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IPH

ASX:IPH
Snowflake Description

Flawless balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
IPH
ASX
A$2B
Market Cap
  1. Home
  2. AU
  3. Commercial Services
Company description

IPH Limited, together with its subsidiaries, provides intellectual property (IP) services and products worldwide. The last earnings update was 92 days ago. More info.


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IPH Share Price and Events
7 Day Returns
2.2%
ASX:IPH
0.4%
AU Professional Services
-0.1%
AU Market
1 Year Returns
59.5%
ASX:IPH
20.6%
AU Professional Services
16.5%
AU Market
IPH Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
IPH (IPH) 2.2% 2.4% -9.8% 59.5% 56.8% 145.7%
AU Professional Services 0.4% 3% 7.6% 20.6% 37.9% 39.2%
AU Market -0.1% 1.5% 3.5% 16.5% 21.9% 20.6%
1 Year Return vs Industry and Market
  • IPH outperformed the Professional Services industry which returned 20.6% over the past year.
  • IPH outperformed the Market in Australia which returned 16.5% over the past year.
Price Volatility
IPH
Industry
5yr Volatility vs Market

IPH Value

 Is IPH undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of IPH to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for IPH.

ASX:IPH Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.7%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:IPH
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Professional Services Unlevered Beta Simply Wall St/ S&P Global 0.83
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.828 (1 + (1- 30%) (3.99%))
0.9
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.9
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (0.9 * 5.96%)
7.68%

Discounted Cash Flow Calculation for ASX:IPH using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for IPH is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

ASX:IPH DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 7.68%)
2020 80.70 Analyst x1 74.95
2021 82.35 Analyst x2 71.03
2022 88.50 Analyst x2 70.89
2023 93.22 Est @ 5.33% 69.35
2024 97.35 Est @ 4.43% 67.26
2025 101.04 Est @ 3.79% 64.83
2026 104.42 Est @ 3.35% 62.23
2027 107.59 Est @ 3.04% 59.54
2028 110.63 Est @ 2.82% 56.86
2029 113.58 Est @ 2.67% 54.21
Present value of next 10 years cash flows A$651.00
ASX:IPH DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= A$113.58 × (1 + 2.31%) ÷ (7.68% – 2.31%)
A$2,166.53
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$2,166.53 ÷ (1 + 7.68%)10
A$1,034.18
ASX:IPH Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$651.00 + A$1,034.18
A$1,685.18
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$1,685.18 / 213.74
A$7.88
ASX:IPH Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$7.88
Current discount Discount to share price of A$8.23
= -1 x (A$8.23 - A$7.88) / A$7.88
-4.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of IPH is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for IPH's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are IPH's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:IPH PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in AUD A$0.27
ASX:IPH Share Price ** ASX (2019-11-19) in AUD A$8.23
Australia Professional Services Industry PE Ratio Median Figure of 10 Publicly-Listed Professional Services Companies 21.51x
Australia Market PE Ratio Median Figure of 519 Publicly-Listed Companies 18.7x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of IPH.

ASX:IPH PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:IPH Share Price ÷ EPS (both in AUD)

= 8.23 ÷ 0.27

30.58x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • IPH is overvalued based on earnings compared to the AU Professional Services industry average.
  • IPH is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does IPH's expected growth come at a high price?
Raw Data
ASX:IPH PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 30.58x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
14.7%per year
Australia Professional Services Industry PEG Ratio Median Figure of 7 Publicly-Listed Professional Services Companies 1.94x
Australia Market PEG Ratio Median Figure of 347 Publicly-Listed Companies 1.6x

*Line of best fit is calculated by linear regression .

ASX:IPH PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 30.58x ÷ 14.7%

2.08x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • IPH is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on IPH's assets?
Raw Data
ASX:IPH PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in AUD A$1.44
ASX:IPH Share Price * ASX (2019-11-19) in AUD A$8.23
Australia Professional Services Industry PB Ratio Median Figure of 21 Publicly-Listed Professional Services Companies 2.08x
Australia Market PB Ratio Median Figure of 1,584 Publicly-Listed Companies 1.75x
ASX:IPH PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:IPH Share Price ÷ Book Value per Share (both in AUD)

= 8.23 ÷ 1.44

5.7x

* Primary Listing of IPH.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • IPH is overvalued based on assets compared to the AU Professional Services industry average.
X
Value checks
We assess IPH's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Professional Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Professional Services industry average (and greater than 0)? (1 check)
  5. IPH has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

