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IRESS

ASX:IRE
Snowflake Description

Reasonable growth potential with adequate balance sheet.

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

IRESS Limited provides information, trading, compliance, order management, portfolio and wealth management, and lending systems and related tools in Australia, New Zealand, Asia, Canada, South Africa, and the United Kingdom. The last earnings update was 178 days ago. More info.


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IRE Share Price and Events
7 Day Returns
-2%
ASX:IRE
-2.3%
AU Software
-2.6%
AU Market
1 Year Returns
1.4%
ASX:IRE
26.4%
AU Software
-0.7%
AU Market
IRE Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
IRESS (IRE) -2% -7.3% -14.3% 1.4% 1.3% 24.8%
AU Software -2.3% -5.1% -2.3% 26.4% 89% 121.6%
AU Market -2.6% -4.1% 0.5% -0.7% 13% 5.9%
1 Year Return vs Industry and Market
  • IRE underperformed the Software industry which returned 26.4% over the past year.
  • IRE outperformed the Market in Australia which returned -0.7% over the past year.
Price Volatility
IRE
Industry
5yr Volatility vs Market
Related Companies

Value

 Is IRESS 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 IRESS 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 IRESS.

ASX:IRE Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9%
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:IRE
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Software Unlevered Beta Simply Wall St/ S&P Global 1.12
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.117 (1 + (1- 30%) (9.52%))
1.128
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.13
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (1.128 * 5.96%)
9.04%

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

The calculations below outline how an intrinsic value for IRESS 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.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

ASX:IRE DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 9.04%)
2020 84.36 Est @ 4.25% 77.37
2021 87.46 Est @ 3.67% 73.56
2022 90.31 Est @ 3.26% 69.66
2023 92.99 Est @ 2.98% 65.79
2024 95.58 Est @ 2.78% 62.02
2025 98.10 Est @ 2.64% 58.38
2026 100.59 Est @ 2.54% 54.90
2027 103.07 Est @ 2.47% 51.59
2028 105.57 Est @ 2.42% 48.46
2029 108.09 Est @ 2.39% 45.51
Present value of next 10 years cash flows A$607.25
ASX:IRE DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= A$108.09 × (1 + 2.31%) ÷ (9.04% – 2.31%)
A$1,644.72
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$1,644.72 ÷ (1 + 9.04%)10
A$692.44
ASX:IRE Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$607.25 + A$692.44
A$1,299.69
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$1,299.69 / 172.57
A$7.53
ASX:IRE Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$7.53
Current discount Discount to share price of A$12.44
= -1 x (A$12.44 - A$7.53) / A$7.53
-65.2%

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

  • The current share price of IRESS 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 IRESS's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are IRESS's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:IRE PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$0.38
ASX:IRE Share Price ** ASX (2019-08-16) in AUD A$12.44
Australia Software Industry PE Ratio Median Figure of 18 Publicly-Listed Software Companies 35.05x
Australia Market PE Ratio Median Figure of 538 Publicly-Listed Companies 15.86x

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

** Primary Listing of IRESS.

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

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

= 12.44 ÷ 0.38

33.08x

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

  • IRESS is good value based on earnings compared to the AU Software industry average.
  • IRESS is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does IRESS's expected growth come at a high price?
Raw Data
ASX:IRE PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 33.08x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
15.7%per year
Australia Software Industry PEG Ratio Median Figure of 14 Publicly-Listed Software Companies 2.44x
Australia Market PEG Ratio Median Figure of 352 Publicly-Listed Companies 1.38x

*Line of best fit is calculated by linear regression .

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

= PE Ratio ÷ Net Income Annual Growth Rate

= 33.08x ÷ 15.7%

2.11x

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

  • IRESS is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on IRESS's assets?
Raw Data
ASX:IRE PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$2.45
ASX:IRE Share Price * ASX (2019-08-16) in AUD A$12.44
Australia Software Industry PB Ratio Median Figure of 102 Publicly-Listed Software Companies 3.19x
Australia Market PB Ratio Median Figure of 1,687 Publicly-Listed Companies 1.67x
ASX:IRE PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 12.44 ÷ 2.45

5.07x

* Primary Listing of IRESS.

