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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Iac Inc. (XNAS:IAC) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
IAC
Name:
IAC INC. (XNAS:IAC)
Sector:
- 17591.00K
Industry:
Internet Content & Information
CEO:
Mr. Joseph Levin
Total Employees:
13,200
Our Technological Advancement Rating
Our Rating:
A+
Technological advancement compared to industry is 397.87% higher
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF IAC INC.(IAC) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND INTERNET CONTENT & INFORMATION INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
63.67
One Month Price Target:
$64.26
Six Month Price Target :
$67.2
Likely Price in One Year's Time:
Ticker:
$70.74
Likely Trading Range Today Under (Normal Volatility)
$63.4
Price Upper limit ($) :
$64.06
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$59.76
This week:
$54.92
This month :
$46.17
Other Primary facts
Market Cap:
5.54B
Market Cap Classification:
Mid Cap
Number of Shares
IPO Date:
89.19M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
20.85%
-12.43%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$81.82
$73.44
$45.52
$53.90
Medium risk (<10%) entry points
Buy Call
Sell Call
$70.71
Buy Put:
Sell Put:
$68.93
$56.60
$58.41
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
IAC
Sharpe Ratio:
2.65%
Comparison:
IAC, is amongst the top 40% stocks with highest risk-adjusted returns
Sharpe ratio is 8375.06% higher than the industry
& ratio is 16.30% higher than the market/S&P 500 average
Average Returns/Yield of
IAC
Daily returns:
0.09%
Weekly returns:
0.45%
Monthly returns:
1.79%
Yearly returns:
0.13%
Comparison of returns:
Average annual returns/yield (last 3 years) is 15850.51% above industry average
Classification:
IAC, is amongst the top 40% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.28
Statistical test of Returns:
IAC has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
3.04%
Weekly Volatility:
6.79%
Monthly Volatility:
13.58%
Yearly Volatility:
47.04%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
0.80%
Volatility in last five trading days has been -73.76% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-6.15%
Weekly VaR:
-13.74%
Monthly VaR:
-27.49%
How Much Can the price of
IAC
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-23%
Worst case (decline):
>85%
This translates to price declining to:
$48.85
This translates to price declining to:
$9.55
Severe Crash Probability
Risk of crash in next 6/12 months: High (50-70%)
What is Value at Risk (VaR)?
Risk Fundamentals
IAC is a 94.00% riskier investment compared to the market/S&P 500 & is 66.20% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -25.87% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
IAC
Beta in relation to market/S&P 500--1.65
Expected beta in 1 year's time:
1.019
Expected beta in 3 year's time:
1.441
Unlevered (debt free) Beta:
1.375
Beta in relation to Nasdaq (XNAS):
1.113
Beta in relation to all global stocks::
0.69
Beta Comparison & Analysis
Beta of competitors/peers::
1.227
Beta is 34.67% higher than peers
Average Industry Beta:
1.399
Beta is 18.14% above industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
15.81%
Sustainable growth rate is -51.82% below industry average
Alpha provided | Alpha Analysis
Alpha provided:
0.070
Alpha is -155.34% below industry average alpha yield
Alpha is 444% higher than market/& is unsustainably high
Analysis of Cost of Capital of
IAC
Equity cost of capital:
0.145
Equity cost of capital is 13.65% above industry mean WACC
Unlevered (without debt) cost of capital:
12.04%
Before-tax cost of debt:
2.39%
After-tax cost of debt:
1.89%
Overall debt rating:
Highest AAA investment grade
Weighted average cost of capital (WACC):
1.89%
WACC is 17.14% above industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$47.52
Revenue growth rate per share of (3Y):
0.75
Annual revenue growth rate is -110.18% below industry average
EPS:
$0.15
Expected Annual growth rate of EPS (3Y):
7.72%
Expected future EPS growth rate is -69.16% lower than the Internet Content & Information industry
Free cash flow (FCF) per share:
-
-
-
Debt per share
$22.87
EBITDA per share
$3.41
Valuation Analysis Today of
IAC
P/E Ratio:
376.17
P/E Ratio of Competitors/Peers:
27.32
P/E ratio is 1276.73% higher than main peers & is 891.89% higher than the industry
Stock price/value with industry average P/E ratio: $5.69
IAC is 1019.23% overvalued if valued using industry average P/E ratio
