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IAA

DB:3NI
Snowflake Description

Fair value with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
3NI
DB
$4B
Market Cap
  1. Home
  2. DE
  3. Commercial Services
Company description

IAA, Inc., together with its subsidiaries, provides auction solutions for total loss, damaged, and low-value vehicles in North America. The last earnings update was 13 days ago. More info.


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  • IAA has significant price volatility in the past 3 months.
3NI Share Price and Events
7 Day Returns
0%
DB:3NI
5.4%
DE Commercial Services
9.9%
DE Market
1 Year Returns
-
DB:3NI
-31.6%
DE Commercial Services
-17.5%
DE Market
3NI Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
IAA (3NI) 0% -12.3% -15.8% - - -
DE Commercial Services 5.4% -21.4% -33.5% -31.6% -33.3% -43.3%
DE Market 9.9% -16.6% -24.8% -17.5% -24.5% -28.1%
1 Year Return vs Industry and Market
  • No trading data on 3NI.
  • No trading data on 3NI.
Price Volatility
Industry
5yr Volatility vs Market

3NI Value

 Is IAA undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of IAA to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for IAA.

DB:3NI Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 10 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 4.5%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:3NI
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 5.4%
Commercial Services Unlevered Beta Simply Wall St/ S&P Global 0.61
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.607 (1 + (1- 21%) (51.29%))
0.901
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.9
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (0.901 * 5.44%)
4.51%

Discounted Cash Flow Calculation for DB:3NI using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for IAA is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:3NI DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 4.51%)
2020 168.00 Analyst x1 160.75
2021 380.00 Analyst x1 347.89
2022 395.00 Analyst x1 346.01
2023 434.00 Analyst x1 363.76
2024 459.81 Est @ 5.95% 368.74
2025 478.41 Est @ 4.05% 367.09
2026 491.39 Est @ 2.71% 360.78
2027 500.15 Est @ 1.78% 351.35
2028 505.81 Est @ 1.13% 339.98
2029 509.23 Est @ 0.67% 327.50
Present value of next 10 years cash flows $3,333.00
DB:3NI DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $509.23 × (1 + -0.39%) ÷ (4.51% – -0.39%)
$10,345.60
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $10,345.60 ÷ (1 + 4.51%)10
$6,653.56
DB:3NI Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $3,333.00 + $6,653.56
$9,986.56
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $9,986.56 / 133.93
$74.57
DB:3NI Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:3NI represents 1.14153x of NYSE:IAA
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.14153x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 74.57 x 1.14153
€85.12
Value per share (EUR) From above. €85.12
Current discount Discount to share price of €34.20
= -1 x (€34.20 - €85.12) / €85.12
59.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price IAA is available for.
Intrinsic value
>50%
Share price is €34.2 vs Future cash flow value of €85.12
Current Discount Checks
For IAA to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • IAA's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • IAA's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for IAA's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are IAA's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:3NI PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-29) in USD $1.45
NYSE:IAA Share Price ** NYSE (2020-03-12) in USD $29.96
Germany Commercial Services Industry PE Ratio Median Figure of 6 Publicly-Listed Commercial Services Companies 95.54x
Germany Market PE Ratio Median Figure of 399 Publicly-Listed Companies 16.31x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of IAA.

DB:3NI PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:IAA Share Price ÷ EPS (both in USD)

= 29.96 ÷ 1.45

20.69x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • IAA is good value based on earnings compared to the DE Commercial Services industry average.
  • IAA is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does IAA's expected growth come at a high price?
Raw Data
DB:3NI PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 20.69x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
10.9%per year
Europe Commercial Services Industry PEG Ratio Median Figure of 50 Publicly-Listed Commercial Services Companies 1.06x
Germany Market PEG Ratio Median Figure of 255 Publicly-Listed Companies 1.18x

*Line of best fit is calculated by linear regression .

