Integrated Research Limited (IRI) AI Stock Analysis

• Market Cap: AU$70.94M
• Dividend Yield: 5%
• Average Volume (3M): 137.60K
• Price to Earnings (P/E): 3.4
• Beta (1Y): 0.95
• Revenue Growth: -1.32%
• EPS Growth: N/A
• Country: AU
• Employees: 142
• Sector: Technology
• Sector Strength: 82
• Industry: Software - Application
• EPS (TTM): 0.03
• Shares Outstanding: 177,352,700
• 10 Day Avg. Volume: 143,393
• 30 Day Avg. Volume: 137,601
• PEG Ratio: 1.45
• Price to Book (P/B): 8.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 28.83
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$0.81
• Price Target Upside: 102.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: AU$0.50 ▲(25.00%Upside)

Integrated Research Limited's stock is supported by strong financial performance and attractive valuation metrics, with significant revenue growth and a low P/E ratio. However, technical analysis indicates a lack of strong momentum, suggesting caution.

Integrated Research Limited Business Overview & Revenue Model

Company Description

Integrated Research Limited designs, develops, implements, and sells systems and applications management computer software for business-critical computing, and unified communication and payment networks. The company offers Prognosis, an integrated suite of monitoring and management software designed to give an organization's management and technical personnel operational insight into the HP NonStop platform, distributed system servers, unified communications, payment environments, and the business applications. It also provides testing, maintenance, and professional services, as well as software as a service solution. The company offers its products in approximately 60 countries through direct sales offices in the United States, the United Kingdom, Germany, Singapore, and Australia, as well as through channel-driven distribution networks internationally. It serves stock exchanges, banks, credit card companies, telecommunications carriers, service providers, and manufacturers. The company was incorporated in 1988 and is based in North Sydney, Australia.

How the Company Makes Money

Integrated Research Limited generates revenue primarily through the sale of software licenses and subscriptions for their performance management solutions. Their revenue model includes upfront payments for software licenses, recurring subscription fees for cloud-based services, and ongoing maintenance and support contracts. IRI also offers professional services such as consulting, implementation, and training to optimize the integration and utilization of their solutions. Significant partnerships with major technology vendors and service providers further amplify their market reach and revenue potential by offering bundled solutions and joint marketing efforts.

Integrated Research Limited Financial Statement Overview

Summary

Integrated Research Limited has demonstrated significant financial improvement with strong revenue growth and profitability. The company shows efficient use of equity and robust cash flow generation, although attention is required to sustain cash flow growth.

Income Statement

Integrated Research Limited has shown strong recovery with a notable revenue growth of 19.3% this year. The company has achieved a gross profit margin of 100%, and a remarkable improvement in net profit margin from -41.8% to 32.6%. EBIT and EBITDA margins have also turned positive, indicating enhanced operational efficiency.

Balance Sheet

The balance sheet reflects a solid equity position with an equity ratio of 77.4%. The debt-to-equity ratio is low at 0.02, indicating minimal leverage. Return on Equity (ROE) improved significantly to 30.7%, reflecting effective use of equity to generate profits.

Cash Flow

Operating cash flow remains strong, although slightly down from the previous year. The free cash flow has almost doubled, leading to a free cash flow to net income ratio of 0.56, showcasing solid cash generation capabilities. However, the operating cash flow to net income ratio decreased to 0.56.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
71.29M	83.29M	69.83M	62.87M	78.49M	110.91M
	Gross Profit
34.05M	83.29M	28.94M	21.73M	35.12M	56.35M
	EBIT
14.28M	25.34M	-1.07M	-7.28M	9.78M	32.73M
	EBITDA
14.11M	25.34M	-1.07M	10.40M	23.21M	43.91M
	Net Income Common Stockholders
20.52M	27.13M	-29.23M	1.54M	7.93M	24.05M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
32.59M	31.89M	18.55M	12.33M	12.15M	9.74M
	Total Assets
118.16M	114.19M	90.84M	132.20M	136.63M	141.23M
	Total Debt
2.20M	1.72M	3.05M	4.87M	13.08M	11.51M
	Net Debt
-28.89M	-30.18M	-15.50M	-7.46M	931.00K	1.77M
	Total Liabilities
26.31M	25.82M	30.97M	45.08M	53.29M	58.70M
	Stockholders Equity
91.85M	88.36M	59.87M	87.11M	83.34M	82.52M
Cash Flow		Free Cash Flow
9.87M	15.22M	8.20M	6.97M	9.67M	9.55M
	Operating Cash Flow
10.11M	15.27M	15.99M	18.76M	21.91M	24.76M
	Investing Cash Flow
2.79M	2.27M	-8.90M	-11.80M	-12.24M	-15.20M
	Financing Cash Flow
-5.26M	-1.69M	-1.63M	-6.96M	-6.44M	-9.33M

Integrated Research Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:IRI, the sentiment is Negative. The current price of 0.4 is below the 20-day moving average (MA) of 0.44, below the 50-day MA of 0.44, and below the 200-day MA of 0.50, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 36.77 is Neutral, neither overbought nor oversold. The STOCH value of 5.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:IRI.

Integrated Research Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IRI	69 Neutral	AU$70.94M	3.41	25.65%	5.00%	-1.32%	―
Sector *	62 Neutral	$11.95B	9.93	-7.21%	4.85%	7.32%	-8.25%
PRO	51 Neutral	AU$33.92M	―	-52.29%	―	4.10%	-115.05%
RCL		AU$16.13M	―	-1.14%	―	―	―
AMX	44 Neutral	AU$20.90M	―	-24.21%	―	-11.35%	-49.13%
FLX	43 Neutral	AU$39.88M	―	-1801.55%	―	27.94%	28.75%
NVU	35 Underperform	AU$34.42M	―	-243.28%	―	-32.45%	33.72%

Integrated Research Limited Corporate Events

Integrated Research Limited Announces Cessation of Securities

Integrated Research Limited announced the cessation of certain securities, specifically 1,012,530 performance rights and 655,809 options, due to the conditions for these securities not being met or becoming incapable of being satisfied. This cessation may impact the company’s capital structure and could influence stakeholder perceptions regarding the company’s operational and financial strategies.

Integrated Research Secures Major Contract Renewal with JP Morgan Chase

Integrated Research Limited has secured a significant renewal contract with JP Morgan Chase, valued at USD $6.23 million (AUD $9.80 million), for a 5-year term. This contract involves the use of IR’s Transact and Infrastructure product, which is crucial for JP Morgan Chase’s payments technology. The renewal underscores the longstanding relationship and the evolving value of IR’s technology for large enterprise clients, reinforcing its position in the industry.