NYSE:IAA

Stock Analysis Report

Executive Summary

IAA, Inc. provides salvage vehicle auctions and related services.


Snowflake Analysis

Slightly overvalued with questionable track record.


Similar Companies

Share Price & News

How has IAA's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: IAA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-10.0%

IAA

-5.0%

US Commercial Services

-7.6%

US Market


1 Year Return

n/a

IAA

13.7%

US Commercial Services

10.2%

US Market

Return vs Industry: Insufficient data to determine how IAA performed against the US Commercial Services industry.

Return vs Market: Insufficient data to determine how IAA performed against the US Market.


Shareholder returns

IAAIndustryMarket
7 Day-10.0%-5.0%-7.6%
30 Day-7.0%-2.4%-4.5%
90 Day-0.5%1.6%-0.6%
1 Yearn/a17.6%13.7%12.5%10.2%
3 Yearn/a54.0%43.8%37.1%28.3%
5 Yearn/a91.5%71.1%60.8%43.2%

Price Volatility Vs. Market

How volatile is IAA's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

40.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IAA ($46.14) is trading below our estimate of fair value ($75.91)

Significantly Below Fair Value: IAA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: IAA is poor value based on its PE Ratio (31.7x) compared to the Commercial Services industry average (27.1x).

PE vs Market: IAA is poor value based on its PE Ratio (31.7x) compared to the US market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: IAA is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: IAA has negative assets, so we can't compare its PB Ratio to the US Commercial Services industry average.


Next Steps

Future Growth

How is IAA forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

12.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IAA's forecast earnings growth (12.4% per year) is above the savings rate (1.7%).

Earnings vs Market: IAA's earnings (12.4% per year) are forecast to grow slower than the US market (13.2% per year).

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

Revenue vs Market: IAA's revenue (6.9% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: IAA's revenue (6.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if IAA's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has IAA performed over the past 5 years?

22.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IAA has high quality earnings.

Growing Profit Margin: IAA's current net profit margins (13.7%) are lower than last year (15.5%).


Past Earnings Growth Analysis

Earnings Trend: IAA's earnings have grown significantly by 22.1% per year over the past 5 years.

Accelerating Growth: IAA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: IAA had negative earnings growth (-5.7%) over the past year, making it difficult to compare to the Commercial Services industry average (-7.9%).


Return on Equity

High ROE: IAA's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is IAA's financial position?


Financial Position Analysis

Short Term Liabilities: IAA has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: IAA has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: IAA has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: IAA's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: IAA's debt is well covered by operating cash flow (23.3%).

Interest Coverage: IAA's interest payments on its debt are well covered by EBIT (6.5x coverage).


Balance Sheet

Inventory Level: IAA has a high level of physical assets or inventory.

Debt Coverage by Assets: IAA has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%4.0%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

0.7yrs

Average management tenure


CEO

John Kett (55yo)

US$1,779,910

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 as Chief Executive Officer at Insurance Auto Auctions, Inc ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD1.78M) is below average for companies of similar size in the US market ($USD6.41M).

Compensation vs Earnings: Insufficient data to compare John's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
John Kett
CEO, President & Director0yrsUS$1.78m0.058% $3.5m
Maju Abraham
Chief Information Officer & Senior VP0.7yrsUS$412.96k0.0014% $82.5k
Sidney Peryar
Chief Legal Officer18.8yrsUS$520.06k0.0042% $252.2k
Timothy O'Day
President0.7yrsUS$730.49k0.0040% $241.4k
Vance Johnston
CFO, Executive VP & Treasurer0.8yrsno datano data
Christopher Carlson
VP, Corporate Controller & Principal Accounting Officer0.4yrsno data0.000010% $602.0
Jeanene O'Brien
Senior VP of Marketing & Communications0yrsno datano data
Arif Ahmed
VP of Treasury0.6yrsno datano data

0.7yrs

Average Tenure

46.5yo

Average Age

Experienced Management: IAA's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
John Kett
CEO, President & Director0yrsUS$1.78m0.058% $3.5m
Sue Gove
Director0.7yrsno data0.0021% $124.6k
Peter Kamin
Director21.1yrsno data0.0021% $124.6k
John Larson
Chairman0.7yrsno data0.011% $660.4k
Lynn Jolliffe
Director0.7yrsno datano data
Olaf Kastner
Director0.7yrsno data0.0021% $124.6k
Brian Bales
Director0.7yrsno data0.0021% $124.6k
Gail Evans
Director0yrsno data0.00084% $50.6k
William Breslin
Director0.7yrsno data0.0028% $171.0k

0.7yrs

Average Tenure

56.5yo

Average Age

Experienced Board: IAA's board of directors are not considered experienced ( 0.7 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: IAA only recently listed within the past 12 months, with total shares outstanding growing by 0.08% in the past year..


Top Shareholders

Company Information

IAA, Inc.'s company bio, 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$6.020b
  • Shares outstanding: 133.51m
  • Website: https://www.iaai.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IAANYSE (New York Stock Exchange)YesCommon StockUSUSDJun 2019
3NIDB (Deutsche Boerse AG)YesCommon StockDEEURJun 2019

Biography

IAA, Inc. provides salvage vehicle auctions and related services. It offers salvage auction services, such as inbound transportation logistics, inspection, evaluation, salvage recovery, titling, and settlement administrative services. The company’s salvage auctions facilitate the remarketing of damaged vehicles designated as total losses by insurance companies, charity donation vehicles, recovered stolen (or theft) vehicles, and low value used vehicles through live and online auctions. As of December 19, 2019, it operated approximately 190 facilities in the United States, Canada, and the United Kingdom. Insurance Auto Auctions, Inc. serves insurance companies, used vehicle dealers, rental car and fleet leasing companies, auto lenders, non-profit organizations, and the general public. The company was founded in 1982 and is headquartered in Westchester, Illinois. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 02:29
End of Day Share Price2020/02/26 00:00
Earnings2019/09/29
Annual Earnings2018/12/30


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.