IAA, Inc.
IAA, Inc. Fundamental Analysis
IAA, Inc. (IAA) shows moderate financial fundamentals with a PE ratio of 18.27, profit margin of 13.93%, and ROE of 64.91%. The company generates $2.1B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 52.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze IAA's fundamental strength across five key dimensions:
Efficiency Score
WeakIAA struggles to generate sufficient returns from assets.
Valuation Score
ExcellentIAA trades at attractive valuation levels.
Growth Score
ModerateIAA shows steady but slowing expansion.
Financial Health Score
ModerateIAA shows balanced financial health with some risks.
Profitability Score
ModerateIAA maintains healthy but balanced margins.
Key Financial Metrics
Is IAA Expensive or Cheap?
P/E Ratio
IAA trades at 18.27 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, IAA's PEG of 0.18 indicates potential undervaluation.
Price to Book
The market values IAA, Inc. at 9.42 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 6.15 times EBITDA. This is generally considered low.
How Well Does IAA Make Money?
Net Profit Margin
For every $100 in sales, IAA, Inc. keeps $13.93 as profit after all expenses.
Operating Margin
Core operations generate 19.87 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $64.91 in profit for every $100 of shareholder equity.
ROA
IAA, Inc. generates $8.69 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
IAA, Inc. produces operating cash flow of $399.18M, showing steady but balanced cash generation.
Free Cash Flow
IAA, Inc. generates strong free cash flow of $220.93M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.65 in free cash annually.
FCF Yield
IAA converts 4.14% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.27
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.18
vs 25 benchmark
P/B Ratio
Price to book value ratio
9.42
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.54
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
4.19
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.75
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.65
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How IAA Stacks Against Its Sector Peers
| Metric | IAA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.27 | 26.49 | Better (Cheaper) |
| ROE | 64.91% | 1307.00% | Weak |
| Net Margin | 13.93% | -5131.00% (disorted) | Strong |
| Debt/Equity | 4.19 | 0.81 | Weak (High Leverage) |
| Current Ratio | 1.75 | 10.48 | Neutral |
| ROA | 8.69% | -1549793.00% (disorted) | Weak |
IAA outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews IAA, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
EPS CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
FCF CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure