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IDP Education Ltd.
(Sydney:IEL)
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Rating:52Neutral
Price Target:
AU$1.50
▼(-70.87% Downside)
Action:Reiterated
Date:08/21/26
The score is held back primarily by sharp deterioration in revenue and net profitability, alongside a clear technical downtrend (below major moving averages with bearish momentum). Offsetting these negatives, cash flow remains relatively resilient and the dividend yield is supportive, but the high P/E limits valuation appeal given the earnings reset.
Positive Factors
Resilient cash generation
Strong operating and free cash flow provides funding for operations, investment and shareholder distributions. Its resilience despite weaker reported earnings suggests the core services continue to convert activity into cash.
Negative Factors
Sustained revenue contraction
Back-to-back revenue declines indicate weakening demand or reduced activity across the education-services platform, rather than a single isolated quarterly issue. Prolonged contraction could reduce scale benefits and constrain future investment capacity.
Read all positive and negative factors
Positive Factors
Negative Factors
Resilient cash generation
Strong operating and free cash flow provides funding for operations, investment and shareholder distributions. Its resilience despite weaker reported earnings suggests the core services continue to convert activity into cash.
Read all positive factors
IDP Education Ltd. (IEL) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$465.91M
Dividend Yield4.65%
Average Volume (3M)3.94M
Price to Earnings (P/E)38.9
Beta (1Y)1.49
Revenue Growth-9.92%
EPS Growth-72.48%
CountryAU
Employees4,828
SectorConsumer Defensive
Sector Strength42
IndustryEducation & Training Services
Share Statistics
EPS (TTM)0.04
Shares Outstanding278,336,200
10 Day Avg. Volume8,218,263
30 Day Avg. Volume3,937,045
Financial Highlights & Ratios
PEG Ratio-0.71
Price to Book (P/B)1.60
Price to Sales (P/S)0.80
P/FCF Ratio4.89
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$2.47Price Target Upside-52.04% Downside
Rating ConsensusHold
Number of Analyst Covering9
EPS Forecast (FY)0.2
Revenue Forecast (FY)AU$745.45M
IDP Education Ltd. Business Overview & Revenue Model
Company Description
IDP Education Limited is dedicated to facilitating student entry into academic institutions across a global network, including Australia, the United Kingdom, the United States, Canada, New Zealand, and Ireland. Its extensive suite of services enco...
How the Company Makes Money
IEL primarily generates revenue from two main streams: (1) student placement services and (2) English-language testing, alongside other related services.
1) Student placement / recruitment services: The company earns fees by helping prospective s...
IDP Education Ltd. Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
56
Neutral
Cash Flow
68
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 791.36M | 882.20M | 1.04B | 977.83M | 790.59M |
| Gross Profit | 272.63M | 882.20M | 408.40M | 374.83M | 270.52M |
| EBITDA | 173.12M | 149.55M | 269.27M | 268.15M | 193.65M |
| Net Income | 12.27M | 44.51M | 132.75M | 148.52M | 102.60M |
Balance Sheet | |||||
| Total Assets | 1.02B | 1.28B | 1.26B | 1.23B | 974.79M |
| Cash, Cash Equivalents and Short-Term Investments | 135.12M | 121.48M | 121.10M | 166.63M | 196.61M |
| Total Debt | 333.48M | 394.63M | 395.66M | 329.56M | 256.41M |
| Total Liabilities | 624.49M | 744.97M | 732.95M | 716.02M | 519.42M |
| Stockholders Equity | 397.47M | 533.16M | 522.57M | 517.17M | 455.68M |
Cash Flow | |||||
| Free Cash Flow | 129.70M | 71.75M | 61.79M | 131.33M | 110.99M |
| Operating Cash Flow | 135.54M | 132.63M | 116.67M | 170.28M | 140.63M |
| Investing Cash Flow | -32.35M | -51.29M | -88.49M | -124.11M | -290.28M |
| Financing Cash Flow | -82.67M | -68.72M | -81.76M | -75.21M | 37.51M |
IDP Education Ltd. Technical Analysis
Negative
5.15
Price Trends
2.12
Negative
2.42
Negative
3.70
Negative
Market Momentum
-0.14
Positive
33.52
Neutral
18.90
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:IEL, the sentiment is Negative. The current price of 5.15 is above the 20-day moving average (MA) of 1.93, above the 50-day MA of 2.12, and above the 200-day MA of 3.70, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 33.52 is Neutral, neither overbought nor oversold. The STOCH value of 18.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:IEL.