DB:3NI PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 20.69x ÷ 10.9%

1.89x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • IAA is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on IAA's assets?
Raw Data
DB:3NI PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-29) in USD $-1.03
NYSE:IAA Share Price * NYSE (2020-03-12) in USD $29.96
Germany Commercial Services Industry PB Ratio Median Figure of 9 Publicly-Listed Commercial Services Companies 2.48x
Germany Market PB Ratio Median Figure of 571 Publicly-Listed Companies 1.43x
DB:3NI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:IAA Share Price ÷ Book Value per Share (both in USD)

= 29.96 ÷ -1.03

-29.17x

* Primary Listing of IAA.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • IAA has negative assets, we can't compare the value of its assets to the DE Commercial Services industry average.
X
Value checks
We assess IAA's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Commercial Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Commercial Services industry average (and greater than 0)? (1 check)
  5. IAA has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

3NI Future Performance

 How is IAA expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
10.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is IAA expected to grow at an attractive rate?
  • IAA's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • IAA's earnings growth is positive but not above the Germany market average.
  • IAA's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:3NI Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:3NI Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 10.9%
DB:3NI Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 4.9%
Germany Commercial Services Industry Earnings Growth Rate Market Cap Weighted Average 22%
Germany Commercial Services Industry Revenue Growth Rate Market Cap Weighted Average 2.9%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.4%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:3NI Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:3NI Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 1,866 537 1
2022-12-31 1,709 489 1
2021-12-31 1,517 465 232 10
2020-12-31 1,382 242 182 10
2020-03-31
2019-12-31 1,429 322 187 10
DB:3NI Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-29 1,437 271 193
2019-09-29 1,416 298 194
2019-06-30 1,380 285 191
2019-03-31 1,347 284 190
2018-12-30 1,327 278 184
2018-09-30 1,327 269 206
2018-07-01 1,294 190
2018-04-01 1,259 175 178
2017-12-31 1,219 201 161
2017-10-01 1,186 115
2017-06-30 1,160 114
2017-04-02 1,126 102
2017-01-01 1,098 112 95

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • IAA's earnings are expected to grow by 10.9% yearly, however this is not considered high growth (20% yearly).
  • IAA's revenue is expected to grow by 4.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:3NI Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from IAA Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:3NI Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 1.74 1.97 1.48 6.00
2020-12-31 1.31 1.62 0.87 6.00
2020-03-31
2019-12-31 1.40 1.43 1.36 3.00
DB:3NI Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-29 1.45
2019-09-29 1.45
2019-06-30 1.43
2019-03-31
2018-12-30 1.38
2018-09-30
2018-07-01 1.42
2018-04-01
2017-12-31 1.21
2017-10-01
2017-06-30
2017-04-02
2017-01-01

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if IAA will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess IAA's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
IAA has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

3NI Past Performance

  How has IAA performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare IAA's growth in the last year to its industry (Commercial Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • IAA has delivered over 20% year on year earnings growth in the past 5 years.
  • IAA's 1-year earnings growth is less than its 5-year average (5% vs 21.6%)
  • IAA's earnings growth has not exceeded the Europe Commercial Services industry average in the past year (5% vs 10.4%).
Earnings and Revenue History
IAA's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from IAA Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:3NI Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-29 1,436.80 193.20 137.40
2019-09-29 1,416.10 194.20 128.00
2019-06-30 1,379.90 191.40 122.60
2019-03-31 1,346.70 189.90 122.80
2018-12-30 1,326.80 183.70 123.80
2018-09-30 1,327.00 206.20 124.40
2018-07-01 1,293.60 190.00 123.80
2018-04-01 1,259.10 177.50 120.00
2017-12-31 1,219.20 161.40 113.30
2017-10-01 1,186.40 115.10 116.10
2017-06-30 1,159.70 114.30 111.70
2017-04-02 1,125.80 102.20 110.70
2017-01-01 1,098.00 94.90 110.50
2016-09-30 1,057.00 95.40 104.50
2016-06-30 1,042.20 93.30 103.30
2016-03-31 1,026.00 92.70 101.70
2015-12-27 994.30 89.90 100.10
2015-09-30 962.40 88.00 97.70
2015-06-30 933.70 87.20 95.70
2015-03-31 908.90 84.10 94.70
2014-12-31 895.90 79.70 98.80
2014-09-30 873.10 78.50 96.50
2014-06-30 854.40 73.20 93.40
2014-03-31 833.40 67.40 89.80
2013-12-31 830.00 56.60 82.40
2013-09-30 805.20 49.10 76.60
2013-06-30 773.80 47.50 71.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if IAA has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
  • IAA used its assets more efficiently than the DE Commercial Services industry average last year based on Return on Assets.
  • Unable to establish if IAA improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess IAA's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Commercial Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
IAA has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

3NI Health

 How is IAA's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up IAA's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • IAA is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • IAA's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of IAA's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • IAA has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from IAA Company Filings, last reported 3 months ago.

