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$2.50
▼(-51.46% Downside)
Action:Reiterated
Date:06/16/26
The score is held back primarily by deteriorating financial performance (declining revenue, weaker margins, and falling free cash flow) and bearish technicals (below major moving averages with negative MACD). Valuation is an additional drag due to a very high P/E, only partly balanced by the moderate dividend yield.
Positive Factors
Strategic ownership of IELTS
Co-ownership and operational role in IELTS gives IDP a durable, recurring revenue stream from global test fees. IELTS is a widely required credential for study, work and migration, creating high structural demand, sticky customers and distribution advantages versus peers.
Negative Factors
Revenue and margin deterioration
Falling revenue and compressed net margins reduce internal funding for marketing, tech and partnerships. Persistent declines can erode bargaining power with education partners, force cost cutting that harms service quality, and weaken long-term competitive positioning.
Read all positive and negative factors
Positive Factors
Negative Factors
Strategic ownership of IELTS
Co-ownership and operational role in IELTS gives IDP a durable, recurring revenue stream from global test fees. IELTS is a widely required credential for study, work and migration, creating high structural demand, sticky customers and distribution advantages versus peers.
Read all positive factors
IDP Education Ltd. (IEL) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$667.57M
Dividend Yield2.33%
Average Volume (3M)2.78M
Price to Earnings (P/E)99.4
Beta (1Y)1.26
Revenue Growth-6.92%
EPS Growth-91.90%
CountryAU
Employees8,362
SectorConsumer Defensive
Sector Strength42
IndustryEducation & Training Services
Share Statistics
EPS (TTM)0.03
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$4.12Price Target Upside-20.00% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)0.23
Revenue Forecast (FY)AU$842.94M
IDP Education Ltd. Business Overview & Revenue Model
Company Description
IDP Education Limited is dedicated to facilitating student entry into academic institutions across a global network, including Australia, the United Kingdom, the United States, Canada, New Zealand, and Ireland. Its extensive suite of services enco...
How the Company Makes Money
IEL primarily makes money from two major activities: (1) student placement services and (2) English language testing through IELTS. In student placement, IDP advises prospective international students, matches them with suitable courses and instit...
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
2.90
Negative
3.79
Negative
4.69
Negative
Market Momentum
-0.17
Negative
46.02
Neutral
83.17
Negative
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 2.37, above the 50-day MA of 2.90, and above the 200-day MA of 4.69, indicating a neutral trend. The MACD of -0.17 indicates Negative momentum. The RSI at 46.02 is Neutral, neither overbought nor oversold. The STOCH value of 83.17 is Negative, 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | AU$132.06M | 10.41 | 71.63% | 1.17% | 95.33% | 525.79% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
56 Neutral | AU$98.25M | 79.88 | 0.87% | ― | -0.72% | ― | |
54 Neutral | AU$667.57M | 99.38 | 1.57% | 2.33% | -6.92% | -91.90% | |
48 Neutral | AU$27.97M | -7.17 | -22.15% | 1.67% | -3.90% | -307.37% | |
45 Neutral | AU$11.94M | -11.18 | -6.74% | ― | -2.94% | 66.11% | |
41 Neutral | AU$21.24M | -3.05 | -34.51% | ― | -4.61% | 82.44% |
* Consumer Defensive Sector Average
AU:IEL
IDP Education Ltd.
2.56
-1.05
-29.11%
AU:EDU
EDU Holdings Limited
1.05
0.72
226.56%
AU:NXD
iCollege Ltd.
0.10
-0.03
-23.85%
AU:AKG
Academies Australasia Group Limited
0.09
-0.03
-25.00%
AU:3PL
3P Learning Ltd.
0.39
-0.26
-40.46%
AU:KME
Kip McGrath Education Centres Limited
0.53
0.12
29.58%
IDP Education Ltd. Corporate Events
UBS Group Ceases to Be Substantial Shareholder in IDP Education
Jun 4, 2026
UBS Group AG and its related bodies corporate have notified IDP Education Limited that they have ceased to be a substantial shareholder in the company as of 2 June 2026. The change in substantial holding status may signal a shift in UBS’s in...
IDP Education denies undisclosed news behind share price moves
May 29, 2026
IDP Education has told the ASX it is not aware of any undisclosed information that could explain recent trading volatility in its shares. The company said it is in full compliance with continuous disclosure rules and confirmed its responses were a...
IDP Education Issues New Shares Following Conversion of Unquoted Securities
May 8, 2026
IDP Education Ltd. has notified the market of the issue of 38,081 fully paid ordinary shares, following the conversion or exercise of previously unquoted equity securities. The new shares, issued on April 30, 2026, reflect the company’s ongo...
Greencape Capital Cuts Stake Below Substantial Holder Level in IDP Education
Apr 30, 2026
Greencape Capital Pty Ltd has lodged a notice with the ASX stating it has ceased to be a substantial holder in IDP Education Limited. The change indicates that Greencape’s voting interest in IDP has fallen below the substantial holding thres...
Challenger Exits Substantial Shareholder Position in IDP Education
Apr 30, 2026
Challenger Limited has notified the market that it has ceased to be a substantial holder in IDP Education Limited, lodging a formal notice with the ASX. The filing, signed by Challenger’s company secretary, confirms that Challenger and its a...
IDP Education Reports Lapse of 2,263 Performance Rights
Apr 9, 2026
IDP Education Ltd., the ASX-listed education services provider, reported a change in its issued capital structure following the lapse of certain performance rights. The affected securities, identified as IELAB performance rights, ceased on March 3...
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.