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IAP

Irongate Group JSE:IAP Stock Report

Last Price

R21.05

Market Cap

R14.3b

7D

0%

1Y

38.0%

Updated

19 Jul, 2022

Data

Company Financials

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IAP fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance0/6
Financial Health2/6
Dividends3/6

IAP Stock Overview

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

Irongate Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Irongate Group
Historical stock prices
Current Share PriceR21.05
52 Week HighR23.00
52 Week LowR15.00
Beta0.19
1 Month Change4.47%
3 Month Change-2.09%
1 Year Change38.03%
3 Year Change47.72%
5 Year Change60.20%
Change since IPO106.17%

Recent News & Updates

Shareholder Returns

IAPZA REITsZA Market
7D0%-4.8%-2.6%
1Y38.0%-10.8%-5.6%

Return vs Industry: IAP exceeded the ZA REITs industry which returned 0% over the past year.

Return vs Market: IAP exceeded the ZA Market which returned -1.8% over the past year.

Price Volatility

Is IAP's price volatile compared to industry and market?
IAP volatility
IAP Average Weekly Movement2.3%
REITs Industry Average Movement4.5%
Market Average Movement5.5%
10% most volatile stocks in ZA Market10.1%
10% least volatile stocks in ZA Market3.2%

Stable Share Price: IAP is less volatile than 75% of ZA stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: IAP's weekly volatility (2%) 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 CapR14.26b
Earnings (TTM)-R18.82m
Revenue (TTM)R1.38b

10.3x

P/S Ratio

-758.1x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
IAP income statement (TTM)
RevenueAU$117.32m
Cost of RevenueAU$21.81m
Gross ProfitAU$95.51m
Other ExpensesAU$97.11m
Earnings-AU$1.60m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.0024
Gross Margin81.41%
Net Profit Margin-1.36%
Debt/Equity Ratio42.5%

How did IAP perform over the long term?

See historical performance and comparison

Dividends

5.1%

Current Dividend Yield

85%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is IAP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for IAP?

Other financial metrics that can be useful for relative valuation.

IAP key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue23.4x
Enterprise Value/EBITDA32.5x
PEG Ration/a

Price to Sales Ratio vs Peers

How does IAP's PS Ratio compare to its peers?

IAP PS Ratio vs Peers
The above table shows the PS ratio for IAP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average6.1x
FFA Fortress REIT
4.2x-5.6%R14.7b
MLI Industrials REIT
9x6.7%R8.0b
IPF Investec Property Fund
5.7x-1.8%R8.5b
RDF Redefine Properties
3.2x2.5%R23.2b
IAP Irongate Group
10.3xn/aR14.3b

Price-To-Sales vs Peers: IAP is expensive based on its Price-To-Sales Ratio (10.3x) compared to the peer average (6.1x).


Price to Earnings Ratio vs Industry

How does IAP's PE Ratio compare vs other companies in the ZA REITs Industry?

Price-To-Sales vs Industry: IAP is expensive based on its Price-To-Sales Ratio (10.3x) compared to the ZA REITs industry average (3.5x)


Price to Sales Ratio vs Fair Ratio

What is IAP's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

IAP PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio10.3x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate IAP's Price-To-Sales Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of IAP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: IAP (ZAR21.05) is trading below our estimate of fair value (ZAR27.54)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

How is Irongate Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


4.8%

Forecasted Real Estate industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Irongate Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Discover growth companies

  • Take a look at our analysis of IAP’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.

Past Performance

How has Irongate Group performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-22.9%

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 22.9% 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 (183.3%).


Return on Equity

High ROE: IAP has a negative Return on Equity (21.9%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is Irongate Group's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: IAP's short term assets (A$19.3M) do not cover its short term liabilities (A$45.2M).

Long Term Liabilities: IAP's short term assets (A$19.3M) do not cover its long term liabilities (A$523.6M).


Debt to Equity History and Analysis

Debt Level: IAP's net debt to equity ratio (41.8%) is considered high.

Reducing Debt: IAP's debt to equity ratio has reduced from 49.3% to 42.5% over the past 5 years.

Debt Coverage: IAP's debt is not well covered by operating cash flow (12.4%).

