IAC INC (IAC) Stock Fundamental Analysis
USA - NASDAQ:IAC - US44891N2080 - Common Stock
34.39 USD
+0.21 (+0.61%)
34.4 USD
+0.01 (+0.03%)
Overall IAC gets a fundamental rating of 3 out of 10. We evaluated IAC against 69 industry peers in the Interactive Media & Services industry. The financial health of IAC is average, but there are quite some concerns on its profitability. 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.
IAC had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of -6.09%, IAC is doing worse than 63.77% of the companies in the same industry.
IAC has a Return On Equity of -9.12%. This is comparable to the rest of the industry: IAC outperforms 47.83% of its industry peers.
IAC has a Return On Invested Capital of 1.07%. This is comparable to the rest of the industry: IAC outperforms 57.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.09% | ||
| ROE | -9.12% | ||
| ROIC | 1.07% |
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
IAC's Operating Margin of 3.34% is in line compared to the rest of the industry. IAC outperforms 59.42% of its industry peers.
IAC's Operating Margin has declined in the last couple of years.
IAC has a Gross Margin (69.92%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of IAC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.34% | ||
| PM (TTM) | N/A | ||
| GM | 69.92% |
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.
Compared to 1 year ago, IAC has more shares outstanding
The number of shares outstanding for IAC has been increased compared to 5 years ago.
Compared to 1 year ago, IAC has a worse debt to assets ratio.
2.2 Solvency
IAC has an Altman-Z score of 1.21. This is a bad value and indicates that IAC is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of IAC (1.21) is comparable to the rest of the industry.
The Debt to FCF ratio of IAC is 9.12, which is on the high side as it means it would take IAC, 9.12 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 9.12, IAC perfoms like the industry average, outperforming 53.62% of the companies in the same industry.
IAC has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.29, IAC perfoms like the industry average, outperforming 43.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 9.12 | ||
| Altman-Z | 1.21 |
ROIC/WACC0.12
WACC9.21%
2.3 Liquidity
A Current Ratio of 2.87 indicates that IAC has no problem at all paying its short term obligations.
The Current ratio of IAC (2.87) is better than 65.22% of its industry peers.
A Quick Ratio of 2.87 indicates that IAC has no problem at all paying its short term obligations.
IAC has a better Quick ratio (2.87) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.87 | ||
| Quick Ratio | 2.87 |
3. Growth
3.1 Past
IAC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -133.33%.
IAC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -23.79%.
The Revenue has been growing by 8.69% on average over the past years. This is quite good.
EPS 1Y (TTM)-133.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%250.29%
Revenue 1Y (TTM)-23.79%
Revenue growth 3Y0.96%
Revenue growth 5Y8.69%
Sales Q2Q%-38.19%
3.2 Future
The Earnings Per Share is expected to grow by 19.16% on average over the next years. This is quite good.
Based on estimates for the next years, IAC will show a decrease in Revenue. The Revenue will decrease by -7.33% on average per year.
EPS Next Y112.88%
EPS Next 2Y50.75%
EPS Next 3Y29.33%
EPS Next 5Y19.16%
Revenue Next Year-34.88%
Revenue Next 2Y-19.22%
Revenue Next 3Y-12.8%
Revenue Next 5Y-7.33%
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.
With a Price/Forward Earnings ratio of 19.35, IAC is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IAC indicates a somewhat cheap valuation: IAC is cheaper than 60.87% of the companies listed in the same industry.
IAC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 19.35 |
4.2 Price Multiples
IAC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. IAC is cheaper than 76.81% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, IAC is valued a bit cheaper than 71.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.54 | ||
| EV/EBITDA | 10.39 |
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.
IAC's earnings are expected to grow with 29.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y50.75%
EPS Next 3Y29.33%
5. Dividend
5.1 Amount
IAC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
34.39
+0.21 (+0.61%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners104.91%
Inst Owner Change2.84%
Ins Owners2.46%
Ins Owner Change2.14%
Market Cap2.76B
Analysts80
Price Target49.98 (45.33%)
Short Float %7.39%
Short Ratio3.9
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)1
Avg EPS beat(2)412.86%
Min EPS beat(2)-195.02%
Max EPS beat(2)1020.74%
EPS beat(4)1
Avg EPS beat(4)-369.21%
Min EPS beat(4)-1212.01%
Max EPS beat(4)1020.74%
EPS beat(8)3
Avg EPS beat(8)-32.47%
EPS beat(12)5
Avg EPS beat(12)33.9%
EPS beat(16)8
Avg EPS beat(16)39.4%
Revenue beat(2)0
Avg Revenue beat(2)-14.93%
Min Revenue beat(2)-26.51%
Max Revenue beat(2)-3.35%
Revenue beat(4)2
Avg Revenue beat(4)-6.06%
Min Revenue beat(4)-26.51%
Max Revenue beat(4)4.83%
Revenue beat(8)2
Avg Revenue beat(8)-3.49%
Revenue beat(12)3
Avg Revenue beat(12)-2.77%
Revenue beat(16)5
Avg Revenue beat(16)-1.02%
PT rev (1m)0%
PT rev (3m)-4.85%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)-672.02%
EPS NY rev (1m)150.91%
EPS NY rev (3m)142.71%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)-2.57%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-1.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 19.35 | ||
| P/S | 0.89 | ||
| P/FCF | 17.54 | ||
| P/OCF | 13.78 | ||
| P/B | 0.56 | ||
| P/tB | 1.14 | ||
| EV/EBITDA | 10.39 |
EPS(TTM)-5.39
EYN/A
EPS(NY)1.78
Fwd EY5.17%
FCF(TTM)1.96
FCFY5.7%
OCF(TTM)2.49
OCFY7.25%
SpS38.49
BVpS61.27
TBVpS30.07
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.09% | ||
| ROE | -9.12% | ||
| ROCE | 1.52% | ||
| ROIC | 1.07% | ||
| ROICexc | 1.27% | ||
| ROICexgc | 2.26% | ||
| OM | 3.34% | ||
| PM (TTM) | N/A | ||
| GM | 69.92% | ||
| FCFM | 5.09% |
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-Score6
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 9.12 | ||
| Debt/EBITDA | 4.74 | ||
| Cap/Depr | 21.98% | ||
| Cap/Sales | 1.39% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 67.13% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.87 | ||
| Quick Ratio | 2.87 | ||
| Altman-Z | 1.21 |
F-Score6
WACC9.21%
ROIC/WACC0.12
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)-133.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%250.29%
EPS Next Y112.88%
EPS Next 2Y50.75%
EPS Next 3Y29.33%
EPS Next 5Y19.16%
Revenue 1Y (TTM)-23.79%
Revenue growth 3Y0.96%
Revenue growth 5Y8.69%
Sales Q2Q%-38.19%
Revenue Next Year-34.88%
Revenue Next 2Y-19.22%
Revenue Next 3Y-12.8%
Revenue Next 5Y-7.33%
EBIT growth 1Y177.24%
EBIT growth 3YN/A
EBIT growth 5Y-21%
EBIT Next Year6727.3%
EBIT Next 3Y336.06%
EBIT Next 5Y150.03%
FCF growth 1Y230.06%
FCF growth 3Y83.47%
FCF growth 5Y13.02%
OCF growth 1Y274.74%
OCF growth 3Y37.29%
OCF growth 5Y7.08%