IDP Education Ltd. (IEL) AI Stock Analysis

• Market Cap: AU$1.66B
• Dividend Yield: 2.33%
• Average Volume (3M): 2.78M
• Price to Earnings (P/E): 37.2
• Beta (1Y): 0.98
• Revenue Growth: -14.98%
• EPS Growth: -66.48%
• Country: AU
• Employees: 8,362
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 0.02
• Shares Outstanding: 278,336,200
• 10 Day Avg. Volume: 1,804,934
• 30 Day Avg. Volume: 2,783,495
• PEG Ratio: -0.34
• Price to Book (P/B): 1.92
• Price to Sales (P/S): 1.16
• P/FCF Ratio: 14.24
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$7.23
• Price Target Upside: 21.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: AU$6.00 ▲(0.84% Upside)

IDP Education Ltd. is currently facing significant challenges with declining financial performance and bearish technical indicators. The stock's high P/E ratio suggests it is overvalued, and the dividend yield is moderate. The lack of earnings call data and corporate events further limits insights into potential future improvements. Addressing revenue and profitability issues is crucial for enhancing the company's financial health.

Positive Factors

Strong IELTS brand

IDP's stewardship of the globally recognized IELTS testing program supplies a steady, recurring revenue base and institutional credibility. The standardized nature of language testing and entrenched exam adoption create durable demand and high barriers to entry for competitors.

Diversified revenue streams

Multiple income sources—student placement fees, IELTS test fees, university partnerships and digital services—reduce dependence on any single market. Geographic and product diversification supports resilience to regional enrollment swings and drives cross-sell opportunities over the medium term.

Moderate leverage and stable equity base

A debt-to-equity around 0.74 and a healthy equity ratio indicate a conservative capital structure that supports financial flexibility. This balance-sheet resilience helps fund operations, withstand enrollment cyclicality and access capital for strategic investments without excessive refinancing risk.

Negative Factors

Declining revenue trend

Material negative top-line growth erodes scale advantages and puts sustained pressure on margins and reinvestment capacity. If the decline persists, it can undermine partner relationships, reduce bargaining power with institutions, and limit ability to fund long-term product and geographic expansion.

Weakened cash generation

A >25% drop in free cash flow and operating cash conversion below 1 signal deteriorating cash conversion efficiency. Reduced FCF constrains capital allocation for technology, marketing and partnerships, and limits capacity to sustain dividends or opportunistic M&A over the medium term.

Lower profitability and EPS decline

Falling net margins and a steep EPS decline reflect margin compression and weaker operational leverage. Persistent profitability deterioration reduces return on equity, limits retained earnings for growth, and may force cost or strategic adjustments that affect long-term competitiveness.

IDP Education Ltd. Business Overview & Revenue Model

Company Description

IDP Education Limited engages in the placement of students into education institutions in Australia, the United Kingdom, the United States, Canada, New Zealand, and Ireland. Its services include counselling, application processing, pre-departure guidance, student placement and examinations, English language teaching, client relations, online student recruitment, and shared services. The company is also involved in the distribution and administration of International English Language Testing System tests for study, work, and migration purposes. In addition, it operates English language schools; and provides digital marketing and event services. IDP Education Limited was founded in 1969 and is headquartered in Docklands, Australia.

How the Company Makes Money

IDP Education generates revenue through multiple streams, primarily from student placement services and English language testing. The company earns fees from students for its placement services, which help connect them with educational institutions in countries like Australia, the UK, Canada, and the US. Additionally, IDP operates the IELTS testing service, which is a significant source of income as it charges candidates for taking the exam. The company's partnerships with universities and colleges also contribute to its revenue by facilitating student admissions and receiving commissions. Furthermore, IDP has expanded its business through digital platforms that enhance the student experience, thus increasing its market presence and revenue potential.

