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IDP Education

ASX:IEL
Snowflake Description

High growth potential with solid track record.

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

IDP Education Limited engages in the placement of students into education institutions in Asia, Australasia, and internationally. The last earnings update was 131 days ago. More info.


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IEL Share Price and Events
7 Day Returns
7.9%
ASX:IEL
4.5%
AU Consumer Services
1.7%
AU Market
1 Year Returns
83.4%
ASX:IEL
36.9%
AU Consumer Services
5.4%
AU Market
IEL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
IDP Education (IEL) 7.9% 7.8% 24.3% 83.4% 321.3% -
AU Consumer Services 4.5% 3.9% 10.9% 36.9% 7.2% -15.7%
AU Market 1.7% 2.8% 5.5% 5.4% 25% 12.3%
1 Year Return vs Industry and Market
  • IEL outperformed the Consumer Services industry which returned 36.9% over the past year.
  • IEL outperformed the Market in Australia which returned 5.4% over the past year.
Price Volatility
IEL
Industry
5yr Volatility vs Market

IEL Value

 Is IDP Education 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 IDP Education 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 IDP Education.

ASX:IEL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.3%
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:IEL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Consumer Services Unlevered Beta Simply Wall St/ S&P Global 0.76
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.757 (1 + (1- 30%) (1.41%))
0.842
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.84
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (0.842 * 5.96%)
7.33%

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

The calculations below outline how an intrinsic value for IDP Education 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:IEL DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 7.33%)
2019 75.30 Analyst x1 70.16
2020 97.50 Analyst x1 84.63
2021 121.10 Analyst x1 97.94
2022 140.26 Est @ 15.82% 105.68
2023 156.76 Est @ 11.77% 110.05
2024 170.76 Est @ 8.93% 111.69
2025 182.62 Est @ 6.94% 111.29
2026 192.76 Est @ 5.55% 109.44
2027 201.59 Est @ 4.58% 106.64
2028 209.46 Est @ 3.9% 103.23
Present value of next 10 years cash flows A$1,010.75
ASX:IEL DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= A$209.46 × (1 + 2.31%) ÷ (7.33% – 2.31%)
A$4,269.14
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$4,269.14 ÷ (1 + 7.33%)10
A$2,104.07
ASX:IEL Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$1,010.75 + A$2,104.07
A$3,114.83
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$3,114.83 / 253.45
A$12.29
ASX:IEL Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$12.29
Current discount Discount to share price of A$18.03
= -1 x (A$18.03 - A$12.29) / A$12.29
-46.7%

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

  • The current share price of IDP Education 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 IDP Education's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are IDP Education's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:IEL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$0.25
ASX:IEL Share Price ** ASX (2019-06-14) in AUD A$18.03
Australia Consumer Services Industry PE Ratio Median Figure of 11 Publicly-Listed Consumer Services Companies 18.34x
Australia Market PE Ratio Median Figure of 545 Publicly-Listed Companies 16.2x

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

** Primary Listing of IDP Education.

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

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

= 18.03 ÷ 0.25

73.32x

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

  • IDP Education is overvalued based on earnings compared to the AU Consumer Services industry average.
  • IDP Education is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does IDP Education's expected growth come at a high price?
Raw Data
ASX:IEL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 73.32x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
21.3%per year
Australia Consumer Services Industry PEG Ratio Median Figure of 7 Publicly-Listed Consumer Services Companies 1.31x
Australia Market PEG Ratio Median Figure of 357 Publicly-Listed Companies 1.4x

*Line of best fit is calculated by linear regression .

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

= PE Ratio ÷ Net Income Annual Growth Rate

= 73.32x ÷ 21.3%

3.44x

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

  • IDP Education is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on IDP Education's assets?
Raw Data
ASX:IEL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$0.62
ASX:IEL Share Price * ASX (2019-06-14) in AUD A$18.03
Australia Consumer Services Industry PB Ratio Median Figure of 19 Publicly-Listed Consumer Services Companies 2.05x
Australia Market PB Ratio Median Figure of 1,687 Publicly-Listed Companies 1.65x
ASX:IEL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 18.03 ÷ 0.62

29.15x

* Primary Listing of IDP Education.

