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IPH

ASX:IPH
Snowflake Description

Excellent balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
IPH
ASX
A$1B
Market Cap
  1. Home
  2. AU
  3. Commercial Services
Company description

IPH Limited, together with its subsidiaries, provides intellectual property (IP) services and products. The last earnings update was 35 days ago. More info.


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IPH Share Price and Events
7 Day Returns
2.9%
ASX:IPH
-0.8%
AU Professional Services
0.3%
AU Market
1 Year Returns
92.4%
ASX:IPH
4.5%
AU Professional Services
2.5%
AU Market
IPH Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
IPH (IPH) 2.9% 17.6% 27% 92.4% 5.9% -
AU Professional Services -0.8% 3.5% 10% 4.5% 26.8% 10.1%
AU Market 0.3% 1.5% 10.2% 2.5% 18.6% 6.2%
1 Year Return vs Industry and Market
  • IPH outperformed the Professional Services industry which returned 4.5% over the past year.
  • IPH outperformed the Market in Australia which returned 2.5% over the past year.
Price Volatility
IPH
Industry
5yr Volatility vs Market
Related Companies

IPH Value

 Is IPH undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of IPH to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for IPH.

ASX:IPH Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.8%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:IPH
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Professional Services Unlevered Beta Simply Wall St/ S&P Global 0.86
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.861 (1 + (1- 30%) (2.47%))
0.917
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.92
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (0.917 * 5.96%)
7.78%

Discounted Cash Flow Calculation for ASX:IPH using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for IPH is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

ASX:IPH DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 7.78%)
2019 56.20 Analyst x2 52.14
2020 61.93 Analyst x3 53.32
2021 67.73 Analyst x3 54.10
2022 72.45 Est @ 6.96% 53.69
2023 76.48 Est @ 5.57% 52.59
2024 79.99 Est @ 4.59% 51.04
2025 83.11 Est @ 3.91% 49.20
2026 85.96 Est @ 3.43% 47.22
2027 88.62 Est @ 3.09% 45.16
2028 91.16 Est @ 2.86% 43.10
Present value of next 10 years cash flows A$501.57
ASX:IPH DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= A$91.16 × (1 + 2.31%) ÷ (7.78% – 2.31%)
A$1,706.48
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$1,706.48 ÷ (1 + 7.78%)10
A$806.92
ASX:IPH Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$501.57 + A$806.92
A$1,308.49
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$1,308.49 / 197.34
A$6.63
ASX:IPH Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$6.63
Current discount Discount to share price of A$6.83
= -1 x (A$6.83 - A$6.63) / A$6.63
-3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of IPH is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for IPH's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are IPH's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:IPH PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$0.23
ASX:IPH Share Price ** ASX (2019-03-20) in AUD A$6.83
Australia Professional Services Industry PE Ratio Median Figure of 11 Publicly-Listed Professional Services Companies 17.14x
Australia Market PE Ratio Median Figure of 543 Publicly-Listed Companies 16.33x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of IPH.

ASX:IPH PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:IPH Share Price ÷ EPS (both in AUD)

= 6.83 ÷ 0.23

29.76x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • IPH is overvalued based on earnings compared to the AU Professional Services industry average.
  • IPH is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does IPH's expected growth come at a high price?
Raw Data
ASX:IPH PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 29.76x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
11.2%per year
Australia Professional Services Industry PEG Ratio Median Figure of 10 Publicly-Listed Professional Services Companies 1.18x
Australia Market PEG Ratio Median Figure of 362 Publicly-Listed Companies 1.38x

*Line of best fit is calculated by linear regression .

ASX:IPH PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 29.76x ÷ 11.2%

2.66x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • IPH is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on IPH's assets?
Raw Data
ASX:IPH PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$1.39
ASX:IPH Share Price * ASX (2019-03-20) in AUD A$6.83
Australia Professional Services Industry PB Ratio Median Figure of 24 Publicly-Listed Professional Services Companies 2.12x
Australia Market PB Ratio Median Figure of 1,669 Publicly-Listed Companies 1.68x
ASX:IPH PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:IPH Share Price ÷ Book Value per Share (both in AUD)