DB:3NI Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-29 -137.20 1,254.70 47.10
2019-09-29 -186.90 1,275.70 49.80
2019-06-30 -228.90 1,274.80 50.90
2019-03-31 618.90 456.60 66.20
2018-12-30 563.20 456.60 48.30
2018-09-30 535.80 456.60 53.80
2018-07-01
2018-04-01 591.30 456.60 36.80
2017-12-31 571.30 456.60 33.10
2017-10-01
2017-06-30
2017-04-02 547.80 456.60 41.80
2017-01-01 547.80 456.60 41.80
2016-09-30
2016-06-30
2016-03-31
2015-12-27
2015-09-30
2015-06-30
2015-03-31
2014-12-31
2014-09-30
2014-06-30
2014-03-31
2013-12-31
2013-09-30
2013-06-30
  • IAA has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
  • Irrelevant to check if IAA's debt level has increased considering it has negative shareholder equity.
  • Debt is well covered by operating cash flow (21.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 5.8x coverage).
X
Financial health checks
We assess IAA's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. IAA has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

3NI Dividends

 What is IAA's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from IAA dividends.
If you bought €2,000 of IAA shares you are expected to receive €0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate IAA's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate IAA's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:3NI Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
Germany Commercial Services Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 4.9%
Germany Market Average Dividend Yield Market Cap Weighted Average of 323 Stocks 3.8%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:3NI Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31
2020-03-31
2019-12-31

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as IAA has not reported any payouts.
  • Unable to verify if IAA's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of IAA's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as IAA has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess IAA's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can IAA afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. IAA has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

3NI Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
John Kett
COMPENSATION $1,779,910
AGE 55
CEO Bio

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 as Chief Executive Officer at Insurance Auto Auctions, Inc. since May 1, 2014. Mr. Kett serves as Chief Financial Officer, Principal Accounting Officer and Senior Vice President of Automotive Recovery Services, Inc., and ADESA Impact Texas, LLC. Mr. Kett serves as Chief Financial Officer, Principal Accounting Officer and Senior Vice President/Vice President of ADS Ashland, LLC., Auto Disposal of Paducah, Inc., Auto Disposal Of Chattanooga, Inc., Auto Disposal Systems, Inc., Auto Disposal Of Nashville, Inc., Salvage Disposal Company of Georgia, Auto Disposal of Bowling Green, Inc., Auto Disposal of Memphis, Inc., Iaa Services, Inc., IAA Acquisition Corp., and ADS Priority Transport Ltd. Mr. Kett served as General Manager of Fiat Chrysler Automobiles Apac Region at FCA US LLC until July 2015. Mr. Kett served as Chief Financial Officer, Principal Accounting Officer and Vice President of Insurance Auto Auctions Corp. He served in a variety of senior financial and operational roles for Newark Electronics and Deloitte LLP. Mr. Kett served as the Chief Financial Officer of Insurance Auto Auctions Inc. from 2007 to April 30, 2014. He served as Senior Vice President of Planning and Business Development of Insurance Auto Auctions Inc., since June 2004. He joined Insurance Auto Auctions Inc., in August 2001 as Vice President of Field Support and served as its Chief Financial Officer and Principal Accounting Officer. He was responsible for planning, pricing, financial analysis and has primary responsibility for business development. Mr. Kett served as Assistant Comptroller for Central Steel and Wire Co. from 1998 to 2001 and Controller of Safelite Glass Corporation (formerly Vistar, Inc.) from 1996 to 1998. From 1992 to 1996 Mr. Kett held various positions at Vistar including Regional Operations Manager. He serves as Director/Manager of Automotive Recovery Services, Inc., ADESA Impact Texas, LLC, Insurance Auto Auctions Corp., ADS Ashland, LLC, IAA Acquisition Corp., Auto Disposal of Paducah, Inc., Auto Disposal Of Chattanooga, Inc., Auto Disposal Of Nashville, Inc., Salvage Disposal Company of Georgia, Auto Disposal of Bowling Green, Inc., Auto Disposal of Memphis, Inc., Auto Disposal Systems, Inc., and Iaa Services, Inc. Mr. Kett served as Director of Insurance Auto Auctions Inc. Mr. Kett has been Director of Insurance Auto Auctions Inc. since June 27, 2019.

