ASX:IRI

Stock Analysis Report

Integrated Research

Executive Summary

Integrated Research Limited designs, develops, implements, and sells systems and applications management computer software for business-critical computing, unified communication networks, and payment networks in the Americas, Europe, and the Asia Pacific.

Rewards

PE ratio (23.9x) is below the Software industry average (37.5x)

Earnings are forecast to grow 9.26% per year

Earnings have grown 15.1% per year over the past 5 years

Risk Analysis

High level of non-cash earnings

Unstable dividend track record



Snowflake Analysis

Flawless balance sheet average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-8.4%

IRI

1.2%

AU Software

2.6%

AU Market


1 Year Return

15.0%

IRI

47.6%

AU Software

19.8%

AU Market

Return vs Industry: IRI underperformed the Australian Software industry which returned 47.9% over the past year.

Return vs Market: IRI underperformed the Australian Market which returned 20.1% over the past year.


Shareholder returns

IRIIndustryMarket
7 Day-8.4%1.2%2.6%
30 Day-10.4%3.3%4.0%
90 Day-2.7%9.9%5.7%
1 Year18.2%15.0%48.9%47.6%25.2%19.8%
3 Year5.5%-1.7%157.0%145.6%40.7%21.9%
5 Year158.4%124.5%199.6%177.1%62.0%25.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

22.33x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: IRI (A$3.04) is trading above our estimate of fair value (A$1.36)

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


Price To Earnings Ratio

PE vs Industry: IRI is good value based on its PE Ratio (23.9x) compared to the Software industry average (37.5x).

PE vs Market: IRI is poor value based on its PE Ratio (23.9x) compared to the Australian market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: IRI is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: IRI is overvalued based on its PB Ratio (7.5x) compared to the AU Software industry average (4.3x).


Next Steps

Future Growth

How is Integrated Research forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

9.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IRI's forecast earnings growth (9.3% per year) is above the savings rate (1.1%).

Earnings vs Market: IRI's earnings (9.3% per year) are forecast to grow slower than the Australian market (9.6% per year).

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

Revenue vs Market: IRI's revenue (7.5% per year) is forecast to grow faster than the Australian market (3.8% per year).

High Growth Revenue: IRI's revenue (7.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IRI's Return on Equity is forecast to be high in 3 years time (28.4%)


Next Steps

Past Performance

How has Integrated Research performed over the past 5 years?

15.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IRI has a high level of non-cash earnings.

Growing Profit Margin: IRI's current net profit margins (21.7%) are higher than last year (21%).


Past Earnings Growth Analysis

Earnings Trend: IRI's earnings have grown by 15.1% per year over the past 5 years.

Accelerating Growth: IRI's earnings growth over the past year (13.9%) is below its 5-year average (15.1% per year).

Earnings vs Industry: IRI earnings growth over the past year (13.9%) underperformed the Software industry 22.6%.


Return on Equity

High ROE: IRI's Return on Equity (31.3%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Integrated Research's financial position?


Financial Position Analysis

Short Term Liabilities: IRI's short term assets (A$64.0M) exceed its short term liabilities (A$36.2M).

Long Term Liabilities: IRI's short term assets (A$64.0M) exceed its long term liabilities (A$7.5M).


Debt to Equity History and Analysis

Debt Level: IRI is debt free.

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

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

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


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if IRI's debt is covered by short term assets.


Next Steps

Dividend

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

2.55%

Current Dividend Yield


Dividend Yield vs Market

company2.6%marketbottom25%2.3%markettop25%5.4%industryaverage1.1%forecastin3Years3.1%

Current dividend yield vs market & industry

Notable Dividend: IRI's dividend (2.38%) is higher than the bottom 25% of dividend payers in the Australian market (2.34%).

High Dividend: IRI's dividend (2.38%) is low compared to the top 25% of dividend payers in the Australian market (5.47%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (57%), IRI's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: IRI's dividends in 3 years are forecast to be covered by earnings (61.5% payout ratio).


Next Steps

Management

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

1.2yrs

Average management tenure


CEO

John Ruthven 0

0.5yrs

Tenure

0

Mr. John Ruthven has been the Managing Director at Integrated Research Limited since September 12, 2019 and has been its Chief Executive Officer since July 2019. He serves as Director of Integrated Researc ...