= 6.83 ÷ 1.39

4.92x

* Primary Listing of IPH.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • IPH is overvalued based on assets compared to the AU Professional Services industry average.
X
Value checks
We assess IPH's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Professional Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Professional Services industry average (and greater than 0)? (1 check)
  5. IPH has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

IPH Future Performance

 How is IPH expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
11.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is IPH expected to grow at an attractive rate?
  • IPH's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • IPH's earnings growth is expected to exceed the Australia market average.
  • IPH's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:IPH Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:IPH Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 11.2%
ASX:IPH Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 4.1%
Australia Professional Services Industry Earnings Growth Rate Market Cap Weighted Average 29.9%
Australia Professional Services Industry Revenue Growth Rate Market Cap Weighted Average 10.2%
Australia Market Earnings Growth Rate Market Cap Weighted Average 6.5%
Australia Market Revenue Growth Rate Market Cap Weighted Average 2.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:IPH Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:IPH Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-06-30 297 1
2022-06-30 287 1
2021-06-30 279 71 64 7
2020-06-30 267 65 58 7
2019-06-30 256 57 52 7
ASX:IPH Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-31 246 55 45
2018-09-30 235 51 43
2018-06-30 224 46 41
2018-03-31 209 45 41
2017-12-31 194 44 40
2017-09-30 188 47 42
2017-06-30 183 50 43
2017-03-31 177 45 43
2016-12-31 171 40 43
2016-09-30 163 41 41
2016-06-30 154 42 39
2016-03-31 138 42 37

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • IPH's earnings are expected to grow by 11.2% yearly, however this is not considered high growth (20% yearly).
  • IPH's revenue is expected to grow by 4.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:IPH Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from IPH Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:IPH Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-06-30
2022-06-30
2021-06-30 0.33 0.36 0.31 4.00
2020-06-30 0.30 0.33 0.28 4.00
2019-06-30 0.28 0.30 0.25 4.00
ASX:IPH Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-31 0.23
2018-09-30 0.22
2018-06-30 0.21
2018-03-31 0.21
2017-12-31 0.21
2017-09-30 0.22
2017-06-30 0.22
2017-03-31 0.23
2016-12-31 0.23
2016-09-30 0.22
2016-06-30 0.22
2016-03-31 0.22

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • IPH is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess IPH's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
IPH has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

IPH Past Performance

  How has IPH performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare IPH's growth in the last year to its industry (Professional Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • IPH's year on year earnings growth rate has been positive over the past 5 years.
  • IPH's 1-year earnings growth exceeds its 5-year average (11.4% vs 9.1%)
  • IPH's earnings growth has not exceeded the AU Professional Services industry average in the past year (11.4% vs 11.4%).
Earnings and Revenue History
IPH's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from IPH Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:IPH Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 246.00 45.10 85.95
2018-09-30 235.01 42.89 81.73
2018-06-30 224.02 40.67 77.50
2018-03-31 208.79 40.59 70.39
2017-12-31 193.56 40.50 63.28
2017-09-30 188.48 41.70 60.93
2017-06-30 183.41 42.89 58.58
2017-03-31 177.02 42.70 56.83
2016-12-31 170.63 42.50 55.08
2016-09-30 162.52 40.67 51.74
2016-06-30 154.41 38.84 48.40
2016-03-31 138.21 37.36 40.94
2015-12-31 122.01 35.87 33.49
2015-09-30 105.38 33.09 26.46
2015-06-30 88.75 30.32 19.43
2015-03-31 83.88 29.83 17.71
2014-12-31 79.02 29.34 15.99
2014-09-30 76.19 30.34 15.95
2014-06-30 73.35 31.34 15.91
2013-06-30 74.20 20.30 2.50

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • IPH has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • IPH used its assets more efficiently than the AU Professional Services industry average last year based on Return on Assets.
  • IPH's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess IPH's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Professional Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
IPH has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

IPH Health

 How is IPH's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up IPH's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • IPH is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • IPH's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of IPH's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from IPH Company Filings, last reported 2 months ago.