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


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


5.14%

Current Dividend Yield

Dividend Yield vs Market

Irongate Group Dividend Yield vs Market
How does Irongate Group dividend yield compare to the market?
SegmentDividend Yield
Company (Irongate Group)5.1%
Market Bottom 25% (ZA)3.5%
Market Top 25% (ZA)9.0%
Industry Average (REITs)10.3%
Analyst forecast in 3 Years (Irongate Group)n/a

Notable Dividend: IAP's dividend (5.14%) is higher than the bottom 25% of dividend payers in the ZA market (3.23%).

High Dividend: IAP's dividend (5.14%) is low compared to the top 25% of dividend payers in the ZA market (9.19%).


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 8 years.


Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (84.6%), IAP's payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (96.9%), IAP's dividend payments are covered by cash flows.


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Management

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

1.7yrs

Average management tenure


CEO

Graeme Katz (57 yo)

13.33yrs

Tenure

AU$1,255,846

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

Graeme Katz's Compensation vs Irongate Group Earnings
How has Graeme Katz's remuneration changed compared to Irongate Group's earnings?
DateTotal Comp.SalaryCompany Earnings
Mar 31 2022AU$1mAU$589k

-AU$2m

Sep 30 2021n/an/a

AU$58m

Jun 30 2021n/an/a

AU$23m

Mar 31 2021AU$714kAU$186k

-AU$13m

Sep 30 2020n/an/a

AU$55m

Jun 30 2020n/an/a

AU$57m

Mar 31 2020AU$155kAU$155k

AU$59m

Dec 31 2019n/an/a

AU$63m

Sep 30 2019n/an/a

AU$66m

Jun 30 2019n/an/a

AU$60m

Mar 31 2019AU$155kAU$155k

AU$53m

Dec 31 2018n/an/a

AU$70m

Sep 30 2018n/an/a

AU$87m

Jun 30 2018n/an/a

AU$98m

Mar 31 2018AU$155kAU$155k

AU$108m

Dec 31 2017n/an/a

AU$93m

Sep 30 2017n/an/a

AU$78m

Jun 30 2017n/an/a

AU$64m

Mar 31 2017AU$150kAU$150k

AU$49m

Dec 31 2016n/an/a

AU$52m

Sep 30 2016n/an/a

AU$56m

Jun 30 2016n/an/a

AU$50m

Mar 31 2016AU$150kAU$150k

AU$43m

Compensation vs Market: Graeme's total compensation ($USD866.46K) is about average for companies of similar size in the ZA market ($USD854.38K).

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 ( 1.7 years average tenure), which suggests a new team.


Board Members

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

JSE:IAP Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
07 Jul 22SellR1,114,299,022JPMorgan Chase & Co, Brokerage and Securities InvestmentsCompany51,228,814R22.08
06 Jul 22BuyR128,377,241Morgan Stanley, Investment Banking and Brokerage InvestmentsCompany6,132,246R22.02
06 Jul 22SellR0The Vanguard Group, Inc.Company42,204,403R21.89
06 Jul 22SellR97,330,786First Sentier Investors (Australia) IM LtdCompany4,482,755R21.71
05 Jul 22BuyR0The Vanguard Group, Inc.Company11,518,765R21.67
30 Jun 22BuyR600,001,270Milford Asset Management LimitedCompany27,880,650R21.52
30 Jun 22SellR25,715,563Morgan Stanley, Investment Banking and Brokerage InvestmentsCompany1,261,852R20.38
23 Jun 22BuyR16,062,758First Sentier Investors (Australia) IM LtdCompany780,314R20.58
06 Jun 22SellR47,681,426Milford Asset Management LimitedCompany2,451,023R19.45
13 May 22BuyR18,353,499Morgan Stanley, Investment Banking and Brokerage InvestmentsCompany856,998R21.43
13 May 22SellR4,505,952Morgan Stanley, Investment Banking and Brokerage InvestmentsCompany210,276R21.46
12 May 22SellR74,318,751JPMorgan Chase & Co, Private Banking and Investment Banking InvestmentsCompany3,500,000R21.23
11 May 22SellR177,375,437First Sentier Investors (Australia) IM LtdCompany8,214,459R21.59
10 May 22SellR88,897,421JPMorgan Chase & Co, Brokerage and Securities InvestmentsCompany4,134,348R21.62
09 May 22BuyR1,033,996Mitsubishi UFJ Kokusai Asset Management Co., Ltd.Company47,567R21.74
03 May 22BuyR116,802First Sentier Investors (Australia) IM LtdCompany5,510R21.20
26 Apr 22SellR32,792,317JPMorgan Chase & Co, Private Banking and Investment Banking InvestmentsCompany1,500,000R21.86
20 Apr 22BuyR811,771,227JPMorgan Chase & Co, Brokerage and Securities InvestmentsCompany38,246,910R21.22
20 Apr 22SellR9,395,937JPMorgan Chase & Co, Private Banking and Investment Banking InvestmentsCompany496,605R18.92
20 Apr 22SellR1,752,993,588JPMorgan Chase & Co, Brokerage and Securities InvestmentsCompany84,126,207R21.17
11 Apr 22BuyR33,768,376First Sentier Investors (Australia) IM LtdCompany1,667,248R20.79
07 Apr 22BuyR105,997,133JPMorgan Chase & Co, Private Banking and Investment Banking InvestmentsCompany5,000,000R21.20
15 Nov 21SellR41,956,918The Vanguard Group, Inc.Company2,340,625R17.96
12 Nov 21BuyR85,172,194The Vanguard Group, Inc.Company4,660,221R18.34
26 Oct 21SellR68,358,012Franklin Resources, Inc.Company4,100,054R16.67
22 Oct 21BuyR85,277,561Franklin Resources, Inc.Company5,220,904R16.33

