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IRESS Limited (AU:IRE)
ASX:IRE

IRESS Limited (IRE) AI Stock Analysis

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AU

IRESS Limited

(Sydney:IRE)

Rating:55Neutral
Price Target:
AU$8.50
▲(9.25%Upside)
IRESS Limited's overall stock score reflects a mix of moderate financial recovery and fair valuation, offset by bearish technical indicators. The company's improvements in profitability and cash flow are positive signs, but challenges in revenue growth and operational cash generation, combined with bearish market momentum, lead to a cautious outlook.

IRESS Limited (IRE) vs. iShares MSCI Australia ETF (EWA)

IRESS Limited Business Overview & Revenue Model

Company DescriptionIress Limited engages in the designing and developing software and services for the financial services industry in Australia, New Zealand, Asia, the United Kingdom, Europe, South Africa, and North America. It offers client management, business automation, portfolio data, research, financial planning tools, scaled advice journeys, digital client solutions, data-driven compliance and analytics, and regulatory obligations management solutions; and market data, trading interfaces, order and execution management, smart order routing, FIX services, portfolio management, securities lending, analytical tools, algorithmic trading, market making, CFD clearing, post trade solutions, and trading and market data APIs. The company also provides connectivity, client relationship management, wealth management, funds registry, digital advice, digital member portal, fund administration services, automated workflow, application processing, connectivity, mortgage comparison and advice, lender connectivity, quoting, comparison, and application processing solutions. It offers its solutions to institutional and independent advisory clients; institutional sell-side, retail, and online brokers; investment, fund, private client, and wealth managers; custodians; retail and investment platforms; superannuation funds; mortgage lenders and intermediaries; and insurance intermediaries. The company was formerly known as IRESS Market Technology Limited and changed its name to IRESS Limited in May 2012. Iress Limited was incorporated in 1993 and is headquartered in Melbourne, Australia.
How the Company Makes MoneyIRESS Limited generates revenue primarily through the sale of its software products and services to the financial services industry. The company offers a range of subscription-based software solutions that cater to various segments such as trading platforms, financial advice tools, and wealth management systems. A significant portion of IRESS's income comes from recurring subscription fees, which provide a steady stream of revenue. Additionally, the company earns from one-time implementation fees, customization services, and ongoing client support. IRESS also benefits from strategic partnerships with financial institutions and other technology providers, allowing it to broaden its market reach and enhance its product offerings.

IRESS Limited Financial Statement Overview

Summary
IRESS Limited shows signs of recovery from a challenging 2023, with improvements in profitability and cash flow. However, revenue growth remains challenged, and the lack of operating cash flow in 2024 is a concern. The balance sheet shows better leverage management and a stronger equity position.
Income Statement
55
Neutral
IRESS has experienced fluctuating revenue with a slight decline in 2024 compared to 2023. The gross profit margin remains robust, as it equates to the total revenue indicating strong cost management. However, EBIT was zero in 2024, impacting profitability. EBITDA margin improved significantly from negative in 2023 to positive in 2024, indicating a recovery in operational efficiency. The net profit margin improved in 2024, suggesting better net income management after a loss in 2023.
Balance Sheet
60
Neutral
The company's debt-to-equity ratio has improved, suggesting better leverage management, although it remains relatively high. The return on equity is positive for 2024, rebounding from a negative ROE in 2023, which indicates improved profitability relative to shareholder equity. While the equity ratio has improved, indicating a better proportion of equity financing, the overall financial stability needs cautious monitoring due to historical fluctuations.
Cash Flow
65
Positive
Free cash flow has shown a steady growth, highlighting effective cash management. Despite the absence of operating cash flow in 2024, free cash flow has increased significantly. However, the lack of operating cash flow in 2024 raises concerns about the cash generation from operations. The free cash flow to net income ratio is strong, suggesting solid cash conversion from net income.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue600.83M625.74M615.59M595.95M542.63M
Gross Profit124.22M96.38M167.51M138.59M126.78M
EBITDA153.07M-54.28M119.95M146.39M123.70M
Net Income88.67M-137.48M52.67M73.80M59.07M
Balance Sheet
Total Assets730.22M792.22M1.00B1.03B1.01B
Cash, Cash Equivalents and Short-Term Investments66.19M50.74M63.81M64.87M63.54M
Total Debt234.03M422.96M462.75M389.38M272.94M
Total Liabilities352.12M520.21M566.25M495.71M419.65M
Stockholders Equity378.11M272.01M433.81M536.91M586.80M
Cash Flow
Free Cash Flow82.91M44.24M84.97M77.08M101.36M
Operating Cash Flow104.57M63.66M112.58M101.21M124.87M
Investing Cash Flow129.56M25.79M-31.96M-34.56M-139.30M
Financing Cash Flow-213.43M-108.25M-77.85M-64.39M43.76M

IRESS Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price7.78
Price Trends
50DMA
8.29
Negative
100DMA
8.22
Negative
200DMA
8.82
Negative
Market Momentum
MACD
-0.16
Positive
RSI
35.80
Neutral
STOCH
14.22
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:IRE, the sentiment is Negative. The current price of 7.78 is below the 20-day moving average (MA) of 8.14, below the 50-day MA of 8.29, and below the 200-day MA of 8.82, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 35.80 is Neutral, neither overbought nor oversold. The STOCH value of 14.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:IRE.

