DB:03F

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Executive Summary

IDP Education Limited engages in the placement of students into education institutions in Asia, Australasia, and internationally.


Snowflake Analysis

Outstanding track record with high growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 03F's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.3%

03F

1.2%

DE Consumer Services

3.2%

DE Market


1 Year Return

-5.4%

03F

6.0%

DE Consumer Services

0.01%

DE Market

Return vs Industry: 03F underperformed the German Consumer Services industry which returned 6.5% over the past year.

Return vs Market: 03F underperformed the German Market which returned -0.1% over the past year.


Shareholder returns

03FIndustryMarket
7 Day5.3%1.2%3.2%
30 Day13.1%3.2%4.7%
90 Day-19.8%-2.2%-0.9%
1 Year-4.2%-5.4%7.9%6.0%1.7%0.01%
3 Year267.1%249.7%-8.6%-13.3%-6.8%-14.0%
5 Yearn/a-38.6%-55.4%3.9%-9.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

27.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 03F (€10.3) is trading below our estimate of fair value (€13.94)

Significantly Below Fair Value: 03F is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 03F is poor value based on its PE Ratio (53x) compared to the Consumer Services industry average (15x).

PE vs Market: 03F is poor value based on its PE Ratio (53x) compared to the German market (19x).


Price to Earnings Growth Ratio

PEG Ratio: 03F is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: 03F is overvalued based on its PB Ratio (24.4x) compared to the XE Consumer Services industry average (2.7x).


Next Steps

Future Growth

How is IDP Education forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

32.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 03F's forecast earnings growth (32.3% per year) is above the savings rate (0.2%).

Earnings vs Market: 03F's earnings (32.3% per year) are forecast to grow faster than the German market (22.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 03F's revenue (17.5% per year) is forecast to grow faster than the German market (5.7% per year).

High Growth Revenue: 03F's revenue (17.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 03F's Return on Equity is forecast to be very high in 3 years time (40.4%).


Next Steps

Past Performance

How has IDP Education performed over the past 5 years?

19.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 03F has high quality earnings.

Growing Profit Margin: 03F's current net profit margins (12.4%) are higher than last year (11.3%).


Past Earnings Growth Analysis

Earnings Trend: 03F's earnings have grown by 19.7% per year over the past 5 years.

Accelerating Growth: 03F's earnings growth over the past year (35.2%) exceeds its 5-year average (19.7% per year).

Earnings vs Industry: 03F earnings growth over the past year (35.2%) exceeded the Consumer Services industry 20.8%.


Return on Equity

High ROE: 03F's Return on Equity (46%) is considered outstanding.


Next Steps

Financial Health

How is IDP Education's financial position?


Financial Position Analysis

Short Term Liabilities: 03F's short term assets (A$215.8M) exceed its short term liabilities (A$160.6M).

Long Term Liabilities: 03F's short term assets (A$215.8M) exceed its long term liabilities (A$137.6M).


Debt to Equity History and Analysis

Debt Level: 03F's debt to equity ratio (34.6%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 03F's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 03F's debt is well covered by operating cash flow (173%).

Interest Coverage: 03F's interest payments on its debt are well covered by EBIT (40.8x coverage).


Balance Sheet


Next Steps

Dividend

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

1.41%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 03F's dividend (1.38%) is higher than the bottom 25% of dividend payers in the German market (1.32%).

High Dividend: 03F's dividend (1.38%) is low compared to the top 25% of dividend payers in the German market (4.07%).


Stability and Growth of Payments

Stable Dividend: 03F has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 03F's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (73%), 03F's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 03F's dividends in 3 years are forecast to be covered by earnings (73.3% payout ratio).


Next Steps

Management

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

5.0yrs

Average management tenure


CEO

Andrew Barkla

4.75yrs

Tenure

AU$2,252,275

Compensation

Mr. Andrew Barkla has been the Chief Executive Officer and Managing Director of IDP Education Limited since August 17, 2015. Mr. Barkla Pacific region. Mr. Barkla has extensive experience in the technology ...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD1.50M) is below average for companies of similar size in the German market ($USD2.36M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Barkla
MD, CEO & Director4.75yrsAU$2.25m0.087% A$2.5m
Murray Walton
CFO & Company Secretary10.17yrsAU$1.03m0.023% A$655.9k
Warwick Freeland
Chief Strategy Officer & MD of IELTS11.75yrsAU$873.62kno data
Harmeet Pental
Chief Operating Officer2.58yrsno datano data
Craig Mackey
Director of Corporate Development2.5yrsno datano data
Georgia Murphy
General Manager of People & Culture11.08yrsno datano data
Neil Pearson
Chief Digital Marketing Officer3.33yrsno datano data
Simon Emmett
Chief Executive Officer of Hotcourses Group5.33yrsno datano data

5.0yrs

Average Tenure

Experienced Management: 03F's management team is seasoned and experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Andrew Barkla
MD, CEO & Director4.75yrsAU$2.25m0.087% A$2.5m
Peter Polson
Non-Executive Chairman5.33yrsAU$350.00k0.032% A$910.1k
Gregory West
Non-Executive Director13.42yrsAU$170.00k0.010% A$282.8k
David Battersby
Non-Executive Director9.17yrsAU$160.00k0.0036% A$102.2k
Chris Leptos
Non-Executive Director4.5yrsAU$170.00k0.010% A$291.9k
Ariane Barker
Non-Executive Director4.5yrsAU$190.00k0.0078% A$220.5k
Colin Stirling
Non-Executive Director2.17yrsAU$160.00kno data

4.9yrs

Average Tenure

Experienced Board: 03F's board of directors are considered experienced (4.9 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 been diluted in the past year, with total shares outstanding growing by 9.8%.


Top Shareholders

Company Information

IDP Education Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: IDP Education Limited
  • Ticker: 03F
  • Exchange: DB
  • Founded: 2005
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: AU$4.740b
  • Listing Market Cap: AU$2.831b
  • Shares outstanding: 278.34m
  • Website: https://www.idp.com

Location

  • IDP Education Limited
  • 535 Bourke Street
  • Level 8
  • Melbourne
  • Victoria
  • 3000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IELASX (Australian Securities Exchange)YesOrdinary SharesAUAUDNov 2015
IELCHIA (Chi-X Australia)YesOrdinary SharesAUAUDNov 2015
03FDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2015
IDPU.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 2015

Biography

IDP Education Limited engages in the placement of students into education institutions in Asia, Australasia, and internationally. Its services include counselling, application processing, pre-departure guidance, examinations, English language teaching, client relations, digital marketing, online students recruitment, and shared services. The company is also involved in the distribution and administration of International English Language Testing System tests for study, work, and migration purposes. In addition, it operates English language schools. The company has operations approximately in 30 countries worldwide. IDP Education Limited was incorporated in 2005 and is headquartered in Melbourne, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/30 00:38
End of Day Share Price2020/05/29 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.