IDP Education Ltd. Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | AU$146.34M | 8.78 | 89.61% | 3.88% | 63.49% | 126.48% | |
75 Outperform | AU$38.32M | 15.93 | 13.76% | 3.07% | -4.20% | ― | |
65 Neutral | AU$84.60M | 8.70 | 6.79% | ― | -5.02% | 4425.00% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
52 Neutral | AU$465.91M | 38.86 | 2.90% | 2.33% | -9.92% | -72.48% | |
43 Neutral | AU$17.89M | -1.49 | -93.41% | ― | -7.29% | 18.24% | |
41 Neutral | AU$6.64M | -4.86 | -9.50% | ― | -7.02% | -11.46% |
* Consumer Defensive Sector Average
AU:IEL
IDP Education Ltd.
1.71
-3.72
-68.51%
AU:EDU
EDU Holdings Limited
1.14
0.62
120.08%
AU:NXD
iCollege Ltd.
0.08
-0.15
-65.22%
AU:AKG
Academies Australasia Group Limited
0.05
-0.06
-52.73%
AU:3PL
3P Learning Ltd.
0.32
-0.26
-45.22%
AU:KME
Kip McGrath Education Centres Limited
0.73
0.12
20.03%
IDP Education Ltd. Corporate Events
IDP Education lodges updated 2026 corporate governance statement with ASX
Aug 19, 2026
IDP Education has lodged its updated corporate governance statement for the year to 30 June 2026, confirming that the document is current as at that date and has been approved by the board. The statement, accessible via the company’s website...
IDP Education Details Governance Framework for FY26
Aug 19, 2026
IDP Education Limited has released its Corporate Governance Statement for the financial year ended 30 June 2026, detailing the governance framework that underpins accountability, effective decision-making, and long-term performance. The Board, wor...
IDP Education Declares Interim A$0.06 Dividend for June Half-Year
Aug 19, 2026
IDP Education Ltd. has declared an ordinary dividend of A$0.06 per fully paid share for the six-month period ended 30 June 2026, reinforcing its capital management and shareholder returns strategy. The dividend will trade ex on 9 September, with a...
IDP Education outlines reporting approach in FY26 results release
Aug 19, 2026
IDP Education Ltd. is an ASX-listed provider of international education services, including student placement and testing support, operating globally with financial reporting based on Australian Accounting Standards. The company supplements statut...
IDP Education Holds Earnings Guidance as It Accelerates Cost-Cutting and AI-Led Transformation
Aug 19, 2026
IDP Education reported resilient fiscal 2026 results despite a sharp downturn in international student mobility, with revenue falling 9% to $795.4 million and adjusted EBIT down 7% but within guidance. The company offset weaker volumes in student ...
IDP Education Updates On-Market Share Buy-Back With Broker Appointment
Jul 31, 2026
IDP Education Ltd. has updated its previously announced on-market share buy-back of ordinary fully paid shares, originally notified on 19 June 2026. The latest filing, dated 31 July 2026, corrects and amends the earlier disclosure to reflect the a...
IDP Education Updates Director Equity Holdings After Service Rights Vesting
Jul 2, 2026
IDP Education has disclosed a change in the equity interests of director Tennealle O’Shannessy, reporting the vesting and automatic exercise of service rights into ordinary shares. The transaction increased her direct holding to 186,383 ordi...
IDP Education Issues New Shares After Option Conversions
Jul 2, 2026
IDP Education Ltd. has notified the market of the issue of 156,204 ordinary fully paid shares following the conversion or exercise of previously unquoted equity securities. The new IEL shares were issued on 1 July 2026, modestly increasing the com...
IDP Education Reports Lapse of Service and Performance Rights, Trimming Potential Equity Issuance
Jul 2, 2026
IDP Education has reported the lapse of 16,478 service rights and 250,883 performance rights, following the failure or impossibility of meeting the conditions attached to these securities as of June 30, 2026. The cessation of these conditional rig...
IDP Education advances board renewal as long-serving director retires
Jun 29, 2026
IDP Education has announced that long-serving Non-Executive Director Chris Leptos AO will retire from the board at the end of June 2026, after more than a decade of service, with Chair Tracey Horton highlighting his significant contribution and co...
UBS Group Ceases to Be Substantial Shareholder in IDP Education
Jun 4, 2026
UBS Group AG and its related bodies corporate have notified IDP Education Limited that they have ceased to be a substantial shareholder in the company as of 2 June 2026. The change in substantial holding status may signal a shift in UBS’s in...
IDP Education denies undisclosed news behind share price moves
May 29, 2026
IDP Education has told the ASX it is not aware of any undisclosed information that could explain recent trading volatility in its shares. The company said it is in full compliance with continuous disclosure rules and confirmed its responses were a...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.