ASX:IPH Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 273.79 32.64 29.35
2018-09-30 273.79 32.64 29.35
2018-06-30 267.59 40.30 26.21
2018-03-31 267.59 40.30 26.21
2017-12-31 269.21 33.31 18.28
2017-09-30 269.21 33.31 18.28
2017-06-30 239.69 0.20 24.40
2017-03-31 239.69 0.20 24.40
2016-12-31 239.41 0.00 32.25
2016-09-30 239.41 0.00 32.25
2016-06-30 221.81 0.20 58.76
2016-03-31 221.81 0.20 58.76
2015-12-31 204.57 0.04 76.99
2015-09-30 204.57 0.04 76.99
2015-06-30 35.18 10.55 5.35
2015-03-31 35.18 10.55 5.35
2014-12-31 0.34 13.28 4.79
2014-09-30 0.34 13.28 4.79
2014-06-30 0.15 6.10 4.32
2013-06-30
  • IPH's level of debt (11.9%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if IPH's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (168.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 35.6x coverage).
X
Financial health checks
We assess IPH's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. IPH has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

IPH Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.37%
Current annual income from IPH dividends. Estimated to be 4.02% next year.
If you bought A$2,000 of IPH shares you are expected to receive A$67 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • IPH's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.61%).
  • IPH's dividend is below the markets top 25% of dividend payers in Australia (5.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:IPH Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
Australia Professional Services Industry Average Dividend Yield Market Cap Weighted Average of 14 Stocks 3.1%
Australia Market Average Dividend Yield Market Cap Weighted Average of 418 Stocks 4.4%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.6%
Australia Bottom 25% Dividend Yield 25th Percentile 2.6%
Australia Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:IPH Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2023-06-30 0.32 1.00
2022-06-30 0.31 1.00
2021-06-30 0.29 7.00
2020-06-30 0.27 7.00
2019-06-30 0.25 7.00
ASX:IPH Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-02-13 0.230 3.664
2018-08-15 0.225 4.023
2017-08-16 0.220 4.820
2016-08-17 0.210 4.198
2016-02-22 0.220 3.277
2015-09-16 0.200 2.538
2015-08-26 0.200 3.560
2015-02-25 0.070 1.496

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, IPH has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but IPH only paid a dividend in the past 4 years.
Current Payout to shareholders
What portion of IPH's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.2x coverage).
X
Income/ dividend checks
We assess IPH's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can IPH afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. IPH has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

IPH Management

 What is the CEO of IPH's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Andrew Blattman
COMPENSATION A$1,469,675
TENURE AS CEO 1.3 years
CEO Bio

Dr. Andrew Blattman serves as Managing Director of IPH Limited and has been its Chief Executive Officer and Director since November 20, 2017. Dr. Blattman serves as the Chief Executive Officer of Spruson & Ferguson Pty Limited since 2015. Dr. Blattman served as a Principal of IPH Limited since 1999. He joined Spruson & Ferguson in 1995. Since Spruson & Ferguson’s incorporation and the listing of IPH on the Australian Stock Exchange in 2014, Andrew has played a key role in the development and growth of the IPH group. He has a deep knowledge and understanding of the IPH business. Dr. Blattman has been with IPH Group for 20 years and is with hemical/life team. Dr. Blattman is the Australian representative on the Biotechnology sub-committee of AIPPI (International Association for the Protection of Intellectual Property). Under his leadership Spruson & Ferguson significantly expanded its footprint in the Australian and Asian IP markets ? opening new offices in Melbourne, Beijing, Hong Kong SAR, Jakarta and Bangkok. Dr. Blattman is a Registered Australian Patent Attorney, Registered New Zealand Patent Attorney and Registered Australian Trade Marks Attorney. Dr. Blattman holds BS in Agricultural Science (Hons 1) from University of Sydney and Doctor of Philosophy from University of New England and Graduate Diploma in Industrial Property from University of Technology Sydney.

