Integrated Research Limited (IRI)
Views and News
Provides mission critical support for global payments processors
IRI develops and distributes performance management and diagnostic systems for business-critical IT communications and payments infrastructures.
IRI has over 1,000 global customers - banks and card payment processors, telephone, utility, and IT leaders. IRI’s product and service suite, notably its flagship Prognosis, supports multiple platforms and vendors. Revenues arise through licence, maintenance and consulting fees, earned from support of Unified Communications, Infrastructure and Payments Systems, with some 70% sourced from the Americas, the balance Europe and Asia Pacific regions. IRI has partnership with several major IT players in its field, notably Avaya, one of the leaders in the global telephony equipment market, including call centres. IRI released Prognosis 10 in November 2013 and expect this major investment to be its foundation for the years ahead.
The payments market is growing, IRI is profitable, debt free, pays a 5+ per cent yield and is growing steadily.
Half-year Performance & Estimates - IRI
| Year-end June | 1H12A | FY12A | 1H13A | FY13A | 1H14A | FY14E | FY15E |
|---|---|---|---|---|---|---|---|
| Sales, $m | 22.2 | 45.3 | 10.8 | 44.4 | 16.3 | 56.0 | 60.0 |
| EBITDA, $m | 4.2 | 18.6 | 2.9 | 18.6 | 5.6 | 22.3 | 24.8 |
| EBIT, $m | 4.2 | 11.1 | 2.9 | 11.2 | 5.6 | 14.5 | 16.6 |
| Report NPAT, $m | 3.6 | 9.1 | 2.8 | 9.1 | 4.5 | ||
| Adj. NPAT, $m | 4.5 | 11.7 | 13.3 | ||||
| Reported EPS, ¢ | 2.00 | 5.00 | 2.00 | 5.00 | 3.00 | ||
| Adjusted EPS, ¢ | 3.00 | 6.90 | 7.85 | ||||
| EPS %FY/Growth | 40% | 40% | 0% | 50% | 38% | 14% | |
| Dividend, ¢ | 2.0 | 5.0 | 2.0 | 6.0 | 2.5 | 6.05 | 6.95 |
| Franking, % | 40% | 58% | 30% | 55% | 30% | 55% | 55% |
| EBITDA Margin | 33% | 41% | 26% | 42% | 34% | 39.8% | 41.3% |
| NPAT Margin | 14% | 20% | 26% | 20% | 28% | 20.9% | 22.2% |
| ROE, % | 22% | 31% | 10% | 30% | 15% | ||
| EBIT/Interest | -16.7 | -21.7 | -11.1 | -24.4 | -26.41 | ||
| Net Debt / Equity | -0.34 | -0.41 | -0.41 | -0.49 | -0.53 | ||
| CashFlow/Sh, ¢ | 3.5 | 8.8 | 4.0 | 10.4 | 6.0 | 10.1 | 11.8 |
| Y/E Shares, m | 166.9 | 167.6 | 168.4 | 168.4 | 168.9 |
| Notes |
| Data sourced from IRESS Market Technology Limited. EPS Growth compared with the pcp is shown in most columns except the first half years which show their percentage of full year EPS. In a handful of cases, unadjusted share splits, or changes between positive and negative values, may give strange changes in ratios. |
Recent News Highlights
As at 24/01/2012 : see details at www.prognosis.com
| 22/12/2011 |
Company Overview
Profile
Integrated Research
Rating:
Category: Spec Stock ; Midcaps
Action:
Website: www.prognosis.com
| ASX code: | IRI |
| Closing Price, 20/06/14: | $ 0.990 |
| Market Capitalisation: | $ 167 million |
| 52 Week High: | $ 1.20 |
| 52 Week Low: | $ 0.87 |
| Sector: | Application Software |
| Index: | S&P/ASX All Index |
Summary of Fundamentals
| Year-end June | FY12A | FY13A | FY14E | FY15E |
|---|---|---|---|---|
| NPAT, $m | 9.1 | 9.1 | 11.7 | 13.3 |
| Reported EPS, ¢ | 5.00 | 5.00 | ||
| Adjusted EPS, ¢ | 9.08 | 6.90 | 7.85 | |
| EPS Growth, % | 25% | 82% | -24% | 14% |
| P/E Ratio, x | 19.80 | 10.90 | 14.35 | 12.61 |
| Dividend, ¢ | 5.0 | 6.0 | 6.05 | 6.95 |
| Franking, % | 58% | 55% | 55% | 55% |
| Div. Yield, % | 5.05 | 6.06 | 6.11 | 7.02 |
Notes
| Our Adjusted EPS is used for the last year and forward estimates and as basis for EPS Growth and P/E Ratio. We currently use Reported data for all historic NPAT, for the prior year EPS and as base for last year EPS growth. |
| Data & Chart sourced from IRESS Market Technology Ltd. |
One Year Chart
As at 23 June 2014
Other Highlights
| Sector: | Application Software |
| Return on Equity, FY13 : | 30% |
| Net Debt to Equity, FY13 : | -49 % |
| EBIT / Interest Cover, FY13 : | -24.37 x |
| Gicscode: | 45100000 |
| First Listed: | 13-Dec-00 |
Business Activities
Integrated Research Limited (IRI) is a software company that develops, produces and distributes performance monitoring tools and solutions for business-critical IT infrastructures.
Glossary:
| ♠ | "A Core Stock" - reliable long-term yield & growth |
| ♥ | "We like it" - a seasoned performer, growth & yield |
| ♦ | "A tough scout" - creating a potential breakthrough |
| ♣ | "A steady performer" - giving reliable yield or growth |
| Best Stocks | Portfolio of selected attractive investments |
| Potential | Stocks that may have good improvement prospects |
| Speculative | More risky usually smaller stocks with spec. upside |
| Midcaps | In RR Midcap Index, $ 70m to 1,500m market cap. |
| Large Stocks | Larger Stocks upwards of $ 1,500m market cap |