IPH Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
14.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is IPH expected to grow at an attractive rate?
  • IPH's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • IPH's earnings growth is expected to exceed the Australia market average.
  • IPH's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:IPH Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:IPH Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 14.7%
ASX:IPH Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 14.8%
Australia Professional Services Industry Earnings Growth Rate Market Cap Weighted Average 15.5%
Australia Professional Services Industry Revenue Growth Rate Market Cap Weighted Average 9.8%
Australia Market Earnings Growth Rate Market Cap Weighted Average 9.7%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:IPH Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:IPH Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-06-30 426 109 85 6
2021-06-30 412 100 79 6
2020-06-30 386 83 70 6
2019-11-19
ASX:IPH Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2019-06-30 253 62 53
2019-03-31 249 58 49
2018-12-31 247 55 45
2018-09-30 235 51 43
2018-06-30 222 46 41
2018-03-31 207 45 41
2017-12-31 192 44 40
2017-09-30 188 47 42
2017-06-30 183 50 43
2017-03-31 177 45 43
2016-12-31 171 40 43
2016-09-30 163 41 41

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • IPH's earnings are expected to grow by 14.7% yearly, however this is not considered high growth (20% yearly).
  • IPH's revenue is expected to grow by 14.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:IPH Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from IPH Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:IPH Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-06-30 0.42 0.46 0.38 3.00
2021-06-30 0.39 0.43 0.34 3.00
2020-06-30 0.36 0.39 0.31 3.00
2019-11-19
ASX:IPH Past Financials Data
Date (Data in AUD Millions) EPS *
2019-06-30 0.27
2019-03-31 0.25
2018-12-31 0.23
2018-09-30 0.22
2018-06-30 0.21
2018-03-31 0.21
2017-12-31 0.21
2017-09-30 0.22
2017-06-30 0.22
2017-03-31 0.23
2016-12-31 0.23
2016-09-30 0.22

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • IPH is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess IPH's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
IPH has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

IPH Past Performance

  How has IPH performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare IPH's growth in the last year to its industry (Professional Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • IPH's year on year earnings growth rate has been positive over the past 5 years.
  • IPH's 1-year earnings growth exceeds its 5-year average (30.6% vs 9.9%)
  • IPH's earnings growth has exceeded the AU Professional Services industry average in the past year (30.6% vs 26.7%).
Earnings and Revenue History
IPH's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from IPH Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:IPH Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 252.54 53.11 87.05
2019-03-31 248.60 49.11 86.50
2018-12-31 246.72 45.10 85.95
2018-09-30 235.37 42.89 81.73
2018-06-30 221.96 40.67 77.50
2018-03-31 207.21 40.59 70.39
2017-12-31 192.46 40.50 63.28
2017-09-30 187.93 41.70 60.93
2017-06-30 183.41 42.89 58.58
2017-03-31 177.02 42.70 56.83
2016-12-31 170.63 42.50 55.08
2016-09-30 162.52 40.67 51.74
2016-06-30 154.41 38.84 48.40
2016-03-31 138.21 37.36 40.94
2015-12-31 122.01 35.87 33.49
2015-09-30 105.38 33.09 26.46
2015-06-30 88.75 30.32 19.43
2015-03-31 83.88 29.83 17.71
2014-12-31 79.02 29.34 15.99
2014-09-30 76.19 30.34 15.95
2014-06-30 73.35 31.34 15.91
2013-06-30 74.20 20.30 2.50

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • IPH has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • IPH used its assets more efficiently than the AU Professional Services industry average last year based on Return on Assets.
  • IPH's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess IPH's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Professional Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
IPH has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

IPH Health

 How is IPH's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up IPH's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • IPH is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • IPH's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of IPH's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from IPH Company Filings, last reported 4 months ago.

