ASX:IRE

Stock Analysis Report

Executive Summary

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.

Snowflake

Reasonable growth potential with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: IRE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.1%

IRE

3.4%

AU Software

0.9%

AU Market


1 Year Return

13.9%

IRE

51.6%

AU Software

16.3%

AU Market

Return vs Industry: IRE underperformed the Australian Software industry which returned 51.6% over the past year.

Return vs Market: IRE underperformed the Australian Market which returned 16.3% over the past year.


Shareholder returns

IREIndustryMarket
7 Day1.1%3.4%0.9%
30 Day12.7%3.7%1.4%
90 Day5.3%13.2%6.0%
1 Year18.3%13.9%52.9%51.6%23.0%16.3%
3 Year32.3%18.0%157.9%147.4%41.6%22.3%
5 Year59.8%31.4%179.0%156.8%57.7%22.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

35.99x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: IRE (A$13.1) is trading above our estimate of fair value (A$10.37)

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


Price To Earnings Ratio

PE vs Industry: IRE is good value based on its PE Ratio (36x) compared to the Software industry average (36x).

PE vs Market: IRE is poor value based on its PE Ratio (36x) compared to the Australian market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: IRE is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: IRE is overvalued based on its PB Ratio (5.5x) compared to the AU Software industry average (4.3x).


Next Steps

Future Growth

How is IRESS forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

18.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IRE's forecast earnings growth (18.8% per year) is above the savings rate (2.3%).

Earnings vs Market: IRE's earnings (18.8% per year) are forecast to grow faster than the Australian market (9.7% per year).

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

Revenue vs Market: IRE's revenue (6.4% per year) is forecast to grow faster than the Australian market (3.7% per year).

High Growth Revenue: IRE's revenue (6.4% 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 (23.6%)


Next Steps

Past Performance

How has IRESS performed over the past 5 years?

7.1%

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 lower than last year (13.9%).


Past Earnings Growth Analysis

Earnings Trend: IRE's earnings have grown by 7.1% per year over the past 5 years.

Accelerating Growth: IRE's earnings growth over the past year (0.3%) is below its 5-year average (7.1% per year).

Earnings vs Industry: IRE earnings growth over the past year (0.3%) underperformed the Software industry 22.6%.


Return on Equity

High ROE: IRE's Return on Equity (15.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is IRESS's financial position?


Financial Position Analysis

Short Term Liabilities: IRE's short term assets (A$100.0M) exceeds its short term liabilities (A$91.7M)

Long Term Liabilities: IRE's short term assets (100.0M) do not cover its long term liabilities (326.0M)


Debt to Equity History and Analysis

Debt Level: IRE's debt to equity ratio (54.5%) is considered high

Reducing Debt: IRE's debt to equity ratio has reduced from 58.9% to 54.5% over the past 5 years.

Debt Coverage: IRE's debt is well covered by operating cash flow (52.3%).

Interest Coverage: IRE's interest payments on its debt are well covered by EBIT (13.2x coverage).


Balance Sheet

Inventory Level: IRE has a low level of unsold assets or inventory.

Debt Coverage by Assets: IRE's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

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

3.51%

Current Dividend Yield


Dividend Yield vs Market

company3.5%marketbottom25%2.4%markettop25%5.6%industryaverage1.1%forecastin3Years3.8%

Current dividend yield vs market & industry

Notable Dividend: IRE's dividend (3.51%) is higher than the bottom 25% of dividend payers in the Australian market (2.37%).

High Dividend: IRE's dividend (3.51%) is low compared to the top 25% of dividend payers in the Australian market (5.56%).


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 (126.4%), 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 (100.1% payout ratio).


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Andrew Walsh (45yo)

10.1yrs

Tenure

AU$2,522,047

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 ($USD1.72M) is about average for companies of similar size in the Australian market ($USD1.37M).

