IPH Ltd. (AU:IPH)
ASX:IPH
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IPH Ltd.
(Sydney:IPH)
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Rating:75Outperform
Price Target:
AU$4.50
â–²(31.58% Upside)
Action:UpgradedDate:02/20/26
The score is driven primarily by solid financial performance (notably strong cash flow) and attractive valuation (low P/E and high dividend yield). Offsetting factors include mixed technical signals and earnings-call risks tied to ANZ softness and uncertainty around the timing of the Canadian CIPO backlog unwind.
Positive Factors
Strong cash generation
Consistent FCF growth and strong cash conversion provide durable funding for dividends, buybacks, debt reduction and targeted investments. Reliable cash generation cushions earnings volatility from filing cycles and supports capital allocation priorities without relying on external financing.
Negative Factors
ANZ revenue and earnings decline
Significant exposure to U.S. PCT originated work has structurally reduced ANZ fee pools and margins. Sustained lower PCT volumes or slow re‑diversification would compress group earnings and weaken a historically important regional profit contributor over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent FCF growth and strong cash conversion provide durable funding for dividends, buybacks, debt reduction and targeted investments. Reliable cash generation cushions earnings volatility from filing cycles and supports capital allocation priorities without relying on external financing.
Read all positive factors
IPH Ltd. (IPH) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$902.59M
Dividend Yield10.58%
Average Volume (3M)1.66M
Price to Earnings (P/E)5.6
Beta (1Y)0.82
Revenue Growth16.61%
EPS Growth3.07%
CountryAU
Employees1,800
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)0.24
Shares Outstanding261,729,700
10 Day Avg. Volume1,349,685
30 Day Avg. Volume1,657,970
Financial Highlights & Ratios
PEG Ratio4.43
Price to Book (P/B)1.74
Price to Sales (P/S)1.73
P/FCF Ratio9.69
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$4.42Price Target Upside29.24% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)0.47
Revenue Forecast (FY)AU$729.49M
IPH Ltd. Business Overview & Revenue Model
Company Description
IPH Limited, together with its subsidiaries, provides intellectual property (IP) services and products in Australia and internationally. It operates through three segments: Intellectual Property Services Australia & New Zealand, Intellectual Prope...
How the Company Makes Money
IPH generates revenue through several key streams, primarily from its IP services such as patent and trademark filing, prosecution, and maintenance services. The company charges fees for its services, which vary based on the complexity and type of...
IPH Ltd. Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 26, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive operational and financial picture: group revenue and underlying EBITDA grew, statutory profit rose double‑digits, cash conversion remained strong and management increased dividends while reducing net debt. Canada delivered a standout turnaround and Asia returned to growth, driven by higher filings and case transfers. However, material near‑term headwinds persist—ANZ earnings were down due to lower U.S. PCT volumes, the CIPO backlog in Canada has not yet cleared (creating delayed revenue), and tax and FX translation effects compressed some metrics. Management’s cost discipline, balance sheet strength, AI adoption and successful acquisitions mitigate these risks and support confidence in medium‑term recovery.Positive Updates
Group Revenue Growth
Total revenue of $363.9 million, up 6.5% year‑on‑year, driven by incremental contribution from the Bereskin & Parr acquisition and organic growth in Canada and Asia.
Negative Updates
ANZ Revenue and Earnings Decline
ANZ like‑for‑like revenue down 6.1% and underlying EBITDA down 10.6%, reflecting disproportionate exposure to a decline in U.S. PCT filings. Australian patent market decreased 12.9% for the half with IPH filings down 5.4% (normalized excluding self‑filed applications: IPH -4.8% vs market +1.9%).
Read all updates
Q2-2026 Updates
Positive
Negative
Group Revenue Growth
Total revenue of $363.9 million, up 6.5% year‑on‑year, driven by incremental contribution from the Bereskin & Parr acquisition and organic growth in Canada and Asia.
Read all positive updates
Company Guidance
Management guided that FY‑26 priorities are to leverage Canada’s integrated platform to capture the expected (timing uncertain but anticipated in calendar 2026) unwind of the CIPO backlog, to capitalise on Asia’s return to growth and >2,200 recent case transfers (including ~1,500 trademarks, ~500 patents, ~200 designs), and to re‑target ANZ business development away from U.S. PCTs toward Western Europe, Japan, South Korea and Chinese incoming filings. They reiterated a focus on operational efficiencies and AI automation (corporate costs down $2.5m in H1) after delivering H1 revenue $363.9m (+6.5%), underlying EBITDA $107.1m (+6.6%), underlying NPATA $62.6m (+2.6%), like‑for‑like revenue +0.7% and like‑for‑like EBITDA +3.2% (margin +0.7ppt); segment metrics included Canada like‑for‑like EBITDA +18.9% (margin +2.6ppt), Asia filings ex‑Singapore +7.3% (Asia LFL revenue +3.5%, EBITDA +1.5%), and ANZ LFL revenue −6.1% / EBITDA −10.6% (Australian market −12.9%, IPH −5.4% or −4.8% excl. self‑filed AI provisionals). Balance‑sheet/capital guidance: cash conversion 101%, free cash flow +32%, interim dividend +11.8% to $0.19 (franked 20%, payout 81% of cash‑adjusted NPAT), net debt −6.5%, leverage 1.8x (target ≤2x), $111m undrawn facilities, $210m refinanced facility, and an on‑market buyback up to 12.2m shares.IPH Ltd. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
