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IPH Ltd.
(Sydney:IPH)
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Rating:70Outperform
Price Target:
AU$4.00
▲(8.99% Upside)
Action:Reiterated
Date:08/24/26
The score is supported primarily by strong cash flow/earnings quality and attractive shareholder return characteristics (high dividend yield with reasonable P/E), reinforced by a generally positive earnings-call tone and improving leverage. These positives are tempered by clearly bearish technicals and softer top-line momentum plus elevated leverage versus earlier years.
Positive Factors
Strong Cash Generation
Consistently strong cash conversion and rising free cash flow support debt reduction, reinvestment and shareholder distributions. This cash-generative profile strengthens resilience because the business requires limited capital expenditure.
Negative Factors
Cooling Revenue Momentum
The recent slowdown indicates that organic growth is not yet broad-based. Continued weakness in ANZ, a key operating region, could constrain group earnings and reduce the benefits of platform investment if client filing activity remains subdued.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Cash Generation
Consistently strong cash conversion and rising free cash flow support debt reduction, reinvestment and shareholder distributions. This cash-generative profile strengthens resilience because the business requires limited capital expenditure.
Read all positive factors
IPH Ltd. (IPH) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$856.33M
Dividend Yield11.64%
Average Volume (3M)1.22M
Price to Earnings (P/E)10.8
Beta (1Y)0.89
Revenue Growth0.59%
EPS Growth19.69%
CountryAU
Employees1,700
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)0.31
Shares Outstanding256,487,060
10 Day Avg. Volume1,697,287
30 Day Avg. Volume1,223,454
Financial Highlights & Ratios
PEG Ratio0.65
Price to Book (P/B)1.61
Price to Sales (P/S)1.41
P/FCF Ratio6.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$4.36Price Target Upside18.80% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)0.47
Revenue Forecast (FY)AU$707.69M
IPH Ltd. Business Overview & Revenue Model
Company Description
Established in 1887 and based in Sydney, Australia, IPH Limited offers an extensive array of intellectual property (IP) services and products, both within Australia and across international markets. Its operations are structured across three key s...
How the Company Makes Money
IPH makes money primarily by charging professional fees for IP services delivered by its member firms. The core revenue stream is recurring, matter-based fee income from patent and trademark work, including drafting and filing applications, respon...
IPH Ltd. Earnings Call Summary
Earnings Call Date:Aug 19, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Feb 17, 2027
Earnings Call Sentiment Positive
The call presented more positive operational and financial progress than setbacks: solid cash generation (110% cash conversion), strong Canadian recovery (+11.8% like-for-like EBITDA), improved EPS and higher dividends (+5.5%), effective working capital discipline and successful integration of acquisitions. Headwinds were largely regional and transitory — ANZ and parts of Asia saw weaker filing volumes and reported results were negatively impacted by a stronger Australian dollar and non-cash amortization. Management articulated clear priorities (AI, network integration, efficiency, dividend flexibility) to drive sustainable growth. Overall the positives (cash strength, Canada outperformance, dividend and EPS improvements, AI productivity gains) materially outweigh the regional and FX-driven lowlights.Positive Updates
Underlying NPATA and Earnings Per Share Growth
Underlying NPATA increased 1.7% to AUD 122.7 million; underlying basic EPSA increased 4.2% driven by improved profitability and a AUD 6.3 million reduction in weighted average shares after the buyback.
Negative Updates
ANZ Revenue and EBITDA Decline
ANZ like-for-like revenue declined 4.2% and underlying EBITDA declined 7.2%, driven by lower U.S. PCT-related national phase entries and IPH's heavier exposure to U.S. clients; although this improved from H1 (H1 revenue -6.1%, EBITDA -10.6%).
Read all updates
Q4-2026 Updates
Positive
Negative
Underlying NPATA and Earnings Per Share Growth
Underlying NPATA increased 1.7% to AUD 122.7 million; underlying basic EPSA increased 4.2% driven by improved profitability and a AUD 6.3 million reduction in weighted average shares after the buyback.
Read all positive updates
Company Guidance
For FY27 IPH guided to focus on sustainable organic growth through deeper client engagement, expanded services, better cross‑firm referrals and CRM, simplification and scaling of the platform, tighter working‑capital and cost discipline, and selective embedding of AI (a pilot showed a c.75% efficiency gain) and AI agents into workflows; the board set a new dividend payout range of 70–90% of statutory EPSA, with a leverage ceiling of up to 2.0x (net debt was down 9.4% or AUD39.0m to 1.8x at 30 June) and available undrawn facilities of AUD104.7m. These priorities build on FY26 metrics: revenue AUD712.8m (+0.4%), underlying EBITDA AUD205.9m (like‑for‑like +2.9%), underlying NPATA AUD122.7m (+1.7%), underlying basic EPSA +4.2%, statutory NPAT +16.9%, statutory EPS +19.7%, total dividends 38.5c (+5.5%) with a final 19.5c (30% franked), cash conversion 110% and free cash flow +18.3%, low capex AUD2.9m, while segment trends show Canada like‑for‑like EBITDA +11.8% (revenue +5.8%), ANZ like‑for‑like revenue -4.2%/EBITDA -7.2%, and Asia like‑for‑like revenue +2.6%/EBITDA -1.3%.IPH Ltd. Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
63
Positive
Cash Flow
81
Very Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 710.40M | 706.20M | 605.60M | 482.87M | 374.33M |
| Gross Profit | 710.40M | 706.20M | 389.80M | 315.77M | 250.92M |
| EBITDA | 197.00M | 187.10M | 179.60M | 159.16M | 115.99M |
| Net Income | 80.40M | 68.80M | 60.80M | 64.54M | 52.56M |
Balance Sheet | |||||
| Total Assets | 1.21B | 1.35B | 1.31B | 1.20B | 688.42M |
| Cash, Cash Equivalents and Short-Term Investments | 59.80M | 59.00M | 75.50M | 103.27M | 88.40M |
| Total Debt | 416.10M | 469.70M | 491.80M | 441.29M | 161.22M |
| Total Liabilities | 586.10M | 651.10M | 679.10M | 619.50M | 258.71M |
| Stockholders Equity | 622.30M | 699.40M | 634.30M | 577.13M | 429.71M |
Cash Flow | |||||
| Free Cash Flow | 147.60M | 125.80M | 120.90M | 84.90M | 87.69M |
| Operating Cash Flow | 150.50M | 133.70M | 131.90M | 91.79M | 94.88M |
| Investing Cash Flow | -3.40M | -70.40M | -140.60M | -281.56M | -12.18M |
| Financing Cash Flow | -143.10M | -83.10M | -11.30M | 199.46M | -68.68M |
IPH Ltd. Technical Analysis
Negative
3.67
Price Trends
3.86
Negative
3.78
Negative
3.53
Negative
Market Momentum
-0.19
Positive
30.11
Neutral
9.16
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:IPH, the sentiment is Negative. The current price of 3.67 is below the 20-day moving average (MA) of 3.70, below the 50-day MA of 3.86, and above the 200-day MA of 3.53, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 30.11 is Neutral, neither overbought nor oversold. The STOCH value of 9.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:IPH.
