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IAC Inc Ordinary Shares - New IAC

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Stock XNAS Rating as of
$48.16 +0.19 (0.40%)
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As of Delayed Price Pre-Open: $48.25 0.00
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Company Report

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IAC Earnings: Turnaround on the Top and Bottom Lines for Meredith Dotdash and Angie Remains in Sight

Ali Mogharabi

While IAC has begun what we view as its early stage of margin expansion across most of its businesses, a turnaround on the top line is also becoming clearer, though it remains slow. We have slightly reduced our fair value estimate to $128 from $135 after modeling in a lower growth assumption for Angi. The shares of no-moat IAC remain attractive as they are trading at only 0.35 times our fair value estimate.

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Price vs Fair Value

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IAC is trading at a 62% discount.
Price
$48.17
Fair Value
$437.00
Uncertainty
High
1-Star Price
$597.80
5-Star Price
$29.50
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

With the spinoff of Vimeo, IAC will further benefit from the higher-margin Dotdash and search given the continuing growth in overall digital advertising.

Bears

We see low barriers to entry in apps like Angi, which could lure away users and professional services providers.

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News

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Trading Information

Previous Close Price
$47.97
Day Range
$47.12–48.17
52-Week Range
$41.39–69.85
Bid/Ask
$47.25 / $48.50
Market Cap
$4.13 Bil
Volume/Avg
250 / 652,524

Key Statistics

Price/Earnings (Normalized)
—
Price/Sales
0.89
Dividend Yield
—
Dividend Yield (Forward)
—
Total Yield
4.09%

Company Profile

IAC is an internet media company with segments that include Angi (47% of total revenue), Dotdash (10%), search (24%), and emerging and other (19%). The firm spun off the narrow-moat dating app provider Match Group in second-quarter 2020 and the no-moat video software provider Vimeo in second-quarter 2021.
Sector
Communication Services
Industry
Internet Content & Information
Stock Style Box
Small Core
Total Number of Employees
11,000
Website
https://www.iac.com

Competitors

Valuation

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Metric
IAC
AMZN
META
Price/Earnings (Normalized)
 —72.0926.00
Price/Book Value
 0.728.306.10
Price/Sales
 0.892.767.02
Price/Cash Flow
 10.9517.7415.07
Price/Earnings
IAC
AMZN
META

Financial Strength

Metric
IAC
AMZN
META
Quick Ratio
 1.900.702.43
Current Ratio
 2.160.982.57
Interest Coverage
 −0.027.45—
Quick Ratio
IAC
AMZN
META

Profitability

Metric
IAC
AMZN
META
Return on Assets (Normalized)
 −3.14%9.11%20.96%
Return on Equity (Normalized)
 −5.47%26.76%31.27%
Return on Invested Capital (Normalized)
 −2.86%14.52%24.95%
Return on Assets
IAC
AMZN
META

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