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IRE

IressASX:IRE Stock Report

Market Cap

AU$2.2b

7D

1.3%

1Y

17.4%

Updated

18 Oct, 2021

Data

Company Financials +
IRE fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance4/6
Financial Health5/6
Dividends3/6

IRE Overview

Iress Limited designs and develops software and services for the financial services industry in Australia, New Zealand, Asia, North America, Europe, South Africa, and the United Kingdom.

Iress Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Iress
Historical stock prices
Current Share PriceAU$11.81
52 Week HighAU$8.90
52 Week LowAU$15.30
Beta0.97
1 Month Change-2.24%
3 Month Change-6.42%
1 Year Change17.40%
3 Year Change5.64%
5 Year Change4.05%
Change since IPO380.08%

Recent News & Updates

Sep 17
Estimating The Intrinsic Value Of Iress Limited (ASX:IRE)

Estimating The Intrinsic Value Of Iress Limited (ASX:IRE)

How far off is Iress Limited ( ASX:IRE ) from its intrinsic value? Using the most recent financial data, we'll take a...

Shareholder Returns

IREAU SoftwareAU Market
7D1.3%2.8%0.9%
1Y17.4%27.7%20.2%

Return vs Industry: IRE underperformed the Australian Software industry which returned 27.7% over the past year.

Return vs Market: IRE underperformed the Australian Market which returned 20.2% over the past year.

Price Volatility

Is IRE's price volatile compared to industry and market?
IRE volatility
IRE Beta0.97
Industry Beta0.84
Market Beta1

Stable Share Price: IRE is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: IRE's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19932,250Andrew Walshhttps://www.iress.com

Iress Limited designs and develops software and services for the financial services industry in Australia, New Zealand, Asia, North America, Europe, South Africa, and the United Kingdom. It offers client management, business automation, portfolio data, research, financial planning tools, scaled advice journeys, digital client solutions, data-driven compliance and analytics, and consent infrastructure-as-a-service; and market data, trading interfaces, order and execution management, smart order routing, FIX services, portfolio management, securities lending, analytical tools, algorithmic trading, market making, CFD clearing, post trade solutions, and trading and market data APIs. The company also provides connectivity, client relationship management, wealth management, funds registry, digital advice, digital member portal, fund administration services, automated workflow, application processing, connectivity, mortgage comparison, mortgage advice, lender connectivity, quoting, comparison, and application processing solutions.

Iress Fundamentals Summary

How do Iress's earnings and revenue compare to its market cap?
IRE fundamental statistics
Market CapAU$2.23b
Earnings (TTM)AU$73.59m
Revenue (TTM)AU$562.15m

30.3x

P/E Ratio

4.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
IRE income statement (TTM)
RevenueAU$562.15m
Cost of RevenueAU$401.16m
Gross ProfitAU$160.99m
ExpensesAU$87.40m
EarningsAU$73.59m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.39
Gross Margin28.64%
Net Profit Margin13.09%
Debt/Equity Ratio39.8%

How did IRE perform over the long term?

See historical performance and comparison

Dividends

3.9%

Current Dividend Yield

120%

Payout Ratio

Valuation

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

24.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IRE (A$11.81) is trading below our estimate of fair value (A$15.73)

Significantly Below Fair Value: IRE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: IRE is good value based on its PE Ratio (30.3x) compared to the Australian Software industry average (42.5x).

PE vs Market: IRE is poor value based on its PE Ratio (30.3x) compared to the Australian market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: IRE is poor value based on its PEG Ratio (3.9x)


Price to Book Ratio

PB vs Industry: IRE is good value based on its PB Ratio (3.9x) compared to the AU Software industry average (5.2x).


Future Growth

How is Iress forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

7.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IRE's forecast earnings growth (7.7% per year) is above the savings rate (1.9%).

Earnings vs Market: IRE's earnings (7.7% per year) are forecast to grow slower than the Australian market (11.7% per year).

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

Revenue vs Market: IRE's revenue (4.6% per year) is forecast to grow slower than the Australian market (5.5% per year).

High Growth Revenue: IRE's revenue (4.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IRE's Return on Equity is forecast to be high in 3 years time (21.1%)


Past Performance

How has Iress performed over the past 5 years?

2.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IRE has high quality earnings.

Growing Profit Margin: IRE's current net profit margins (13.1%) are higher than last year (11.4%).


Past Earnings Growth Analysis

Earnings Trend: IRE's earnings have grown by 2.5% per year over the past 5 years.

Accelerating Growth: IRE's earnings growth over the past year (20.3%) exceeds its 5-year average (2.5% per year).

Earnings vs Industry: IRE earnings growth over the past year (20.3%) underperformed the Software industry 37.5%.


Return on Equity

High ROE: IRE's Return on Equity (12.8%) is considered low.


Financial Health

How is Iress's financial position?


Financial Position Analysis

Short Term Liabilities: IRE's short term assets (A$131.7M) exceed its short term liabilities (A$102.2M).

Long Term Liabilities: IRE's short term assets (A$131.7M) do not cover its long term liabilities (A$348.7M).


Debt to Equity History and Analysis

Debt Level: IRE's debt to equity ratio (39.8%) is considered satisfactory.

Reducing Debt: IRE's debt to equity ratio has reduced from 63.2% to 39.8% over the past 5 years.

Debt Coverage: IRE's debt is well covered by operating cash flow (45.4%).

Interest Coverage: IRE's interest payments on its debt are well covered by EBIT (11.8x coverage).


Balance Sheet


Dividend

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

3.90%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IRE's dividend (3.9%) is higher than the bottom 25% of dividend payers in the Australian market (2.27%).

High Dividend: IRE's dividend (3.9%) is low compared to the top 25% of dividend payers in the Australian market (5.32%).


Stability and Growth of Payments

Stable Dividend: IRE's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (119.5%), IRE's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: IRE's dividends in 3 years are not forecast to be well covered by earnings (106.7% payout ratio).


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Andrew Walsh (47 yo)

12yrs

Tenure

AU$3,127,672

Compensation

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 serve...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD2.32M) is above average for companies of similar size in the Australian market ($USD1.41M).

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


Leadership Team

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


Board Members

Experienced Board: IRE's board of directors are considered experienced (4 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

Iress Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Iress Limited
  • Ticker: IRE
  • Exchange: ASX
  • Founded: 1993
  • Industry: Application Software
  • Sector: Software
  • Market Cap: AU$2.228b
  • Shares outstanding: 188.83m
  • Website: https://www.iress.com

Number of Employees


Location

  • Iress Limited
  • 385 Bourke Street
  • Level 16
  • Melbourne
  • Victoria
  • 3000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/18 07:04
End of Day Share Price2021/10/18 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.