IRE - IRESS Limited

[skc]

Yeah, depends on profit. Honestly hard to say what P/E it would be on if it got to $4. Either earnings take a fair hit or it over-corrects (probably best scenario for us).

Current trailing PE 18.4x. A company trading on this multiple should have at least 5 years of 10% p.a. EPS growth ahead of it.

Assuming flat profit, it's difficult to understand why IRE's 33c EPS can support anything substantially higher than $4.

 

[McLovin]

Yeah, depends on profit. Honestly hard to say what P/E it would be on if it got to $4. Either earnings take a fair hit or it over-corrects (probably best scenario for us).

Well they earnt 32cps last year and their outlook statement a couple of weeks ago pointed to flat our declining profits across all their segments. So $4 doesn't seem that unreasonable. It would also put them on about 10x OCF.

 

[Ves]

Perhaps the market is waiting for some more certainty around the impact of FoFA before sending it into a proper spiral? Market darlings sometimes have more "brownie points" than you'd expect, is all I'd think of.

 

[piggybank]

Closed at ATH today of $10.38c.

 

[rnr]

Iress has performed well during ytd 2019 to make a new ATH of $14.77 during the week.

 

[Dona Ferentes]

Iress IRE has launched a takeover bid for Onevue Holdings at 40c per share. The offer values the company at $107m.

The friendly deal sees Iress, a financial software business, gain access to OneVue’s wealth management software.

Iress will raise $170m to help fund the transaction, with Goldman Sachs underwriting a $150m placement at $10.42, a 7 per cent discount to its last closing share price.

- likely need some dollars spent, to grow FUM (but a problematic exercise where many have fallen short)

 

[Dona Ferentes]

Closed at ATH today of $10.38c.

and closed at $10.76 today .... seven years later

Has been higher, but plodding along.
Livewire Markets: Okay. Ben, what's a small cap that you've got for me today that's spitting out cash?

Ben Clark (TMS Capital): Mine's IRESS Market Technologies. So this is a fairly mature tech business I'd say. It's not going to have kind of the hypergrowth that the businesses that are flying at the moment, but it's quite defensive. It's got the number one platform that financial planners use in the country. It's also got the IRESS screens that a lot of advisors use. It's the dominant player, it puts up its prices consistently each year, it is slowly expanding offshore, and it's starting to get some gains there. Did a capital raising recently, reaffirmed guidance for the year, it's going to pay about 4.4 per cent, 40 per cent franked. And it is unloved. It is well off its recent highs. I think that for me is a buy.

- but not cheap, PE in high 20's. Gearing creeping up @ 57%

......................Earnings ........................ ..............Return on Equity ............................

 

[So_Cynical]

Has been higher, but plodding along.

Has been higher and lower but overall the trend is up, would of been a good stock to build a position in over the last decade, selling a few
on the highs and buying the lows as lots of consistent ups and downs. A little aussie global tech success story bubbling along with a low
risk growth strategy, 2 dividends per year for the last 18 years with only 1 annual dividend reduction along the way.
`

 

[Dona Ferentes]

Iress said that it notes media speculation today in The Australian Financial Review about market activity by an unknown participant or participants.

The company can confirm that it has not received any direct approach. As a result, it said it is not in a position to comment further.


Iress shares are up 17 per cent this morning at $11.90

 

[Dona Ferentes]

For more than a decade, Iress has made acquisitions but profits have stalled. The 2020 EPS of 32¢ was the same as that of 2014 and that of 2009.

Meanwhile, its return on equity has trended downwards, falling from 18 per cent in 2019 to 12 per cent this year.

 

[peter2]

I haven't used the Iress trading platform for more than a decade. Has it improved at all? I doubt it.
Iressaurus is a dinosaur of the pre-GFC period.

 

[Dona Ferentes]

I haven't used the Iress trading platform for more than a decade. Has it improved at all? I doubt it.

They kept adding bells and whistles.

Camel = horse designed by a committee.

 

[Dona Ferentes]

11 Aug - EQT Fund Management lifted its takeover bid for Iress to $15.91 per share when including a cash dividend of 16¢ per share. Previous proposals assumed there would be no dividends paid by Iress. The offer was at a 45 per cent premium to June trading, when initial reports arose a takeover.

And today: Iress advises that discussions between Iress and EQT have concluded and that the parties have been unable to agree a transaction. As a result, the Process Deed, incorporating exclusivity terms, between Iress and EQT has been terminated.

Iress intends commencing its on-market share buy-back as previously announced to ASX on 29 July 2021.

Down more than 10%, now around $12

 

[Dona Ferentes]

.... but wait, there's more (or less) ...

..... against a backdrop of challenging macro conditions, Iress experiencing some timing delays to the conversion of new sales opportunities which are expected to impact FY22 guidance. In addition, there have been some higher than anticipated supplier costs largely in technology and in part driven by FX rates on USD pricing.

• Full year Segment Profit for FY22 is now expected to be in the range of $166m - $170m on a constant currency basis.
• In August, Iress guided that Segment Profit in constant currency would be at the bottom of the range of $177m - $183m.
• NPAT is now expected to be in the range of $54m-$58m as a result of the updated outlook for Segment Profit. The previous guidance range for NPAT was $63m-$72m.

The primary contributor to the reduced 2H FY22 profit expectation is extensions to sales cycles on new client opportunities in APAC and Mortgages resulting in revenue previously anticipated in 2022 being pushed into 2023.

Iress’ CEO Andrew Walsh, noted, “Profit expectations for the second half of this year have been impacted primarily by delays in the timing of new client opportunities. In addition, some costs are higher than we previously expected, including US dollar priced technology and software. While external macro conditions are volatile, we are making good progress in executing on our long-term strategies to build a more profitable and efficient Iress.”

 

[So_Cynical]

Down 32% yikes! - thats what you get for no interim dividend, CEO said that the decision to suspend dividends and reduce debt was prudent, hell of a way to build value for shareholders, this idiot should take a 32% pay cut ~ was such a consistent stock..
~

 

[Dona Ferentes]

For quite a while, it hasn't been a smooth pathway for Iress, taking the hits but not recovering. Iressasaurus indeed.

.
AFI has made a full exit in the last 6 months .
"We exited Ansell Limited and IRESS Limited, considering the long term prospects for these companies will be increasingly challenged as competitive intensity increases. ... [F]or IRESS, the company is increasing investment in its technology platform to improve functionality as competition has increased. The returns from this investment remain highly uncertain. .

 

[galumay]

So why is everything so quiet on the IRE hack and ransom case?? This is surely huge?? What are the implications for Commsec etc??

 

[Smurf1976]

So why is everything so quiet on the IRE hack and ransom case?? This is surely huge?? What are the implications for Commsec etc??

Don't know but it's dead at the moment.

I only use it for charts, and only because I have free access, but it's dead yet again and that certainly isn't the first time this year.

Even though I'm not paying to access it, I'm looking at alternative options simply for reliability. Whether that's due to IRESS or CommSec I don't know, but as a user it's a problem from my perspective certainly.