CEO Compensation
  • Andrew's compensation has increased by more than 20% in the past year.
  • Andrew's remuneration is about average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the IPH management team in years:

3.7
Average Tenure
  • The tenure for the IPH management team is about average.
Management Team

Andrew Blattman

TITLE
CEO, MD & Director
COMPENSATION
A$1M
TENURE
1.3 yrs

John Wadley

TITLE
Chief Financial Officer
COMPENSATION
A$529K
TENURE
2.6 yrs

Kristian Robinson

TITLE
Principal
COMPENSATION
A$414K

David Griffith

TITLE
COMPENSATION
A$741K
TENURE
1.3 yrs

Philip Heuzenroeder

TITLE
Principal
TENURE
2.9 yrs

Simon Saunders

TITLE
Head of IT & Systems
TENURE
4.5 yrs

Greg Turner

TITLE
Principal
COMPENSATION
A$129K
TENURE
34.2 yrs

Greg Gurr

TITLE
Principal
TENURE
20.2 yrs

John Afaras

TITLE
Principal

Shahnaz Irani

TITLE
Principal
TENURE
19.2 yrs
Board of Directors Tenure

Average tenure and age of the IPH board of directors in years:

4.5
Average Tenure
61
Average Age
  • The tenure for the IPH board of directors is about average.
Board of Directors

Richard Grellman

TITLE
Independent Non-Executive Chairman
COMPENSATION
A$220K
AGE
68
TENURE
4.5 yrs

Andrew Blattman

TITLE
CEO, MD & Director
COMPENSATION
A$1M
TENURE
1.3 yrs

John Atkin

TITLE
Independent Non-Executive Director
COMPENSATION
A$115K
AGE
61
TENURE
4.5 yrs

