IACI Stock Analysis (NASDAQ:IAC)
IACI Analysis Video
View IACI stock analysis video. This is our IAC analyst opinion covering the buy and sell arguments for IAC stock.
IAC/InterActiveCorp Stock Rating (2.1/5)
Our IACI stock opinion is based on fundamentals of the company. This IACI stock analysis is based on latest Q1 earnings for 2017. The stock price analysis takes into account a company's valuation metrics.
Should you buy IAC stock?
- The company has an operating cash flow which is 2.6 times the net income. We see this as a positive signal.
- The company has a good Free Cash Flow (FCF) margin of 7.4%.
Should you sell IAC stock?
- IACI sales shrank by -7.1% year-over-year in 2017 Q1.
- Long term revenue growth of 6.6% over the past 5 years has been disappointing.
- IACI reported an average operating margin of -0.6% over the Last Twelve Months (LTM).
- Over the last 12 months, IACI had an average Net loss of -0.8%.
- With a debt/equity ratio of 0.78, IACI is highly leveraged in comparison to Retail-Wholesale peers.
- The IAC stock currently trades at a PE of 51.6, which is expensive, compared to the industry average of 17.2.
- The company is trading at a price to sales multiple of 2.7, which is higher in comparison to the Internet Commerce industry average of 0.7, making IAC stock expensive.
- IACI has a low ROIC (Return on Invested Capital) of 0%.
- IACI has a negative return on equity of -1.2%. This indicates that the firm is inefficient at generating profits.