ASX:IFM

Stock Analysis Report

Executive Summary

Infomedia Ltd, a technology company, develops and supplies electronic parts catalogues and service quoting software systems for the parts and service sectors of the automotive industry worldwide.


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

8.6%

IFM

1.6%

AU Software

4.0%

AU Market


1 Year Return

-5.1%

IFM

-5.6%

AU Software

-16.5%

AU Market

Return vs Industry: IFM exceeded the Australian Software industry which returned -5.7% over the past year.

Return vs Market: IFM exceeded the Australian Market which returned -16.2% over the past year.


Shareholder returns

IFMIndustryMarket
7 Day8.6%1.6%4.0%
30 Day-19.2%-6.1%-15.4%
90 Day-24.3%-20.1%-23.5%
1 Year-3.2%-5.1%-4.7%-5.6%-12.8%-16.5%
3 Year134.8%117.2%93.5%85.9%-0.9%-14.5%
5 Year48.6%26.0%83.5%71.6%11.2%-13.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

12.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IFM (A$1.6) is trading below our estimate of fair value (A$1.81)

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


Price To Earnings Ratio

PE vs Industry: IFM is good value based on its PE Ratio (28.1x) compared to the Software industry average (30.7x).

PE vs Market: IFM is poor value based on its PE Ratio (28.1x) compared to the Australian market (13.4x).


Price to Earnings Growth Ratio

PEG Ratio: IFM is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: IFM is overvalued based on its PB Ratio (7.5x) compared to the AU Software industry average (2.8x).


Next Steps

Future Growth

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

17.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IFM's forecast earnings growth (17.3% per year) is above the savings rate (1.1%).

Earnings vs Market: IFM's earnings (17.3% per year) are forecast to grow faster than the Australian market (10.7% per year).

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

Revenue vs Market: IFM's revenue (10.1% per year) is forecast to grow faster than the Australian market (4.1% per year).

High Growth Revenue: IFM's revenue (10.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IFM's Return on Equity is forecast to be high in 3 years time (30.2%)


Next Steps

Past Performance

How has Infomedia performed over the past 5 years?

6.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IFM has a large one-off gain of A$4.3M impacting its December 31 2019 financial results.

Growing Profit Margin: IFM's current net profit margins (19.4%) are higher than last year (18.6%).


Past Earnings Growth Analysis

Earnings Trend: IFM's earnings have grown by 6.1% per year over the past 5 years.

Accelerating Growth: IFM's earnings growth over the past year (23.1%) exceeds its 5-year average (6.1% per year).

Earnings vs Industry: IFM earnings growth over the past year (23.1%) exceeded the Software industry 14.1%.


Return on Equity

High ROE: IFM's Return on Equity (26.2%) is considered high.


Next Steps

Financial Health

How is Infomedia's financial position?


Financial Position Analysis

Short Term Liabilities: IFM's short term assets (A$29.3M) exceed its short term liabilities (A$15.8M).

Long Term Liabilities: IFM's short term assets (A$29.3M) exceed its long term liabilities (A$17.8M).


Debt to Equity History and Analysis

Debt Level: IFM is debt free.

Reducing Debt: IFM has not had any debt for past 5 years.

Debt Coverage: IFM has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: IFM has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

2.73%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IFM's dividend (2.69%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (3.1%).

High Dividend: IFM's dividend (2.69%) is low compared to the top 25% of dividend payers in the Australian market (8.08%).


Stability and Growth of Payments

Stable Dividend: IFM's dividend payments have been volatile in the past 10 years.

Growing Dividend: IFM's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (75.6%), IFM's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: IFM's dividends in 3 years are forecast to be covered by earnings (71.6% payout ratio).


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

Jonathan Rubinsztein

4.08s

Tenure

AU$1,293,818

Compensation

Mr. Jonathan Rubinsztein, BCom (Hons), MBA, FAICD, has been the Chief Executive Officer, Managing Director and Executive Director of Infomedia Ltd. since March 2016. Mr. Rubinsztein served as the Chief Exe ...


CEO Compensation Analysis

Compensation vs Market: Jonathan's total compensation ($USD788.53K) is about average for companies of similar size in the Australian market ($USD779.51K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jonathan Rubinsztein
MD, CEO & Executive Director4.08yrsAU$1.29m1.03% A$5.3m
Richard Leon
Chief Financial Officer4.08yrsAU$738.99k0.16% A$797.5k
Tanya Thomas
Head of Investor Relations & Communicationsno datano datano data
Mark Grodzicky
Head of Legal & Commercial and Company Secretary2.75yrsno datano data
Peter Petrovski
Director of Marketing6.42yrsno datano data
Jason Thorpe
Head of EMEAno datano datano data
Daniel Wall
Company Secretary4.25yrsno datano data

4.1yrs

Average Tenure

Experienced Management: IFM's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jonathan Rubinsztein
MD, CEO & Executive Director4.08yrsAU$1.29m1.03% A$5.3m
Anne O'Driscoll
Independent Non-Executive Director5.33yrsAU$103.50k0.031% A$160.0k
Bart Vogel
Independent Non-Executive Chairman3.5yrsAU$196.00k0.16% A$800.0k
Clyde McConaghy
Independent Non-Executive Director6.42yrsAU$103.50k0.025% A$128.0k
Paul Brandling
Independent Non-Executive Director3.5yrsAU$103.50k0.066% A$335.7k

4.1yrs

Average Tenure

61yo

Average Age

Experienced Board: IFM's board of directors are considered experienced (4.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: IFM insiders have only sold shares 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

Infomedia Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Infomedia Ltd
  • Ticker: IFM
  • Exchange: ASX
  • Founded: 1987
  • Industry: Application Software
  • Sector: Software
  • Market Cap: AU$509.665m
  • Shares outstanding: 318.54m
  • Website: https://www.infomedia.com.au

Number of Employees


Location

  • Infomedia Ltd
  • 3 Minna Close
  • Belrose
  • Sydney
  • New South Wales
  • 2085
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IFMASX (Australian Securities Exchange)YesOrdinary SharesAUAUDAug 2000
IFMCHIA (Chi-X Australia)YesOrdinary SharesAUAUDAug 2000

Biography

Infomedia Ltd, a technology company, develops and supplies electronic parts catalogues and service quoting software systems for the parts and service sectors of the automotive industry worldwide. The company offers parts solutions, including Microcat LIVE, an electronic parts catalog; Microcat PartsBridge for collision parts ordering; Microcat Market for mechanical parts ordering; Microcat CRM, an online CRM for wholesale parts; Microcat Messenger, an instant messaging tool; and Microcat EPC Origins. It also provides service solutions, such as Superservice Platform; Superservice Menus, a service quoting software; Superservice Triage, an electronic vehicle health check software; Superservice Connect, an online self-serve booking and quoting system; and Superservice Register, an online VIN-specific database. In addition, the company offers oil industry solutions comprising Netlube Data, a lubricant recommendation database; and Netlube CRM, a frontline sales transformation solution, as well as data management, performance insights, forecasting, customer experience, and dealer optimization services. Further, it provides information management and data analytics services to assist automakers and dealers. The company was founded in 1987 and is headquartered in Sydney, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 10:34
End of Day Share Price2020/04/08 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.