company background image
IAP

Irongate GroupJSE:IAP Stock Report

Market Cap

R10.4b

7D

-1.7%

1Y

1.4%

Updated

16 Oct, 2021

Data

Company Financials +
IAP fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance0/6
Financial Health3/6
Dividends2/6

IAP Overview

Irongate Group has its origins as the Investec Group’s Australian and New Zealand property investment and asset management business.

Price History & Performance

Summary of all time highs, changes and price drops for Irongate Group
Historical stock prices
Current Share PriceR16.10
52 Week HighR13.00
52 Week LowR17.40
Beta0.21
1 Month Change-0.68%
3 Month Change4.55%
1 Year Change1.45%
3 Year Change32.18%
5 Year Change5.30%
Change since IPO57.69%

Recent News & Updates

Shareholder Returns

IAPZA REITsZA Market
7D-1.7%-0.4%1.6%
1Y1.4%39.5%21.3%

Return vs Industry: IAP underperformed the ZA REITs industry which returned 39.5% over the past year.

Return vs Market: IAP underperformed the ZA Market which returned 21.3% over the past year.

Price Volatility

Is IAP's price volatile compared to industry and market?
IAP volatility
IAP Beta0.21
Industry Beta0.89
Market Beta1

Stable Share Price: IAP is less volatile than 75% of ZA stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: IAP's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/an/aGraeme Katzhttps://irongategroup.com.au

Irongate Group has its origins as the Investec Group’s Australian and New Zealand property investment and asset management business. Having invested in and managed over A$3bn of assets for the Investec Group, the long-standing management team evolved to become the Irongate Group to continue its growth trajectory and expand its third-party funds management platform. Our strength lies in our disciplined, measured and value-based approach to multi-sector property investment and asset management in Australia and New Zealand.

Irongate Group Fundamentals Summary

How do Irongate Group's earnings and revenue compare to its market cap?
IAP fundamental statistics
Market CapAU$957.28m
Earnings (TTM)-AU$12.68m
Revenue (TTM)AU$55.22m

17.3x

P/S Ratio

-75.5x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
IAP income statement (TTM)
RevenueAU$55.22m
Cost of RevenueAU$25.79m
Gross ProfitAU$29.43m
ExpensesAU$42.11m
Earnings-AU$12.68m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

Oct 27, 2021

Earnings per share (EPS)-0.02
Gross Margin53.29%
Net Profit Margin-22.96%
Debt/Equity Ratio37.2%

How did IAP perform over the long term?

See historical performance and comparison

Dividends

6.1%

Current Dividend Yield

47%

Payout Ratio

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IAP (ZAR16.1) is trading below our estimate of fair value (ZAR43.05)

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


Price To Earnings Ratio

PE vs Industry: IAP is unprofitable, so we can't compare its PE Ratio to the ZA REITs industry average.

PE vs Market: IAP is unprofitable, so we can't compare its PE Ratio to the ZA market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate IAP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: IAP is overvalued based on its PB Ratio (24.3x) compared to the ZA REITs industry average (0.6x).


Future Growth

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

54.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IAP is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (8.8%).

Earnings vs Market: IAP is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: IAP's is expected to become profitable in the next 3 years.

Revenue vs Market: IAP's revenue (12.7% per year) is forecast to grow faster than the ZA market (6.1% per year).

High Growth Revenue: IAP's revenue (12.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IAP's Return on Equity is forecast to be low in 3 years time (6.6%).


Past Performance

How has Irongate Group performed over the past 5 years?

-6.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IAP is currently unprofitable.

Growing Profit Margin: IAP is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: IAP is unprofitable, and losses have increased over the past 5 years at a rate of 6% per year.

Accelerating Growth: Unable to compare IAP's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: IAP is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (111.5%).


Return on Equity

High ROE: IAP has a negative Return on Equity (20.79%), as it is currently unprofitable.


Financial Health

How is Irongate Group's financial position?


Financial Position Analysis

Short Term Liabilities: IAP's short term assets (A$13.1M) do not cover its short term liabilities (A$37.0M).

Long Term Liabilities: IAP's short term assets (A$13.1M) do not cover its long term liabilities (A$348.9M).


Debt to Equity History and Analysis

Debt Level: IAP's debt to equity ratio (37.2%) is considered satisfactory.

Reducing Debt: IAP's debt to equity ratio has reduced from 43% to 37.2% over the past 5 years.

Debt Coverage: IAP's debt is not well covered by operating cash flow (9.5%).

Interest Coverage: IAP earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Irongate Group current dividend yield, its reliability and sustainability?

6.11%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IAP's dividend (6.11%) is higher than the bottom 25% of dividend payers in the ZA market (3.07%).

High Dividend: IAP's dividend (6.11%) is low compared to the top 25% of dividend payers in the ZA market (8.09%).


Stability and Growth of Payments

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

Growing Dividend: IAP's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (47.4%), IAP's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

0.9yrs

Average management tenure


CEO

Graeme Katz (56 yo)

0.92

Tenure

AU$692,236

Compensation

Mr. Graeme Katz served as Chief Executive Officer of Irongate Funds Management Limited since November 30, 2020, the responsible entity of Irongate Group and had been its Executive Director since March 31,...


CEO Compensation Analysis

Compensation vs Market: Graeme's total compensation ($USD513.79K) is below average for companies of similar size in the ZA market ($USD895.91K).

Compensation vs Earnings: Graeme's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: IAP's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: IAP's board of directors are considered experienced (7.3 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 5.6%.


Top Shareholders

Company Information

Irongate Group's employee growth, exchange listings and data sources


Key Information

  • Name: Irongate Group
  • Ticker: IAP
  • Exchange: JSE
  • Founded: NaN
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: R10.390b
  • Shares outstanding: 645.31m
  • Website: https://irongategroup.com.au

Location

  • Irongate Group
  • Level 13
  • 95 Pitt Street
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/16 17:03
End of Day Share Price2021/10/15 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.