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

  • IRESS is overvalued based on assets compared to the AU Software industry average.
X
Value checks
We assess IRESS'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 Software 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 Software industry average (and greater than 0)? (1 check)
  5. IRESS has a total score of 1/6, 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.

Future Performance

 How is IRESS expected to perform in the next 1 to 3 years based on estimates from 4 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
15.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is IRESS expected to grow at an attractive rate?
  • IRESS's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • IRESS's earnings growth is expected to exceed the Australia market average.
  • IRESS's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:IRE Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:IRE Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 15.7%
ASX:IRE Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 8.6%
Australia Software Industry Earnings Growth Rate Market Cap Weighted Average 33.3%
Australia Software Industry Revenue Growth Rate Market Cap Weighted Average 20.9%
Australia Market Earnings Growth Rate Market Cap Weighted Average 7.9%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.7%

*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:IRE Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:IRE Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 599 127 103 4
2020-12-31 567 114 88 4
2019-12-31 517 99 71 4
ASX:IRE Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-31 465 101 64
2018-09-30 456 96 63
2018-06-30 448 92 62
2018-03-31 439 88 61
2017-12-31 430 84 60
2017-09-30 419 84 58
2017-06-30 407 84 56
2017-03-31 398 87 58
2016-12-31 390 91 59
2016-09-30 386 91 60
2016-06-30 383 92 60
2016-03-31 372 92 58

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • IRESS's earnings are expected to grow by 15.7% yearly, however this is not considered high growth (20% yearly).
  • IRESS's revenue is expected to grow by 8.6% 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:IRE Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from IRESS Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:IRE Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.58 0.60 0.57 3.00
2020-12-31 0.50 0.52 0.48 3.00
2019-12-31 0.41 0.43 0.39 3.00
ASX:IRE Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-31 0.38
2018-09-30 0.37
2018-06-30 0.37
2018-03-31 0.36
2017-12-31 0.35
2017-09-30 0.35
2017-06-30 0.34
2017-03-31 0.36
2016-12-31 0.37
2016-09-30 0.37
2016-06-30 0.38
2016-03-31 0.36

*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.
  • IRESS is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess IRESS'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.
IRESS has a total score of 4/6, 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.

Past Performance

  How has IRESS 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 IRESS's growth in the last year to its industry (Software).
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.
  • IRESS's year on year earnings growth rate has been positive over the past 5 years.
  • IRESS's 1-year earnings growth is less than its 5-year average (7.3% vs 11.5%)
  • IRESS's earnings growth has not exceeded the AU Software industry average in the past year (7.3% vs 7.8%).
Earnings and Revenue History
IRESS'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 IRESS Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:IRE Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 464.62 64.10 10.09
2018-09-30 456.21 63.18 10.16
2018-06-30 447.80 62.26 10.23
2018-03-31 438.88 61.01 9.79
2017-12-31 429.95 59.76 9.35
2017-09-30 418.59 58.00 10.30
2017-06-30 407.22 56.24 11.24
2017-03-31 398.48 57.84 9.07
2016-12-31 389.74 59.45 6.90
2016-09-30 386.18 59.55 6.85
2016-06-30 382.62 59.64 6.80
2016-03-31 372.04 57.51 6.80
2015-12-31 361.46 55.39 6.80
2015-09-30 346.75 52.24 4.59
2015-06-30 332.04 49.09 2.38
2015-03-31 330.56 49.88 4.14
2014-12-31 329.07 50.67 5.90
2014-09-30 322.29 43.58 6.21
2014-06-30 315.51 36.49 6.52
2014-03-31 283.32 30.37 5.94
2013-12-31 251.13 24.24 5.35
2013-09-30 230.55 30.81 4.98
2013-06-30 209.98 37.38 4.62
2013-03-31 208.66 38.30 4.29
2012-12-31 207.34 39.23 3.96
2012-09-30 207.56 39.25 3.90

*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.
  • IRESS has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • IRESS used its assets less efficiently than the AU Software industry average last year based on Return on Assets.
  • IRESS has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess IRESS'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 Software 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.
IRESS has a total score of 2/6, 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.