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

  • IDP Education is overvalued based on assets compared to the AU Consumer Services industry average.
X
Value checks
We assess IDP Education'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 Consumer 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 Consumer Services industry average (and greater than 0)? (1 check)
  5. IDP Education 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.

IEL Future Performance

 How is IDP Education expected to perform in the next 1 to 3 years based on estimates from 6 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
21.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is IDP Education expected to grow at an attractive rate?
  • IDP Education's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • IDP Education's earnings growth is expected to exceed the Australia market average.
  • IDP Education's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:IEL Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:IEL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 21.3%
ASX:IEL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 15.7%
Australia Consumer Services Industry Earnings Growth Rate Market Cap Weighted Average 20.3%
Australia Consumer Services Industry Revenue Growth Rate Market Cap Weighted Average 11.9%
Australia Market Earnings Growth Rate Market Cap Weighted Average 6.9%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.3%

*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:IEL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:IEL Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-06-30 996 130 1
2021-06-30 820 133 105 6
2020-06-30 707 109 86 6
2019-06-30 603 89 68 6
ASX:IEL Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-31 549 84 62
2018-09-30 518 79 57
2018-06-30 487 75 52
2018-03-31 467 70 50
2017-12-31 446 65 48
2017-09-30 420 62 45
2017-06-30 394 59 42
2017-03-31 382 49 43
2016-12-31 370 39 44
2016-09-30 366 41 42
2016-06-30 362 44 40
2016-03-31 354 46 37

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • IDP Education's earnings are expected to grow significantly at over 20% yearly.
  • IDP Education's revenue is expected to grow by 15.7% 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:IEL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from IDP Education Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:IEL Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-06-30 0.51 0.51 0.51 1.00
2021-06-30 0.41 0.43 0.38 5.00
2020-06-30 0.33 0.35 0.32 5.00
2019-06-30 0.27 0.27 0.26 5.00
ASX:IEL Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-31 0.25
2018-09-30 0.23
2018-06-30 0.21
2018-03-31 0.20
2017-12-31 0.19
2017-09-30 0.18
2017-06-30 0.17
2017-03-31 0.17
2016-12-31 0.17
2016-09-30 0.17
2016-06-30 0.16
2016-03-31 0.15

*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.
  • IDP Education is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess IDP Education'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.
IDP Education has a total score of 5/6, 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.

IEL Past Performance

  How has IDP Education 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 IDP Education's growth in the last year to its industry (Consumer 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.
  • IDP Education's year on year earnings growth rate has been positive over the past 5 years.
  • IDP Education's 1-year earnings growth exceeds its 5-year average (29.4% vs 16.1%)
  • IDP Education's earnings growth has exceeded the AU Consumer Services industry average in the past year (29.4% vs -1.5%).
Earnings and Revenue History
IDP Education'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 IDP Education Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:IEL Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 549.46 61.89 35.80
2018-09-30 518.31 56.71 34.56
2018-06-30 487.16 51.52 33.33
2018-03-31 466.75 49.68 25.01
2017-12-31 446.34 47.84 23.47
2017-09-30 420.26 44.68 25.54
2017-06-30 394.19 41.51 27.60
2017-03-31 382.01 42.60 27.09
2016-12-31 369.84 43.69 26.59
2016-09-30 365.74 41.80 26.32
2016-06-30 361.64 39.91 26.05
2016-03-31 353.64 37.35 25.35
2015-12-31 345.65 34.78 24.65
2015-09-30 327.76 33.13 22.58
2015-06-30 309.87 31.48 20.50
2014-06-30 255.07 27.99 90.63
2013-06-30 215.72 21.20 75.43
2012-06-30 202.75 16.32 77.51

*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.
  • IDP Education has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • IDP Education used its assets more efficiently than the AU Consumer Services industry average last year based on Return on Assets.
  • IDP Education's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess IDP Education'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 Consumer 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.
IDP Education has a total score of 5/6, 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.