IRESS Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUOCL
76
Outperform
AU$1.77B55.1736.92%0.97%7.00%19.41%
AURUL
68
Neutral
AU$717.37M110.1711.59%9.76%-28.92%
AUBVS
65
Neutral
AU$928.09M12.9557.04%3.09%18.63%
63
Neutral
$34.07B6.13-11.73%1.80%5.33%-18.31%
AUIRE
55
Neutral
€1.43B16.2127.46%1.29%-3.98%
DEH2T
€545.38M249.521.03%2.07%
AUFCL
AU$903.79M-3.69%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:IRE
IRESS Limited
7.78
-0.09
-1.17%
DE:H2T
Hansen Technologies Limited
2.64
-0.02
-0.75%
AU:BVS
Bravura Solutions Limited
2.07
1.14
122.58%
AU:OCL
Objective Corporation Limited
18.53
6.96
60.16%
AU:RUL
RPMGlobal Holdings Ltd
3.25
0.76
30.52%
AU:FCL
FINEOS Corporation Holdings Plc Shs Chess Depositary Interests Repr 1 Sh
2.67
0.81
43.55%

IRESS Limited Corporate Events

IRESS Limited Issues Deferred Share Rights to Employees
Jul 3, 2025

IRESS Limited has announced the issuance of 368,854 deferred share rights under an employee incentive scheme, which are not intended to be quoted on the ASX. This move is part of IRESS’s strategy to incentivize and retain talent, potentially impacting its operational dynamics by aligning employee interests with company performance.

The most recent analyst rating on (AU:IRE) stock is a Hold with a A$10.00 price target. To see the full list of analyst forecasts on IRESS Limited stock, see the AU:IRE Stock Forecast page.

IRESS Limited Announces Cessation of Securities Due to Unmet Conditions
Jul 3, 2025

IRESS Limited announced the cessation of certain securities due to unmet conditions, affecting a total of 321,449 rights, including share appreciation, performance, and deferred share rights. This cessation may impact the company’s capital structure and could influence stakeholder perceptions regarding the company’s performance and strategic direction.

The most recent analyst rating on (AU:IRE) stock is a Hold with a A$10.00 price target. To see the full list of analyst forecasts on IRESS Limited stock, see the AU:IRE Stock Forecast page.

IRESS Limited Announces Change in Substantial Holding
Jun 18, 2025

IRESS Limited has announced a change in the substantial holding of its voting shares. DNR Capital Pty Ltd, a substantial holder, has reduced its voting power from 7.297% to 6.279%, affecting 1,901,937 shares. This change in interest may impact the company’s shareholder structure and influence future voting outcomes.

The most recent analyst rating on (AU:IRE) stock is a Hold with a A$10.00 price target. To see the full list of analyst forecasts on IRESS Limited stock, see the AU:IRE Stock Forecast page.

IRESS Limited Introduces New Share Trading Policy
Jun 4, 2025

IRESS Limited has announced a new share trading policy effective from June 3, 2025, aimed at enhancing transparency and compliance within the company. This policy is expected to impact the company’s operations by providing clearer guidelines for share trading, which could improve investor confidence and align with industry best practices.

The most recent analyst rating on (AU:IRE) stock is a Hold with a A$10.00 price target. To see the full list of analyst forecasts on IRESS Limited stock, see the AU:IRE Stock Forecast page.

Spheria Asset Management Ceases Substantial Holding in IRESS Limited
May 23, 2025

IRESS Limited has announced that Spheria Asset Management Pty Ltd has ceased to be a substantial holder in the company as of May 21, 2025. This change in substantial holding could impact IRESS’s shareholder composition and influence its market dynamics, potentially affecting investor confidence and market perception.

The most recent analyst rating on (AU:IRE) stock is a Hold with a A$10.00 price target. To see the full list of analyst forecasts on IRESS Limited stock, see the AU:IRE Stock Forecast page.

IRESS Director Increases Stake, Signaling Confidence in Future Growth
May 19, 2025

IRESS Limited announced a change in the director’s interest, with Susan Margaret Forrester acquiring an additional 2,944 ordinary shares through an on-market trade, bringing her total to 11,540 shares. This transaction reflects a strategic move by the director, potentially indicating confidence in the company’s future performance and stability, which could positively influence stakeholder perceptions.

The most recent analyst rating on (AU:IRE) stock is a Hold with a A$10.00 price target. To see the full list of analyst forecasts on IRESS Limited stock, see the AU:IRE Stock Forecast page.

Challenger Limited Alters Stake in IRESS Limited
May 16, 2025

IRESS Limited, a company in the financial technology sector, has announced a change in the interests of a substantial holder, Challenger Limited, and its associated entities. This change involves various nominees such as J.P. Morgan, BNP Paribas, HSBC, and Citicorp, affecting the voting power and number of shares held. The notice indicates a decrease in the voting power of Challenger Limited, which may impact its influence within IRESS Limited.

