Integral Ad Science Holding Corp.
Integral Ad Science Holding Corp. Fundamental Analysis
Integral Ad Science Holding Corp. (IAS) shows weak financial fundamentals with a PE ratio of 38.98, profit margin of 7.91%, and ROE of 4.43%. The company generates $0.6B in annual revenue with strong year-over-year growth of 11.75%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 53.3/100 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 IAS's fundamental strength across five key dimensions:
Efficiency Score
WeakIAS struggles to generate sufficient returns from assets.
Valuation Score
ModerateIAS shows balanced valuation metrics.
Growth Score
ModerateIAS shows steady but slowing expansion.
Financial Health Score
ExcellentIAS maintains a strong and stable balance sheet.
Profitability Score
WeakIAS struggles to sustain strong margins.
Key Financial Metrics
Is IAS Expensive or Cheap?
P/E Ratio
IAS trades at 38.98 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, IAS's PEG of -2.21 indicates potential undervaluation.
Price to Book
The market values Integral Ad Science Holding Corp. at 1.65 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 15.35 times EBITDA. This signals the market has high growth expectations.
How Well Does IAS Make Money?
Net Profit Margin
For every $100 in sales, Integral Ad Science Holding Corp. keeps $7.91 as profit after all expenses.
Operating Margin
Core operations generate 11.09 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.43 in profit for every $100 of shareholder equity.
ROA
Integral Ad Science Holding Corp. generates $3.87 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Integral Ad Science Holding Corp. generates strong operating cash flow of $167.28M, reflecting robust business health.
Free Cash Flow
Integral Ad Science Holding Corp. generates strong free cash flow of $156.84M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.93 in free cash annually.
FCF Yield
IAS converts 9.48% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
38.98
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.21
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.65
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.94
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.43
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How IAS Stacks Against Its Sector Peers
| Metric | IAS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 38.98 | 21.66 | Worse (Expensive) |
| ROE | 4.43% | 1190.00% | Weak |
| Net Margin | 7.91% | -55754.00% (disorted) | Weak |
| Debt/Equity | 0.02 | 1.32 | Strong (Low Leverage) |
| Current Ratio | 4.43 | 1.59 | Strong Liquidity |
| ROA | 3.87% | -202359.00% (disorted) | Weak |
IAS outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Integral Ad Science Holding Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
133.12%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
169.10%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
6070.08%
Industry Style: Growth, Technology, Streaming
High Growth