ASX:IEL

Stock Analysis Report

Executive Summary

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

Rewards

Earnings are forecast to grow 20.66% per year

Earnings grew by 35.2% over the past year

Risk Analysis

Highly volatile share price over past 3 months



Snowflake Analysis

Outstanding track record with high growth potential.


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

Stable Share Price: IEL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

8.9%

IEL

18.2%

AU Consumer Services

0.8%

AU Market


1 Year Return

61.9%

IEL

12.8%

AU Consumer Services

15.3%

AU Market

Return vs Industry: IEL exceeded the Australian Consumer Services industry which returned 12.8% over the past year.

Return vs Market: IEL exceeded the Australian Market which returned 15.3% over the past year.


Shareholder returns

IELIndustryMarket
7 Day8.9%18.2%0.8%
30 Day14.0%4.5%0.3%
90 Day33.1%14.7%5.3%
1 Year64.0%61.9%15.9%12.8%20.5%15.3%
3 Year465.5%434.9%23.9%11.8%37.4%18.8%
5 Yearn/a-29.6%-41.8%50.7%16.8%

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 compared to its fair value and its price relative to the market?

70.9x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: IEL (A$23.32) is trading above our estimate of fair value (A$19.33)

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


Price To Earnings Ratio

PE vs Industry: IEL is poor value based on its PE Ratio (70.9x) compared to the Consumer Services industry average (20.1x).

PE vs Market: IEL is poor value based on its PE Ratio (70.9x) compared to the Australian market (18.8x).


Price to Earnings Growth Ratio

PEG Ratio: IEL is poor value based on its PEG Ratio (3.4x)


Price to Book Ratio

PB vs Industry: IEL is overvalued based on its PB Ratio (32.6x) compared to the AU Consumer Services industry average (1.8x).


Next Steps

Future Growth

How is IDP Education forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

20.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IEL's forecast earnings growth (20.7% per year) is above the savings rate (1.1%).

Earnings vs Market: IEL's earnings (20.7% per year) are forecast to grow faster than the Australian market (9.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: IEL's revenue (13.9% per year) is forecast to grow faster than the Australian market (4.2% per year).

High Growth Revenue: IEL's revenue (13.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IEL's Return on Equity is forecast to be very high in 3 years time (62.7%).


Next Steps

Past Performance

How has IDP Education performed over the past 5 years?

19.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IEL has high quality earnings.

Growing Profit Margin: IEL's current net profit margins (12.4%) are higher than last year (11.3%).


Past Earnings Growth Analysis

Earnings Trend: IEL's earnings have grown by 19.7% per year over the past 5 years.

Accelerating Growth: IEL's earnings growth over the past year (35.2%) exceeds its 5-year average (19.7% per year).

Earnings vs Industry: IEL earnings growth over the past year (35.2%) exceeded the Consumer Services industry 0.6%.


Return on Equity

High ROE: IEL's Return on Equity (46%) is considered outstanding.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is IDP Education's financial position?


Financial Position Analysis

Short Term Liabilities: IEL's short term assets (A$215.8M) exceed its short term liabilities (A$160.6M).

Long Term Liabilities: IEL's short term assets (A$215.8M) exceed its long term liabilities (A$137.6M).


Debt to Equity History and Analysis

Debt Level: IEL's debt to equity ratio (34.6%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if IEL's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: IEL's debt is well covered by operating cash flow (173%).

Interest Coverage: IEL's interest payments on its debt are well covered by EBIT (40.8x coverage).


Balance Sheet

Inventory Level: IEL has a high level of physical assets or inventory.

Debt Coverage by Assets: IEL's debt is covered by short term assets (assets are 3.4x debt).


Next Steps

Dividend

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

1.03%

Current Dividend Yield


Upcoming Dividend Payment

Purchase IDP Education before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.0%marketbottom25%2.3%markettop25%5.5%industryaverage2.2%forecastin3Years1.5%

Current dividend yield vs market & industry

Notable Dividend: IEL's dividend (1.03%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.29%).

High Dividend: IEL's dividend (1.03%) is low compared to the top 25% of dividend payers in the Australian market (5.49%).


Stability and Growth of Payments

Stable Dividend: IEL is not paying a notable dividend for the Australian market, therefore no need to check if payments are stable.

Growing Dividend: IEL is not paying a notable dividend for the Australian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: IEL is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of IEL's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Andrew Barkla 0

4.5yrs

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

Compensation vs Market: Andrew's total compensation ($USD1.51M) is below average for companies of similar size in the Australian market ($USD2.16M).

Compensation vs Earnings: Andrew's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Barkla
MD, CEO & Director4.5yrsAU$2.25m0.094% A$5.6m
Murray Walton
CFO & Company Secretary9.9yrsAU$1.03m0.025% A$1.5m
Warwick Freeland
Chief Strategy Officer & MD of IELTS11.5yrsAU$873.62kno data
Harmeet Pental
Chief Operating Officer2.3yrsno datano data
Craig Mackey
Director of Corporate Development2.3yrsno datano data
Georgia Murphy
General Manager of People & Culture10.8yrsno datano data
Neil Pearson
Chief Digital Marketing Officer3.1yrsno datano data
Simon Emmett
Chief Executive Officer of Hotcourses Group5.1yrsno datano data

4.8yrs

Average Tenure

Experienced Management: IEL's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Andrew Barkla
MD, CEO & Director4.5yrsAU$2.25m0.094% A$5.6m
Peter Polson
Non-Executive Chairman5.1yrsAU$350.00k0.034% A$2.0m
Gregory West
Non-Executive Director13.2yrsAU$170.00k0.0098% A$583.0k
David Battersby
Non-Executive Director9yrsAU$160.00k0.0029% A$168.7k
Chris Leptos
Non-Executive Director4.3yrsAU$170.00k0.010% A$603.1k
Ariane Barker
Non-Executive Director4.3yrsAU$190.00k0.0074% A$439.8k
Colin Stirling
Non-Executive Director2yrsAU$160.00kno data

4.7yrs

Average Tenure

Experienced Board: IEL's board of directors are considered experienced (4.7 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

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$5.919b
  • Shares outstanding: 253.82m
  • 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
IELCHIA (Chi-X Australia)YesOrdinary SharesAUAUDNov 2015
03FDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2015
IDPU.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 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 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. The company has operations approximately in 30 countries worldwide. IDP Education Limited was incorporated in 2005 and is headquartered in Melbourne, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 10:47
End of Day Share Price2020/02/19 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.