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IDP Education Ltd. (AU:IEL)
ASX:IEL
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IDP Education Ltd. (IEL) AI Stock Analysis

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AU:IEL

IDP Education Ltd.

(Sydney:IEL)

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Neutral 57 (OpenAI - 4o)
Rating:57Neutral
Price Target:
AU$6.00
â–²(1.87% Upside)
IDP Education Ltd.'s overall stock score is primarily impacted by its financial performance, which shows declining revenue growth and profitability margins. Technical analysis indicates bearish momentum, with potential oversold conditions. The high P/E ratio suggests the stock is overvalued, which is a concern given the current financial challenges. The absence of significant earnings call insights or corporate events leaves the focus on these key areas.
Positive Factors
Business Model Strength
The diversified revenue streams from student placement and English testing provide a robust and resilient business model, reducing dependency on a single income source and enhancing long-term stability.
Market Position
As a leader in international education services, IDP Education benefits from a strong market position, enabling it to leverage brand recognition and capture a significant share of the growing global education market.
Balance Sheet Health
A moderate debt-to-equity ratio suggests a stable financial structure, providing the company with the flexibility to invest in growth opportunities without overextending its financial commitments.
Negative Factors
Declining Revenue Growth
The decline in revenue growth indicates potential challenges in maintaining market share and competitiveness, which could impact long-term financial performance and strategic initiatives.
Profitability Margins
Reduced profitability margins suggest increased operational costs or inefficiencies, potentially limiting the company's ability to reinvest in business expansion and innovation.
Cash Flow Challenges
A significant decline in free cash flow can constrain the company's ability to fund new projects and respond to market opportunities, affecting its long-term growth prospects and financial resilience.

IDP Education Ltd. (IEL) vs. iShares MSCI Australia ETF (EWA)

IDP Education Ltd. Business Overview & Revenue Model

Company DescriptionIDP 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 MoneyIDP 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. demonstrates strong revenue growth and stable profitability with solid operating margins. The balance sheet is stable but increasing debt levels need monitoring. Cash flow generation has weakened, which could pose a risk if not addressed.
Income Statement
IDP Education Ltd. has shown solid revenue growth, with a 6.1% increase from 2023 to 2024. The company maintains healthy profit margins, with a gross margin of 39.4% and a net profit margin of 12.8% in 2024. EBIT and EBITDA margins are strong at 22.5% and 25.9%, respectively, indicating robust operating performance. However, a slight decline in net income compared to the previous year could be a concern.
Balance Sheet
The company's balance sheet indicates a stable financial position with a debt-to-equity ratio of 0.76, suggesting manageable leverage. The equity ratio stands at 41.6%, reflecting a solid equity base. Return on equity is healthy at 25.4%, indicating efficient use of shareholders' capital. However, the year-over-year increase in debt levels warrants careful monitoring.
Cash Flow
Free cash flow has decreased by 52.9% from the previous year, which may impact the company's ability to fund future growth. The operating cash flow to net income ratio is 0.88, showing moderate cash generation relative to earnings. The free cash flow to net income ratio is 0.47, indicating lower cash conversion from profits, which could pose a risk if this trend continues.
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue882.20M1.04B977.83M790.59M525.55M
Gross Profit882.20M408.40M374.83M270.52M133.34M
EBITDA149.55M269.27M274.13M199.09M104.08M
Net Income44.51M132.75M148.52M102.60M39.68M
Balance Sheet
Total Assets1.28B1.26B1.23B974.79M695.44M
Cash, Cash Equivalents and Short-Term Investments121.48M121.10M166.63M196.61M306.95M
Total Debt394.63M395.66M329.56M256.41M143.10M
Total Liabilities744.97M732.95M716.02M519.42M307.45M
Stockholders Equity533.16M522.57M517.17M455.68M388.53M
Cash Flow
Free Cash Flow71.75M61.79M131.33M110.99M96.76M
Operating Cash Flow132.63M116.67M170.28M140.63M116.90M
Investing Cash Flow-51.29M-88.49M-124.11M-290.28M-19.65M
Financing Cash Flow-68.72M-81.76M-75.21M37.51M-95.72M

IDP Education Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price5.89
Price Trends
50DMA
5.69
Positive
100DMA
4.73
Positive
200DMA
7.42
Negative
Market Momentum
MACD
0.19
Positive
RSI
44.51
Neutral
STOCH
14.40
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 5.89 is below the 20-day moving average (MA) of 6.34, above the 50-day MA of 5.69, and below the 200-day MA of 7.42, indicating a neutral trend. The MACD of 0.19 indicates Positive momentum. The RSI at 44.51 is Neutral, neither overbought nor oversold. The STOCH value of 14.40 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
AU$145.29M10.5812.24%11.97%26.16%―
67
Neutral
AU$636.54M9.407.88%6.63%-0.89%16.45%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
57
Neutral
€1.81B40.718.86%2.38%-14.98%-66.48%
53
Neutral
AU$169.20M775.000.15%―-1.08%―
53
Neutral
AU$33.29M17.0010.80%1.72%-2.81%-503.02%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:IEL
IDP Education Ltd.
5.89
-7.47
-55.90%
AU:EVO
Evolve Education Group Ltd
0.65
-0.09
-12.16%
AU:GEM
G8 Education Limited
0.83
-0.47
-36.15%
AU:3PL
3P Learning Ltd.
0.62
-0.44
-41.51%
AU:KME
Kip McGrath Education Centres Limited
0.59
0.20
51.28%
AU:NDO
Nido Education Limited
0.61
-0.16
-20.78%