IPH Ltd. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | AU$1.59B | 17.69 | 29.94% | 4.22% | 10.49% | 5.31% | |
70 Outperform | AU$856.33M | 10.81 | 12.36% | 11.64% | 0.59% | 19.69% | |
70 Outperform | AU$321.12M | 17.52 | 10.76% | 3.33% | 15.47% | 60.30% | |
64 Neutral | AU$229.09M | 64.87 | 11.79% | 0.91% | 18.25% | 2.90% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
55 Neutral | AU$419.51M | 11.15 | 17.00% | 6.35% | -1.82% | -19.36% | |
40 Underperform | AU$9.33M | -0.70 | -94.50% | ― | -15.68% | -42.84% |
* Industrials Sector Average
AU:IPH
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IPH Ltd. Corporate Events
IPH Director Vicki Carter Increases Indirect Shareholding
Aug 24, 2026
IPH Limited has disclosed a change in the indirect shareholding of non‑executive director Vicki Anne Carter, following an on‑market purchase of additional fully paid ordinary shares. The transaction, executed via a superannuation custo...
IPH Expands Quoted Share Base With New Ordinary Securities
Aug 24, 2026
IPH Ltd. has applied to the ASX for quotation of 193,913 new fully paid ordinary shares, expanding its pool of listed securities. The shares result from the conversion or exercise of existing options or other convertible securities, reflecting rou...
IPH files updated corporate governance statement and Appendix 4G with ASX
Aug 19, 2026
IPH Limited has released its updated corporate governance statement for the financial year ended 30 June 2026, confirming it is available via the investor information section of the company’s website. The statement, approved by the board as ...
IPH lifts FY26 profit 16.9% as Canadian growth and cost cuts offset FX drag
Aug 19, 2026
IPH Ltd. reported a 16.9% rise in statutory net profit after tax to $80.4 million for FY26, driven by lower amortisation and sharply reduced non‑underlying expenses despite modest revenue growth. Group revenue edged up 0.4% to $712.8 million...
IPH Ltd. Reports Lapse of 30,633 Performance Rights
Aug 5, 2026
IPH Ltd., an ASX-listed provider of intellectual property and related legal services, offers advisory and protection solutions for patents, trademarks and other IP assets. Its capital structure includes performance rights as part of incentive arra...
IPH schedules 2026 full‑year results and market webcast
Jul 27, 2026
IPH Limited will release its financial results for the year ended 30 June 2026 on 20 August 2026, and will host an analyst and shareholder briefing via webcast the same day. The recording of the briefing will be available on the company’s we...
IPH Director Andrew Blattman Steps Down but Retains Significant Stake
Jul 1, 2026
IPH Limited has announced that long-serving director Andrew Nathaniel Blattman has ceased to be a director of the company as of 1 July 2026. The filing details his remaining interests as a shareholder, including 397,366 fully paid ordinary shares ...
IPH appoints new director with no declared shareholding
Jul 1, 2026
IPH Limited has appointed Anthony John O’Malley as a director effective 1 July 2026, according to a notice lodged with the ASX. The filing confirms that at the time of his appointment, O’Malley holds no direct or indirect interests in ...
IPH installs Tony O’Malley as new CEO amid planned leadership transition
Jul 1, 2026
IPH Limited has appointed Tony O’Malley as its new managing director and chief executive officer, succeeding long-serving leader Andrew Blattman, who has retired from the board and executive roles but will support the company until late Nove...
IPH updates securities trading policy to tighten governance standards
Jun 17, 2026
IPH Limited has refreshed its Securities Trading Policy, with the updated framework taking effect from 16 June 2026 and now published on the company’s website for stakeholder access. The move underscores the intellectual property services gr...
IPH Continues On-Market Share Buy-Back With Daily Update
Jun 2, 2026
IPH Ltd. has reported an update to its on-market share buy-back program for its ordinary fully paid shares, disclosing that a total of 5,417,551 shares had been repurchased before the previous trading day. The company also bought back an additiona...
IPH continues on-market share buy-back with daily repurchases
May 24, 2026
IPH Ltd. has been actively executing an on-market share buy-back of its ordinary fully paid shares, as disclosed in its latest update to the ASX. The company reported that a total of 5,408,248 shares had been repurchased before the previous tradin...
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.