The most recent analyst rating on (AU:IRE) stock is a Hold with a A$10.00 price target. To see the full list of analyst forecasts on IRESS Limited stock, see the AU:IRE Stock Forecast page.

IRESS Limited Announces Director’s Change in Securities Holdings
May 8, 2025

IRESS Limited announced a change in the interest of its director, Marcus Colin Price, involving the acquisition of 796,875 Share Appreciation Rights and the cancellation of 370,910 Performance Rights. This change, part of the company’s Long Term Incentive Plan for FY25, reflects adjustments in the director’s securities holdings due to unmet vesting conditions from a previous plan, potentially impacting the company’s executive compensation strategy and stakeholder interests.

IRESS Director Increases Stake with Significant Share Acquisition
May 7, 2025

IRESS Limited announced a change in the director’s interest, with Susan Margaret Forrester acquiring an additional 6,046 ordinary shares through an on-market trade, increasing her total to 8,596 shares. This transaction reflects a significant increase in Forrester’s stake in the company, potentially indicating confidence in IRESS’s market position and future performance.

Iress Limited Announces Departure of Director Julie Fahey
May 2, 2025

Iress Limited announced that Julie Austa Fahey has ceased to be a director of the company as of May 2, 2025. Fahey’s relevant interest in the company included 13,225 ordinary shares held by Honle’s Pty Ltd as Trustee for Honle’s Retirement Fund A/C, highlighting her involvement in the company’s financial interests.

IRESS Limited AGM Results: Strong Shareholder Support
May 2, 2025

IRESS Limited held its Annual General Meeting on May 2, 2025, where several resolutions were passed, including the re-election of board members and the approval of the remuneration report. The meeting results indicate strong shareholder support for the company’s leadership and strategic direction, with most resolutions receiving over 90% approval. This outcome reflects positively on IRESS’s governance and could bolster investor confidence.

Iress Limited Reports Strong FY24 Financial Performance Post-Transformation
May 1, 2025

Iress Limited, having completed an 18-month transformation program, reported significant financial improvements for FY24, including a 25.2% increase in Adjusted EBITDA and a 72.4% rise in underlying earnings per share. The company has streamlined its operations by selling non-core businesses, resulting in improved efficiency and a focus on performance and accountability. Iress also reinstated its dividend, reflecting confidence in its financial health. Despite these advancements, the company acknowledges the ongoing journey to enhance customer relationships and product offerings, balancing customer satisfaction with shareholder returns.

Spheria Asset Management Acquires 5% Stake in IRESS Limited
Apr 30, 2025

Spheria Asset Management Pty Ltd has become a substantial holder in IRESS Limited, acquiring a 5% voting power with 9,340,909 ordinary fully paid shares as of April 28, 2025. This acquisition may influence IRESS’s shareholder dynamics and could impact its strategic decisions, reflecting Spheria’s confidence in the company’s market positioning and future prospects.

Iress Sells QuantHouse to BAHA for €17.5 Million
Apr 22, 2025

Iress Limited has announced a binding agreement to sell its European-based low-latency market data business, QuantHouse, to BAHA Tech Holding AG for €17.5 million. This decision follows a strategic review indicating that QuantHouse would thrive better under a new owner committed to its global expansion. Iress will maintain its traditional market data services and has secured a five-year supply agreement with BAHA to continue providing QuantHouse data feeds into its software. The transaction is expected to be completed by the end of the year, with Iress assisting in the transition for up to 12 months. This move aligns with Iress’s focus on strengthening its core operations in Wealth and Trading & Market Data, while BAHA aims to enhance its portfolio with QuantHouse’s expertise in low-latency real-time market data.

Challenger Limited Adjusts Stake in IRESS Limited
Apr 15, 2025

Challenger Limited has announced a change in its substantial holding in IRESS Limited, a company known for providing financial services technology. The notice indicates a shift in the voting power of Challenger Limited and its associated entities, reflecting a decrease from 8.23% to 7.20%. This adjustment in holdings could impact Challenger’s influence over IRESS Limited and may have implications for stakeholders monitoring the company’s strategic decisions.

Greencape Capital Ceases Substantial Holding in IRESS Limited
Apr 15, 2025

IRESS Limited, a company in the financial services industry, has been notified by Greencape Capital Pty Ltd of a change in its substantial holding status. Greencape Capital has ceased to be a substantial holder in IRESS Limited, which may impact the company’s shareholder composition and influence within the market.

IRESS Limited Expands Equity Base with New Securities Issuance
Apr 7, 2025

IRESS Limited announced the issuance of 41,780 ordinary fully paid securities, with an issue date of February 28, 2025. This move indicates an expansion in the company’s equity base, potentially impacting its market positioning and offering implications for stakeholders regarding its growth strategy.

IRESS Limited Announces Cessation of Certain Securities
Apr 7, 2025

IRESS Limited announced the cessation of certain securities, specifically 41,091 performance rights and 635 deferred share rights, due to unmet conditions as of March 31, 2025. This announcement may impact the company’s capital structure and could have implications for stakeholders, reflecting the company’s ongoing adjustments in its securities management.

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: Jun 24, 2025