)2
Avg Revenue beat(4)-5.3%
Min Revenue beat(4)-26.51%
Max Revenue beat(4)4.83%
Revenue beat(8)2
Avg Revenue beat(8)-3.29%
Revenue beat(12)3
Avg Revenue beat(12)-2.65%
Revenue beat(16)5
Avg Revenue beat(16)-1.07%
PT rev (1m)-4.91%
PT rev (3m)-5.03%
EPS NQ rev (1m)-1413.35%
EPS NQ rev (3m)-267.53%
EPS NY rev (1m)-205.35%
EPS NY rev (3m)-252.38%
Revenue NQ rev (1m)-31.5%
Revenue NQ rev (3m)-31.74%
Revenue NY rev (1m)-25.59%
Revenue NY rev (3m)-26.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 36.74 | ||
| P/S | 0.84 | ||
| P/FCF | 12.43 | ||
| P/OCF | 10.08 | ||
| P/B | 0.62 | ||
| P/tB | 1.32 | ||
| EV/EBITDA | 9.71 |
EPS(TTM)-9.67
EYN/A
EPS(NY)0.99
Fwd EY2.72%
FCF(TTM)2.92
FCFY8.04%
OCF(TTM)3.6
OCFY9.92%
SpS43.19
BVpS59.04
TBVpS27.42
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -11.16% | ||
| ROE | -17.01% | ||
| ROCE | 1.38% | ||
| ROIC | 0.97% | ||
| ROICexc | 1.18% | ||
| ROICexgc | 2.21% | ||
| OM | 2.63% | ||
| PM (TTM) | N/A | ||
| GM | 71.19% | ||
| FCFM | 6.77% |
ROA(3y)-4.78%
ROA(5y)-1.34%
ROE(3y)-8.34%
ROE(5y)-2.58%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-41.85%
ROICexc growth 3YN/A
ROICexc growth 5Y-34.58%
OM growth 3YN/A
OM growth 5Y-27.32%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.7%
GM growth 5Y-1.59%
F-Score5
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 6.27 | ||
| Debt/EBITDA | 4.38 | ||
| Cap/Depr | 23.31% | ||
| Cap/Sales | 1.58% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.79% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.7 | ||
| Quick Ratio | 2.7 | ||
| Altman-Z | 1.24 |
F-Score5
WACC8.82%
ROIC/WACC0.11
Cap/Depr(3y)28.67%
Cap/Depr(5y)35.45%
Cap/Sales(3y)2.54%
Cap/Sales(5y)2.45%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-479.04%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-617.65%
EPS Next Y93.9%
EPS Next 2Y46.69%
EPS Next 3Y30.97%
EPS Next 5Y21.81%
Revenue 1Y (TTM)-18.11%
Revenue growth 3Y0.96%
Revenue growth 5Y8.69%
Sales Q2Q%-38.64%
Revenue Next Year-29.42%
Revenue Next 2Y-15.42%
Revenue Next 3Y-10.14%
Revenue Next 5Y1.3%
EBIT growth 1Y150.5%
EBIT growth 3YN/A
EBIT growth 5Y-21%
EBIT Next Year6855.7%
EBIT Next 3Y341.65%
EBIT Next 5Y175.23%
FCF growth 1Y215.71%
FCF growth 3Y83.47%
FCF growth 5Y13.02%
OCF growth 1Y508.03%
OCF growth 3Y37.29%
OCF growth 5Y7.08%