-
-
P/S (Price to Sales ratio):
1.34
Price to sales ratio is -73.76% below the industry mean
P/B (Price to book value ratio):
0.75
-
Price to free cash flow ratio is 72.29% higher than the industry
Net income growth rate (3Y):
-8.21%
Net income growth rate is -89.62% lower than the industry average net income growth rate
Dividend Analysis
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Dividend History:
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
29.48%
Net debt to equity ratio:
3.14%
Debt to assets ratio:
17.15%
Net debt to assets ratio:
1.82%
Debt-to-asset ratio is -60.71% below industry average
Ability to repay debt:
Interest coverage ratio:
6.14
Interest coverage ratio is -49.21% less than industry average
Looking forward:
Debt growth rate:
0.00%
-
Debt repayment rate in last quarter: 0.37%
Analysis of Key Statistics
Correlation of price movement with the market:
0.603
Statistical significance of correlation:
IAC has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.473
Stock price is 27.43% more correlated with the market, compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.473
Correlation of price movement with Nasdaq (^IXIC):
-0.069
Covariance of price movement with the market:
-0.122
Kurtosis
4.578
Returns have moderate fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
0.32
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
IAC
Gross Profit Margin Ratio:
252%
Operating Profit Margin Ratio:
-5.63%
Operating profit margin is -1097.48% lower than the industry
Net Profit Margin Ratio:
252%
Effective Tax Rate:
31.71%
Effective tax rate is 146.66% higher than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
0.55%
Return on equity (ROE) is -106.42% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
0.32%
Return on assets (ROA) is -79.23% lower than the industry
Financial Leverage:
1.2x
Current Ratio:
2.09
Current ratio is -41.58% below industry average
Cash Conversion Cycle (days):
10
Cash conversion cycle is -85.25% below industry average
The remaining useful life of property plant & equipment is: 6.2 years
Stock based compensation to net income ratio:
77.34%
In-depth Efficiency Analysis
Revenue generated per employee:
321.1K
Each employee generates -64% less revenue than industry average revenue per employee
EBITDA generated per employee:
23.0K
Each employee generates -78% less EBITDA than industry average revenue per employee
Profit generated per employee:
2.9K
Each employee generates -93% less net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
- 1.3K
Each employee generates -101% less free cash flow than industry average revenue per employee
Assets/Capital per employee
690.1K
Each employee generates -101% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
Research & development (R&D) investment growth rate-- -17.67%
Growth rate in R&D investment/expenditure is 200.37% higher than the industry
Competitors/Peer firms of
IAC
NEWS CORPORATION (XNAS:NWS)
NEWS CORPORATION (XNAS:NWSA)
ZILLOW GROUP, INC. (XNAS:ZG)
Bilibili Inc. (XNAS:BILI)
DISCOVERY, INC. (XNAS:DISCK)
WARNER BROS. DISCOVERY, INC. (XNAS:WBD)
DISCOVERY, INC. (XNAS:DISCB)
LIBERTY GLOBAL PLC (XNAS:LBTYK)
LIBERTY GLOBAL PLC (XNAS:LBTYA)
Current Analyst Ratings
Strong buy�25%
Buy�50%
Hold�0%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Buy
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
4.24B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
1.60B
2.64B
265.98M
872.64M
2.41B
1.53B
201.26M
2.87B
495.00K
49.56M
199.25M
304.26M
- 238651.00K
38.39M
53.80M
17.06M
38.39M
Statement of Cash Flow
Date:
Period:
87.43M
Differed Income Tax :
- 76933.00K
Stock Based Compensation :
29.69M
Change in Working Capital :
- 3550.00K
Accounts Receivables:
75.27M
Other Working Capital:
17.11M
Other Non-Cash Items:
217.17M
Net Cash Provided by Operating Activities:
12.90M
Investments in PP&E:
-
Net Acquisitions:
- 201183.00K
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
1.85B
59.01M
1.91B
593.28M
-
279.41M
2.78B
576.79M
3.22B
1.36B
2.99B
-
966.39M
9.11B
-
11.89B
184.08M
30.00M
-
178.06M
939.40M
1.33B
2.04B
685.43M
3.03B
-
4.36B
9.00K
669.35M
765.0K
-
March 31, 2022 at 6:00:00 AM
4.47B
6.92B
11.28B
3.05B
2.07B
217.1M
-
- 30406.00K
- 231589.00K
- 7500.00K
-
- 8144.00K
-
- 11838.00K
- 27482.00K
- 1029.00K
- 247198.00K
1.87B
2.12B
12.90M
- 30493.00K
- 17591.00K
Our Proprietary Portfolio Rating
Our Rating:
A
Price Forecast/Expected Price in Next 5 Years of
IAC
2023
2024
2025
2026
2027
$60.51
$67.23
$74.70
$82.99
$92.20