Reported Earnings • Feb 22
Full year 2022 earnings: EPS exceeds analyst expectations Full year 2022 results: EPS: US$2.18 (down from US$2.19 in FY 2021). Revenue: US$2.10b (up 14% from FY 2021). Net income: US$292.4m (flat on FY 2021). Profit margin: 14% (down from 16% in FY 2021). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 1.0%. Revenue is forecast to grow 4.6% p.a. on average during the next 3 years, compared to a 6.7% growth forecast for the Commercial Services industry in the US. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Aankondiging • Jan 28
IAA, Inc. to Report Q4, 2022 Results on Feb 21, 2023 IAA, Inc. announced that they will report Q4, 2022 results at 4:00 PM, US Eastern Standard Time on Feb 21, 2023 Price Target Changed • Jan 23
Price target increased by 9.7% to US$47.70 Up from US$43.50, the current price target is an average from 5 analysts. New target price is 11% above last closing price of US$43.05. The company is forecast to post earnings per share of US$2.17 for next year compared to US$2.19 last year. Price Target Changed • Nov 16
Price target decreased to US$44.00 Down from US$50.13, the current price target is an average from 4 analysts. New target price is 10% above last closing price of US$39.95. The company is forecast to post earnings per share of US$2.16 for next year compared to US$2.19 last year. Board Change • Nov 16
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 7 experienced directors. 1 highly experienced director. Independent Director Mike Sieger was the last director to join the board, commencing their role in 2022. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Price Target Changed • Nov 09
Price target decreased to US$46.20 Down from US$50.13, the current price target is an average from 5 analysts. New target price is 25% above last closing price of US$37.07. The company is forecast to post earnings per share of US$2.13 for next year compared to US$2.19 last year. Reported Earnings • Nov 08
Third quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2022 results: EPS: US$0.38 (down from US$0.49 in 3Q 2021). Revenue: US$497.5m (up 18% from 3Q 2021). Net income: US$50.3m (down 23% from 3Q 2021). Profit margin: 10% (down from 16% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 4.4%. Earnings per share (EPS) missed analyst estimates by 20%. Revenue is forecast to grow 2.2% p.a. on average during the next 3 years, compared to a 6.4% growth forecast for the Commercial Services industry in the US. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Buying Opportunity • Nov 01
Now 21% undervalued The stock has been flat over the last 90 days. The fair value is estimated to be US$48.08, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 13% over the last 3 years. Earnings per share has grown by 21%. Revenue is forecast to grow by 6.7% in 2 years. Earnings is forecast to decline by 4.8% in the next 2 years. Board Change • Aug 25
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 7 experienced directors. 1 highly experienced director. Independent Director Mike Sieger was the last director to join the board, commencing their role in 2022. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Buying Opportunity • May 18
Now 20% undervalued Over the last 90 days, the stock is up 4.8%. The fair value is estimated to be US$46.22, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Earnings per share has grown by 21%. Revenue is forecast to grow by 9.0% in 2 years. Earnings is forecast to decline by 2.3% in the next 2 years. Reported Earnings • May 10
First quarter 2022 earnings: EPS and revenues exceed analyst expectations First quarter 2022 results: EPS: US$0.61 (up from US$0.54 in 1Q 2021). Revenue: US$557.6m (up 32% from 1Q 2021). Net income: US$81.5m (up 12% from 1Q 2021). Profit margin: 15% (down from 17% in 1Q 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 4.5%. Earnings per share (EPS) also surpassed analyst estimates by 12%. Over the next year, revenue is forecast to grow 6.3%, compared to a 24% growth forecast for the industry in the US. Board Change • Apr 27
High number of new and inexperienced directors There are 8 new directors who have joined the board in the last 3 years. The company's board is composed of: 8 new directors. No experienced directors. 1 highly experienced director. Independent Director Peter Kamin is the most experienced director on the board, commencing their role in 1999. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Valuation Update With 7 Day Price Move • Mar 16
Investor sentiment improved over the past week After last week's 21% share price gain to US$38.98, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 25x in the Commercial Services industry in the US. Total loss to shareholders of 33% over the past year. Simply Wall St's valuation model estimates the intrinsic value at US$45.99 per share. Recent Insider Transactions • Mar 09
CEO, President & Director recently bought US$161k worth of stock On the 7th of March, John Kett bought around 5k shares on-market at roughly US$32.28 per share. In the last 3 months, there was an even bigger purchase from another insider worth US$4.7m. This was John's only on-market trade for the last 12 months. Buying Opportunity • Mar 02