Ownership Breakdown

What is the ownership structure of IAP?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders2,968,2200.4%
Private Companies14,920,5022.2%
General Public73,203,23910.8%
Institutions586,477,79386.6%

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5%.


Top Shareholders

Top 25 shareholders own 82.15% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
12.84%
360 Capital REIT
86,976,694A$1.8b0%100%
8.05%
Public Investment Corporation Limited
54,553,770A$1.1b3.23%0.15%
7.45%
Investec Ltd., Asset Management Arm
50,503,759A$1.1b0%8.24%
7.15%
360 Capital Group Limited
48,441,093A$1.0b0%100%
5.44%
Milford Asset Management Limited
36,872,218A$776.2m336.82%5.8%
5.02%
Morgan Stanley, Investment Banking and Brokerage Investments
33,989,871A$715.5m67.81%0.01%
3.58%
BlackRock, Inc.
24,257,614A$510.6m53.39%no data
3.29%
Franklin Resources, Inc.
22,267,585A$468.7m-30.62%0.01%
3.01%
Sesfikile Capital (Pty) Ltd
20,373,311A$428.9m-36.59%4.71%
2.7%
APN Property Group Limited
18,279,627A$384.8m0%15.58%
2.59%
Maso Capital Partners Ltd
17,543,810A$369.3m0%7.81%
2.47%
STANLIB Asset Management (Pty) Limited
16,752,977A$352.7m0%1.9%
2.2%
NPV Group
14,920,502A$314.1m0%no data
1.89%
PPM America, Inc.
12,816,610A$269.8m0%0.29%
1.76%
Millennium Capital Management (Singapore) Pte. Ltd.
11,905,779A$250.6m0%no data
1.62%
Meago Asset Managers (Pty) Ltd
10,976,166A$231.0m34.56%6.72%
1.58%
First Sentier Investors (Australia) IM Ltd
10,671,744A$224.6m-43.48%0.03%
1.41%
Eskom Pension and Provident Fund
9,564,706A$201.3m-9.75%2.08%
1.39%
Rezco Asset Management
9,426,324A$198.4m0%58.38%
1.37%
State Street Global Advisors, Inc.
9,267,533A$195.1m2086.33%no data
1.35%
Momentum Asset Management (Pty) Ltd
9,175,074A$193.1m0%2.23%
1.22%
Old Mutual Investment Group (Pty) Limited
8,249,319A$173.6m-62.61%0.16%
1.03%
Ninety One UK Limited
6,975,078A$146.8m0%0.01%
0.98%
Investec Wealth & Investment Limited
6,658,877A$140.2m-5.13%0.06%
0.77%
Truffle Asset Management (Pty) Ltd
5,212,121A$109.7m0%0.93%

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
  • Implied Market Cap: R14.263b
  • Shares outstanding: 677.57m
  • Website: https://irongategroup.com.au

Location

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


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IAPJSE (The Johannesburg Securities Exchange)YesLinked UnitsZAZAROct 2013
IAPCHIA (Chi-X Australia)NPVAUAUDMay 2019

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/19 00:00
End of Day Share Price2022/07/07 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.