IDP Education Ltd. (IEL) AI Stock Analysis

• Market Cap: AU$1.18B
• Dividend Yield: 2.33%
• Average Volume (3M): 2.78M
• Price to Earnings (P/E): 153.4
• Beta (1Y): 1.04
• 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): 0.17
• 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$6.05
• Price Target Upside: 17.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 0.23
• Revenue Forecast (FY): AU$852.36M

• Rating: 54 Neutral
• Price Target: AU$4.50 ▼(-12.62% Downside)
• Action: Reiterated Date: 11/06/25
• Date: Action: Reiterated 11/06/25

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

IELTS co-ownership and operational role

IDP's co-ownership and operational role in IELTS creates a durable competitive moat: global recognition drives steady, recurring testing demand and entrenched distribution. This structural position underpins a stable revenue stream and long-term institutional credibility versus new entrants.

International footprint and institutional relationships

A broad international network and deep ties with universities give IDP diversified recruitment channels and scale in student placement. Geographic and institutional diversification smooths demand volatility, sustains market access across key destinations, and supports long-term growth opportunities.

Moderate leverage and healthy equity ratio

A debt-to-equity of ~0.74 and a healthy equity ratio indicate a stable capital structure that preserves financial flexibility. Moderate leverage supports operational funding and investment while reducing refinancing risk, helping the business withstand cyclical shocks over the medium term.

Negative Factors

Declining revenue growth

Sustained negative top-line growth pressures IDP's ability to leverage fixed costs in student placement and testing operations. Continued revenue contraction reduces reinvestment capacity, undermines scale benefits and could signal weakening market share or demand in core study‑abroad channels over the medium term.

Weakened free cash flow generation

A >25% drop in free cash flow and operating cash conversion below 1 indicate earnings are not reliably converting to cash. Reduced FCF limits capital allocation for marketing, technology and test capacity expansion, constraining IDP's ability to invest in growth or absorb prolonged revenue headwinds.

Margin compression and lower profitability

Declining net margins and reduced ROE erode returns available to shareholders and limit internal funding for strategic initiatives. Margin pressure suggests operational inefficiencies or cost mismatches with revenue, making earnings more sensitive to volume shocks and hindering long‑term profitability improvements.

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	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	865.17M	882.20M	1.04B	977.83M	790.59M	525.55M
Gross Profit	264.55M	882.20M	408.40M	374.83M	270.52M	133.34M
EBITDA	136.30M	149.55M	269.27M	268.15M	193.65M	99.43M
Net Income	7.71M	44.51M	132.75M	148.52M	102.60M	39.68M
Balance Sheet
Total Assets	1.18B	1.28B	1.26B	1.23B	974.79M	695.44M
Cash, Cash Equivalents and Short-Term Investments	119.23M	121.48M	121.10M	166.63M	196.61M	306.95M
Total Debt	476.66M	394.63M	395.66M	329.56M	256.41M	143.10M
Total Liabilities	724.98M	744.97M	732.95M	716.02M	519.42M	307.45M
Stockholders Equity	449.26M	533.16M	522.57M	517.17M	455.68M	388.53M
Cash Flow
Free Cash Flow	111.75M	71.75M	61.79M	131.33M	110.99M	96.76M
Operating Cash Flow	119.78M	132.63M	116.67M	170.28M	140.63M	116.90M
Investing Cash Flow	-50.08M	-51.29M	-88.49M	-124.11M	-290.28M	-19.65M
Financing Cash Flow	-101.56M	-68.72M	-81.76M	-75.21M	37.51M	-95.72M

IDP Education Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 5.03, below the 50-day MA of 5.54, and below the 200-day MA of 5.18, indicating a bearish trend. The MACD of -0.32 indicates Positive momentum. The RSI at 30.93 is Neutral, neither overbought nor oversold. The STOCH value of 11.82 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
EVO	58 Neutral	AU$106.83M	10.00	12.33%	9.92%	―	―
NDO	56 Neutral	AU$106.70M	16.38	12.24%	12.92%	26.16%	―
IEL	54 Neutral	AU$1.18B	153.43	8.86%	2.33%	-14.98%	-66.48%
3PL	53 Neutral	AU$122.81M	100.00	0.15%	―	-1.08%	―
KME	48 Neutral	AU$31.60M	-7.79	10.80%	1.67%	-2.81%	-503.02%
GEM	44 Neutral	AU$243.04M	-0.78	7.88%	7.86%	-0.89%	16.45%

IDP Education Ltd. Corporate Events

JPMorgan Ceases to Be Substantial Holder in IDP Education

JPMorgan Chase & Co and its affiliates have notified IDP Education that they have ceased to be a substantial holder in the company as of 25 February 2026. The change reflects adjustments in holdings arising from securities lending activities and principal trading by JPMorgan entities, reducing their voting power below the substantial shareholding threshold and potentially increasing the free float of IDP shares in the market.

According to the notice, J.P. Morgan Securities Australia, J.P. Morgan Securities plc and JPMorgan Chase Bank, N.A. were all involved through securities on loan and obligations to return stock under lending agreements. While no specific rationale was disclosed, the move signals a recalibration of JPMorgan’s exposure to IDP Education, which may slightly alter the company’s institutional investor mix and trading dynamics without indicating a change in IDP’s underlying operations.