Robin Low

TITLE
Independent Non-Executive Director
COMPENSATION
A$115K
AGE
57
TENURE
4.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
12. Mar 19 Sell Perpetual Limited Company 07. Feb 19 08. Mar 19 -3,434,118 A$6.28 A$-21,567,719
12. Mar 19 Buy Perpetual Limited Company 20. Dec 18 14. Feb 19 1,368,492 A$5.52 A$7,559,513
25. Feb 19 Sell Paradice Investment Management Pty Ltd. Company 24. Dec 18 11. Feb 19 -6,660 A$6.02 A$-36,711
25. Feb 19 Buy Paradice Investment Management Pty Ltd. Company 02. Jan 19 21. Feb 19 2,056,164 A$6.04 A$11,983,858
18. Dec 18 Buy Paradice Investment Management Pty Ltd. Company 11. Dec 18 14. Dec 18 2,153,199 A$5.75 A$12,327,468
12. Dec 18 Buy Paradice Investment Management Pty Ltd. Company 21. Aug 18 10. Dec 18 10,020,066 A$6.11 A$57,206,891
13. Dec 18 Sell Perpetual Limited Company 05. Dec 18 11. Dec 18 -2,328,205 A$5.73 A$-13,292,351
07. Dec 18 Sell Realindex Investments Pty Limited Company 18. Oct 18 20. Nov 18 -136,846 A$5.47 A$-748,222
07. Dec 18 Buy Realindex Investments Pty Limited Company 27. Aug 18 04. Dec 18 330,554 A$5.47 A$1,807,592
07. Dec 18 Sell Colonial First State Asset Management (Australia) Limited Company 31. Aug 18 06. Dec 18 -1,288,227 A$5.62 A$-7,159,409
07. Dec 18 Buy Colonial First State Asset Management (Australia) Limited Company 28. Aug 18 30. Nov 18 433,078 A$5.64 A$2,433,451
06. Dec 18 Sell Perpetual Limited Company 14. Nov 18 04. Dec 18 -2,483,568 A$5.72 A$-14,154,907
06. Dec 18 Buy Perpetual Limited Company 21. Nov 18 23. Nov 18 294,078 A$5.11 A$1,484,466
14. Nov 18 Sell Perpetual Limited Company 15. Aug 18 12. Nov 18 -3,079,376 A$5.23 A$-16,103,699
14. Nov 18 Buy Perpetual Limited Company 16. Aug 18 11. Oct 18 639,895 A$5.61 A$3,591,033
30. May 18 Buy Realindex Investments Pty Limited Company 28. Mar 18 22. May 18 164,979 A$3.86 A$637,082
20. Jun 18 Buy Realindex Investments Pty Limited Company 30. May 18 14. Jun 18 14,115 A$4.42 A$62,392
22. Mar 18 Buy Realindex Investments Pty Limited Company 21. Mar 18 21. Mar 18 103,336 A$3.55 A$366,677
27. Aug 18 Buy Realindex Investments Pty Limited Company 04. Jul 18 14. Aug 18 27,592 A$4.89 A$134,898
02. Jul 18 Buy Realindex Investments Pty Limited Company 26. Jun 18 26. Jun 18 29,190 A$4.55 A$132,809
30. May 18 Sell Realindex Investments Pty Limited Company 17. May 18 17. May 18 -2,796 A$4.30 A$-12,023
21. Oct 18 Sell Marathon Asset Management, LLP Company 17. Oct 18 17. Oct 18 -35,238 A$5.79 A$-204,028
17. Oct 18 Buy Marathon Asset Management, LLP Company 01. Jun 18 16. Oct 18 1,603,822 A$6.08 A$9,750,275
10. Sep 18 Sell Macquarie Investment Management Australia Limited Company 31. Aug 18 05. Sep 18 -18,886 A$5.69 A$0
10. Sep 18 Sell Macquarie Group, Ltd., Banking & Securities Investments Company 28. Aug 18 05. Sep 18 -75,304 A$5.80 A$0
10. Sep 18 Buy Macquarie Group, Ltd., Banking & Securities Investments Company 28. Aug 18 03. Sep 18 6,287 A$5.78 A$0
10. Sep 18 Buy Macquarie Investment Management Limited Company 29. Aug 18 05. Sep 18 14,542 A$5.85 A$0
30. Aug 18 Sell Macquarie Investment Management Australia Limited Company 19. Jun 18 27. Aug 18 -15,650 A$5.80 A$0
30. Aug 18 Buy Macquarie Investment Management Australia Limited Company 14. May 18 27. Aug 18 48,259 A$5.80 A$0
30. Aug 18 Sell Macquarie Group, Ltd., Banking & Securities Investments Company 30. Apr 18 23. Aug 18 -9,519 A$5.80 A$0
30. Aug 18 Buy Macquarie Group, Ltd., Banking & Securities Investments Company 30. Apr 18 23. Aug 18 9,519 A$5.80 A$0
30. Aug 18 Sell Macquarie Group, Ltd., Banking & Securities Investments Company 30. Apr 18 27. Aug 18 -970,661 A$5.81 A$0
30. Aug 18 Buy Macquarie Group, Ltd., Banking & Securities Investments Company 30. Apr 18 24. Aug 18 1,349,052 A$5.76 A$0
30. Aug 18 Sell Macquarie Investment Management Limited Company 01. May 18 27. Aug 18 -204,850 A$5.79 A$0
30. Aug 18 Buy Macquarie Investment Management Limited Company 07. May 18 27. Aug 18 80,479 A$5.81 A$0
27. Aug 18 Buy Colonial First State Asset Management (Australia) Limited Company 29. Jun 18 23. Aug 18 2,301,299 A$5.57 A$12,811,672
22. Aug 18 Sell Talabah Pty Limited Company 22. Aug 18 22. Aug 18 -2,000,000 A$5.55 A$-11,099,998
14. Aug 18 Sell UBS Asset Management Company 06. Aug 18 10. Aug 18 -488,754 A$4.94 A$-2,416,338
14. Aug 18 Buy UBS Asset Management Company 06. Aug 18 10. Aug 18 950,320 A$4.98 A$4,736,698
24. Jul 18 Sell Perpetual Limited Company 13. Dec 17 20. Jul 18 -12,840,199 A$4.06 A$-52,073,677
24. Jul 18 Buy Perpetual Limited Company 11. Dec 17 02. May 18 10,812,558 A$3.95 A$42,750,776
02. Jul 18 Buy Colonial First State Asset Management (Australia) Limited Company 26. Jun 18 28. Jun 18 4,153 A$4.57 A$18,793
20. Jun 18 Buy Colonial First State Asset Management (Australia) Limited Company 04. Jun 18 14. Jun 18 2,451 A$4.50 A$11,018
03. Jun 18 Buy Marathon Asset Management, LLP Company 19. Feb 18 31. May 18 2,140,441 A$4.15 A$8,878,549
30. May 18 Sell Colonial First State Asset Management (Australia) Limited Company 29. Mar 18 29. May 18 -544,245 A$4.37 A$-2,308,488
30. May 18 Buy Colonial First State Asset Management (Australia) Limited Company 28. Mar 18 25. May 18 170,303 A$4.24 A$687,764
X
Management checks
We assess IPH's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. IPH has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

IPH News

Simply Wall St News

Is IPH Limited's (ASX:IPH) Balance Sheet A Threat To Its Future?

