IACI Stock Analysis (NASDAQ:IAC)

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$107.85 $1.57 (1.48%) IAC stock closing price Jul 25, 2017 (Closing)
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IACI
Updated on : Jul 25, 2017
previous close
IAC 106.3 (0%)
S&P 500 2477.1 (0%)
Closing Price On: Jul 24, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Internet Commerce
Sector :
Retail-Wholesale
5 Quarter Revenue
Revenue Growth
2017-Q1
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
6.6%
Operating Profit
Operating Margin:
-0.6%
Sector Average:
5.6%
5 Quarter Net Profit
Net Margins
2017-Q1
%
LTM Margin
Debt/Equity Ratio
Debt:
1.58B
Debt/Equity Ratio:
 0.78
Compared to the industry
Cash Flow
Operating cash flow:
$67.8M
Net Income:
$26.2M
PROS      CONS
Cash Flow
FCF Margin
Recent Growth
Long Term Growth
Operating Margins
Net Margins
High Debt Burden
PE Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
IAC PS :
2.7
Industry PS :
0.7
Sector:   Retail-Wholesale.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
0%
Return on Equity:
-1.2%
Free Cash Flow Margin:
7.4%
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IACI Analysis Video

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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.

Comments on this video and IACI stock

user profile picture
neena@amigobulls on IACI stock analysis ($76.48)
bullish
IACI has often been the nurturing ground for internet startups, which went on to generate significant spin-off value. These guys seem to be masters at trading internet companies. Tinder could be the next big company out of this group with its user base climbing at what is probably the fastest growth in users. The consolidation of Match.com has suggested a possible spin-off and potential spin-off value has driven the price over the recent months.
1 reply