ASX:IPH Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 284.75 65.67 74.46
2019-03-31 284.75 65.67 74.46
2018-12-31 273.79 32.64 29.35
2018-09-30 273.79 32.64 29.35
2018-06-30 267.59 40.30 26.21
2018-03-31 267.59 40.30 26.21
2017-12-31 269.21 33.31 18.28
2017-09-30 269.21 33.31 18.28
2017-06-30 239.69 0.20 24.40
2017-03-31 239.69 0.20 24.40
2016-12-31 239.41 0.00 32.25
2016-09-30 239.41 0.00 32.25
2016-06-30 221.81 0.20 58.76
2016-03-31 221.81 0.20 58.76
2015-12-31 204.57 0.04 76.99
2015-09-30 204.57 0.04 76.99
2015-06-30 35.18 10.55 5.35
2015-03-31 35.18 10.55 5.35
2014-12-31 0.34 13.28 4.79
2014-09-30 0.34 13.28 4.79
2014-06-30 0.15 5.73 4.32
2013-06-30
  • IPH's level of debt (23.1%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (4026.1% vs 23.1% today).
  • Debt is well covered by operating cash flow (93.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 35.8x coverage).
X
Financial health checks
We assess IPH's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. IPH has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

IPH Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.04%
Current annual income from IPH dividends. Estimated to be 3.98% next year.
If you bought A$2,000 of IPH shares you are expected to receive A$61 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • IPH's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.37%).
  • IPH's dividend is below the markets top 25% of dividend payers in Australia (5.62%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:IPH Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
Australia Professional Services Industry Average Dividend Yield Market Cap Weighted Average of 11 Stocks 2.6%
Australia Market Average Dividend Yield Market Cap Weighted Average of 390 Stocks 4.1%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.5%
Australia Bottom 25% Dividend Yield 25th Percentile 2.4%
Australia Top 25% Dividend Yield 75th Percentile 5.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:IPH Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2022-06-30 0.35 6.00
2021-06-30 0.33 6.00
2020-06-30 0.30 6.00
2019-11-19
ASX:IPH Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-08-19 0.250 2.928
2019-02-13 0.230 3.237
2018-08-15 0.225 4.023
2017-08-16 0.220 4.820
2016-08-17 0.210 4.198
2016-02-22 0.220 3.277
2015-09-16 0.200 2.538
2015-08-26 0.200 3.560
2015-02-25 0.070 1.496

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, IPH has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but IPH only paid a dividend in the past 5 years.
Current Payout to shareholders
What portion of IPH's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (1.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.2x coverage).
X
Income/ dividend checks
We assess IPH's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.5%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can IPH afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. IPH has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

IPH Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Andrew Blattman
COMPENSATION A$1,727,907
TENURE AS CEO 2 years
CEO Bio

Dr. Andrew Blattman serves as Managing Director of IPH Limited and has been its Chief Executive Officer and Director since November 20, 2017. Dr. Blattman serves as the Chief Executive Officer of Spruson & Ferguson Pty Limited since 2015. He has been a Director of Xenith IP Group Limited since August 16, 2019. Dr. Blattman served as a Principal of IPH Limited since 1999. He joined Spruson & Ferguson in 1995. Since Spruson & Ferguson’s incorporation and the listing of IPH on the Australian Stock Exchange in 2014, Andrew has played a key role in the development and growth of the IPH group. He has a deep knowledge and understanding of the IPH business. Dr. Blattman has been with IPH Group for 20 years and is with hemical/life team. Dr. Blattman is the Australian representative on the Biotechnology sub-committee of AIPPI (International Association for the Protection of Intellectual Property). Under his leadership Spruson & Ferguson significantly expanded its footprint in the Australian and Asian IP markets ? opening new offices in Melbourne, Beijing, Hong Kong SAR, Jakarta and Bangkok. Dr. Blattman is a Registered Australian Patent Attorney, Registered New Zealand Patent Attorney and Registered Australian Trade Marks Attorney. Dr. Blattman holds BS in Agricultural Science (Hons 1) from University of Sydney and Doctor of Philosophy from University of New England and Graduate Diploma in Industrial Property from University of Technology Sydney.

CEO Compensation
  • Andrew's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Andrew's remuneration is about average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the IPH management team in years:

16.8
Average Tenure
  • The average tenure for the IPH management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Andrew Blattman

TITLE
CEO, MD & Director
COMPENSATION
A$2M
TENURE
2 yrs

John Wadley

TITLE
Chief Financial Officer
COMPENSATION
A$860K
TENURE
3.3 yrs

Philip Heuzenroeder

TITLE
Group General Counsel & Company Secretary
TENURE
3.6 yrs

Simon Saunders

TITLE
Head of IT & Systems
TENURE
5.2 yrs

Greg Turner

TITLE
Principal
COMPENSATION
A$129K
TENURE
34.8 yrs

Greg Gurr

TITLE
Principal
TENURE
20.8 yrs

John Afaras

TITLE
Principal

Shahnaz Irani

TITLE
Principal
TENURE
19.8 yrs

Tracey Berger

TITLE
Principal
TENURE
17.8 yrs

Paul Massey

TITLE
Principal
TENURE
16.8 yrs
Board of Directors Tenure

Average tenure and age of the IPH board of directors in years:

