Iress Limited
Iress Limited Fundamental Analysis
Iress Limited (IRE.AX) shows moderate financial fundamentals with a PE ratio of 16.35, profit margin of 14.25%, and ROE of 19.57%. The company generates $0.6B in annual revenue with weak year-over-year growth of -3.98%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 49.4/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze IRE.AX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentIRE.AX demonstrates superior asset utilization.
Valuation Score
ExcellentIRE.AX trades at attractive valuation levels.
Growth Score
WeakIRE.AX faces weak or negative growth trends.
Financial Health Score
ExcellentIRE.AX maintains a strong and stable balance sheet.
Profitability Score
ModerateIRE.AX maintains healthy but balanced margins.
Key Financial Metrics
Is IRE.AX Expensive or Cheap?
P/E Ratio
IRE.AX trades at 16.35 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, IRE.AX's PEG of -1.31 indicates potential undervaluation.
Price to Book
The market values Iress Limited at 3.06 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 10.63 times EBITDA. This signals the market has high growth expectations.
How Well Does IRE.AX Make Money?
Net Profit Margin
For every $100 in sales, Iress Limited keeps $14.25 as profit after all expenses.
Operating Margin
Core operations generate 13.58 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.57 in profit for every $100 of shareholder equity.
ROA
Iress Limited generates $11.83 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Iress Limited produces operating cash flow of $62.63M, showing steady but balanced cash generation.
Free Cash Flow
Iress Limited produces free cash flow of $49.62M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.27 in free cash annually.
FCF Yield
IRE.AX converts 3.83% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.35
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.31
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.06
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.33
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.46
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.47
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How IRE.AX Stacks Against Its Sector Peers
| Metric | IRE.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.35 | 33.98 | Better (Cheaper) |
| ROE | 19.57% | 1007.00% | Weak |
| Net Margin | 14.25% | -47797.00% (disorted) | Strong |
| Debt/Equity | 0.46 | 0.44 | Neutral |
| Current Ratio | 1.47 | 5.66 | Neutral |
| ROA | 11.83% | -287350.00% (disorted) | Strong |
IRE.AX outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Iress Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
11.61%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
28.72%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
-100.00%
Industry Style: Growth, Innovation, High Beta
Declining