IAC INC (IAC) Stock Fundamental Analysis
USA - NASDAQ:IAC - US44891N2080 - Common Stock
36.07 USD
-0.68 (-1.85%)
36.07 USD
0 (0%)
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.
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
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.
The Return On Invested Capital of IAC (1.07%) is comparable to the rest of the industry.
| 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 has a Operating Margin (3.34%) which is in line with its industry peers.
IAC's Operating Margin has declined in the last couple of years.
IAC has a Gross Margin (69.92%) which is in line with its industry peers.
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
IAC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, IAC has more shares outstanding
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 1.25, we must say that IAC is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of IAC (1.25) is comparable to the rest of the industry.
IAC has a debt to FCF ratio of 9.12. This is a negative value and a sign of low solvency as IAC would need 9.12 years to pay back of 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 | 1.25 |
ROIC/WACC0.12
WACC9.06%
2.3 Liquidity
A Current Ratio of 2.87 indicates that IAC has no problem at all paying its short term obligations.
IAC's Current ratio of 2.87 is fine compared to the rest of the industry. IAC outperforms 65.22% of its industry peers.
IAC has a Quick Ratio of 2.87. This indicates that IAC is financially healthy and has no problem in meeting its short term obligations.
IAC's Quick ratio of 2.87 is fine compared to the rest of the industry. IAC outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.87 | ||
| Quick Ratio | 2.87 |
3. Growth
3.1 Past
The earnings per share for IAC have decreased strongly by -133.33% in the last year.
The Revenue for IAC has decreased by -23.79% in the past year. This is quite bad
IAC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.69% yearly.
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
Based on estimates for the next years, IAC will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.16% on average per year.
The Revenue is expected to decrease by -7.33% on average over the next years.
EPS Next Y74.71%
EPS Next 2Y45.33%
EPS Next 3Y30.03%
EPS Next 5Y19.16%
Revenue Next Year-34.8%
Revenue Next 2Y-19.19%
Revenue Next 3Y-12.86%
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.
The Price/Forward Earnings ratio is 49.37, which means the current valuation is very expensive for IAC.
IAC's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.73. IAC is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 49.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IAC is valued a bit cheaper than the industry average as 76.81% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, IAC is valued a bit cheaper than the industry average as 69.57% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.4 | ||
| EV/EBITDA | 11.03 |
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 30.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y45.33%
EPS Next 3Y30.03%
5. Dividend
5.1 Amount
IAC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
36.07
-0.68 (-1.85%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners100.53%
Inst Owner Change2.84%
Ins Owners2.47%
Ins Owner Change2.14%
Market Cap2.89B
Analysts80
Price Target49.98 (38.56%)
Short Float %6.88%
Short Ratio4.27
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)-4.85%
PT rev (3m)-7.4%
EPS NQ rev (1m)-283.93%
EPS NQ rev (3m)-205.39%
EPS NY rev (1m)16.11%
EPS NY rev (3m)-314.43%
Revenue NQ rev (1m)-2.61%
Revenue NQ rev (3m)-33.31%
Revenue NY rev (1m)-1.79%
Revenue NY rev (3m)-1.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 49.37 | ||
| P/S | 0.94 | ||
| P/FCF | 18.4 | ||
| P/OCF | 14.46 | ||
| P/B | 0.59 | ||
| P/tB | 1.2 | ||
| EV/EBITDA | 11.03 |
EPS(TTM)-5.39
EYN/A
EPS(NY)0.73
Fwd EY2.03%
FCF(TTM)1.96
FCFY5.44%
OCF(TTM)2.49
OCFY6.92%
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 | 1.25 |
F-Score6
WACC9.06%
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 Y74.71%
EPS Next 2Y45.33%
EPS Next 3Y30.03%
EPS Next 5Y19.16%
Revenue 1Y (TTM)-23.79%
Revenue growth 3Y0.96%
Revenue growth 5Y8.69%
Sales Q2Q%-38.19%
Revenue Next Year-34.8%
Revenue Next 2Y-19.19%
Revenue Next 3Y-12.86%
Revenue Next 5Y-7.33%
EBIT growth 1Y177.24%
EBIT growth 3YN/A
EBIT growth 5Y-21%
EBIT Next Year6822.91%
EBIT Next 3Y341.09%
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%