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IPH Ltd.
(Sydney:IPH)
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Rating:75Outperform
Price Target:
AU$5.00
▲(24.69% Upside)
Action:Upgraded
Date: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 and conversion
Consistent, high-quality cash generation and strong cash conversion provide durable capacity to fund buybacks, dividends and targeted investments. Over a 2–6 month horizon this improves resilience versus filing-cycle volatility, supports leverage targets and funds AI and integration projects without denting liquidity.
Negative Factors
ANZ exposure to U.S. PCT weakness
Significant exposure to U.S.-origin PCT filings and a sharp Australian market decline create a structural earnings vulnerability. If U.S. PCT volumes remain weak or re‑diversification into Europe/Asia is slow, ANZ's lower margins and revenue will persistently drag group profitability and cashflows.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation and conversion
Consistent, high-quality cash generation and strong cash conversion provide durable capacity to fund buybacks, dividends and targeted investments. Over a 2–6 month horizon this improves resilience versus filing-cycle volatility, supports leverage targets and funds AI and integration projects without denting liquidity.
Read all positive factors
IPH Ltd. (IPH) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$1.07B
Dividend Yield9.03%
Average Volume (3M)1.66M
Price to Earnings (P/E)14.8
Beta (1Y)0.86
Revenue Growth8.13%
EPS Growth-9.10%
CountryAU
Employees1,800
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)0.28
Shares Outstanding256,293,150
10 Day Avg. Volume1,349,685
30 Day Avg. Volume1,657,970
Financial Highlights & Ratios
PEG Ratio4.40
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$3.74Price Target Upside-6.73% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.5
Revenue Forecast (FY)AU$749.00M
IPH Ltd. Business Overview & Revenue Model
Company Description
Established in 1887 and based in Sydney, Australia, IPH Limited offers an extensive array of intellectual property (IP) services and products, both within Australia and across international markets. Its operations are structured across three key s...
How the Company Makes Money
IPH makes money primarily by charging professional fees for IP services delivered by its member firms. The core revenue stream is recurring, matter-based fee income from patent and trademark work, including drafting and filing applications, respon...
IPH Ltd. Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 20, 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
Neutral
4.01
Price Trends
4.09
Positive
3.84
Positive
3.65
Positive
Market Momentum
0.06
Positive
48.05
Neutral
24.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:IPH, the sentiment is Neutral. The current price of 4.01 is below the 20-day moving average (MA) of 4.20, below the 50-day MA of 4.09, and above the 200-day MA of 3.65, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 48.05 is Neutral, neither overbought nor oversold. The STOCH value of 24.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | AU$1.83B | 21.07 | 29.68% | 3.82% | 7.67% | 5.03% | |
76 Outperform | AU$276.81M | 15.66 | 12.32% | 4.47% | 9.90% | 216.48% | |
75 Outperform | AU$1.07B | 14.79 | 10.55% | 9.32% | 8.13% | -9.10% | |
68 Neutral | AU$440.54M | 10.14 | 20.21% | 6.47% | -4.85% | 5.75% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | AU$199.21M | 65.87 | 10.41% | ― | 18.25% | 2.90% | |
40 Underperform | AU$14.80M | -2.67 | -26.25% | ― | -13.52% | 7.82% |
* Industrials Sector Average
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IPH Ltd. Corporate Events
IPH schedules 2026 full‑year results and market webcast
Jul 27, 2026
IPH Limited will release its financial results for the year ended 30 June 2026 on 20 August 2026, and will host an analyst and shareholder briefing via webcast the same day. The recording of the briefing will be available on the company’s we...
IPH Director Andrew Blattman Steps Down but Retains Significant Stake
Jul 1, 2026
IPH Limited has announced that long-serving director Andrew Nathaniel Blattman has ceased to be a director of the company as of 1 July 2026. The filing details his remaining interests as a shareholder, including 397,366 fully paid ordinary shares ...
IPH appoints new director with no declared shareholding
Jul 1, 2026
IPH Limited has appointed Anthony John O’Malley as a director effective 1 July 2026, according to a notice lodged with the ASX. The filing confirms that at the time of his appointment, O’Malley holds no direct or indirect interests in ...
IPH installs Tony O’Malley as new CEO amid planned leadership transition
Jul 1, 2026
IPH Limited has appointed Tony O’Malley as its new managing director and chief executive officer, succeeding long-serving leader Andrew Blattman, who has retired from the board and executive roles but will support the company until late Nove...
IPH updates securities trading policy to tighten governance standards
Jun 17, 2026
IPH Limited has refreshed its Securities Trading Policy, with the updated framework taking effect from 16 June 2026 and now published on the company’s website for stakeholder access. The move underscores the intellectual property services gr...
IPH Continues On-Market Share Buy-Back With Daily Update
Jun 2, 2026
IPH Ltd. has reported an update to its on-market share buy-back program for its ordinary fully paid shares, disclosing that a total of 5,417,551 shares had been repurchased before the previous trading day. The company also bought back an additiona...
IPH continues on-market share buy-back with daily repurchases
May 24, 2026
IPH Ltd. has been actively executing an on-market share buy-back of its ordinary fully paid shares, as disclosed in its latest update to the ASX. The company reported that a total of 5,408,248 shares had been repurchased before the previous tradin...
IPH updates market on daily progress of on‑market share buy‑back
May 22, 2026
IPH Ltd., listed on the ASX under the code IPH with ordinary fully paid shares, operates in the professional services sector and uses an on-market buy-back to manage its capital structure. The company has been regularly updating the market on the ...
IPH Updates Market on Progress of On‑Market Share Buy‑Back
May 21, 2026
IPH Ltd. has provided an updated notification to the ASX on the progress of its on‑market share buy‑back program covering its ordinary fully paid shares. The company reported that it had repurchased a cumulative 5,275,881 shares prior ...
IPH updates market on daily progress of on-market share buy-back
May 10, 2026
IPH Ltd. has provided an updated notification to the ASX on its ongoing on-market share buy-back of ordinary fully paid shares. The company reported that a total of 4,745,881 shares had been repurchased prior to the most recent trading day, with a...
JPMorgan Drops Below Substantial Holder Threshold in IPH Ltd
May 10, 2026
JPMorgan Chase Co. and its affiliates have notified IPH Ltd that they have ceased to be a substantial shareholder in the company as of 6 May 2026. The change reflects a reduction in JPMorgan’s relevant interest through a series of securitie...
IPH continues on‑market share buy‑back with daily ASX updates
May 8, 2026
IPH Ltd. has launched an on‑market share buy‑back of its ordinary fully paid shares, as disclosed in an updated Appendix 3C filing with the ASX. The program, first notified in February 2026 and most recently updated on 8 May 2026, is b...
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.