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


Management Age and Tenure

4.3yrs

Average Tenure

Experienced Management: IRE's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

6.8yrs

Average Tenure

65.5yo

Average Age

Experienced Board: IRE's board of directors are considered experienced (6.8 years average tenure).


Insider Trading

Insider Buying: IRE insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$5,576,42706 Nov 19
The Vanguard Group, Inc.
EntityCompany
Shares399,770
Max PriceAU$14.23
SellAU$726,11506 Nov 19
The Vanguard Group, Inc.
EntityCompany
Shares54,550
Max PriceAU$14.10
BuyAU$30,26318 Oct 19
Julie Fahey
EntityIndividual
Role
Member of the Board of Directors
Independent Non Executive Director
Shares2,584
Max PriceAU$11.71
BuyAU$22,571,69504 Oct 19
Greencape Capital Pty Ltd
EntityCompany
Shares1,891,092
Max PriceAU$11.94
BuyAU$17,887,44103 Sep 19
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares1,442,760
Max PriceAU$12.40
BuyAU$3,926,61502 Sep 19
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares314,372
Max PriceAU$12.49
BuyAU$4,299,94102 Sep 19
First Sentier Investors (Australia) IM Ltd
EntityCompany
Shares344,087
Max PriceAU$12.50
SellAU$8,831,65102 Sep 19
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares692,989
Max PriceAU$12.74
SellAU$11,696,67428 Aug 19
Greencape Capital Pty Ltd
EntityCompany
Shares769,904
Max PriceAU$15.19
BuyAU$13,403,23728 Aug 19
Greencape Capital Pty Ltd
EntityCompany
Shares1,054,831
Max PriceAU$12.71
BuyAU$1,156,64123 Aug 19
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares90,550
Max PriceAU$12.77
SellAU$340,25223 Aug 19
First Sentier Investors (Australia) IM Ltd
EntityCompany
Shares26,603
Max PriceAU$12.79
SellAU$1,600,80017 Jun 19
Andrew Walsh
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Director
Shares120,000
Max PriceAU$13.34
BuyAU$45,773,04210 May 19
Pinnacle Investment Management Limited
EntityCompany
Shares3,561,692
Max PriceAU$12.85
SellAU$7,394,30010 May 19
Pinnacle Investment Management Limited
EntityCompany
Shares634,849
Max PriceAU$11.65
SellAU$20,304,83403 May 19
Greencape Capital Pty Ltd
EntityCompany
Shares1,497,614
Max PriceAU$13.56
BuyAU$1,074,88814 Mar 19
First Sentier Investors (Australia) IM Ltd
EntityCompany
Shares85,242
Max PriceAU$12.61
SellAU$2,056,40812 Mar 19
First Sentier Investors (Australia) IM Ltd
EntityCompany
Shares160,806
Max PriceAU$12.80
BuyAU$7,53912 Mar 19
Realindex Investments Pty Limited
EntityCompany
Shares622
Max PriceAU$12.12
BuyAU$1,083,69612 Mar 19
First Sentier Investors (Australia) IM Ltd
EntityCompany
Shares88,981
Max PriceAU$12.52
SellAU$15,995,95204 Mar 19
UBS Asset Management
EntityCompany
Shares1,313,814
Max PriceAU$12.18
BuyAU$23,922,65204 Mar 19
UBS Asset Management
EntityCompany
Shares1,987,435
Max PriceAU$12.04
SellAU$384,574,84001 Mar 19
ASX Limited, Asset Management Arm
EntityCompany
Shares32,181,994
Max PriceAU$11.95
BuyAU$26,631,90701 Mar 19
First Sentier Investors (Australia) IM Ltd
EntityCompany
Shares2,204,410
Max PriceAU$12.25
BuyAU$25,000,00828 Feb 19
Greencape Capital Pty Ltd
EntityCompany
Shares2,092,051
Max PriceAU$11.95
SellAU$1,578,11728 Feb 19
Greencape Capital Pty Ltd
EntityCompany
Shares121,000
Max PriceAU$13.04
SellAU$54,463,64927 Feb 19
UBS Asset Management
EntityCompany
Shares4,683,244
Max PriceAU$11.63
BuyAU$54,742,19027 Feb 19
UBS Asset Management
EntityCompany
Shares4,724,828
Max PriceAU$11.59
SellAU$15,748,77126 Feb 19
Greencape Capital Pty Ltd
EntityCompany
Shares1,239,659
Max PriceAU$12.70
SellAU$25,892,30725 Feb 19
Challenger Limited
EntityCompany
Shares2,135,625
Max PriceAU$12.12
SellAU$34,331,53311 Feb 19
Greencape Capital Pty Ltd
EntityCompany
Shares2,809,183
Max PriceAU$12.22
BuyAU$10,395,88611 Feb 19
Greencape Capital Pty Ltd
EntityCompany
Shares917,311
Max PriceAU$11.33
BuyAU$12,212,26231 Jan 19
Fss Trustee Corporation, Asset Management Arm
EntityCompany
Shares1,070,041
Max PriceAU$11.41