IDP Education Ltd. Corporate Events

IDP Education Ltd. AGM Results Highlight Strong Shareholder Support
Oct 21, 2025

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.

IDP Education Ltd. Issues New Securities to Boost Equity
Oct 14, 2025

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.

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.

Mitsubishi UFJ Financial Group Ceases Substantial Holding in IDP Education
Oct 8, 2025

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.

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.

First Sentier Investors Ceases Substantial Holding in IDP Education Ltd.
Oct 7, 2025

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.

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.

IDP Education Director Increases Shareholding
Sep 22, 2025

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.

The most recent analyst rating on (AU:IEL) stock is a Hold with a A$4.85 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. Announces 2025 Annual General Meeting Details
Sep 19, 2025

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.

The most recent analyst rating on (AU:IEL) stock is a Hold with a A$4.85 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 a Substantial Holder in IDP Education
Sep 18, 2025

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.

The most recent analyst rating on (AU:IEL) stock is a Hold with a A$4.85 price target. To see the full list of analyst forecasts on IDP Education Ltd. stock, see the AU:IEL Stock Forecast page.

IDP Education Director Increases Stake with Significant Share Purchase
Sep 17, 2025

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.

The most recent analyst rating on (AU:IEL) stock is a Hold with a A$4.85 price target. To see the full list of analyst forecasts on IDP Education Ltd. stock, see the AU:IEL Stock Forecast page.

IDP Education Director Increases Shareholding
Sep 16, 2025

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.

The most recent analyst rating on (AU:IEL) stock is a Buy with a A$7.80 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. Appoints New Director
Sep 15, 2025

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.

The most recent analyst rating on (AU:IEL) stock is a Buy with a A$7.80 price target. To see the full list of analyst forecasts on IDP Education Ltd. stock, see the AU:IEL Stock Forecast page.

IDP Education Appoints Paul Rogan as Non-Executive Director
Sep 15, 2025

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.

The most recent analyst rating on (AU:IEL) stock is a Buy with a A$7.80 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 Change in Securities
Sep 9, 2025

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.

The most recent analyst rating on (AU:IEL) stock is a Hold with a A$6.50 price target. To see the full list of analyst forecasts on IDP Education Ltd. stock, see the AU:IEL Stock Forecast page.

IDP Education Ltd. Announces Cessation of Performance Rights
Sep 7, 2025

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.

The most recent analyst rating on (AU:IEL) stock is a Hold with a A$6.50 price target. To see the full list of analyst forecasts on IDP Education Ltd. stock, see the AU:IEL Stock Forecast page.

IDP Education Issues Unquoted Securities for Employee Incentive
Sep 7, 2025

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.

The most recent analyst rating on (AU:IEL) stock is a Hold with a A$6.50 price target. To see the full list of analyst forecasts on IDP Education Ltd. stock, see the AU:IEL Stock Forecast page.

Mitsubishi UFJ Financial Group Ceases Substantial Holding in IDP Education
Sep 4, 2025

Mitsubishi UFJ Financial Group, Inc. has ceased to be a substantial holder in IDP Education Limited as of September 4, 2025. This change is due to the purchase of securities by an entity controlled by Morgan Stanley, affecting a significant number of fully paid ordinary shares. The adjustment in substantial holding may impact IDP Education Limited’s shareholder structure and influence its market dynamics.

The most recent analyst rating on (AU:IEL) stock is a Hold with a A$6.50 price target. To see the full list of analyst forecasts on IDP Education Ltd. stock, see the AU:IEL Stock Forecast page.

First Sentier Group Ceases Substantial Holding in IDP Education Ltd.
Sep 3, 2025

IDP Education Ltd. has announced that First Sentier Group Limited and its related entities have ceased to be substantial holders in the company as of September 1, 2025. This change in substantial holding may impact IDP Education’s shareholder structure and could influence future voting outcomes and strategic decisions within the company.

The most recent analyst rating on (AU:IEL) stock is a Hold with a A$6.30 price target. To see the full list of analyst forecasts on IDP Education Ltd. stock, see the AU:IEL Stock Forecast page.

