NasdaqGS:IAC

Stock Analysis Report

Executive Summary

IAC/InterActiveCorp, together with its subsidiaries, operates as a media and Internet company in the United States and internationally.

Rewards

Trading at 40.5% below its fair value

Earnings are forecast to grow 24.56% per year

Earnings have grown 30.8% per year over the past 5 years

Risk Analysis

Has a high level of debt



Snowflake Analysis

Reasonable growth potential with adequate balance sheet.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.0%

IAC

1.6%

US Interactive Media and Services

1.7%

US Market


1 Year Return

37.8%

IAC

32.2%

US Interactive Media and Services

23.2%

US Market

Return vs Industry: IAC exceeded the US Interactive Media and Services industry which returned 33.3% over the past year.

Return vs Market: IAC exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

IACIndustryMarket
7 Day4.0%1.6%1.7%
30 Day15.6%8.7%4.2%
90 Day24.3%17.8%11.9%
1 Year37.8%37.8%32.3%32.2%25.8%23.2%
3 Year296.1%296.1%64.3%64.1%52.8%42.9%
5 Year343.6%334.8%134.4%133.7%75.2%55.8%

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?

39.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IAC ($270.6) is trading below our estimate of fair value ($454.75)

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


Price To Earnings Ratio

PE vs Industry: IAC is poor value based on its PE Ratio (43.5x) compared to the Interactive Media and Services industry average (30.4x).

PE vs Market: IAC is poor value based on its PE Ratio (43.5x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: IAC is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: IAC is overvalued based on its PB Ratio (7.9x) compared to the US Interactive Media and Services industry average (2.7x).


Next Steps

Future Growth

How is IAC/InterActiveCorp forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

24.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IAC's forecast earnings growth (24.6% per year) is above the savings rate (1.7%).

Earnings vs Market: IAC's earnings (24.6% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: IAC's revenue (11.7% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: IAC's revenue (11.7% 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 (18%).


Next Steps

Past Performance

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

30.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IAC has high quality earnings.

Growing Profit Margin: IAC's current net profit margins (11.3%) are lower than last year (11.4%).


Past Earnings Growth Analysis

Earnings Trend: IAC's earnings have grown significantly by 30.8% per year over the past 5 years.

Accelerating Growth: IAC's earnings growth over the past year (11.6%) is below its 5-year average (30.8% per year).

Earnings vs Industry: IAC earnings growth over the past year (11.6%) underperformed the Interactive Media and Services industry 15.9%.


Return on Equity

High ROE: IAC's Return on Equity (16.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is IAC/InterActiveCorp's financial position?


Financial Position Analysis

Short Term Liabilities: IAC's short term assets ($3.7B) exceed its short term liabilities ($1.0B).

Long Term Liabilities: IAC's short term assets ($3.7B) exceed its long term liabilities ($3.4B).


Debt to Equity History and Analysis

Debt Level: IAC's debt to equity ratio (80.5%) is considered high.

Reducing Debt: IAC's debt to equity ratio has increased from 53.7% to 80.5% over the past 5 years.

Debt Coverage: IAC's debt is well covered by operating cash flow (32.2%).

Interest Coverage: IAC's interest payments on its debt are well covered by EBIT (7.2x coverage).


Balance Sheet

Inventory Level: IAC has a low level of unsold assets or inventory.

Debt Coverage by Assets: IAC's debt is covered by short term assets (assets are 1.2x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.6%industryaverage0.4%forecastin3Years0%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate IAC'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 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: IAC is not paying a notable dividend for the US market.


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

What is the CEO of IAC/InterActiveCorp's salary, the management and board of directors tenure and is there insider trading?

6.3yrs

Average management tenure


CEO

Joey Levin (40yo)

4.6yrs

Tenure

US$6,315,554

Compensation

Mr. Joseph M. Levin, also known as Joey, has been Chairman of the Board (in an non-executive capacity) of Match Group since December 2017. Mr. Levin has been Chairman and Director at HomeAdvisor Inc. and A ...


CEO Compensation Analysis

Compensation vs Market: Joey's total compensation ($USD6.32M) is below average for companies of similar size in the US market ($USD10.76M).

Compensation vs Earnings: Joey's compensation has been consistent with company performance over the past year.


Management Age and Tenure

6.3yrs

Average Tenure

49yo

Average Age

Experienced Management: IAC's management team is seasoned and experienced (7.5 years average tenure).