5.2
Average Tenure
62
Average Age
  • The tenure for the IPH board of directors is about average.
Board of Directors

Richard Grellman

TITLE
Independent Non-Executive Chairman
COMPENSATION
A$250K
AGE
69
TENURE
5.2 yrs

Andrew Blattman

TITLE
CEO, MD & Director
COMPENSATION
A$2M
TENURE
2 yrs

John Atkin

TITLE
Independent Non-Executive Director
COMPENSATION
A$140K
AGE
62
TENURE
5.2 yrs

Robin Low

TITLE
Independent Non-Executive Director
COMPENSATION
A$140K
AGE
58
TENURE
5.2 yrs

Jingmin Qian

TITLE
Independent Non-Executive Director
COMPENSATION
A$35K
TENURE
0.6 yrs
Who owns this company?
Recent Insider Trading
  • IPH individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
16. Sep 19 Sell Talabah Pty Limited Company 11. Sep 19 13. Sep 19 -300,000 A$8.92 A$-2,676,797
03. Sep 19 Sell Richard Grellman Individual 30. Aug 19 30. Aug 19 -21,449 A$9.37 A$-201,080
21. Aug 19 Sell Credit Suisse, Investment Banking and Securities Investments Company 28. Jun 19 16. Aug 19 -2,967,014 A$7.39 A$-21,933,568
21. Aug 19 Buy Credit Suisse, Investment Banking and Securities Investments Company 28. Jun 19 16. Aug 19 1,986,567 A$7.88 A$15,656,141
21. Aug 19 Buy Credit Suisse Asset Management (Switzerland) Company 28. Jun 19 28. Jun 19 8,032 A$7.46 A$59,919
22. Aug 19 Sell Credit Suisse, Investment Banking and Securities Investments Company 19. Aug 19 19. Aug 19 -194,193 A$8.32 A$-1,603,238
22. Aug 19 Buy Credit Suisse, Investment Banking and Securities Investments Company 19. Aug 19 19. Aug 19 62,269 A$8.56 A$522,337
19. Aug 19 Sell Paradice Investment Management Pty Ltd. Company 05. Apr 19 09. Aug 19 -1,432,040 A$8.50 A$-11,526,715
19. Aug 19 Buy Paradice Investment Management Pty Ltd. Company 30. May 19 06. Jun 19 167,142 A$6.78 A$1,120,589
19. Aug 19 Sell Vinva Investment Management Company 18. Apr 19 15. Aug 19 -189,193 A$7.75 A$-1,465,480
19. Aug 19 Buy Vinva Investment Management Company 18. Apr 19 15. Aug 19 105,561 A$7.25 A$765,839
15. Aug 19 Sell Perpetual Limited Company 02. Aug 19 13. Aug 19 -4,103,630 A$8.39 A$-33,604,353
25. Jul 19 Sell Perpetual Limited Company 19. Mar 19 23. Jul 19 -5,587,777 A$8.27 A$-45,145,409
27. Jun 19 Sell Credit Suisse Asset Management (Switzerland) Company 03. May 19 03. May 19 -7,814 A$7.13 A$-55,714
27. Jun 19 Buy Credit Suisse Asset Management (Switzerland) Company 05. Jun 19 12. Jun 19 29,179 A$6.79 A$198,267
26. May 19 Sell The Vanguard Group, Inc. Company 29. Jan 19 18. Apr 19 -112,372 A$6.68 A$-751,037
26. May 19 Buy The Vanguard Group, Inc. Company 17. Jan 19 16. May 19 786,332 A$7.15 A$5,585,912
23. Apr 19 Sell Vinva Investment Management Company 17. Dec 18 17. Apr 19 -33,245 A$6.27 A$-208,374
23. Apr 19 Buy Vinva Investment Management Company 17. Dec 18 17. Apr 19 10,940,608 A$6.77 A$74,060,949
12. Mar 19 Sell Perpetual Limited Company 07. Feb 19 08. Mar 19 -3,434,118 A$6.28 A$-21,567,719
12. Mar 19 Buy Perpetual Limited Company 20. Dec 18 14. Feb 19 1,368,492 A$5.52 A$7,559,513
25. Feb 19 Sell Paradice Investment Management Pty Ltd. Company 24. Dec 18 11. Feb 19 -6,660 A$6.02 A$-36,711
25. Feb 19 Buy Paradice Investment Management Pty Ltd. Company 02. Jan 19 21. Feb 19 2,056,164 A$6.04 A$11,983,858
18. Dec 18 Buy Paradice Investment Management Pty Ltd. Company 11. Dec 18 14. Dec 18 2,153,199 A$5.75 A$12,327,468
12. Dec 18 Buy Paradice Investment Management Pty Ltd. Company 21. Aug 18 10. Dec 18 10,020,066 A$6.11 A$57,206,891
13. Dec 18 Sell Perpetual Limited Company 05. Dec 18 11. Dec 18 -2,328,205 A$5.73 A$-13,292,351
07. Dec 18 Sell Realindex Investments Pty Limited Company 18. Oct 18 20. Nov 18 -136,846 A$5.47 A$-748,222
07. Dec 18 Buy Realindex Investments Pty Limited Company 27. Aug 18 04. Dec 18 330,554 A$5.47 A$1,807,592
07. Dec 18 Sell First Sentier Investors (Australia) IM Ltd Company 31. Aug 18 06. Dec 18 -1,288,227 A$5.62 A$-7,159,409
07. Dec 18 Buy First Sentier Investors (Australia) IM Ltd Company 28. Aug 18 30. Nov 18 433,078 A$5.64 A$2,433,451
06. Dec 18 Sell Perpetual Limited Company 14. Nov 18 04. Dec 18 -2,483,568 A$5.72 A$-14,154,907
06. Dec 18 Buy Perpetual Limited Company 21. Nov 18 23. Nov 18 294,078 A$5.11 A$1,484,466
X
Management checks
We assess IPH's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. IPH has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