Health

 How is IRESS'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 IRESS's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • IRESS is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • IRESS's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of IRESS'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 not covered by short term assets, assets are 0.4x 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 IRESS Company Filings, last reported 7 months ago.

ASX:IRE Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 419.43 204.39 30.88
2018-09-30 419.43 204.39 30.88
2018-06-30 403.46 206.97 19.95
2018-03-31 403.46 206.97 19.95
2017-12-31 407.55 192.87 29.31
2017-09-30 407.55 192.87 29.31
2017-06-30 392.38 194.58 20.65
2017-03-31 392.38 194.58 20.65
2016-12-31 400.83 177.81 22.95
2016-09-30 400.83 177.81 22.95
2016-06-30 304.39 193.21 33.26
2016-03-31 304.39 193.21 33.26
2015-12-31 339.31 221.61 39.23
2015-09-30 339.31 221.61 39.23
2015-06-30 341.69 201.43 74.96
2015-03-31 341.69 201.43 74.96
2014-12-31 330.78 192.02 74.91
2014-09-30 330.78 192.02 74.91
2014-06-30 314.57 185.32 68.22
2014-03-31 314.57 185.32 68.22
2013-12-31 326.77 187.96 71.41
2013-09-30 326.77 187.96 71.41
2013-06-30 119.02 0.00 57.26
2013-03-31 119.02 0.00 57.26
2012-12-31 126.84 0.00 55.97
2012-09-30 126.84 0.00 55.97
  • IRESS's level of debt (48.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (57.5% vs 48.7% today).
  • Debt is well covered by operating cash flow (49.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 15.8x coverage).
X
Financial health checks
We assess IRESS'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. IRESS 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.

Dividends

 What is IRESS'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
3.7%
Current annual income from IRESS dividends. Estimated to be 4.2% next year.
If you bought A$2,000 of IRESS shares you are expected to receive A$74 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?
  • IRESS's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.66%).
  • IRESS's dividend is below the markets top 25% of dividend payers in Australia (5.9%).
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:IRE 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 4 Analyst Estimates (S&P Global) See Below
Australia Software Industry Average Dividend Yield Market Cap Weighted Average of 14 Stocks 1.2%
Australia Market Average Dividend Yield Market Cap Weighted Average of 412 Stocks 4.3%
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 5.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:IRE Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.53 1.00
2022-12-31 0.51 1.00
2021-12-31 0.58 5.00
2020-12-31 0.52 6.00
2019-12-31 0.47 6.00
ASX:IRE Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-02-20 0.460 3.412
2018-08-22 0.440 3.753
2018-02-21 0.440 4.040
2017-09-21 0.440 3.820
2017-02-21 0.440 3.629
2016-08-17 0.427 3.715
2016-02-24 0.427 3.745
2015-08-19 0.415 4.412
2015-02-24 0.415 4.021
2014-03-17 0.380 4.096
2014-02-25 0.380 4.099
2013-02-19 0.380 4.383
2012-02-22 0.380 5.293
2011-02-24 0.380 4.737
2010-08-25 0.350 4.042
2010-02-24 0.340 4.021
2009-08-21 0.320 3.972
2009-02-23 0.310 4.823
2008-08-19 0.280 5.608

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

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of IRESS's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are not well covered by earnings (1x coverage).
X
Income/ dividend checks
We assess IRESS'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 IRESS afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. IRESS has a total score of 3/6, see the detailed checks below.


