IDP Education Ltd. (IEL) AI Stock Analysis

• Market Cap: AU$1.55B
• Dividend Yield: 2.51%
• Average Volume (3M): 2.78M
• Price to Earnings (P/E): 34.8
• Beta (1Y): 1.00
• 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$6.56
• Price Target Upside: 15.31% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: AU$5.00 ▼(-12.13% Downside)

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

Business Model Strength

IDP's diversified revenue streams from student placement and IELTS testing provide a stable income base, enhancing resilience against market fluctuations.

Market Position

As a global leader in education services, IDP benefits from strong brand recognition and extensive networks, supporting long-term competitive advantage.

Balance Sheet Health

A moderate debt-to-equity ratio suggests financial stability, providing IDP with flexibility to invest in growth opportunities without excessive risk.

Negative Factors

Revenue Growth Decline

Negative revenue growth indicates challenges in maintaining market share or pricing power, potentially impacting long-term profitability.

Profitability Margins

Decreasing profit margins suggest rising costs or competitive pressures, which could hinder future earnings and investment capacity.

Cash Flow Generation

Reduced cash flow generation limits IDP's ability to fund new projects or return capital to shareholders, affecting long-term growth prospects.

IDP Education Ltd. Business Overview & Revenue Model

Company Description

IDP Education Ltd. (IEL) is a leading global provider of international education services, specializing in student placement, English language testing, and training services. The company operates primarily in the education sector, facilitating the movement of students to study in various countries, while also offering English language proficiency assessments through its IELTS (International English Language Testing System) program. IDP Education's core products include student placement services, language assessment, and educational consulting, catering to a diverse clientele including students, educational institutions, and governments.

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: 5.69
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 5.69 is above the 20-day moving average (MA) of 5.16, above the 50-day MA of 5.41, and below the 200-day MA of 6.05, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 66.40 is Neutral, neither overbought nor oversold. The STOCH value of 95.95 is Negative, 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$122.59M	8.93	12.24%	13.52%	26.16%	―
GEM	63 Neutral	AU$540.09M	7.97	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$1.55B	34.83	8.86%	2.51%	-14.98%	-66.48%
3PL	53 Neutral	AU$165.11M	756.25	0.15%	―	-1.08%	―
KME	48 Neutral	AU$33.63M	-6.52	10.80%	1.72%	-2.81%	-503.02%

IDP Education Ltd. Corporate Events

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.

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.

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.

IDP Education Ltd. Issues New Securities to Boost Equity

IDP Education Ltd. announced the issuance of 9,596 ordinary fully paid securities, effective from October 7, 2025. This move signifies the company’s ongoing efforts to manage its equity and potentially enhance its financial standing, impacting its stakeholders by potentially increasing shareholder value and supporting its strategic growth initiatives.

Mitsubishi UFJ Financial Group Ceases Substantial Holding in IDP Education

IDP Education Ltd. has announced that Mitsubishi UFJ Financial Group, Inc. has ceased to be a substantial holder in the company. This change follows a series of transactions where entities controlled by First Sentier Group Limited and Morgan Stanley purchased a significant number of fully paid ordinary shares from Mitsubishi UFJ Financial Group, Inc. This development may impact IDP Education Ltd.’s shareholder structure and could influence future strategic decisions.

First Sentier Investors Ceases Substantial Holding in IDP Education Ltd.

IDP Education Ltd. has announced that First Sentier Investors and its associates have ceased to be substantial holders in the company as of October 3, 2025. This change in substantial holding could impact the company’s shareholder structure and influence its market positioning, although the specific implications for stakeholders are not detailed in the announcement.

IDP Education Director Increases Shareholding

IDP Education Ltd. announced a change in the director’s interest, with Director Colin Stirling acquiring 4,000 additional ordinary shares through an on-market purchase, bringing his total to 12,423 shares. This acquisition reflects a strategic move by the director, potentially indicating confidence in the company’s future performance and stability, which could positively impact stakeholder perceptions.

IDP Education Ltd. Announces 2025 Annual General Meeting Details

IDP Education Ltd. has announced its 2025 Annual General Meeting (AGM), scheduled for October 21, 2025, at 9.30am AEDT. Shareholders and stakeholders can participate in the meeting either online or in person, with options to vote, appoint proxies, and ask questions. The AGM will be held at the Assembly Rooms III – V Events Centre in Docklands, VIC, and aims to engage shareholders in the company’s governance and future planning.

Citigroup Ceases to be a Substantial Holder in IDP Education

IDP Education Ltd has announced that Citigroup Global Markets Australia Pty Limited and its related corporate bodies have ceased to be substantial holders in the company as of September 16, 2025. This change in substantial holding reflects shifts in the relevant interests of Citigroup’s various entities in IDP Education’s voting securities, which may impact the company’s shareholder structure and market perception.

IDP Education Director Increases Stake with Significant Share Purchase

IDP Education Ltd. announced a change in the director’s interest, with Paul Douglas Rogan acquiring 45,000 ordinary shares through an on-market purchase valued at $253,203.48. This acquisition reflects a strategic move by the director, potentially indicating confidence in the company’s future performance and stability, which could positively impact stakeholders’ perceptions.

IDP Education Director Increases Shareholding

IDP Education Limited has announced a change in the director’s interest notice, specifically concerning Michelle Kim Tredenick. The notice details an acquisition of 5,000 ordinary shares by Tredenick, increasing her total holdings to 25,500 shares. This transaction was conducted through an on-market purchase, with a total consideration of $26,772.20. The announcement reflects a strategic move by the director, potentially indicating confidence in the company’s future performance.

IDP Education Ltd. Appoints New Director

IDP Education Ltd. has announced the appointment of Paul Rogan as a director, effective from September 15, 2025. This appointment is part of the company’s ongoing efforts to strengthen its leadership team, although Mr. Rogan currently holds no relevant interests in securities related to the company.

IDP Education Appoints Paul Rogan as Non-Executive Director

IDP Education Ltd. has appointed Paul Rogan as a Non-Executive Director, effective immediately, as part of its ongoing board renewal program. Rogan, who brings over 25 years of experience in finance, strategy, and digital growth, will replace the retiring Greg West, and his expertise is expected to support IDP’s transformation and international market expansion.

IDP Education Announces Director’s Change in Securities

IDP Education Ltd. announced a change in the director’s interest, specifically regarding Tennealle O’Shannessy, who has disposed of 30,394 Performance Rights. This change reflects a lapse of Performance Rights granted under the FY23 Award under the IDIP, impacting the director’s holdings but not involving any cash consideration. The announcement is part of routine disclosures and does not indicate any immediate operational or strategic shifts for the company.

IDP Education Ltd. Announces Cessation of Performance Rights

IDP Education Ltd. announced the cessation of 260,532 performance rights, as the conditions for these securities were not met by the specified date. This development may impact the company’s capital structure and could have implications for stakeholders regarding the company’s performance metrics and future financial planning.

IDP Education Issues Unquoted Securities for Employee Incentive

IDP Education Ltd. announced the issuance of 10,153 unquoted securities under an employee incentive scheme, effective August 31, 2025. This move is part of the company’s strategy to motivate and retain talent, potentially enhancing its operational capabilities and competitive positioning in the education sector.