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IPH

IPH ASX:IPH Stock Report

Last Price

AU$9.97

Market Cap

AU$2.2b

7D

16.9%

1Y

10.8%

Updated

19 Aug, 2022

Data

Company Financials +
IPH fundamental analysis
Snowflake Score
Valuation1/6
Future Growth4/6
Past Performance2/6
Financial Health5/6
Dividends2/6

IPH Stock Overview

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

IPH Competitors

Price History & Performance

Summary of all time highs, changes and price drops for IPH
Historical stock prices
Current Share PriceAU$9.97
52 Week HighAU$10.42
52 Week LowAU$6.86
Beta0.50
1 Month Change21.73%
3 Month Change23.70%
1 Year Change10.78%
3 Year Change8.84%
5 Year Change120.09%
Change since IPO221.61%

Recent News & Updates

Shareholder Returns

IPHAU Professional ServicesAU Market
7D16.9%3.1%0.8%
1Y10.8%-4.3%-4.9%

Return vs Industry: IPH exceeded the Australian Professional Services industry which returned -4.3% over the past year.

Return vs Market: IPH exceeded the Australian Market which returned -4.9% over the past year.

Price Volatility

Is IPH's price volatile compared to industry and market?
IPH volatility
IPH Average Weekly Movement5.6%
Professional Services Industry Average Movement6.4%
Market Average Movement10.5%
10% most volatile stocks in AU Market17.8%
10% least volatile stocks in AU Market4.6%

Stable Share Price: IPH is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: IPH's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1887877Andrew Blattmanhttps://www.iphltd.com.au

IPH Limited, together with its subsidiaries, provides intellectual property (IP) services and products in Australia and internationally. It operates through three segments: Intellectual Property Services Australia & New Zealand, Intellectual Property Services Asia, and Adjacent Businesses. The company 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$2.23b
Earnings (TTM)AU$52.56m
Revenue (TTM)AU$374.33m

41.5x

P/E Ratio

5.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
IPH income statement (TTM)
RevenueAU$374.33m
Cost of RevenueAU$123.41m
Gross ProfitAU$250.92m
Other ExpensesAU$198.35m
EarningsAU$52.56m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.24
Gross Margin67.03%
Net Profit Margin14.04%
Debt/Equity Ratio27.6%

How did IPH perform over the long term?

See historical performance and comparison

Dividends

3.1%

Current Dividend Yield

127%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for IPH?

Other financial metrics that can be useful for relative valuation.

IPH key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue6.2x
Enterprise Value/EBITDA21.3x
PEG Ratio3.4x

Price to Earnings Ratio vs Peers

How does IPH's PE Ratio compare to its peers?

IPH PE Ratio vs Peers
The above table shows the PE ratio for IPH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average26.9x
ALQ ALS
31x13.6%AU$5.8b
KPG Kelly Partners Group Holdings
41.5x34.8%AU$226.4m
QIP QANTM Intellectual Property
18xn/aAU$142.3m
CUP CountPlus
18.1x21.4%AU$77.6m
IPH IPH
41.5x12.4%AU$2.2b

Price-To-Earnings vs Peers: IPH is expensive based on its Price-To-Earnings Ratio (41.5x) compared to the peer average (26.9x).


Price to Earnings Ratio vs Industry

How does IPH's PE Ratio compare vs other companies in the Global Professional Services Industry?

Price-To-Earnings vs Industry: IPH is expensive based on its Price-To-Earnings Ratio (41.5x) compared to the Global Professional Services industry average (20.7x)


Price to Earnings Ratio vs Fair Ratio

What is IPH's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

IPH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio41.5x
Fair PE Ratio24.4x

Price-To-Earnings vs Fair Ratio: IPH is expensive based on its Price-To-Earnings Ratio (41.5x) compared to the estimated Fair Price-To-Earnings Ratio (24.4x).


Share Price vs Fair Value

What is the Fair Price of IPH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: IPH (A$9.97) is trading below our estimate of fair value (A$10.31)

Significantly Below Fair Value: IPH is trading below fair value, but not by a significant amount.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is lower than the current share price.


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Future Growth

How is IPH forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


12.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IPH's forecast earnings growth (12.4% per year) is above the savings rate (1.8%).

Earnings vs Market: IPH's earnings (12.4% per year) are forecast to grow faster than the Australian market (6.2% per year).

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

Revenue vs Market: IPH's revenue (9% per year) is forecast to grow faster than the Australian market (5% per year).

High Growth Revenue: IPH's revenue (9% 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 (23%)


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Past Performance

How has IPH performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


5.8%

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%) are lower than last year (14.9%).


Past Earnings Growth Analysis

Earnings Trend: IPH's earnings have grown by 5.8% 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 (-1.9%) over the past year, making it difficult to compare to the Professional Services industry average (-17.2%).


Return on Equity

High ROE: IPH's Return on Equity (12.2%) is considered low.


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Financial Health

How is IPH's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: IPH's short term assets (A$197.0M) exceed its short term liabilities (A$70.1M).

Long Term Liabilities: IPH's short term assets (A$197.0M) exceed its long term liabilities (A$188.6M).


Debt to Equity History and Analysis

Debt Level: IPH's net debt to equity ratio (6.9%) is considered satisfactory.

Reducing Debt: IPH's debt to equity ratio has increased from 0.2% to 27.6% over the past 5 years.

Debt Coverage: IPH's debt is well covered by operating cash flow (79.9%).

Interest Coverage: IPH's interest payments on its debt are well covered by EBIT (21.2x coverage).


Balance Sheet


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Dividend

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

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.06%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: IPH's dividend (3.06%) is higher than the bottom 25% of dividend payers in the Australian market (2.63%).

High Dividend: IPH's dividend (3.06%) is low compared to the top 25% of dividend payers in the Australian market (6.42%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (126.6%), IPH's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (76.1%), IPH's dividend payments are covered by cash flows.


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Management

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

4.8yrs

Average management tenure


CEO

Andrew Blattman

4.75yrs

Tenure

AU$1,999,557

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 ($USD1.39M) is about average for companies of similar size in the Australian market ($USD1.59M).

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 considered experienced (4.8 years average tenure).


Board Members

Experienced Board: IPH's board of directors are considered experienced (4.8 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 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
  • Implied Market Cap: AU$2.234b
  • Shares outstanding: 218.82m
  • Website: https://www.iphltd.com.au

Number of Employees


Location

  • IPH Limited
  • Tower 2
  • Level 22
  • 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 Analysis2022/08/19 00:00
End of Day Share Price2022/08/19 00:00
Earnings2022/06/30
Annual Earnings2022/06/30


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.