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IPH

IPHASX:IPH Stock Report

Market Cap

AU$2.0b

7D

-0.4%

1Y

28.6%

Updated

22 Oct, 2021

Data

Company Financials +
IPH fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance2/6
Financial Health4/6
Dividends2/6

IPH Overview

IPH Limited, together with its subsidiaries, provides intellectual property (IP) services and products worldwide.

Price History & Performance

Summary of all time highs, changes and price drops for IPH
Historical stock prices
Current Share PriceAU$8.99
52 Week HighAU$5.77
52 Week LowAU$9.50
Beta0.54
1 Month Change-2.07%
3 Month Change10.04%
1 Year Change28.61%
3 Year Change71.57%
5 Year Change60.25%
Change since IPO190.00%

Recent News & Updates

Oct 06
These 4 Measures Indicate That IPH (ASX:IPH) Is Using Debt Reasonably Well

These 4 Measures Indicate That IPH (ASX:IPH) Is Using Debt Reasonably Well

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Aug 23
IPH (ASX:IPH) Is Paying Out A Larger Dividend Than Last Year

IPH (ASX:IPH) Is Paying Out A Larger Dividend Than Last Year

IPH Limited ( ASX:IPH ) has announced that it will be increasing its dividend on the 17th of September to AU$0.15. This...

Jun 29
IPH (ASX:IPH) Seems To Use Debt Quite Sensibly

IPH (ASX:IPH) Seems To Use Debt Quite Sensibly

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

IPHAU Professional ServicesAU Market
7D-0.4%0.2%0.7%
1Y28.6%34.8%21.4%

Return vs Industry: IPH underperformed the Australian Professional Services industry which returned 37% over the past year.

Return vs Market: IPH exceeded the Australian Market which returned 21.1% over the past year.

Price Volatility

Is IPH's price volatile compared to industry and market?
IPH volatility
IPH Beta0.54
Industry Beta0.92
Market Beta1

Stable Share Price: IPH is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: IPH's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1887900Andrew Blattmanhttps://www.iphltd.com.au

IPH Limited, together with its subsidiaries, provides intellectual property (IP) services and products worldwide. The company operates through three segments: Intellectual Property Services Australia & New Zealand, Intellectual Property Services Asia, and Adjacent Businesses. It offers IP services related to the provision of filing, prosecution, enforcement, and management of patents, designs, trademarks, and other IP; and develops autonomous timekeeping software under the subscription license model.

IPH Fundamentals Summary

How do IPH's earnings and revenue compare to its market cap?
IPH fundamental statistics
Market CapAU$1.96b
Earnings (TTM)AU$53.60m
Revenue (TTM)AU$359.68m

36.6x

P/E Ratio

5.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
IPH income statement (TTM)
RevenueAU$359.68m
Cost of RevenueAU$116.40m
Gross ProfitAU$243.29m
ExpensesAU$189.69m
EarningsAU$53.60m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.25
Gross Margin67.64%
Net Profit Margin14.90%
Debt/Equity Ratio27.4%

How did IPH perform over the long term?

See historical performance and comparison

Dividends

3.3%

Current Dividend Yield

119%

Payout Ratio

Valuation

Is IPH undervalued compared to its fair value and its price relative to the market?

25.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IPH (A$8.96) is trading below our estimate of fair value (A$12.02)

Significantly Below Fair Value: IPH is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: IPH is poor value based on its PE Ratio (36.5x) compared to the Australian Professional Services industry average (22.1x).

PE vs Market: IPH is poor value based on its PE Ratio (36.5x) compared to the Australian market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: IPH is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: IPH is overvalued based on its PB Ratio (4.6x) compared to the AU Professional Services industry average (3.6x).


Future Growth

How is IPH forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

12.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IPH's forecast earnings growth (12.9% per year) is above the savings rate (1.9%).

Earnings vs Market: IPH's earnings (12.9% per year) are forecast to grow faster than the Australian market (11.6% per year).

High Growth Earnings: IPH's earnings are forecast to grow, but not significantly.

Revenue vs Market: IPH's revenue (4.1% per year) is forecast to grow slower than the Australian market (5.4% per year).

High Growth Revenue: IPH's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IPH's Return on Equity is forecast to be high in 3 years time (20.7%)


Past Performance

How has IPH performed over the past 5 years?

7.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IPH has high quality earnings.

Growing Profit Margin: IPH's current net profit margins (14.9%) are lower than last year (15%).


Past Earnings Growth Analysis

Earnings Trend: IPH's earnings have grown by 7.9% per year over the past 5 years.

Accelerating Growth: IPH's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: IPH had negative earnings growth (-2.1%) over the past year, making it difficult to compare to the Professional Services industry average (9.3%).


Return on Equity

High ROE: IPH's Return on Equity (12.6%) is considered low.


Financial Health

How is IPH's financial position?


Financial Position Analysis

Short Term Liabilities: IPH's short term assets (A$164.9M) exceed its short term liabilities (A$60.7M).

Long Term Liabilities: IPH's short term assets (A$164.9M) do not cover its long term liabilities (A$187.2M).


Debt to Equity History and Analysis

Debt Level: IPH's debt to equity ratio (27.4%) is considered satisfactory.

Reducing Debt: IPH's debt to equity ratio has increased from 0.09% to 27.4% over the past 5 years.

Debt Coverage: IPH's debt is well covered by operating cash flow (79.3%).

Interest Coverage: IPH's interest payments on its debt are well covered by EBIT (17.4x coverage).


Balance Sheet


Dividend

What is IPH current dividend yield, its reliability and sustainability?

3.28%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IPH's dividend (3.29%) is higher than the bottom 25% of dividend payers in the Australian market (2.29%).

High Dividend: IPH's dividend (3.29%) is low compared to the top 25% of dividend payers in the Australian market (5.31%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, IPH has been paying a dividend for less than 10 years.

Growing Dividend: IPH's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (118.9%), IPH's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: IPH's dividends in 3 years are forecast to be covered by earnings (85.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.5yrs

Average management tenure


CEO

Andrew Blattman

3.92yrs

Tenure

AU$2,448,914

Compensation

Dr. Andrew Blattman, BScAgr (Hons 1), PhD, GraDipIP, serves as Managing Director, Chief Executive Officer and Director of IPH Limited since November 20, 2017. Dr. Blattman serves as the Chief Executive Off...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD1.83M) is about average for companies of similar size in the Australian market ($USD1.42M).

Compensation vs Earnings: Andrew's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: IPH's management team is seasoned and experienced (5.5 years average tenure).


Board Members

Experienced Board: IPH's board of directors are considered experienced (7.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

IPH Limited's employee growth, exchange listings and data sources


Key Information

  • Name: IPH Limited
  • Ticker: IPH
  • Exchange: ASX
  • Founded: 1887
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: AU$1.958b
  • Shares outstanding: 218.49m
  • Website: https://www.iphltd.com.au

Number of Employees


Location

  • IPH Limited
  • Tower 2
  • Level 24
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/22 07:05
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.