The Capital Group Ceases Substantial Holding in IDP Education
Aug 31, 2025

IDP Education Ltd. has announced that The Capital Group Companies, Inc. (CGC) and its related bodies corporate have ceased to be substantial holders of the company as of August 28, 2025. This change in substantial holding follows a series of market transactions by Capital Research and Management Company, a subsidiary of CGC, involving both acquisitions and disposals of IDP Education’s common stock. The cessation of CGC as a substantial holder may impact the company’s shareholder composition and could influence market perceptions of IDP Education’s stock.

The most recent analyst rating on (AU:IEL) stock is a Hold with a A$5.80 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. Announces Dividend Distribution
Aug 27, 2025

IDP Education Ltd. has announced a dividend distribution of AUD 0.05 per share for its ordinary fully paid shares. The dividend relates to the six-month period ending June 30, 2025, with an ex-date of September 10, 2025, and a payment date of September 25, 2025. This announcement reflects the company’s ongoing commitment to delivering value to its shareholders.

The most recent analyst rating on (AU:IEL) stock is a Hold 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.

IDP Education Ltd. Releases 2025 Sustainability Report
Aug 27, 2025

IDP Education Ltd. has released its Sustainability Report for the period from July 2024 to June 2025, highlighting its commitment to transparent reporting and sustainability practices. The report outlines the company’s strategic priorities, sustainability performance, and risk management, emphasizing the importance of climate-related disclosures in line with Australian Sustainability Reporting Standards. The report is part of IDP’s corporate reporting suite and reflects the company’s dedication to aligning its operations with sustainability goals, which is crucial for maintaining its market position and fulfilling stakeholder expectations.

The most recent analyst rating on (AU:IEL) stock is a Hold 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.

IDP Education Ltd. Strengthens Governance Framework for FY25
Aug 27, 2025

IDP Education Ltd. has released its Corporate Governance Statement for the financial year ending June 30, 2025, emphasizing its commitment to robust governance practices. The company has implemented internal controls and risk management processes to ensure integrity and accountability, aligning with the ASX Corporate Governance Council’s recommendations. This framework is designed to promote responsible management and sustainable performance, ultimately aiming to increase shareholder value.

The most recent analyst rating on (AU:IEL) stock is a Hold 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.

IDP Education Ltd. Announces 2025 Full Year Financial Results
Aug 27, 2025

IDP Education Ltd. has released its financial results for the full year 2025, highlighting its performance and strategic positioning. The announcement underscores the company’s ongoing commitment to leveraging its market presence in the education sector, with implications for stakeholders regarding its financial health and operational strategies.

The most recent analyst rating on (AU:IEL) stock is a Hold 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.

IDP Education Ltd. Navigates Challenging FY25 with Strategic Transformation
Aug 27, 2025

IDP Education Ltd. reported a challenging financial year in 2025, with a 14% revenue decline due to policy restrictions in key markets affecting student and test taker volumes. Despite this, the company is undergoing a multi-year transformation to enhance efficiency and profitability, aiming for significant cost reductions and leveraging technology to drive growth. The transformation is expected to deliver immediate improvements in FY26, with a focus on maintaining quality and trust, and capturing profitable growth in the long term.

The most recent analyst rating on (AU:IEL) stock is a Hold 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.

IDP Education Ltd. Reports Decline in FY25 Financial Performance
Aug 27, 2025

IDP Education Ltd. reported a significant decline in its financial performance for the year ended 30 June 2025, with revenue dropping by 15% and net profit falling by 66% compared to the previous year. The company’s net tangible assets per share also decreased, highlighting challenges in maintaining asset value amidst a substantial portion of intangible assets. Despite these setbacks, IDP Education declared dividends for FY25, indicating a commitment to returning value to shareholders.

The most recent analyst rating on (AU:IEL) stock is a Hold 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.

Mitsubishi UFJ Financial Group Ceases Substantial Holding in IDP Education
Aug 8, 2025

Mitsubishi UFJ Financial Group, Inc. has ceased to be a substantial holder in IDP Education Limited, as per the notice dated 8 August 2025. The change in substantial holding was due to the purchase of securities by an entity controlled by Morgan Stanley, affecting a significant number of fully paid ordinary shares. This development may impact Mitsubishi UFJ Financial Group’s influence in IDP Education Limited and could have implications for the company’s market dynamics and stakeholder interests.

The most recent analyst rating on (AU:IEL) stock is a Buy with a A$16.00 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 Change in Substantial Holding
Aug 7, 2025

IDP Education Ltd. has announced that First Sentier Investors (Australia) IM Ltd has ceased to be a substantial holder in the company as of August 5, 2025. This change in substantial holding could impact IDP Education’s shareholder composition and influence its market strategy, as substantial holders often play a significant role in corporate governance and decision-making.

The most recent analyst rating on (AU:IEL) stock is a Buy with a A$16.00 price target. To see the full list of analyst forecasts on IDP Education Ltd. stock, see the AU:IEL Stock Forecast page.

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.Date of analysis: Oct 23, 2025