ASX:IEL

Stock Analysis Report

Executive Summary

IDP Education Limited engages in the placement of students into education institutions in Asia, Australasia, and internationally.

Snowflake

Fundamentals

High growth potential with solid track record.

Risks

  • IDP Education has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-1.9%

IEL

-2.0%

AU Consumer Services

1.0%

AU Market


1 Year Return

44.3%

IEL

23.0%

AU Consumer Services

7.2%

AU Market

IEL outperformed the Consumer Services industry which returned 23% over the past year.

IEL outperformed the Market in Australia which returned 7.2% over the past year.


Share holder returns

IELIndustryMarket
7 Day-1.9%-2.0%1.0%
30 Day-25.8%-14.6%3.2%
90 Day-19.9%-13.8%1.4%
1 Year46.1%44.3%26.1%23.0%13.4%7.2%
3 Year214.0%196.9%4.0%-6.2%40.7%21.8%
5 Yearn/a-17.3%-32.8%50.8%17.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

55.3x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

IDP Education's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

IDP Education's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

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

IDP Education is poor value based on expected growth next year.


Price Based on Value of Assets

IDP Education is overvalued based on assets compared to the AU Consumer Services industry average.


Next Steps

Future Growth

How is IDP Education expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

22.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

IDP Education's revenue is expected to grow by 14.6% yearly, however this is not considered high growth (20% yearly).

IDP Education's earnings are expected to grow significantly at over 20% yearly.

IDP Education's revenue growth is expected to exceed the Australia market average.

IDP Education's earnings growth is expected to exceed the Australia market average.

IDP Education's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

IDP Education is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

How has IDP Education performed over the past 5 years?

17.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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 (29.3% vs 17%)

IDP Education's earnings growth has exceeded the AU Consumer Services industry average in the past year (29.3% vs 0.6%).


Return on Equity

IDP Education made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).


Return on Assets

IDP Education used its assets more efficiently than the AU Consumer Services industry average last year based on Return on Assets.


Return on Capital Employed

IDP Education's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is IDP Education's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

IDP Education's level of debt (39.3%) compared to net worth is satisfactory (less than 40%).

Unable to establish if IDP Education's debt level has increased without past 5-year debt data.

Debt is well covered by operating cash flow (123.5%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 83.9x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 3.1x debt.


Next Steps

Dividend

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

2.12%

Expected Dividend Yield


Dividend Yield and Payments Analysis

IDP Education's pays a lower dividend yield than the bottom 25% of dividend payers in Australia (2.44%).

IDP Education's dividend is below the markets top 25% of dividend payers in Australia (5.64%).

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

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

Dividends after 3 years are expected to be covered by earnings (1.4x coverage).


Next Steps

Management

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

4.4yrs

Average management tenure


CEO

Andrew Barkla 0

4.1yrs

Tenure

AU$2,252,275

Compensation

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 ...


CEO Compensation Analysis

Andrew's remuneration is about average for companies of similar size in Australia.

Andrew's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.4yrs

Average Tenure

The tenure for the IDP Education management team is about average.


Board Age and Tenure

3.8yrs

Average Tenure

The tenure for the IDP Education board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellAU$445,48517 Jun 19
Greg West
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares25,000
Max PriceAU$17.82
SellAU$376,55307 May 19
Greg West
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares24,617
Max PriceAU$15.30
BuyAU$2,364,25103 May 19
Vinva Investment Management
EntityCompany
Shares159,703
Max PriceAU$14.80
SellAU$2,556,03403 May 19
Vinva Investment Management
EntityCompany
Shares171,450
Max PriceAU$14.91
SellAU$275,06902 May 19
Peter Polson
EntityIndividual
Role
Chairman of the Board
Chairman
Shares17,735
Max PriceAU$15.51
BuyAU$27,618,81427 Feb 19
Vinva Investment Management
EntityCompany
Shares2,111,429
Max PriceAU$13.08
SellAU$2,495,51727 Feb 19
Vinva Investment Management
EntityCompany
Shares258,005
Max PriceAU$9.67

Ownership Breakdown


Management Team

  • Andrew Barkla

    MD, CEO & Director

    • Tenure: 4.1yrs
    • Compensation: AU$2.25m
  • Harmeet Pental

    Chief Operating Officer

    • Tenure: 1.9yrs
  • Warwick Freeland

    Chief Strategy Officer & MD of IELTS

    • Tenure: 8.2yrs
    • Compensation: AU$873.62k
  • Murray Walton

    CFO & Company Secretary

    • Tenure: 9.5yrs
    • Compensation: AU$1.03m
  • Georgia Murphy

    General Manager of People & Culture

    • Tenure: 10.4yrs
  • Simon Emmett

    Chief Executive Officer of Hotcourses Group

    • Tenure: 4.7yrs
  • Neil Pearson

    Chief Digital Marketing Officer

    • Tenure: 2.7yrs
  • Craig Mackey

    Director of Corporate Development

    • Tenure: 1.8yrs

Board Members

  • Andrew Barkla

    MD, CEO & Director

    • Tenure: 4.1yrs
    • Compensation: AU$2.25m
  • Peter Polson

    Chairman

    • Tenure: 0yrs
    • Compensation: AU$350.00k
  • Greg West

    Non-Executive Director

    • Tenure: 12.8yrs
    • Compensation: AU$170.00k
  • David Battersby

    Non-Executive Director

    • Tenure: 8.6yrs
    • Compensation: AU$160.00k
  • Chris Leptos

    Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: AU$170.00k
  • Ariane Barker

    Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: AU$190.00k
  • Colin Stirling

    Non-Executive Director

    • Tenure: 1.6yrs
    • Compensation: AU$160.00k

Company Information

IDP Education Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: IDP Education Limited
  • Ticker: IEL
  • Exchange: ASX
  • Founded: 2005
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: AU$3.795b
  • Shares outstanding: 253.83m
  • Website: https://www.idp.com

Location

  • IDP Education Limited
  • 535 Bourke Street
  • Level 8
  • Melbourne
  • Victoria
  • 3000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IELASX (Australian Securities Exchange)YesOrdinary SharesAUAUDNov 2015
03FDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2015

Biography

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 gui ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/20 10:39
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
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.