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

Management

 What is the CEO of IRESS'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 Walsh
COMPENSATION A$2,522,047
AGE 45
TENURE AS CEO 9.8 years
CEO Bio

Mr. Andrew Leslie Walsh has been the Managing Director and Chief Executive Officer at IRESS Limited since October 14, 2009 and served as its Chief Technology Officer since November 3, 2016. Mr. Walsh served as a General Manager of Xplan of IRESS Market Technology Ltd. since January 1, 2006. He served as General Manager of Wealth Management Division of IRESS Market Technology Limited. He founded XPLAN Technology (XPLAN), and from 2003 managed the transition of XPLAN from an independent organisation to a fully integrated division of IRESS Market Technology. He worked as an actuarial consultant with Mercer in the Superannuation and Risk, Finance & Insurance practice areas. He managed ongoing software development as Actuarial Development Manager at Vision FPS. He serves as a Director of IRESS Financial Markets (Proprietary) Limited. Mr. Walsh serves as an Executive Director of IRESS Ltd. (alternate name: IRESS Market Technology Ltd.) and previously served as its Director since October 15, 2009.

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 IRESS management team in years:

4
Average Tenure
  • The tenure for the IRESS management team is about average.
Management Team

Andrew Walsh

TITLE
MD, CEO & Director
COMPENSATION
A$3M
AGE
45
TENURE
9.8 yrs

John Harris

TITLE
Chief Financial Officer
COMPENSATION
A$903K
TENURE
4.3 yrs

Andrew Todd

TITLE
Chief Technology Officer
COMPENSATION
A$800K
TENURE
2.6 yrs

Peter Ferguson

TITLE
Group General Counsel & Company Secretary
COMPENSATION
A$654K
TENURE
8.2 yrs

Julia McNeill

TITLE
Group Executive of Human Resources
COMPENSATION
A$604K
TENURE
5.9 yrs

Aaron Knowles

TITLE
Group Executive of Product
COMPENSATION
A$1M
TENURE
3.6 yrs

Simon New

TITLE
Group Executive of Strategy
COMPENSATION
A$816K
TENURE
3.8 yrs

Coran Lill

TITLE
Group Executive of Communications & Marketing
TENURE
2.6 yrs

Michael Harrison

TITLE
Managing Director of Sales & Strategic Relationships

Kirsty Gross

TITLE
Manager Director of Australia & New Zealand - Financial Markets
COMPENSATION
A$722K
Board of Directors Tenure

Average tenure and age of the IRESS board of directors in years:

6.6
Average Tenure
65.5
Average Age
  • The tenure for the IRESS board of directors is about average.
Board of Directors

Tony D'Aloisio

TITLE
Chairman of the Board
COMPENSATION
A$240K
AGE
70
TENURE
5 yrs

Andrew Walsh

TITLE
MD, CEO & Director
COMPENSATION
A$3M
AGE
45
TENURE
9.8 yrs

John Hayes

TITLE
Independent Non-Executive Director
COMPENSATION
A$154K
AGE
74
TENURE
8.2 yrs

Jenny Seabrook

TITLE
Independent Non-Executive Director
COMPENSATION
A$154K
AGE
62
TENURE
11 yrs

John Alexander Cameron

TITLE
Independent Non-Executive Director
COMPENSATION
A$130K
AGE
69
TENURE
9.4 yrs

Geoff Tomlinson

TITLE
Independent Non-Executive Director
COMPENSATION
A$130K
AGE
72
TENURE
4.5 yrs

Niki Beattie

TITLE
Independent Non-Executive Director
COMPENSATION
A$142K
AGE
53
TENURE
4.5 yrs