72
Positive
Cash Flow
80
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 728.50M | 706.20M | 605.60M | 482.87M | 374.33M | 359.68M |
| Gross Profit | 489.30M | 706.20M | 389.80M | 315.77M | 250.92M | 243.29M |
| EBITDA | 194.60M | 187.10M | 179.60M | 159.16M | 115.99M | 113.33M |
| Net Income | 72.70M | 68.80M | 60.80M | 64.54M | 52.56M | 53.60M |
Balance Sheet | ||||||
| Total Assets | 1.28B | 1.35B | 1.31B | 1.20B | 688.42M | 674.69M |
| Cash, Cash Equivalents and Short-Term Investments | 49.00M | 59.00M | 75.50M | 103.27M | 88.40M | 71.15M |
| Total Debt | 474.30M | 469.70M | 491.80M | 441.29M | 161.22M | 159.39M |
| Total Liabilities | 605.60M | 651.10M | 679.10M | 619.50M | 258.71M | 247.90M |
| Stockholders Equity | 678.80M | 699.40M | 634.30M | 577.13M | 429.71M | 426.79M |
Cash Flow | ||||||
| Free Cash Flow | 140.30M | 125.80M | 120.90M | 84.90M | 87.69M | 86.47M |
| Operating Cash Flow | 143.80M | 133.70M | 131.90M | 91.79M | 94.88M | 92.65M |
| Investing Cash Flow | -14.50M | -70.40M | -140.60M | -281.56M | -12.18M | -10.84M |
| Financing Cash Flow | -172.90M | -83.10M | -11.30M | 199.46M | -68.68M | -93.55M |
IPH Ltd. Technical Analysis
Positive
3.42
Price Trends
3.40
Positive
3.43
Negative
3.79
Negative
Market Momentum
<0.01
Negative
53.80
Neutral
79.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:IPH, the sentiment is Positive. The current price of 3.42 is above the 20-day moving average (MA) of 3.31, above the 50-day MA of 3.40, and below the 200-day MA of 3.79, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.80 is Neutral, neither overbought nor oversold. The STOCH value of 79.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:IPH.
IPH Ltd. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | AU$215.41M | 5.06 | 12.32% | 4.11% | 27.05% | 520.93% | |
75 Outperform | AU$902.59M | 5.57 | 10.55% | 10.58% | 16.61% | 3.07% | |
75 Outperform | AU$1.21B | 14.94 | 31.30% | 5.51% | 11.64% | 18.08% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | AU$221.85M | 43.95 | 10.41% | 0.11% | 24.47% | 21.28% |
* Industrials Sector Average
AU:IPH
IPH Ltd.
3.42
-0.82
-19.24%
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IPH Ltd. Corporate Events
IPH Sets Date for Release of 2026 Half-Year Financial Results
Jan 18, 2026
IPH Limited has announced that it will release its half-year financial results for the period ended 31 December 2025 on 19 February 2026, followed by a webcast analyst and shareholder briefing the same morning, with a recording to be made availabl...
IPH Ltd Reports Lapse of 26,308 Performance Rights
Jan 15, 2026
IPH Ltd has notified the market that 26,308 performance rights (ASX code IPHAA) have lapsed after the conditions attached to those rights were not met or became incapable of being satisfied as at 31 December 2025. The cessation of these conditiona...
Citigroup Entities Exit Substantial Holder Position in IPH Ltd
Dec 29, 2025
Citigroup Global Markets Australia Pty Limited and its related Citi group entities have notified IPH Ltd that they have ceased to be substantial shareholders in the company as of 24 December 2025. The change follows a reduction in relevant interes...
JPMorgan Ceases to Be Substantial Holder in IPH Ltd
Dec 28, 2025
JPMorgan Chase Co. and its affiliates have notified IPH Ltd that they have ceased to be a substantial holder in the company, following a series of changes in their relevant interests in IPH’s ordinary shares. The change reflects transaction...
IPH Releases 6m Escrowed Shares Linked to ROBIC Acquisition
Dec 24, 2025
IPH Limited has released 5,961,705 fully paid ordinary shares from voluntary escrow, relating to its acquisition of Canadian IP firm ROBIC completed in December 2023. The company acknowledged that its notice to the ASX regarding the share release ...
IPH Ltd. Updates on Director’s Interest and Performance Rights Acquisition
Dec 10, 2025
IPH Ltd. announced a change in the director’s interest, specifically concerning Andrew Nathaniel Blattman, who holds both direct and indirect interests in the company’s securities. The notice details that there were no changes in the n...
IPH Limited Director Increases Shareholding
Dec 10, 2025
IPH Limited announced a change in the interest of its director, Katharine Anne Mason, who acquired 14,300 fully paid ordinary shares through an on-market trade, increasing her total holdings to 26,977 shares. This acquisition reflects a significan...
IPH Ltd. Director Increases Shareholding
Nov 27, 2025
IPH Ltd. announced a change in the director’s interest, with Vicki Anne Carter acquiring additional shares through an on-market trade. This change reflects an increase in Carter’s indirect interest in the company, potentially indicatin...
IPH Limited Announces Director Departure
Nov 21, 2025
IPH Limited has announced the cessation of Jingmin Qian as a director, effective November 20, 2025. The announcement details Qian’s interests in the company, which include holding 25,695 fully paid ordinary shares. This change in directorshi...
IPH Limited Successfully Concludes 2025 AGM with All Resolutions Passed
Nov 20, 2025
IPH Limited’s 2025 Annual General Meeting concluded with all resolutions passed by poll, including the re-election of directors and approval of security issues under the equity incentive plan. Although a ‘second strike’ on the FY...
IPH Limited Navigates Market Challenges with Strategic Initiatives and Improved FY25 Results
Nov 20, 2025
IPH Limited reported a challenging FY25 with a Statutory Net Profit After Tax of $68.8 million, up from $60.8 million the previous year, and an Underlying EBITDA increase of 6.0% to $207.2 million, primarily due to acquisitions in Canada. Despite ...
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.