IEL Health

 How is IDP Education'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 IDP Education's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • IDP Education is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • IDP Education's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of IDP Education'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 IDP Education Company Filings, last reported 5 months ago.

ASX:IEL Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 156.65 64.42 54.77
2018-09-30 156.65 64.42 54.77
2018-06-30 101.29 63.93 48.81
2018-03-31 101.29 63.93 48.81
2017-12-31 108.45 47.13 34.38
2017-09-30 108.45 47.13 34.38
2017-06-30 88.80 39.11 41.96
2017-03-31 88.80 39.11 41.96
2016-12-31 89.88 0.00 23.96
2016-09-30 89.88 0.00 23.96
2016-06-30 79.32 0.00 35.35
2016-03-31 79.32 0.00 35.35
2015-12-31 61.09 7.00 20.35
2015-09-30 61.09 7.00 20.35
2015-06-30 91.44 0.00 51.18
2014-06-30 96.73 0.00 52.96
2013-06-30 103.64 0.00 49.36
2012-06-30 102.03 0.00 33.43
  • IDP Education's level of debt (41.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 41.1% today).
  • Debt is well covered by operating cash flow (130%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 112.6x coverage).
X
Financial health checks
We assess IDP Education'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. IDP Education has a total score of 4/6, 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.

IEL Dividends

 What is IDP Education'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
1.03%
Current annual income from IDP Education dividends. Estimated to be 1.46% next year.
If you bought A$2,000 of IDP Education shares you are expected to receive A$21 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?
  • IDP Education's pays a lower dividend yield than the bottom 25% of dividend payers in Australia (2.65%).
  • IDP Education's dividend is below the markets top 25% of dividend payers in Australia (5.72%).
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:IEL 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 6 Analyst Estimates (S&P Global) See Below
Australia Consumer Services Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 2.2%
Australia Market Average Dividend Yield Market Cap Weighted Average of 415 Stocks 4.1%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.6%
Australia Bottom 25% Dividend Yield 25th Percentile 2.7%
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:IEL Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2022-06-30 0.36 1.00
2021-06-30 0.31 6.00
2020-06-30 0.27 6.00
2019-06-30 0.20 6.00
ASX:IEL Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-02-06 0.185 1.212
2018-08-22 0.150 1.505
2018-02-06 0.140 1.661
2017-08-21 0.125 2.141
2017-02-08 0.140 2.988
2016-08-24 0.055 1.292
2016-02-10 0.000 0.000

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

  • IDP Education is not paying a notable dividend for Australia, therefore no need to check if the payments are stable.
  • IDP Education is not paying a notable dividend for Australia, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of IDP Education's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of IDP Education's dividends as it is not paying a notable one for Australia.
Future Payout to shareholders
  • No need to calculate the sustainability of IDP Education's dividends in 3 years as they are not expected to pay a notable one for Australia.
X
Income/ dividend checks
We assess IDP Education'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 IDP Education afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. IDP Education has a total score of 0/6, see the detailed checks below.


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

IEL Management

 What is the CEO of IDP Education'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 Barkla
COMPENSATION A$2,528,482
TENURE AS CEO 3.8 years
CEO Bio

Mr. Andrew Barkla has been the Chief Executive Officer and Managing Director of IDP Education Limited since August 17, 2015. Mr. Barkla Pacific region. Mr. Barkla has extensive experience in the technology, services and software industry, with more than 20 years of senior management experience in roles across Australia, New Zealand, Asia and North America. Prior to joining IDP Education, he served for SAP as President of Australia and New Zealand. Prior to his role at SAP, he served leadership roles at Unisys, including as Vice-President of Unisys’ Asia Pacific Japan operations covering 13 countries, as Chairman of Unisys West, a technology services joint venture between BankWest and Unisys. He served as Vice-President and General Manager of PeopleSoft’s Asia Pacific region prior to its acquisition by Oracle. He serves as a Director of IDP Education Limited.

