Market Cap
US$6.0b
Last Updated
2020/02/27 02:29 UTC
Data Sources
Company Financials +
Executive Summary
IAA, Inc. provides salvage vehicle auctions and related services.
Rewards
Risk Analysis
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
| IAA | Industry | Market | |
|---|---|---|---|
| 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 Year | n/a | 17.6%13.7% | 12.5%10.2% |
| 3 Year | n/a | 54.0%43.8% | 37.1%28.3% |
| 5 Year | n/a | 91.5%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
2 months ago | Simply Wall St
Should We Worry About IAA, Inc.'s (NYSE:IAA) P/E Ratio?3 months ago | Simply Wall St
Is There An Opportunity With IAA, Inc.'s (NYSE:IAA) 33% Undervaluation?3 months ago | Simply Wall St
IAA, Inc. Just Reported Third-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?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
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Director | 0yrs | US$1.78m | 0.058% $3.5m | |
| Chief Information Officer & Senior VP | 0.7yrs | US$412.96k | 0.0014% $82.5k | |
| Chief Legal Officer | 18.8yrs | US$520.06k | 0.0042% $252.2k | |
| President | 0.7yrs | US$730.49k | 0.0040% $241.4k | |
| CFO, Executive VP & Treasurer | 0.8yrs | no data | no data | |
| VP, Corporate Controller & Principal Accounting Officer | 0.4yrs | no data | 0.000010% $602.0 | |
| Senior VP of Marketing & Communications | 0yrs | no data | no data | |
| VP of Treasury | 0.6yrs | no data | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Director | 0yrs | US$1.78m | 0.058% $3.5m | |
| Director | 0.7yrs | no data | 0.0021% $124.6k | |
| Director | 21.1yrs | no data | 0.0021% $124.6k | |
| Chairman | 0.7yrs | no data | 0.011% $660.4k | |
| Director | 0.7yrs | no data | no data | |
| Director | 0.7yrs | no data | 0.0021% $124.6k | |
| Director | 0.7yrs | no data | 0.0021% $124.6k | |
| Director | 0yrs | no data | 0.00084% $50.6k | |
| Director | 0.7yrs | no data | 0.0028% $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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| IAA | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jun 2019 |
| 3NI | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jun 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/27 02:29 |
| End of Day Share Price | 2020/02/26 00:00 |
| Earnings | 2019/09/29 |
| Annual Earnings | 2018/12/30 |
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.