CEO Compensation
  • Insufficient data for John to compare compensation growth.
  • John's remuneration is lower than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the IAA management team in years:

0.7
Average Tenure
46.5
Average Age
  • The average tenure for the IAA management team is less than 2 years, this suggests a new team.
Management Team

John Kett

TITLE
CEO, President & Director
COMPENSATION
$2M
AGE
55

Maju Abraham

TITLE
Chief Information Officer & Senior VP
COMPENSATION
$413K
TENURE
0.7 yrs

Sidney Peryar

TITLE
Chief Legal Officer
COMPENSATION
$520K
AGE
44
TENURE
18.8 yrs

Tim O'Day

TITLE
President
COMPENSATION
$730K
TENURE
0.7 yrs

Vance Johnston

TITLE
CFO, Executive VP & Treasurer
AGE
49
TENURE
0.8 yrs

Chris Carlson

TITLE
VP, Corporate Controller & Principal Accounting Officer
AGE
37
TENURE
0.4 yrs

Jeanene O'Brien

TITLE
Senior VP of Marketing & Communications

Arif Ahmed

TITLE
VP of Treasury
TENURE
0.7 yrs
Board of Directors Tenure

Average tenure and age of the IAA board of directors in years:

0.7
Average Tenure
56.5
Average Age
  • The average tenure for the IAA board of directors is less than 3 years, this suggests a new board.
Board of Directors

John Larson

TITLE
Chairman
AGE
56
TENURE
0.7 yrs

John Kett

TITLE
CEO, President & Director
COMPENSATION
$2M
AGE
55
TENURE
0.7 yrs

Lynn Jolliffe

TITLE
Director
AGE
67
TENURE
0.7 yrs

Sue Gove

TITLE
Director
AGE
61
TENURE
0.7 yrs

Peter Kamin

TITLE
Director
AGE
57
TENURE
21.2 yrs

Brian Bales

TITLE
Director
AGE
56
TENURE
0.7 yrs

Bill Breslin

TITLE
Director
TENURE
0.7 yrs

Olaf Kastner

TITLE
Director
TENURE
0.7 yrs

Gail Evans

TITLE
Director
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess IAA's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. IAA has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

3NI News

Simply Wall St News

3NI Company Info

Description

IAA, Inc., together with its subsidiaries, provides auction solutions for total loss, damaged, and low-value vehicles in North America. It also provides auction services in the United Kingdom. The company, through its marketplaces, associate with insurance total loss vehicles, including vehicles from catastrophic events, as well as with noninsurance customers, such as dealerships, rental car companies, fleet lease companies, charitable organizations, and general public. As of February 10, 2020, it operated approximately 200 facilities. The company was founded in 1982 and is headquartered in Westchester, Illinois.

Details
Name: IAA, Inc.
3NI
Exchange: DB
Founded: 1982
$3,651,305,548
133,926,024
Website: http://www.iaai.com
Address: IAA, Inc.
Two Westbrook Corporate Center,
10th Floor,
Westchester,
Illinois, 60154,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE IAA Common Stock New York Stock Exchange US USD 20. Jun 2019
DB 3NI Common Stock Deutsche Boerse AG DE EUR 20. Jun 2019
Number of employees
Current staff
Staff numbers
3,762
IAA employees.
Industry
Diversified Support Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/31 23:38
End of day share price update: 2020/03/12 00:00
Last estimates confirmation: 2020/03/20
Last earnings filing: 2020/03/18
Last earnings reported: 2019/12/29
Last annual earnings reported: 2019/12/29


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.