IPH News

Simply Wall St News

The Independent Non-Executive Chairman of IPH Limited (ASX:IPH), Richard Grellman, Just Sold 30% Of Their Holding

See our latest analysis for IPH The Last 12 Months Of Insider Transactions At IPH Notably, that recent sale by Independent Non-Executive Chairman Richard Grellman was not the only time they sold IPH shares this year. … A high insider ownership often makes company leadership more mindful of shareholder interests. … Insider ownership isn't particularly high, so this analysis makes us cautious about the company.

Simply Wall St -

Is IPH Limited's (ASX:IPH) 19% ROE Better Than Average?

Careful use of debt to boost returns is often very good for shareholders. … In my book the highest quality companies have high return on equity, despite low debt. … If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

Simply Wall St -

What Should You Know About IPH Limited's (ASX:IPH) Growth?

After IPH Limited's (ASX:IPH) earnings announcement on 30 June 2019, it seems that analyst forecasts are fairly optimistic, with profits predicted to increase by 36% next year compared with the past 5-year average growth rate of 9.9%. … To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line. … ASX:IPH Past and Future Earnings, August 21st 2019 By 2022, IPH's earnings should reach AU$87m, from current levels of AU$53m, resulting in an annual growth rate of 15%.

Simply Wall St -

A Holistic Look At IPH Limited (ASX:IPH)

Excellent balance sheet with reasonable growth potential IPH delivered a bottom-line expansion of 11% in the prior year, with its most recent earnings level surpassing its average level over the last five years. … ASX:IPH Past and Future Earnings, August 11th 2019 IPH is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. … IPH's has produced operating cash levels of 1.68x total debt over the past year, which implies that IPH's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

Simply Wall St -

Are IPH Limited’s Returns On Capital Worth Investigating?

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for IPH: 0.19 = AU$64m ÷ (AU$363m - AU$30m) (Based on the trailing twelve months to December 2018.) Therefore, IPH has an ROCE of 19%. … IPH's Current Liabilities And Their Impact On Its ROCE Current liabilities include invoices, such as supplier payments, short-term debt, or a tax bill, that need to be paid within 12 months. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

Simply Wall St -

Is IPH Limited's (ASX:IPH) Growth Strong Enough To Justify Its July Share Price?

This tells us that IPH is overvalued compared to the AU market average ratio of 16.1x , and overvalued based on current earnings compared to the Professional Services industry average of 19.66x. … ASX:IPH Price Estimation Relative to Market, July 20th 2019 We understand IPH seems to be overvalued based on its current earnings, compared to its industry peers. … Based on this growth, IPH's stock can be considered overvalued , based on fundamental analysis.