While small-cap stocks, such as IPH Limited (ASX:IPH) with its market cap of AU$1.3b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … Evaluating financial health as part of your investment thesis is. … We'll look at some basic checks that can form a snapshot the company’s financial strength.

Simply Wall St -

The IPH Share Price Is Up 101% And Shareholders Are Boasting About It

On the other hand, if you find a high quality business to buy (at the right price) you can more than double your money! … For example, the IPH Limited (ASX:IPH) share price has soared 101% in the last year. … One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

Simply Wall St -

What Type Of Shareholder Owns IPH Limited's (ASX:IPH)?

Generally speaking, as a company grows, institutions will increase their ownership. … As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.'. … We can zoom in on the different ownership groups, to learn more about IPH

Simply Wall St -

What Do Analysts Think About IPH Limited's (ASX:IPH) Growth?

Want to participate in a short research study? … Help shape the future of investing tools and you could win a $250 gift card! … IPH Limited's (ASX:IPH) most recent earnings update in June 2018a

Simply Wall St -

Is IPH Limited (ASX:IPH) A Smart Choice For Dividend Investors?

Dividends play a key role in compounding returns over time and can form a large part of our portfolio return. … IPH Limited (ASX:IPH) has paid a dividend to shareholders in the last few years. … Should it have a place in your portfolio?

Simply Wall St -

Should We Worry About IPH Limited's (ASX:IPH) P/E Ratio?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … IPH has a price to earnings ratio of 26.94, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

IPH Limited's (ASX:IPH) Most Important Factor To Consider

I’ve analysed below, the health and outlook of IPH’s cash flow, which will help you understand the stock from a cash standpoint. … I will be analysing IPH’s FCF by looking at its FCF yield and its operating cash flow growth. … The yield will tell us whether the stock is generating enough cash to compensate for the risk investors take on by holding a single stock, which I will compare to the market index.

Simply Wall St -

Are IPH Limited's (ASX:IPH) Interest Costs Too High?

While small-cap stocks, such as IPH Limited (ASX:IPH) with its market cap of AU$1.1b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … So, understanding the company's financial health becomes. … Here are a few basic checks that are good enough to have a broad overview of the company’s financial strength.

Simply Wall St -

Taking A Look At IPH Limited's (ASX:IPH) ROE

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Our data shows IPH has a return on equity of 15% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

IPH Limited (ASX:IPH): The Return Story

Your return is tied to IPH’s ability to do this because the amount earned is used to invest in opportunities to grow the business or payout dividends, which are the two sources of return on investment. … Thus, to understand how your money can grow by investing in IPH, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE) … Calculating Return On Capital Employed for IPH

Simply Wall St -

IPH Company Info

Description

IPH Limited, together with its subsidiaries, provides intellectual property (IP) services and products. It offers IP services related to the provision of filing, prosecution, enforcement, and management of patents, designs, trademarks, and other IP; and engages in the development and provision of IP data and analytics software under the subscription license model. The company is also involved in data analysis and software business, as well as provides software development and patent attorney services. It serves Fortune Global 500 companies, multinationals, public sector research organizations, SMEs, and professional services firms in Australia, New Zealand, Singapore, Malaysia, Thailand, Indonesia, China, Hong Kong, Germany, and internationally. IPH Limited was founded in 1887 and is based in Sydney, Australia.

Details
Name: IPH Limited
IPH
Exchange: ASX
Founded: 1887
A$1,324,161,907
197,341,566
Website: http://www.iphltd.com.au
Address: IPH Limited
Tower 2,
Level 24,
Sydney,
New South Wales, 2000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX IPH Ordinary Shares Australian Securities Exchange AU AUD 19. Nov 2014
DB 1IP Ordinary Shares Deutsche Boerse AG DE EUR 19. Nov 2014
Number of employees
Current staff
Staff numbers
630
IPH employees.
Industry
Research and Consulting Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/20 10:35
End of day share price update: 2019/03/20 00:00
Last estimates confirmation: 2019/03/19
Last earnings filing: 2019/02/13
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.