Fact based stock research
IDP Education (ASX:IEL)

AU000000IEL5

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

IDP Education stock research in summary

idp.comglobal

ANALYSIS: With an Obermatt Combined Rank of 6 (worse than 94% compared with investment alternatives), IDP Education (Education Services, Australia) shares have lower financial characteristics compared with similar stocks. Shares of IDP Education are low in value (priced high) with a consolidated Value Rank of 19 (worse than 81% of alternatives) and show below-average growth (Growth Rank of 23) but are safely financed (Safety Rank of 50), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 6, is a sell recommendation based on IDP Education's financial characteristics. As the company IDP Education's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 19) and low growth (Obermatt Growth Rank of 23), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. In this case, good financing practices (Obermatt Safety Rank of 50) are a positive sign, because it may allow the company to weather challenging times until the hoped-for cash flows materialize. This may be true for high-tech or biotechnology companies with enough cash to sustain prolonged business development. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and unattractive today. In such cases, the Obermatt Method has limited value, as it is based on facts we can observe today. If the facts lie all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that account for a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	19
Growth Rank	23
Safety Rank	50
Combined Rank	6

Country	Australia
Industry	Education Services
Index	ASX 200, ASX 300
Size class	Medium

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

Why popular stocks have low ratings

It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.

Review the performance ranks of the individual metrics that form each investment strategy.

Research History: IDP Education

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	4	9	11	19
GROWTH
GROWTH	93	95	41	23
SAFETY
SAFETY	100	63	56	50
SENTIMENT
SENTIMENT	n/a	60	81	^new
360° VIEW
360° VIEW	n/a	69	46	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better IDP Education is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	4	9	11	19
GROWTH
GROWTH	93	95	41	23
SAFETY
SAFETY	100	63	56	50
COMBINED
COMBINED	36	63	12	6

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of IDP Education the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 19 (worse than 81% compared with alternatives), IDP Education shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for IDP Education. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 68% of comparable companies, making the stock an attractive buy for dividend investors. However, dividend investors may get disappointed because all other critical financial indicators are below the market median: Price-to-Sales is 21 which means that the stock price compared with what market professionals expect for future profits is higher than 79% of comparable companies, indicating a low value concerning IDP Education's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 24 which means that the stock price compared with what market professionals expect for future profit levels is higher than 76% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 7 is also low. Compared with invested capital, the stock price is higher than for 93% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 19, is a sell recommendation based on IDP Education's stock price compared with the company's operational size and dividend yields. Should dividend investors pick IDP Education? The company-reported financials speak against it. The company is expensive compared with revenue and invested capital levels, two reliable company size indicators. In addition, it currently has a low level of profits. How can future dividends be paid in the case that profits remain low? Dividend investors should choose IDP Education only if they reasonably expect the low current profit levels to be transitory. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	2	5	11	21
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	47	10	22	24
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	2	3	3	7
DIVIDEND YIELD
DIVIDEND YIELD	42	35	45	68
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	4	9	11	19

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of IDP Education; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 23 (better than 23% compared with alternatives), IDP Education shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below-average for IDP Education. While Sales Growth ranks at 84, professionals currently expect the company to grow more than 84% of its competitors, while all other growth ranks are below the market median. Profit Growth has a rank of 18, which means that, currently, professionals expect the company to grow its profits less than 82% of its competitors, and Capital Growth has a low rank of 42. Historic stock returns were also below average with a current Stock Returns rank of 5 which means that the stock returns have recently been below 95% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 23, is a sell recommendation for growth and momentum investors. If revenues are expected to increase, but all other growth indicators are negative, the company may be investing in future growth through means not visible in the balance sheet and thus not reflected in capital growth. The fact that Stock Returns have been below market doesn't mean that much, as it may be due to overly optimistic investor behavior in the past, which has been corrected to a more reasonable level recently. If that were the case, a positive Value Rank would be a reason to invest because the company is still expected to grow, while stock prices are now at a more reasonable level. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance isn't stellar here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	74	69	79	84
PROFIT GROWTH
PROFIT GROWTH	n/a	86	50	18
CAPITAL GROWTH
CAPITAL GROWTH	n/a	67	43	42
STOCK RETURNS
STOCK RETURNS	88	93	13	5
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	93	95	41	23

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of IDP Education.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 50 (better than 50% compared with alternatives), the company IDP Education has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of IDP Education is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with all three metrics below average for IDP Education. Liquidity is at 46, meaning that the company generates less profit to service its debt than 54% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 29, meaning the company has an above-average debt-to-equity ratio. It has more debt than 71% of its competitors. Finally, Refinancing is at a rank of 49 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 51% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 50 (better than 50% compared with alternatives), IDP Education has a financing structure that is safer than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing. Investors should look at Obermatt’s Value, Growth, and Sentiment Ranks to confirm a very positive outlook or be careful with investing in stocks of IDP Education because it may suffer significantly in case of future difficulties. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	80	56	40	29
REFINANCING
REFINANCING	65	49	41	49
LIQUIDITY
LIQUIDITY	90	59	63	46
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	100	63	56	50

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of IDP Education and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	56	38	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	82	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	30	77	^new
MARKET PULSE
MARKET PULSE	n/a	78	71	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	60	81	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for IDP Education.
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