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Peter Ferguson

    Group General Counsel & Company Secretary

    • Tenure: 8.4yrs
    • Compensation: AU$654.00k
  • Kirsty Gross

    Manager Director of Australia & New Zealand - Financial Markets

    • Tenure: 0yrs
    • Compensation: AU$721.74k
  • Andrew Walsh (45yo)

    MD, CEO & Director

    • Tenure: 10.1yrs
    • Compensation: AU$2.52m
  • Andrew Todd

    Chief Technology Officer

    • Tenure: 2.8yrs
    • Compensation: AU$800.21k
  • Julia McNeill

    Group Executive of Human Resources

    • Tenure: 6.2yrs
    • Compensation: AU$604.50k
  • Aaron Knowles

    Group Executive of Product

    • Tenure: 3.8yrs
    • Compensation: AU$1.03m
  • Michael Harrison

    Managing Director of Sales & Strategic Relationships

    • Tenure: 0yrs
  • John Harris

    Chief Financial Officer

    • Tenure: 4.6yrs
    • Compensation: AU$902.63k
  • Simon New

    Group Executive of Strategy

    • Tenure: 4yrs
    • Compensation: AU$815.56k
  • Coran Lill

    Group Executive of Communications & Marketing

    • Tenure: 2.8yrs

Board Members

  • Geoff Tomlinson (72yo)

    Independent Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: AU$130.00k
  • Jenny Seabrook (62yo)

    Independent Non-Executive Director

    • Tenure: 11.3yrs
    • Compensation: AU$154.00k
  • Tony D'Aloisio (70yo)

    Independent Chairman of the Board

    • Tenure: 5.3yrs
    • Compensation: AU$240.00k
  • John Hayes (74yo)

    Independent Non-Executive Director

    • Tenure: 8.4yrs
    • Compensation: AU$154.00k
  • John Alexander Cameron (69yo)

    Independent Non-Executive Director

    • Tenure: 9.7yrs
    • Compensation: AU$130.00k
  • Andrew Walsh (45yo)

    MD, CEO & Director

    • Tenure: 10.1yrs
    • Compensation: AU$2.52m
  • Niki Beattie (53yo)

    Independent Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: AU$142.35k
  • Julie Fahey (62yo)

    Independent Non Executive Director

    • Tenure: 2.1yrs
    • Compensation: AU$130.00k

Company Information

IRESS Limited's company bio, 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$2.262b
  • Shares outstanding: 172.64m
  • Website: https://www.iress.com

Number of Employees


Location

  • IRESS Limited
  • 385 Bourke Street
  • Level 18
  • Melbourne
  • Victoria
  • 3000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IREASX (Australian Securities Exchange)YesOrdinary SharesAUAUDNov 2000
BRFDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2000
IRECHIA (Chi-X Australia)YesOrdinary SharesAUAUDNov 2000

Biography

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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/16 10:32
End of Day Share Price2019/11/15 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.