| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 2/6 |
| Past Performance | 5/6 |
| Financial Health | 3/6 |
| Dividends | 0/6 |
IAA Overview
IAA, Inc. provides auction solutions for total loss, damaged, and low-value vehicles.
IAA Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$57.94 |
| 52 Week High | US$50.16 |
| 52 Week Low | US$66.85 |
| Beta | 1.58 |
| 1 Month Change | 1.33% |
| 3 Month Change | -1.53% |
| 1 Year Change | 2.21% |
| 3 Year Change | n/a |
| 5 Year Change | n/a |
| Change since IPO | 49.41% |
Recent News & Updates
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
| IAA | US Commercial Services | US Market | |
|---|---|---|---|
| 7D | -2.1% | 2.1% | 1.9% |
| 1Y | 2.2% | 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
| IAA volatility | |
|---|---|
| IAA Beta | 1.58 |
| Industry Beta | 1.03 |
| Market Beta | 1 |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1982 | 3,622 | John Kett | https://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
| IAA fundamental statistics | |
|---|---|
| Market Cap | US$7.81b |
| Earnings (TTM) | US$272.30m |
| Revenue (TTM) | US$1.59b |
28.7x
P/E Ratio4.9x
P/S RatioIs IAA overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| IAA income statement (TTM) | |
|---|---|
| Revenue | US$1.59b |
| Cost of Revenue | US$930.80m |
| Gross Profit | US$659.30m |
| Expenses | US$387.00m |
| Earnings | US$272.30m |
Last Reported Earnings
Jun 27, 2021
Next Earnings Date
Nov 02, 2021
| Earnings per share (EPS) | 2.02 |
| Gross Margin | 41.46% |
| Net Profit Margin | 17.12% |
| Debt/Equity Ratio | 493.3% |
How did IAA perform over the long term?
See historical performance and comparisonValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/10/26 22:30 |
| End of Day Share Price | 2021/10/26 00:00 |
| Earnings | 2021/06/27 |
| Annual Earnings | 2020/12/27 |
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.