IDP Education Ltd. (AU:IEL)
ASX:IEL
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IDP Education Ltd.
(Sydney:IEL)
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Rating:54Neutral
Price Target:
AU$4.00
▼(-22.33% Downside)
Action:ReiteratedDate: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 brand moat
Co-ownership of IELTS gives IDP a durable competitive advantage and recurring, globally recognized test demand. This creates high barriers to entry, stable fee-based revenue and long-term institutional relationships that support predictable cash flows and market positioning over years.
Negative Factors
Declining revenue growth
Sustained negative revenue growth signals weakening demand or competitive pressure in core placement/testing markets. Over several quarters this can erode scale economics, reduce bargaining power with institutions, and constrain reinvestment into marketing and platform improvements.
Read all positive and negative factors
Positive Factors
Negative Factors
IELTS co-ownership and brand moat
Co-ownership of IELTS gives IDP a durable competitive advantage and recurring, globally recognized test demand. This creates high barriers to entry, stable fee-based revenue and long-term institutional relationships that support predictable cash flows and market positioning over years.
Read all positive factors
IDP Education Ltd. (IEL) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$1.08B
Dividend Yield2.33%
Average Volume (3M)2.78M
Price to Earnings (P/E)17.7
Beta (1Y)1.11
Revenue Growth-14.98%
EPS Growth-66.48%
CountryAU
Employees8,362
SectorConsumer Defensive
Sector Strength42
IndustryEducation & Training Services
Share Statistics
EPS (TTM)0.17
Shares Outstanding278,336,200
10 Day Avg. Volume1,804,934
30 Day Avg. Volume2,783,495
Financial Highlights & Ratios
PEG Ratio-0.34
Price to Book (P/B)1.92
Price to Sales (P/S)1.16
P/FCF Ratio14.24
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$6.15Price Target Upside19.42% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)0.24
Revenue Forecast (FY)AU$852.52M
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 g...
How the Company Makes Money
IEL primarily generates revenue from two major streams: (1) Student placement services and (2) English language testing (IELTS). In student placement, IEL earns fees/commissions from education providers (such as universities and colleges) when it ...
IDP Education Ltd. Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
70
Positive
Cash Flow
60
Neutral
| 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
Negative
5.15
Price Trends
4.96
Negative
5.12
Negative
4.97
Negative
Market Momentum
-0.28
Negative
32.69
Neutral
29.15
Neutral
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 4.17, above the 50-day MA of 4.96, and above the 200-day MA of 4.97, indicating a bearish trend. The MACD of -0.28 indicates Negative momentum. The RSI at 32.69 is Neutral, neither overbought nor oversold. The STOCH value of 29.15 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
58 Neutral | AU$87.57M | 11.91 | 17.97% | 9.92% | ― | ― | |
56 Neutral | AU$90.81M | 20.92 | 12.24% | 12.92% | 26.16% | ― | |
54 Neutral | AU$1.08B | 17.68 | 1.57% | 2.33% | -14.98% | -66.48% | |
52 Neutral | AU$75.05M | 119.49 | 0.87% | ― | -1.08% | ― | |
48 Neutral | AU$31.17M | 4.70 | -22.15% | 1.67% | -2.81% | -503.02% | |
43 Neutral | AU$181.32M | -0.40 | -43.21% | 7.86% | -0.89% | 16.45% |
* Consumer Defensive Sector Average
AU:IEL
IDP Education Ltd.
3.88
-5.40
-58.19%
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IDP Education Ltd. Corporate Events
Citigroup Group Entities Cease to Be Substantial Holders in IDP Education
Mar 10, 2026
Citigroup Global Markets Australia and related Citi group entities have notified IDP Education that they have ceased to be substantial shareholders in the company as of 6 March 2026. The change results from a series of transactions, primarily redu...
JPMorgan Ceases to Be Substantial Holder in IDP Education
Mar 9, 2026
JPMorgan Chase Co and its affiliates have lodged a notice stating they have ceased to be a substantial holder in IDP Education Ltd. The change reflects various securities lending, prime brokerage rehypothecation and principal trading transactions...
JPMorgan Ceases to Be Substantial Holder in IDP Education
Mar 1, 2026
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 pr...
IDP Education Issues Cautious H1 FY26 Financial Results Update
Feb 25, 2026
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 express...
IDP Education lifts FY26 profit guidance as transformation drives yield and cost gains
Feb 25, 2026
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....
IDP Education Profit Slumps as Revenue Falls and Accounting Change Takes Effect
Feb 25, 2026
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...
Citi Group Ceases to Be Substantial Holder in IDP Education
Feb 10, 2026
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 securi...
Citi Group Entities Cease to Be Substantial Holder in IDP Education
Jan 29, 2026
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 i...
IDP Education Issues New Unquoted Equity Securities Under Employee Incentive Scheme
Jan 21, 2026
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 subje...
IDP Education Reports Lapse of Employee Service and Performance Rights
Jan 15, 2026
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 an...
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.