IDP Education Ltd. Financial Statement Overview

Summary

IDP Education Ltd. faces challenges with declining revenue growth and profitability margins, impacting its income statement. The balance sheet remains stable with moderate leverage, but the reduced return on equity is a concern. Cash flow generation has weakened, which could limit future investments. Overall, the company needs to address revenue and profitability issues to improve its financial health.

Income Statement

IDP Education Ltd. has shown a decline in revenue growth with a negative growth rate of -5.26% in the latest year, indicating potential challenges in maintaining its revenue stream. The gross profit margin remains strong at 100%, but the net profit margin has decreased to 5.05%, reflecting reduced profitability. EBIT and EBITDA margins have also declined, suggesting increased operational costs or reduced efficiency.

Balance Sheet

The company's debt-to-equity ratio stands at 0.74, indicating a moderate level of leverage. The equity ratio is healthy, suggesting a stable financial structure. However, the return on equity has decreased, indicating a decline in the company's ability to generate profits from shareholders' equity.

Cash Flow

Free cash flow has decreased significantly by -25.58%, which could impact the company's ability to invest in growth opportunities. The operating cash flow to net income ratio is below 1, indicating that the company might face challenges in converting its income into cash. The free cash flow to net income ratio is moderate, suggesting some level of cash generation efficiency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	880.21M	882.20M	1.04B	977.83M	790.59M	525.55M
Gross Profit	259.50M	882.20M	408.40M	374.83M	270.52M	133.34M
EBITDA	147.99M	149.55M	269.27M	268.15M	193.65M	99.43M
Net Income	44.51M	44.51M	132.75M	148.52M	102.60M	39.68M
Balance Sheet
Total Assets	1.28B	1.28B	1.26B	1.23B	974.79M	695.44M
Cash, Cash Equivalents and Short-Term Investments	121.48M	121.48M	121.10M	166.63M	196.61M	306.95M
Total Debt	394.63M	394.63M	395.66M	329.56M	256.41M	143.10M
Total Liabilities	744.97M	744.97M	732.95M	716.02M	519.42M	307.45M
Stockholders Equity	533.16M	533.16M	522.57M	517.17M	455.68M	388.53M
Cash Flow
Free Cash Flow	123.37M	71.75M	61.79M	131.33M	110.99M	96.76M
Operating Cash Flow	132.63M	132.63M	116.67M	170.28M	140.63M	116.90M
Investing Cash Flow	-51.29M	-51.29M	-88.49M	-124.11M	-290.28M	-19.65M
Financing Cash Flow	-68.72M	-68.72M	-81.76M	-75.21M	37.51M	-95.72M

IDP Education Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:IEL, the sentiment is Positive. The current price of 5.95 is above the 20-day moving average (MA) of 5.77, above the 50-day MA of 5.33, and above the 200-day MA of 5.73, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 60.93 is Neutral, neither overbought nor oversold. The STOCH value of 78.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:IEL.

IDP Education Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NDO	66 Neutral	AU$133.94M	9.75	12.24%	12.92%	26.16%	―
EVO	65 Neutral	AU$130.23M	12.17	12.33%	9.92%	―	―
GEM	63 Neutral	AU$528.52M	7.80	7.88%	7.86%	-0.89%	16.45%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
IEL	54 Neutral	AU$1.66B	37.21	8.86%	2.33%	-14.98%	-66.48%
3PL	53 Neutral	AU$170.57M	781.25	0.15%	―	-1.08%	―
KME	48 Neutral	AU$32.34M	-6.20	10.80%	1.67%	-2.81%	-503.02%

IDP Education Ltd. Corporate Events

IDP Education Reports Lapse of Employee Service and Performance Rights

IDP Education Limited has notified the market of the cessation of a total of 63,471 equity-based instruments after certain performance and service conditions were not met by 31 December 2025. The lapsed securities comprise 20,306 service rights and 43,165 performance rights, indicating that previously granted conditional incentives to employees or executives will not convert into ordinary shares, thereby marginally reducing potential future share dilution for existing investors.

The most recent analyst rating on (AU:IEL) stock is a Sell with a A$6.00 price target. To see the full list of analyst forecasts on IDP Education Ltd. stock, see the AU:IEL Stock Forecast page.