Simply Wall St -

Should IPH (ASX:IPH) Be Disappointed With Their 64% Profit?

To wit, the IPH Limited (ASX:IPH) share price is 64% higher than it was a year ago, much better than the market return of around 4.8% (not including dividends) in the same period. … It is important to consider the total shareholder return, as well as the share price return, for any given stock. … We note that for IPH the TSR over the last year was 71%, which is better than the share price return mentioned above.

Simply Wall St -

We Think IPH (ASX:IPH) Can Manage Its Debt With Ease

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' It's only natural to consider a company's balance sheet when you examine how risky it is, since debt is often involved when a business collapses. … ASX:IPH Historical Debt, July 1st 2019 How Strong Is IPH's Balance Sheet? … But it is future earnings, more than anything, that will determine IPH's ability to maintain a healthy balance sheet going forward.

Simply Wall St -

What Does IPH Limited's (ASX:IPH) P/E Ratio Tell You?

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for IPH: P/E of 30.98 = A$7.11 ÷ A$0.23 (Based on the trailing twelve months to December 2018.) Is A High Price-to-Earnings Ratio Good? … How Growth Rates Impact P/E Ratios P/E ratios primarily reflect market expectations around earnings growth rates.

Simply Wall St -

Estimating The Fair Value Of IPH Limited (ASX:IPH)

Today we will run through one way of estimating the intrinsic value of IPH Limited (ASX:IPH) by estimating the company's future cash flows and discounting them to their present value. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF (A$, Millions) A$56.20 A$61.93 A$67.73 A$72.45 A$76.48 A$79.99 A$83.11 A$85.96 A$88.62 A$91.16 Growth Rate Estimate Source Analyst x2 Analyst x3 Analyst x3 Est @ 6.96% Est @ 5.57% Est @ 4.59% Est @ 3.91% Est @ 3.43% Est @ 3.09% Est @ 2.86% Present Value (A$, Millions) Discounted @ 7.81% A$52.13 A$53.28 A$54.05 A$53.62 A$52.51 A$50.94 A$49.09 A$47.10 A$45.03 A$42.97 Present Value of 10-year Cash Flow (PVCF)= A$500.72m "Est" = FCF growth rate estimated by Simply Wall St We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = AU$91m × (1 + 2.3%) ÷ (7.8% – 2.3%) = AU$1.7b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = A$AU$1.7b ÷ ( 1 + 7.8%)10 = A$799.27m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is A$1.30b.

Simply Wall St -

IPH Company Info

Description

IPH Limited, together with its subsidiaries, provides intellectual property (IP) services and products worldwide. The company operates in three segments: Intellectual Property Services Australia & New Zealand, Intellectual Property Services Asia, and Data and Analytics Software. It offers IP services related to the provision of filing, prosecution, enforcement, and management of patents, designs, trademarks, and other IP; and develops and provides IP data and analytics software under the subscription license model. The company is also provides patent attorney and lawyers services. It serves Fortune Global 500 companies, multinationals, public sector research organizations, SMEs, and professional services firms. IPH Limited was founded in 1887 and is based in Sydney, Australia.

Details
Name: IPH Limited
IPH
Exchange: ASX
Founded: 1887
A$1,759,089,927
213,741,182
Website: http://www.iphltd.com.au
Address: IPH Limited
Tower 2,
Level 24,
Sydney,
New South Wales, 2000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX IPH Ordinary Shares Australian Securities Exchange AU AUD 19. Nov 2014
OTCPK IPHL.F Ordinary Shares Pink Sheets LLC US USD 19. Nov 2014
DB 1IP Ordinary Shares Deutsche Boerse AG DE EUR 19. Nov 2014
CHIA IPH Ordinary Shares Chi-X Australia AU AUD 19. Nov 2014
CHIA IPHN NPV DFD 15/08/19 (EX-XENITH Chi-X Australia AU AUD 19. Nov 2019
Number of employees
Current staff
Staff numbers
630
IPH employees.
Industry
Research and Consulting Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/19 10:46
End of day share price update: 2019/11/19 00:00
Last estimates confirmation: 2019/11/11
Last earnings filing: 2019/08/19
Last earnings reported: 2019/06/30
Last annual earnings reported: 2019/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.