Julie Fahey

TITLE
Independent Non Executive Director
COMPENSATION
A$130K
AGE
62
TENURE
1.8 yrs
Who owns this company?
Recent Insider Trading
  • IRESS individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
17. Jun 19 Sell Andrew Walsh Individual 12. Jun 19 12. Jun 19 -120,000 A$13.34 A$-1,600,800
10. May 19 Sell Pinnacle Investment Management Limited Company 12. Oct 18 06. May 19 -634,849 A$11.65 A$-7,394,300
10. May 19 Buy Pinnacle Investment Management Limited Company 05. Dec 18 07. May 19 3,561,692 A$12.85 A$45,773,042
03. May 19 Sell Greencape Capital Pty Ltd Company 01. Apr 19 01. May 19 -1,497,614 A$13.56 A$-20,304,834
14. Mar 19 Buy Colonial First State Asset Management (Australia) Limited Company 12. Mar 19 12. Mar 19 85,242 A$12.61 A$1,074,888
12. Mar 19 Buy Realindex Investments Pty Limited Company 27. Feb 19 27. Feb 19 622 A$12.12 A$7,539
12. Mar 19 Sell Colonial First State Asset Management (Australia) Limited Company 28. Feb 19 11. Mar 19 -160,806 A$12.80 A$-2,056,408
12. Mar 19 Buy Colonial First State Asset Management (Australia) Limited Company 27. Feb 19 11. Mar 19 88,981 A$12.52 A$1,083,696
04. Mar 19 Sell UBS Asset Management Company 26. Feb 19 28. Feb 19 -1,313,814 A$12.18 A$-15,995,952
04. Mar 19 Buy UBS Asset Management Company 26. Feb 19 28. Feb 19 1,987,435 A$12.04 A$23,922,652
01. Mar 19 Buy Colonial First State Asset Management (Australia) Limited Company 26. Oct 18 26. Feb 19 2,204,410 A$12.25 A$26,631,907
27. Feb 19 Sell UBS Asset Management Company 26. Oct 18 25. Feb 19 -4,683,244 A$11.63 A$-54,463,649
27. Feb 19 Buy UBS Asset Management Company 26. Oct 18 25. Feb 19 4,724,828 A$11.59 A$54,742,190
01. Mar 19 Sell ASX Limited, Asset Management Arm Company 28. Feb 19 28. Feb 19 -32,181,994 A$11.95 A$-384,574,840
28. Feb 19 Sell Greencape Capital Pty Ltd Company 25. Feb 19 25. Feb 19 -121,000 A$13.04 A$-1,578,117
28. Feb 19 Buy Greencape Capital Pty Ltd Company 26. Feb 19 26. Feb 19 2,092,051 A$11.95 A$25,000,008
26. Feb 19 Sell Greencape Capital Pty Ltd Company 08. Feb 19 22. Feb 19 -1,239,659 A$12.70 A$-15,748,771
25. Feb 19 Sell Challenger Limited Company 26. Nov 18 21. Feb 19 -2,135,625 A$12.12 A$-25,892,307
25. Feb 19 Buy Challenger Limited Company 24. Oct 18 05. Nov 18 304,472 A$10.62 A$3,233,245
11. Feb 19 Sell Greencape Capital Pty Ltd Company 27. Jun 18 07. Feb 19 -2,809,183 A$12.22 A$-34,331,533
11. Feb 19 Buy Greencape Capital Pty Ltd Company 14. Jun 18 05. Feb 19 917,311 A$11.33 A$10,395,886
31. Jan 19 Buy Fss Trustee Corporation, Asset Management Arm Company 24. Sep 18 24. Jan 19 1,070,041 A$11.41 A$12,212,262
25. Oct 18 Sell Pinnacle Investment Management Limited Company 03. Jul 18 22. Oct 18 -1,033,141 A$11.95 A$-12,347,545
25. Oct 18 Buy Pinnacle Investment Management Limited Company 03. Jul 18 31. Aug 18 73,598 A$11.93 A$878,277
19. Oct 18 Sell Challenger Limited Company 27. Jun 18 16. Oct 18 -2,901,704 A$12.02 A$-34,883,472
19. Oct 18 Buy Challenger Limited Company 17. Aug 18 15. Oct 18 635,371 A$12.24 A$7,780,040
02. Oct 18 Sell Hyperion Asset Management Limited Company 16. Jun 18 28. Sep 18 -1,732,545 A$12.68 A$-21,095,103
17. Sep 18 Sell Andrew Walsh Individual 17. Sep 18 17. Sep 18 -154,590 A$12.00 A$-1,855,080
X
Management checks
We assess IRESS'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. IRESS 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.

