ASX:IPH

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Excellent balance sheet with proven track record.

Share Price & News

How has IPH's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: IPH has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

6.5%

IPH

6.6%

AU Professional Services

3.6%

AU Market


1 Year Return

1.0%

IPH

-13.7%

AU Professional Services

-10.3%

AU Market

Return vs Industry: IPH exceeded the Australian Professional Services industry which returned -16.5% over the past year.

Return vs Market: IPH exceeded the Australian Market which returned -10.8% over the past year.


Shareholder returns

IPHIndustryMarket
7 Day6.5%6.6%3.6%
30 Day9.8%-1.3%0.2%
90 Day6.8%14.6%16.4%
1 Year3.9%1.0%-11.1%-13.7%-6.6%-10.3%
3 Year82.9%61.6%2.6%-7.2%18.2%2.5%
5 Year110.4%72.3%28.7%5.9%35.7%6.4%

Price Volatility Vs. Market

How volatile is IPH's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

28.44x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: IPH (A$7.84) is trading above our estimate of fair value (A$7.27)

Significantly Below Fair Value: IPH is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: IPH is poor value based on its PE Ratio (28.4x) compared to the Professional Services industry average (14.5x).

PE vs Market: IPH is poor value based on its PE Ratio (28.4x) compared to the Australian market (16x).


Price to Earnings Growth Ratio

PEG Ratio: IPH is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: IPH is overvalued based on its PB Ratio (4x) compared to the AU Professional Services industry average (1.9x).


Next Steps

Future Growth

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

13.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IPH's forecast earnings growth (13.4% per year) is above the savings rate (2.3%).

Earnings vs Market: IPH's earnings (13.4% per year) are forecast to grow slower than the Australian market (15.1% per year).

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

Revenue vs Market: IPH's revenue (6.4% per year) is forecast to grow faster than the Australian market (4.2% per year).

High Growth Revenue: IPH's revenue (6.4% 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 (21.5%)


Next Steps

Past Performance

How has IPH performed over the past 5 years?

10.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IPH has high quality earnings.

Growing Profit Margin: IPH's current net profit margins (18.2%) are lower than last year (18.4%).


Past Earnings Growth Analysis

Earnings Trend: IPH's earnings have grown by 10.9% per year over the past 5 years.

Accelerating Growth: IPH's earnings growth over the past year (24.4%) exceeds its 5-year average (10.9% per year).

Earnings vs Industry: IPH earnings growth over the past year (24.4%) exceeded the Professional Services industry 11.6%.


Return on Equity

High ROE: IPH's Return on Equity (13.3%) is considered low.


Next Steps

Financial Health

How is IPH's financial position?


Financial Position Analysis

Short Term Liabilities: IPH's short term assets (A$144.1M) exceed its short term liabilities (A$58.8M).

Long Term Liabilities: IPH's short term assets (A$144.1M) do not cover its long term liabilities (A$250.1M).


Debt to Equity History and Analysis

Debt Level: IPH's debt to equity ratio (31.1%) is considered satisfactory.

Reducing Debt: IPH's debt to equity ratio has reduced from 1562.6% to 31.1% over the past 5 years.

Debt Coverage: IPH's debt is well covered by operating cash flow (55.2%).

Interest Coverage: IPH's interest payments on its debt are well covered by EBIT (19.8x coverage).


Balance Sheet


Next Steps

Dividend

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

3.44%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IPH's dividend (3.44%) is higher than the bottom 25% of dividend payers in the Australian market (2.47%).

High Dividend: IPH's dividend (3.44%) is low compared to the top 25% of dividend payers in the Australian market (6.44%).


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 5 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (96.1%), 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 (81.1% payout ratio).


Next Steps

Management

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

17.5yrs

Average management tenure


CEO

Andrew Blattman

2.67yrs

Tenure

AU$1,727,907

Compensation

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 & ...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD1.20M) is about average for companies of similar size in the Australian market ($USD981.06K).

Compensation vs Earnings: Andrew's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Blattman
CEO, MD & Director2.67yrsAU$1.73mno data
John Wadley
Chief Financial Officer3.92yrsAU$860.30k0.00019% A$3.1k
Philip Heuzenroeder
Group General Counsel & Company Secretary4.25yrsno datano data
Simon Saunders
Head of IT & Systems5.83yrsno datano data
Greg Turner
Principal35.5yrsAU$128.73kno data
Greg Gurr
Principal21.5yrsno datano data
John Afaras
Principalno datano datano data
Shahnaz Irani
Principal20.5yrsno datano data
Tracey Berger
Principal18.5yrsno datano data
Paul Massey
Principal17.5yrsno datano data

17.5yrs

Average Tenure

Experienced Management: IPH's management team is seasoned and experienced (17.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Andrew Blattman
CEO, MD & Director2.67yrsAU$1.73mno data
Richard Grellman
Independent Non-Executive Chairman5.83yrsAU$250.00k0.024% A$399.7k
John Atkin
Independent Non-Executive Director5.83yrsAU$140.00k0.054% A$894.3k
Jingmin Qian
Independent Non-Executive Director1.25yrsAU$35.00kno data
Robin Low
Independent Non-Executive Director5.83yrsAU$140.00k0.035% A$573.0k

5.8yrs

Average Tenure

63yo

Average Age

Experienced Board: IPH's board of directors are considered experienced (5.8 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 been diluted in the past year, with total shares outstanding growing by 8.6%.


Top Shareholders

Company Information

IPH Limited's company bio, 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$1.655b
  • Shares outstanding: 214.40m
  • Website: https://www.iphltd.com.au

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IPHNCHIA (Chi-X Australia)NPV DFD 15/08/19 (EX-XENITHAUAUDNo data
IPHASX (Australian Securities Exchange)YesOrdinary SharesAUAUDNov 2014
IPHCHIA (Chi-X Australia)YesOrdinary SharesAUAUDNov 2014
1IPDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2014

Biography

IPH Limited, together with its subsidiaries, provides intellectual property (IP) services and products worldwide. The company operates in three segments: Intellectual Property Services Australia & New Zealand, Intellectual Property Services Asia, and Data and Analytics Software. It offers IP services related to the provision of filing, prosecution, enforcement, and management of patents, designs, trademarks, and other IP; and develops and provides IP data and analytics software under the subscription license model. The company is also provides patent attorney and lawyers services. It serves Fortune Global 500 companies, multinationals, public sector research organizations, SMEs, and professional services firms. IPH Limited was founded in 1887 and is based in Sydney, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/06 10:33
End of Day Share Price2020/07/06 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.