JPMorgan Ceases to Be Substantial Holder in IDP Education

JPMorgan Chase & Co. and its affiliates have notified IDP Education Ltd that they have ceased to be a substantial holder in the company as of 17 December 2025. The change reflects a series of transactions and securities lending activities involving JPMorgan entities including J.P. Morgan Securities Australia Limited, JPMorgan Chase Bank, N.A., and J.P. Morgan Investment Management Inc., resulting in JPMorgan’s voting interest in IDP Education falling below the substantial holding threshold, which may slightly alter the company’s institutional shareholder mix but does not directly affect its day-to-day operations.

The most recent analyst rating on (AU:IEL) stock is a Hold with a A$6.00 price target. To see the full list of analyst forecasts on IDP Education Ltd. stock, see the AU:IEL Stock Forecast page.

IDP Education Aligns Revenue Recognition Policy Across Jurisdictions

IDP Education Limited has announced a voluntary shift in its revenue recognition accounting policy for student placement services, aligning practices across all jurisdictions with census dates. This change, effective for FY26 reporting and FY25 restatements, aims to reflect evolving performance obligations, including increased student support, but will also impact reported financials by delaying revenue recognition in some regions, influencing earnings and equity figures, while reaffirming its FY26 EBIT guidance.

The most recent analyst rating on (AU:IEL) stock is a Hold with a A$6.00 price target. To see the full list of analyst forecasts on IDP Education Ltd. stock, see the AU:IEL Stock Forecast page.

JPMorgan Chase & Co. Exits Substantial Shareholder Position in IDP Education

JPMorgan Chase & Co. and its affiliates have officially ceased being substantial shareholders in IDP Education Ltd, effective December 15, 2025. This change could impact the ownership dynamics and shareholder structure of the company, with potential implications for its market positioning and stakeholder relationships.

The most recent analyst rating on (AU:IEL) stock is a Hold with a A$6.00 price target. To see the full list of analyst forecasts on IDP Education Ltd. stock, see the AU:IEL Stock Forecast page.

Citigroup Ceases to be Substantial Holder in IDP Education

IDP Education Ltd. has announced that Citigroup Global Markets Australia Pty Limited and its related bodies corporate have ceased to be substantial holders in the company as of November 5, 2025. This change reflects a decrease in Citigroup’s relevant interest in IDP Education’s shares due to securities lending agreements and standard business contracts, which may impact the company’s shareholder composition and market perception.

The most recent analyst rating on (AU:IEL) stock is a Hold with a A$5.00 price target. To see the full list of analyst forecasts on IDP Education Ltd. stock, see the AU:IEL Stock Forecast page.

IDP Education Announces Director’s Interest Change

IDP Education Ltd. announced a change in the director’s interest, with Tennealle O’Shannessy acquiring additional performance and service rights under the company’s Employee Incentive Plan. This change reflects the company’s ongoing commitment to aligning executive interests with corporate performance, potentially impacting stakeholder perceptions and reinforcing confidence in the company’s governance and strategic direction.

The most recent analyst rating on (AU:IEL) stock is a Hold with a A$6.00 price target. To see the full list of analyst forecasts on IDP Education Ltd. stock, see the AU:IEL Stock Forecast page.

IDP Education Ltd. AGM Results Highlight Strong Shareholder Support

IDP Education Ltd. held its Annual General Meeting on October 21, 2025, where several resolutions were voted on, including the re-election and election of non-executive directors, the approval of the remuneration report, and the grant of performance rights to the CEO. Most resolutions were carried, indicating strong shareholder support, except for the conditional spill resolution, which was not carried. The results reflect the company’s stable governance and strategic focus, with implications for continued leadership and operational strategies.

The most recent analyst rating on (AU:IEL) stock is a Sell with a A$4.50 price target. To see the full list of analyst forecasts on IDP Education Ltd. stock, see the AU:IEL Stock Forecast page.