Board Age and Tenure

10.8yrs

Average Tenure

64yo

Average Age

Experienced Board: IAC's board of directors are seasoned and experienced ( 10.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$956,70225 Feb 19
Edgar Bronfman
EntityIndividual
Shares4,411
Max PriceUS$216.89
SellUS$999,05814 Feb 19
David Rosenblatt
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,528
Max PriceUS$220.64

Ownership Breakdown

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


Management Team

  • Barry Diller (77yo)

    Chairman & Senior Executive

    • Tenure: 9.1yrs
    • Compensation: US$4.00m
  • Joanne Hawkins (58yo)

    Senior VP & Deputy General Counsel

    • Tenure: 14.3yrs
  • Glenn Schiffman (49yo)

    Executive VP & CFO

    • Tenure: 3.8yrs
    • Compensation: US$8.56m
  • Michael Schwerdtman

    Senior VP

    • Mark Stein (51yo)

      Executive VP & Chief Strategy Officer

      • Tenure: 4.3yrs
      • Compensation: US$2.56m
    • Joey Levin (40yo)

      CEO & Director

      • Tenure: 4.6yrs
      • Compensation: US$6.32m
    • Gregg Winiarski (48yo)

      Executive VP

      • Tenure: 14.9yrs
      • Compensation: US$2.51m
    • Mark Schneider

      Senior Vice President of Finance & Investor Relations

      • Tenure: 6yrs
    • Nick Stoumpas

      Senior VP & Treasurer

      • Alex Lubot (46yo)

        Head of Dating Services for Europe Operations

        • Tenure: 6.5yrs

      Board Members

      • Alan Spoon (68yo)

        Independent Director

        • Tenure: 16.9yrs
        • Compensation: US$329.96k
      • Michael Eisner (77yo)

        Independent Director

        • Tenure: 8.8yrs
        • Compensation: US$299.96k
      • David Rosenblatt (51yo)

        Independent Director

        • Tenure: 11.1yrs
        • Compensation: US$304.96k
      • Barry Diller (77yo)

        Chairman & Senior Executive

        • Tenure: 9.1yrs
        • Compensation: US$4.00m
      • Victor Kaufman (75yo)

        Vice Chairman of the Board

        • Tenure: 20.3yrs
        • Compensation: US$564.22k
      • Bryan Lourd (58yo)

        Independent Director

        • Tenure: 14.8yrs
        • Compensation: US$309.96k
      • Rich Zannino (60yo)

        Independent Director

        • Tenure: 10.6yrs
        • Compensation: US$309.96k
      • Alex Von Furstenberg (49yo)

        Independent Director

        • Tenure: 11.1yrs
        • Compensation: US$299.96k
      • Bonnie Hammer (68yo)

        Independent Director

        • Tenure: 5.3yrs
        • Compensation: US$324.96k
      • Joey Levin (40yo)

        CEO & Director

        • Tenure: 4.6yrs
        • Compensation: US$6.32m

      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$23.324b
      • Shares outstanding: 84.60m
      • 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
      HNIAXTRA (XETRA Trading Platform)YesCommon StockDEEURDec 1992
      IACNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 1992
      0J7QLSE (London Stock Exchange)YesCommon StockGBUSDDec 1992
      HNIBDB (Deutsche Boerse AG)YesCommon StockDEEURDec 1992

      Biography

      IAC/InterActiveCorp, together with its subsidiaries, operates as a media and Internet company in the United States and internationally. The company’s Match Group segment provides subscription dating products under the Tinder, Match, PlentyOfFish, Meetic, OkCupid, OurTime, Pairs and Hinge, and other brands. Its ANGI Homeservices segment connects homeowners to home service professionals, collects reviews, and allows homeowners to research, match, and connect on-demand to network of service professionals online, through mobile apps, or by voice assistants under the HomeAdvisor, Angie’s List, and Handy brand names. The company’s Vimeo segment operates a video platform for professionals, marketers, and enterprises to connect with audiences, customers, and employees; provides cloud-based software products to stream, host, distribute, and monetize videos online and across devices, as well as video tools on a subscription basis; and sells live streaming accessories. Its Dotdash segment offers a portfolio of digital brands providing information and inspiration in various vertical content categories. The company’s Applications segment owns and operates a portfolio of desktop browser applications that provide users with access to various online content, tools, and services; develops, distributes, and offers a suite of Slimware desktop-support software and services. This segment also offers subscription-based mobile applications. Its Emerging & Other segment operates a collection of Websites, which offers general search services and information; on-demand staffing platform that connect workers for warehouse, delivery and moving, data entry, and customer service; operates news, commentary, culture, and entertainment Website; and offers digital content, as well as production and producer services for feature films. IAC/InterActiveCorp was founded in 1986 and is headquartered in New York, New York. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/18 00:16
      End of Day Share Price2020/01/17 00:00
      Earnings2019/09/30
      Annual Earnings2018/12/31


      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.