News

Simply Wall St News

How Do IRESS Limited’s (ASX:IRE) Returns On Capital Compare To Peers?

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for IRESS: 0.15 = AU$95m ÷ (AU$696m - AU$58m) (Based on the trailing twelve months to December 2018.) So, IRESS has an ROCE of 15%. … How IRESS's Current Liabilities Impact Its ROCE Liabilities, such as supplier bills and bank overdrafts, are referred to as current liabilities if they need to be paid within 12 months. … In addition to low current liabilities (making a negligible impact on ROCE), IRESS earns a sound return on capital employed.

Simply Wall St -

Would IRESS Limited (ASX:IRE) Be Valuable To Income Investors?

Could IRESS Limited (ASX:IRE) be an attractive dividend share to own for the long haul? Investors are often drawn to strong companies with the idea of reinvesting the dividends. If you are hoping to live on your dividends, it's important to be more stringent with your investments than the average punter. Regular readers know we like to apply the same approach to each dividend stock, and we hope you'll find our analysis useful. A high yield and a long history of paying dividends is an appealing combination for IRESS. It would not be a surprise to discover that many investors buy it for the dividends. Some simple research can reduce the risk of buying IRESS for its dividend - read on to learn more. Explore this interactive chart for our latest analysis on IRESS! ASX:IRE Historical Dividend Yield, August 2nd 2019 Payout ratios Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. Looking at the data, we can see that 122% of IRESS's profits were paid out as dividends in the last 12 months. A payout ratio above 100% is definitely an item of concern, unless there are some other circumstances that would justify it. We also measure dividends paid against a company's levered free cash flow, to see if enough cash was generated to cover the dividend. IRESS paid out 99% of its free cash last year. Cash flows can be lumpy, but this dividend was not well covered by cash flow. Cash is slightly more important than profit from a dividend perspective, but given IRESS's payouts were not well covered by either earnings or cash flow, we would definitely be concerned about the sustainability of this dividend. Is IRESS's Balance Sheet Risky? As IRESS's dividend was not well covered by earnings, we need to check its balance sheet for signs of financial distress. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. … It's good to see IRESS has been growing its earnings per share at 16% a year over the past 5 years. … Earnings per share have not been growing, but we respect a company that maintains a relatively stable dividend.

Simply Wall St -

Have Insiders Been Selling IRESS Limited (ASX:IRE) Shares?

As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' See our latest analysis for IRESS The Last 12 Months Of Insider Transactions At IRESS In the last twelve months, the biggest single sale by an insider was when the MD, CEO & Director, Andrew Walsh, sold AU$1.9m worth of shares at a price of AU$12.00 per share. … ASX:IRE Recent Insider Trading, July 23rd 2019 Insider Ownership of IRESS I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. … An insider sold IRESS shares recently, but they didn't buy any.

Simply Wall St -

We Think IRESS (ASX:IRE) Can Stay On Top Of Its Debt

We note that IRESS Limited (ASX:IRE) does have debt on its balance sheet. … Either way, since IRESS does have more debt than cash, it's worth keeping an eye on its balance sheet. … If you're interested in investing in businesses that can grow profits without the burden of debt, then check out this free list of growing businesses that have net cash on the balance sheet.

Simply Wall St -

Want To Invest In IRESS Limited (ASX:IRE)? Here's How It Performed Lately

Today I will examine IRESS Limited's (ASX:IRE) latest earnings update (31 December 2018) and compare these figures against its performance over the past couple of years, in addition to how the rest of IRE's industry performed. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 12%, indicating the rate at which IRE is growing has slowed down. … I suggest you continue to research IRESS to get a better picture of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for IRE’s future growth?