CEO Compensation
  • Andrew's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Andrew's remuneration is about average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the IDP Education management team in years:

4.1
Average Tenure
  • The tenure for the IDP Education management team is about average.
Management Team

Andrew Barkla

TITLE
MD, CEO & Director
COMPENSATION
A$3M
TENURE
3.8 yrs

Murray Walton

TITLE
CFO & Company Secretary
COMPENSATION
A$865K
TENURE
9.3 yrs

Warwick Freeland

TITLE
Chief Strategy Officer & MD of IELTS
COMPENSATION
A$1M
TENURE
7.9 yrs

Harmeet Pental

TITLE
Chief Operating Officer
TENURE
1.7 yrs

Craig Mackey

TITLE
Director of Corporate Development
TENURE
1.6 yrs

Georgia Murphy

TITLE
General Manager of People & Culture
TENURE
10.2 yrs

Neil Pearson

TITLE
Chief Digital Marketing Officer
TENURE
2.4 yrs

Simon Emmett

TITLE
Chief Executive Officer of Hotcourses Group
TENURE
4.4 yrs
Board of Directors Tenure

Average tenure of the IDP Education board of directors in years:

3.6
Average Tenure
  • The tenure for the IDP Education board of directors is about average.
Board of Directors

Peter Polson

TITLE
Chairman
COMPENSATION
A$233K

Andrew Barkla

TITLE
MD, CEO & Director
COMPENSATION
A$3M

Ariane Barker

TITLE
Non-Executive Director
COMPENSATION
A$150K
TENURE
3.6 yrs

Greg West

TITLE
Non-Executive Director
COMPENSATION
A$133K
TENURE
12.5 yrs

David Battersby

TITLE
Non-Executive Director
COMPENSATION
A$130K
TENURE
8.3 yrs

Chris Leptos

TITLE
Non-Executive Director
COMPENSATION
A$133K
TENURE
3.6 yrs

Colin Stirling

TITLE
Non-Executive Director
COMPENSATION
A$61K
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • IDP Education insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
07. May 19 Sell Greg West Individual 07. May 19 07. May 19 -24,617 A$15.30 A$-376,553
03. May 19 Sell Vinva Investment Management Company 26. Feb 19 01. May 19 -171,450 A$14.91 A$-2,556,034
03. May 19 Buy Vinva Investment Management Company 26. Feb 19 01. May 19 159,703 A$14.80 A$2,364,251
02. May 19 Sell Peter Polson Individual 01. May 19 01. May 19 -17,735 A$15.51 A$-275,069
27. Feb 19 Sell Vinva Investment Management Company 25. Oct 18 25. Feb 19 -258,005 A$9.67 A$-2,495,517
27. Feb 19 Buy Vinva Investment Management Company 25. Oct 18 25. Feb 19 2,111,429 A$13.08 A$27,618,814
X
Management checks
We assess IDP Education'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. IDP Education 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.

IEL News

Simply Wall St News

IDP Education Limited (ASX:IEL) Insiders Have Been Selling

So shareholders might well want to know whether insiders have been buying or selling shares in IDP Education Limited (ASX:IEL). … In the last year IDP Education insiders didn't buy any company stock. … Insiders at IDP Education Have Sold Stock Recently Over the last three months, we've seen significant insider selling at IDP Education.

Simply Wall St -

What Does IDP Education Limited's (ASX:IEL) Balance Sheet Tell Us About It?

Additionally, IEL has generated cash from operations of AU$84m over the same time period, resulting in an operating cash to total debt ratio of 130%, signalling that IEL’s operating cash is sufficient to cover its debt. … Looking at IEL’s AU$134m in current liabilities, the company has been able to meet these obligations given the level of current assets of AU$179m, with a current ratio of 1.34x. … Next Steps: Although IEL’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet obligations which means its debt is being efficiently utilised.