The most recent analyst rating on (AU:IEL) stock is a Hold with a A$4.90 price target. To see the full list of analyst forecasts on IDP Education Ltd. stock, see the AU:IEL Stock Forecast page.

IDP Education Issues Cautious H1 FY26 Financial Results Update

IDP Education released a brief H1 FY26 financial results update document dated 26 February 2026, outlining that the material is general background information and subject to important disclaimers. The company clarified that the figures are expressed in Australian dollars, may include non-IFRS measures, and should not be relied upon as comprehensive financial advice or as a recommendation for investment decisions.

The release stresses that forward-looking statements about business conditions and operating results may differ materially from actual outcomes, and that non-IFRS measures are supplemental and not directly comparable with other companies’ metrics. Investors and stakeholders are urged to exercise caution, avoid undue reliance on forecasts, and seek independent financial advice when interpreting IDP Education’s H1 FY26 financial information.

The most recent analyst rating on (AU:IEL) stock is a Sell with a A$5.50 price target. To see the full list of analyst forecasts on IDP Education Ltd. stock, see the AU:IEL Stock Forecast page.

IDP Education lifts FY26 profit guidance as transformation drives yield and cost gains

IDP Education reported H1 FY26 revenue of $462.2 million, down 6%, as a deliberate focus on profitable growth lifted student placement yields by 15% and language testing yields by 8%, partly offsetting lower volumes. Adjusted EBIT fell 14% to $87.5 million, but tight cost control, a simplified balance sheet, improved cash conversion and strong student satisfaction metrics underline management’s push to reset the cost base and reinforce IDP’s positioning as a trusted partner for universities and students.

The company upgraded its FY26 adjusted EBIT guidance to $120 million–$130 million, despite planning for industry market volumes to decline 20%–30% versus FY25, citing yield improvements and a $25 million net cost‑base reduction from its transformation program. Earnings are expected to be heavily weighted to the first half, reflecting intake and destination mix and a one‑off working capital benefit, while an interim dividend of 3.0 cents per share signals confidence in cash generation and ongoing shareholder returns.

The most recent analyst rating on (AU:IEL) stock is a Sell with a A$5.50 price target. To see the full list of analyst forecasts on IDP Education Ltd. stock, see the AU:IEL Stock Forecast page.

IDP Education Profit Slumps as Revenue Falls and Accounting Change Takes Effect

IDP Education reported revenue of $462.2 million for the half-year ended 31 December 2025, down 5% from the prior corresponding period, with statutory net profit attributable to owners falling 66% to $22.7 million. The company’s net tangible assets per share remained negative due to its large base of intangible assets, while net assets per share stood at 161.41 cents.

The board confirmed a FY25 final dividend of 5.0 cents per share and declared a FY26 interim dividend of 3.0 cents per share, both partially franked at 30%. The period also reflects a voluntary change in accounting policy for student placement revenue adopted in FY26, which led to restatement of comparative figures and may influence how investors interpret the company’s earnings trajectory and asset metrics.

The most recent analyst rating on (AU:IEL) stock is a Sell with a A$5.50 price target. To see the full list of analyst forecasts on IDP Education Ltd. stock, see the AU:IEL Stock Forecast page.

Citi Group Ceases to Be Substantial Holder in IDP Education

Citigroup Global Markets Australia and related Citi entities have notified that they have ceased to be a substantial holder in IDP Education Ltd., effective 6 February 2026. The change reflects adjustments in relevant interests held through securities lending arrangements across several Citi group entities, indicating a reduced strategic exposure to IDP Education while leaving day-to-day operations of the education services provider unaffected.

The notice details a mix of increases and a significant decrease in relevant interests in IDP Education’s ordinary fully paid shares by different Citi entities, primarily via stock market transactions and securities lending agreements. For shareholders and market observers, the shift signals rebalancing of Citi’s position in IDP Education’s register rather than a direct change in control or governance, but it may modestly influence perceptions of institutional support and liquidity in the stock.

The most recent analyst rating on (AU:IEL) stock is a Sell with a A$5.50 price target. To see the full list of analyst forecasts on IDP Education Ltd. stock, see the AU:IEL Stock Forecast page.

Citi Group Entities Cease to Be Substantial Holder in IDP Education

Citigroup Global Markets Australia Pty Limited and its related Citi group entities have notified IDP Education Ltd that they have ceased to be a substantial holder in the company as of 27 January 2026. The change reflects a series of adjustments in relevant interests across several Citi entities, largely driven by movements in securities lending arrangements and ordinary-course stock market transactions, resulting in a net reduction of Citi’s aggregate voting power below the substantial holding threshold and potentially increasing the free float and trading liquidity of IDP Education shares.

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.

IDP Education Issues New Unquoted Equity Securities Under Employee Incentive Scheme

IDP Education Limited has issued a total of 592,610 unquoted equity securities under its employee incentive scheme, comprising 237,058 service rights and 355,552 performance rights, with an issue date of 13 January 2026. These securities are subject to transfer restrictions and will not be quoted on the ASX until those restrictions end, underscoring IDP Education’s ongoing reliance on share-based compensation to align employee incentives with long-term shareholder value and support talent retention in a competitive global education services market.

The most recent analyst rating on (AU:IEL) stock is a Sell with a A$5.50 price target. To see the full list of analyst forecasts on IDP Education Ltd. stock, see the AU:IEL Stock Forecast page.

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.