Operating Margin

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Price: 36.8 EUR -1.08%

Market Cap: 4.9B EUR

23.1%

Improving

by 1.9%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

23.1%

Operating Income

$417m

Revenue

$2.1B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

23.1%

Operating Income

€417m

Revenue

$2.1B

Peer Comparison

Country		Company	Market Cap	Operating Margin
US	I	IAA Inc F:3NI	4.9B EUR	Loading...
US		Cintas Corp NASDAQ:CTAS	78.1B USD	Loading...
US		Copart Inc NASDAQ:CPRT	39.7B USD	Loading...
AU		Brambles Ltd ASX:BXB	30.9B AUD	Loading...
CA		Ritchie Bros Auctioneers Inc TSX:RBA	29B CAD	Loading...
US		RB Global Inc F:J1F	17.7B EUR	Loading...
FR		Spie SA PAR:SPIE	7.8B EUR	Loading...
US		Aurora Innovation Inc NASDAQ:AUR	9.1B USD	Loading...
FR		Elis SA PAR:ELIS	5.6B EUR	Loading...
DK		Iss A/S CSE:ISS	39.8B DKK	Loading...
IN		Indian Railway Catering and Tourism Corporation Ltd NSE:IRCTC	500.3B INR	Loading...

Market Distribution

Min	-4 087 900%
30th Percentile	-5.1%
Median	6%
70th Percentile	14.8%
Max	1 032 600%

Other Profitability Ratios

IAA Inc
Glance View

Market Cap

4.9B EUR

Industry

Commercial Services & Supplies

IAA Inc., a prominent player in the automotive auction and salvage industry, has carved a niche by intertwining technology with its extensive network of auction sites. Headquartered in Westchester, Illinois, the company specializes in auctioning damaged or total-loss vehicles that insurance companies and car dealers no longer require. IAA's core operation revolves around its innovative auction model, which leverages both physical locations and a robust online platform. This hybrid approach allows buyers from around the globe to bid on vehicles in real-time, increasing competitiveness and ultimately driving up the final sale prices. Whether a buyer is seeking parts, salvage potential, or even rebuildable vehicles, IAA caters to a diverse clientele ranging from dismantlers to rebuilders and used car dealers. Revenue generation at IAA hinges on several streams, primarily through auction fees and service charges, creating a multifaceted income structure. Selling thousands of vehicles daily, the company collects fees from both sellers, for listing and selling vehicles, and buyers, for purchasing cars through their platforms. Additionally, ancillary services such as transportation, storage, and vehicle titles further augment their revenue, offering a comprehensive package that meets all client needs throughout the transaction process. At the heart of IAA's strategy is a commitment to leveraging data analytics and technology, enhancing their capability to match supply with demand efficiently, and ensuring their operations are synonymous with speed and reliability in vehicle management. This combination of strategic market presence and emphasis on technological solutions fosters robust partnerships across the automotive industry and positions IAA as a leader in transforming automotive remarketing.

View 3NI Analysis

3NI Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

IAA Inc
F:3NI

Peer Comparison

Market Distribution

Other Profitability Ratios

IAA Inc
Glance View

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IAA Inc F:3NI