NasdaqGS:IAC

Stock Analysis Report

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Executive Summary

IAC/InterActiveCorp operates as a media and internet company worldwide. More Details

Rewards

Trading at 32.3% below our estimate of its fair value

Earnings are forecast to grow 60.78% per year

Risk Analysis

No risks detected for IAC from our risk checks.


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has IAC/InterActiveCorp's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: IAC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: Insufficient data to determine IAC's volatility change over the past year.


Market Performance


7 Day Return

-0.3%

IAC

3.5%

US Interactive Media and Services

0.7%

US Market


1 Year Return

n/a

IAC

42.6%

US Interactive Media and Services

22.2%

US Market

Return vs Industry: Insufficient data to determine how IAC performed against the US Interactive Media and Services industry.

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


Shareholder returns

IACIndustryMarket
7 Day-0.3%3.5%0.7%
30 Day14.4%11.8%11.8%
90 Day8.8%8.7%8.6%
1 Yearn/a42.6%42.6%25.0%22.2%
3 Yearn/a63.5%63.4%49.4%39.5%
5 Yearn/a134.0%133.5%100.2%78.1%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is IAC/InterActiveCorp undervalued compared to its fair value and its price relative to the market?

32.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IAC ($141.21) is trading below our estimate of fair value ($208.58)

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


Price To Earnings Ratio

PE vs Industry: IAC is unprofitable, so we can't compare its PE Ratio to the US Interactive Media and Services industry average.

PE vs Market: IAC is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate IAC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: IAC is good value based on its PB Ratio (1.9x) compared to the US Interactive Media and Services industry average (3.1x).


Next Steps

Future Growth

How is IAC/InterActiveCorp forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

60.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IAC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: IAC is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: IAC's is expected to become profitable in the next 3 years.

Revenue vs Market: IAC's revenue (12.9% per year) is forecast to grow faster than the US market (10.2% per year).

High Growth Revenue: IAC's revenue (12.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IAC's Return on Equity is forecast to be low in 3 years time (1.9%).


Next Steps

Past Performance

How has IAC/InterActiveCorp performed over the past 5 years?

-28.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IAC is currently unprofitable.

Growing Profit Margin: IAC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: IAC is unprofitable, and losses have increased over the past 5 years at a rate of 28.7% per year.

Accelerating Growth: Unable to compare IAC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: IAC is unprofitable, making it difficult to compare its past year earnings growth to the Interactive Media and Services industry (8.3%).


Return on Equity

High ROE: IAC has a negative Return on Equity (-3.45%), as it is currently unprofitable.


Next Steps

Financial Health

How is IAC/InterActiveCorp's financial position?


Financial Position Analysis

Short Term Liabilities: IAC's short term assets ($4.2B) exceed its short term liabilities ($780.2M).

Long Term Liabilities: IAC's short term assets ($4.2B) exceed its long term liabilities ($939.9M).


Debt to Equity History and Analysis

Debt Level: IAC's debt to equity ratio (10.8%) is considered satisfactory.

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


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable IAC has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: IAC is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 10.7% per year.


Next Steps

Dividend

What is IAC/InterActiveCorp current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate IAC'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 IAC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if IAC'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 IAC'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?

US$12m

CEO Compensation


CEO

Joey Levin (41 yo)

no data

Tenure

US$12,007,589

Compensation

Mr. Joseph M. Levin, also known as Joey, serves as Member of Board of Advisors at QuadioMedia Inc. Mr. Levin serves as Executive Chairman at Match Group Holdings II, LLC (formerly known as Match Group, Inc...


CEO Compensation Analysis

Compensation vs Market: Joey's total compensation ($USD12.01M) is about average for companies of similar size in the US market ($USD10.98M).

Compensation vs Earnings: Joey's compensation has increased whilst the company is unprofitable.


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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: IAC only recently listed within the past 12 months.


Top Shareholders

Company Information

IAC/InterActiveCorp's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: IAC/InterActiveCorp
  • Ticker: IAC
  • Exchange: NasdaqGS
  • Founded: 1986
  • Industry: Interactive Media and Services
  • Sector: Media
  • Market Cap: US$12.051b
  • Shares outstanding: 85.34m
  • Website: https://www.iac.com

Number of Employees


Location

  • IAC/InterActiveCorp
  • 555 West 18Th Street
  • New York
  • New York
  • 10011
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IACNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 2020
IAC1 *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJul 2020
4LRDB (Deutsche Boerse AG)YesCommon StockDEEURJul 2020
I1AC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 20 REPR 1 COM NPVBRBRLOct 2020

Biography

IAC/InterActiveCorp operates as a media and internet company worldwide. It operates various platforms, such as Ask.com that empowers people to find, learn, and explore answers from any device or location; ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/03 00:03
End of Day Share Price2020/12/02 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.