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IAA

IAANYSE:IAA Stock Report

Market Cap

US$7.8b

7D

-2.1%

1Y

2.2%

Updated

26 Oct, 2021

Data

Company Financials +
IAA fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance5/6
Financial Health3/6
Dividends0/6

IAA Overview

IAA, Inc. provides auction solutions for total loss, damaged, and low-value vehicles.

IAA Competitors

Copart

NasdaqGS:CPRT

US$36.3b

ACV Auctions

NasdaqGS:ACVA

US$3.0b

KAR Auction Services

NYSE:KAR

US$1.8b

LKQ

NasdaqGS:LKQ

US$16.6b

Price History & Performance

Summary of all time highs, changes and price drops for IAA
Historical stock prices
Current Share PriceUS$57.94
52 Week HighUS$50.16
52 Week LowUS$66.85
Beta1.58
1 Month Change1.33%
3 Month Change-1.53%
1 Year Change2.21%
3 Year Changen/a
5 Year Changen/a
Change since IPO49.41%

Recent News & Updates

Aug 20
Do IAA's (NYSE:IAA) Earnings Warrant Your Attention?

Do IAA's (NYSE:IAA) Earnings Warrant Your Attention?

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Shareholder Returns

IAAUS Commercial ServicesUS Market
7D-2.1%2.1%1.9%
1Y2.2%31.2%33.4%

Return vs Industry: IAA underperformed the US Commercial Services industry which returned 29.3% over the past year.

Return vs Market: IAA underperformed the US Market which returned 30.3% over the past year.

Price Volatility

Is IAA's price volatile compared to industry and market?
IAA volatility
IAA Beta1.58
Industry Beta1.03
Market Beta1

Stable Share Price: IAA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: IAA's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19823,622John Ketthttps://www.iaai.com

IAA, Inc. provides auction solutions for total loss, damaged, and low-value vehicles. The company’s platform facilitates the marketing and sale of total loss, damaged, and low-value vehicles for a spectrum of sellers. Its solutions provide buyers with the vehicles need to, among other things, fulfill vehicle rebuild requirements, replacement part inventory, or scrap demand.

IAA Fundamentals Summary

How do IAA's earnings and revenue compare to its market cap?
IAA fundamental statistics
Market CapUS$7.81b
Earnings (TTM)US$272.30m
Revenue (TTM)US$1.59b

28.7x

P/E Ratio

4.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
IAA income statement (TTM)
RevenueUS$1.59b
Cost of RevenueUS$930.80m
Gross ProfitUS$659.30m
ExpensesUS$387.00m
EarningsUS$272.30m

Last Reported Earnings

Jun 27, 2021

Next Earnings Date

Nov 02, 2021

Earnings per share (EPS)2.02
Gross Margin41.46%
Net Profit Margin17.12%
Debt/Equity Ratio493.3%

How did IAA perform over the long term?

See historical performance and comparison

Valuation

Is IAA undervalued compared to its fair value and its price relative to the market?

19.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IAA ($58.45) is trading below our estimate of fair value ($72.26)

Significantly Below Fair Value: IAA is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: IAA is good value based on its PE Ratio (28.9x) compared to the US Commercial Services industry average (38.2x).

PE vs Market: IAA is poor value based on its PE Ratio (28.9x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: IAA is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: IAA is overvalued based on its PB Ratio (34.2x) compared to the US Commercial Services industry average (2.6x).


Future Growth

How is IAA forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

9.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IAA's forecast earnings growth (9.1% per year) is above the savings rate (2%).

Earnings vs Market: IAA's earnings (9.1% per year) are forecast to grow slower than the US market (14.7% per year).

High Growth Earnings: IAA's earnings are forecast to grow, but not significantly.

Revenue vs Market: IAA's revenue (7% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: IAA's revenue (7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IAA's Return on Equity is forecast to be very high in 3 years time (134.6%).


Past Performance

How has IAA performed over the past 5 years?

15.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IAA has high quality earnings.

Growing Profit Margin: IAA's current net profit margins (17.1%) are higher than last year (12%).


Past Earnings Growth Analysis

Earnings Trend: IAA's earnings have grown by 15.7% per year over the past 5 years.

Accelerating Growth: IAA's earnings growth over the past year (64.5%) exceeds its 5-year average (15.7% per year).

Earnings vs Industry: IAA earnings growth over the past year (64.5%) exceeded the Commercial Services industry 33.8%.


Return on Equity

High ROE: Whilst IAA's Return on Equity (118.29%) is outstanding, this metric is skewed due to their high level of debt.


Financial Health

How is IAA's financial position?


Financial Position Analysis

Short Term Liabilities: IAA's short term assets ($701.7M) exceed its short term liabilities ($279.6M).

Long Term Liabilities: IAA's short term assets ($701.7M) do not cover its long term liabilities ($2.2B).


Debt to Equity History and Analysis

Debt Level: IAA's debt to equity ratio (493.3%) is considered high.

Reducing Debt: Insufficient data to determine if IAA's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: IAA's debt is well covered by operating cash flow (30.2%).

Interest Coverage: IAA's interest payments on its debt are well covered by EBIT (6.9x coverage).


Balance Sheet


Dividend

What is IAA current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate IAA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate IAA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if IAA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if IAA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of IAA's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.6yrs

Average management tenure


CEO

John Kett (57 yo)

7.42yrs

Tenure

US$4,314,037

Compensation

Mr. John W. Kett has been President at Insurance Auto Auctions, Inc. since May 2014 and serves as its Chief Executive Officer. Mr. Kett served as Chief Executive Officer at Insurance Auto Auctions, Inc. s...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD4.31M) is below average for companies of similar size in the US market ($USD6.33M).

Compensation vs Earnings: John's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: IAA's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: IAA's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

IAA, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: IAA, Inc.
  • Ticker: IAA
  • Exchange: NYSE
  • Founded: 1982
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Market Cap: US$7.810b
  • Shares outstanding: 134.80m
  • Website: https://www.iaai.com

Number of Employees


Location

  • IAA, Inc.
  • Two Westbrook Corporate Center
  • 10th Floor
  • Westchester
  • Illinois
  • 60154
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 22:30
End of Day Share Price2021/10/26 00:00
Earnings2021/06/27
Annual Earnings2020/12/27


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.