Simply Wall St -

What Does IDP Education Limited's (ASX:IEL) P/E Ratio Tell You?

The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for IDP Education: P/E of 66.61 = A$16.38 ÷ A$0.25 (Based on the trailing twelve months to December 2018.) Is A High Price-to-Earnings Ratio Good? … A higher P/E ratio means that investors are paying a higher price for each A$1 of company earnings. … The Bottom Line On IDP Education's P/E Ratio With a P/E ratio of 66.6, IDP Education is expected to grow earnings very strongly in the years to come.

Simply Wall St -

Here's Why We Think IDP Education (ASX:IEL) Is Well Worth Watching

Check out our latest analysis for IDP Education IDP Education's Earnings Per Share Are Growing. … You can't deny that IDP Education has grown its earnings per share at a very impressive rate. … But as a growth investor I always like to check out companies that do have those features.

Simply Wall St -

Is IDP Education Limited's (ASX:IEL) Stock Available For A Good Price After Accounting For Growth?

Help shape the future of investing tools and you could win a $250 gift card! … IDP Education Limited (ASX:IEL) is considered a high-growth stock, but its last closing price of A$15.23 left some investors wondering if this high future earnings potential can be rationalized by its current price tag. … IDP Education is poised for significantly high earnings growth in the near future

Simply Wall St -

Why IDP Education Limited (ASX:IEL) Looks Like A Quality Company

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. … Another way to think of that is that for every A$1 worth of equity in the company, it was able to earn A$0.39. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

How Do Analysts See IDP Education Limited (ASX:IEL) Performing In The Year Ahead?

Looking at IDP Education Limited's (ASX:IEL) earnings update in December 2018,. … with earnings expected to grow by 23% in the upcoming year … the past 5-year average growth rate of 16%

Simply Wall St -

What You Must Know About IDP Education Limited's (ASX:IEL) Financial Strength

This article will examine IEL’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … Don’t forget that this is a general and concentrated examination of IDP Education’s financial health, so you should conduct further analysis. … IEL’s Debt (And Cash Flows)

Simply Wall St -

Investors Who Bought IDP Education (ASX:IEL) Shares Three Years Ago Are Now Up 225%

To wit, the IDP Education Limited (ASX:IEL) share price has flown 225% in the last three years. … During three years of share price growth, IDP Education achieved compound earnings per share growth of 21% per year. … In comparison, the 48% per year gain in the share price outpaces the EPS growth.

Simply Wall St -

Looking At IDP Education Limited (ASX:IEL) From All Angles

Attractive stocks have exceptional fundamentals. … In the case of IDP Education Limited (ASX:IEL), there's … track record

Simply Wall St -

IEL Company Info

Description

IDP Education Limited engages in the placement of students into education institutions in Asia, Australasia, and internationally. Its services include counselling, application processing, pre-departure guidance, examinations, English language teaching, client relations, digital marketing, online students recruitment, and shared services. The company is also involved in the distribution and administration of International English Language Testing System tests for study, work, and migration purposes. In addition, it operates English language schools and online education search Websites. The company has operations in 30 countries worldwide. IDP Education Limited is headquartered in Melbourne, Australia. IDP Education Limited is a subsidiary of IDP Education Australia Limited.

Details
Name: IDP Education Limited
IEL
Exchange: ASX
Founded:
A$4,569,780,434
253,454,267
Website: http://www.idp.com
Address: IDP Education Limited
535 Bourke Street,
Level 8,
Melbourne,
Victoria, 3000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX IEL Ordinary Shares Australian Securities Exchange AU AUD 26. Nov 2015
DB 03F Ordinary Shares Deutsche Boerse AG DE EUR 26. Nov 2015
Number of employees
Current staff
Staff numbers
0
IDP Education employees.
Industry
Education Services
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/17 10:38
End of day share price update: 2019/06/14 00:00
Last estimates confirmation: 2019/06/10
Last earnings filing: 2019/02/06
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.