Management Age and Tenure

1.2yrs

Average Tenure

Experienced Management: IRI's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Age and Tenure

3.4yrs

Average Tenure

61yo

Average Age

Experienced Board: IRI's board of directors are considered experienced (3.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$17,45316 Sep 19
Anne Myers
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Independent Director
Shares5,665
Max PriceAU$3.08
BuyAU$2,53513 Sep 19
Anne Myers
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Independent Director
Shares835
Max PriceAU$3.04
BuyAU$16,94018 Mar 19
Garry Dinnie
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares7,000
Max PriceAU$2.42
BuyAU$20,00227 Feb 19
John Abrahams
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares8,404
Max PriceAU$2.38
BuyAU$59,50027 Feb 19
Grayrock Group Pty Limited
EntityCompany
Shares25,000
Max PriceAU$2.38
BuyAU$59,64225 Feb 19
Paul Brandling
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares25,104
Max PriceAU$2.38

Ownership Breakdown

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


Management Team

  • Steve Killelea (70yo)

    • Tenure: 1.2yrs
    • Compensation: AU$150.00k
  • John Ruthven

    MD, CEO & Director

    • Tenure: 0.5yrs
  • David Purdue

    Company Secretary

    • Tenure: 7.5yrs
    • Compensation: AU$91.52k
  • Peter Adams

    Chief Financial Officer

    • Tenure: 11.8yrs
    • Compensation: AU$427.31k
  • Kevin Ryder

    Chief Marketing & Customer Officer

    • Tenure: 6.3yrs
    • Compensation: AU$396.19k
  • Matt Glasner

    Chief Commercial Officer

    • Tenure: 1yrs
  • Vanessa Walker

    Chief People & Culture Officer

    • Tenure: 2.3yrs
  • Michael Tomkins

    Chief Technology Officer

    • Tenure: 0.3yrs
  • Greg Clancy

    Chief Product Officer

    • Tenure: 1.3yrs
  • Frank Hoekstra

    Head of Europe

    • Tenure: 0.7yrs

Board Members

  • John Ruthven

    MD, CEO & Director

    • Tenure: 0.5yrs
  • Nick Abrahams (53yo)

    Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: AU$75.00k
  • Peter Lloyd (65yo)

    Independent Non-Executive Director

    • Tenure: 9.5yrs
    • Compensation: AU$75.00k
  • Garry Dinnie (67yo)

    Independent Non-Executive Director

    • Tenure: 6.9yrs
    • Compensation: AU$75.00k
  • Paul Brandling (61yo)

    Independent Chairman

    • Tenure: 1.2yrs
    • Compensation: AU$83.04k
  • Anne Myers (61yo)

    Non-Executive Independent Director

    • Tenure: 1.5yrs

Company Information

Integrated Research Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Integrated Research Limited
  • Ticker: IRI
  • Exchange: ASX
  • Founded: 1988
  • Industry: Application Software
  • Sector: Software
  • Market Cap: AU$501.833m
  • Shares outstanding: 171.86m
  • Website: https://www.ir.com

Number of Employees


Location

  • Integrated Research Limited
  • 100 Pacific Highway
  • Level 9
  • North Sydney
  • New South Wales
  • 2060
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IRIASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2000
IREH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2000
IRICHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2000

Biography

Integrated Research Limited designs, develops, implements, and sells systems and applications management computer software for business-critical computing, unified communication networks, and payment networks in the Americas, Europe, and the Asia Pacific. The company offers Prognosis, an integrated suite of monitoring and management software designed to give an organization’s management and technical personnel operational insight into the HP NonStop platform, distributed system servers, unified communications, payment environments, and the business applications that run on these platforms. It also provides testing solutions; and consulting services, such as implementation, customization, and training. The company serves stock exchanges, banks, credit card companies, telecommunications companies, computer companies, service providers, and manufacturing companies through sales offices, as well as through a distribution network. Integrated Research Limited was founded in 1988 and is headquartered in North Sydney, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/21 10:34
End of Day Share Price2020/01/21 00:00
Earnings2019/06/30
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.