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 24%. The fair value is estimated to be US$45.37, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.2% per annum over the last 3 years. Earnings per share has grown by 17% per annum over the last 3 years. Recent Insider Transactions • Feb 27
Independent Director recently bought US$4.7m worth of stock On the 18th of February, Peter Kamin bought around 133k shares on-market at roughly US$35.56 per share. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought US$9.9m more in shares than they have sold in the last 12 months. Recent Insider Transactions • Feb 23
Independent Director recently bought US$3.6m worth of stock On the 16th of February, Peter Kamin bought around 100k shares on-market at roughly US$35.76 per share. This was the largest purchase by an insider in the last 3 months. This was the only on-market transaction from insiders over the last 12 months. Major Estimate Revision • Feb 18
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast increased from US$1.97b to US$2.07b. EPS estimate fell from US$2.47 to US$2.22 per share. Net income forecast to grow 0.5% next year vs 23% growth forecast for Commercial Services industry in the US. Consensus price target down from US$71.06 to US$51.44. Share price fell 23% to US$35.26 over the past week. Reported Earnings • Feb 13
Full year 2021 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2021 results: EPS: US$2.19 (up from US$1.45 in FY 2020). Revenue: US$1.84b (up 33% from FY 2020). Net income: US$294.4m (up 51% from FY 2020). Profit margin: 16% (up from 14% in FY 2020). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 2.6%. Earnings per share (EPS) missed analyst estimates by 3.4%. Over the next year, revenue is forecast to grow 13%, compared to a 11% growth forecast for the industry in the US. Buying Opportunity • Feb 13
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 33%. The fair value is estimated to be US$44.94, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.2% per annum over the last 3 years. Earnings per share has grown by 17% per annum over the last 3 years. Price Target Changed • Feb 12
Price target decreased to US$65.17 Down from US$70.50, the current price target is an average from 9 analysts. New target price is 83% above last closing price of US$35.67. Stock is down 43% over the past year. The company is forecast to post earnings per share of US$2.26 for next year compared to US$1.45 last year. Valuation Update With 7 Day Price Move • Feb 12
Investor sentiment deteriorated over the past week After last week's 20% share price decline to US$35.67, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 26x in the Commercial Services industry in the US. Total loss to shareholders of 43% over the past year. Simply Wall St's valuation model estimates the intrinsic value at US$70.55 per share. Board Change • Dec 03
High number of new and inexperienced directors There are 8 new directors who have joined the board in the last 3 years. The company's board is composed of: 8 new directors. No experienced directors. 1 highly experienced director. Independent Director Peter Kamin is the most experienced director on the board, commencing their role in 1999. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Reported Earnings • Aug 04
Second quarter 2021 earnings released: EPS US$0.61 (vs US$0.25 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: US$445.1m (up 50% from 2Q 2020). Net income: US$82.9m (up 150% from 2Q 2020). Profit margin: 19% (up from 11% in 2Q 2020). The increase in margin was driven by higher revenue. Major Estimate Revision • Nov 10
Analysts increase EPS estimates to US$1.42 The 2020 consensus revenue estimate increased from US$1.35b to US$1.37b. The earnings per share estimate also received an upgrade from US$1.22 to US$1.42 for the same period. Net income is expected to grow by 35% next year compared to 13% growth forecast for the Commercial Services industry in the US. The consensus price target increased from US$53.93 to US$64.67. Share price is up 3.8% to US$61.80 over the past week. Is New 90 Day High Low • Nov 05
New 90-day high: US$60.54 The company is up 28% from its price of US$47.44 on 07 August 2020. The American market is up 4.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Commercial Services industry, which is up 4.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is US$29.29 per share. Price Target Changed • Nov 05
Price target raised to US$64.67 Up from US$53.93, the current price target is an average from 8 analysts. The new target price is 6.8% above the current share price of US$60.54. As of last close, the stock is up 59% over the past year. Reported Earnings • Nov 05
Third quarter 2020 earnings released: EPS US$0.39 The company reported a decent third quarter result with improved earnings and profit margins, although revenues were weaker. Third quarter 2020 results: Revenue: US$338.0m (down 5.4% from 3Q 2019). Net income: US$52.8m (up 26% from 3Q 2019). Profit margin: 16% (up from 12% in 3Q 2019). The increase in margin was driven by lower expenses. Analyst Estimate Surprise Post Earnings • Nov 05
Revenue and earnings beat expectations Revenue exceeded analyst estimates by 2.6%. Earnings per share (EPS) also surpassed analyst estimates by 30%. Over the next year, revenue is forecast to grow 11%, compared to a 4.7% growth forecast for the Commercial Services industry in the US.