Simply Wall St -

Can We See Significant Institutional Ownership On The IRESS Limited (ASX:IRE) Share Register?

See our latest analysis for IRESS ASX:IRE Ownership Summary, June 29th 2019 What Does The Institutional Ownership Tell Us About IRESS? … Insider Ownership Of IRESS The definition of company insiders can be subjective, and does vary between jurisdictions. … Our information suggests that IRESS Limited insiders own under 1% of the company.

Simply Wall St -

Is IRESS Limited's (ASX:IRE) Stock Available For A Good Price After Accounting For Growth?

However, to properly examine the value of a high-growth stock such as IRESS, we must reflect its earnings growth into the valuation. … A PE ratio of 37.37x and expected year-on-year earnings growth of 15% give IRESS a quite high PEG ratio of 2.55x. … So, when we include the growth factor in our analysis, IRESS appears overvalued , based on fundamental analysis.

Simply Wall St -

How Good Is IRESS Limited (ASX:IRE), When It Comes To ROE?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for IRESS: 15% = AU$64m ÷ AU$419m (Based on the trailing twelve months to December 2018.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Combining IRESS's Debt And Its 15% Return On Equity Although IRESS does use debt, its debt to equity ratio of 0.49 is still low. … In my book the highest quality companies have high return on equity, despite low debt.

Simply Wall St -

What Should We Expect From IRESS Limited's (ASX:IRE) Earnings Over The Next Year?

Generally, analyst consensus outlook appear cautiously optimistic, with earnings expected to grow by 20% in the upcoming year compared with the past 5-year average growth rate of 12%. … See our latest analysis for IRESS How is IRESS going to perform in the near future? … ASX:IRE Past and Future Earnings, June 12th 2019 This results in an annual growth rate of 15% based on the most recent earnings level of AU$64m to the final forecast of AU$101m by 2022.

Simply Wall St -

Does IRESS Limited's (ASX:IRE) CEO Salary Compare Well With Others?

First, this article will compare CEO compensation with compensation at similar sized companies. … View our latest analysis for IRESS How Does Andrew Walsh's Compensation Compare With Similar Sized Companies? … According to our data, IRESS Limited has a market capitalization of AU$2.4b, and pays its CEO total annual compensation worth AU$2.5m.

Simply Wall St -

Company Info

Description

IRESS Limited provides information, trading, compliance, order management, portfolio and wealth management, and lending systems and related tools in Australia, New Zealand, Asia, Canada, South Africa, and the United Kingdom. It offers market data and trading software, which provides execution management, order routing, FIX, securities lending, analytical tools, and connectivity services; software solutions that offers market data and client relationship management. The company also provides wealth management platform, which provides client management, business automation, portfolio data, research, financial planning tools, scaled advice journeys, digital client solutions, and data driven compliance and analytics; superannuation administration platform that offers fund registry, digital member portal, and digital advice solutions. In addition, it offers multi-channel mortgage sales and origination platform; and mortgage intermediary advice and mortgage comparison solution, as well as consulting services. The company was formerly known as IRESS Market Technology Limited and changed its name to IRESS Limited in May 2012. IRESS Limited was founded in 1993 and is based in Melbourne, Australia.

Details
Name: IRESS Limited
IRE
Exchange: ASX
Founded: 1993
A$2,146,753,732
172,568,628
Website: http://www.iress.com
Address: IRESS Limited
385 Bourke Street,
Level 18,
Melbourne,
Victoria, 3000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX IRE Ordinary Shares Australian Securities Exchange AU AUD 03. Nov 2000
DB BRF Ordinary Shares Deutsche Boerse AG DE EUR 03. Nov 2000
CHIA IRE Ordinary Shares Chi-X Australia AU AUD 03. Nov 2000
Number of employees
Current staff
Staff numbers
1,850
IRESS employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/08/17 10:32
End of day share price update: 2019/08/16 00:00
Last estimates confirmation: 2019/07/23
Last earnings filing: 2019/02/20
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


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.