- IDP Education serves international students from qualifying exams to visa application assistance to placement and admissions services.
- The company also operates English Language Schools.
- IDP’s primary markets are students from India and China looking for educational opportunities in English speaking revenues.
IDP derives about 64% of its revenues from IELTS – the International English Language Testing Service – the most widely accepted English language equivalency test in the world.
IDP Education was one of those companies hardest hit by the COVID 19 pandemic, with border closures restricting international student movements. The company rebounded quickly, with revenue and profit in FY 2022 exceeding pre-pandemic levels.
IDP Education Financial Performance
Source: ASX
The company’s stellar FY 2023 financial performance saw IDP’s dividend payment increase from $0.27 per share in FY 2022 to $0.41 per share in FY 2023. The five-year average dividend payment is $0.20.
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Over five years the share price is up 68.3%, while year over year the price has dropped 40.4%.
Source: ASX
An analyst at Sequoia Wealth Management has a BUY recommendation on IDP shares, calling the company “a world leader in student placement services and language testing.” IDP shares benefit from three tailwinds – rising university enrollments from emerging economies and international student mobility.”
Marketscreener.com has an analyst consensus rating at OUTPERFORM, with four of the fourteen analysts rating the stock at BUY, five at OUTPERFORM, three at HOLD, one at UNDERPERFORM, and one at SELL.
The Wall Street Journal has a consensus OVERWEIGHT rating on IEL, with five analysts at BUY, three at OVERWEIGHT, three at HOLD, one at Underperform, and one at SELL.
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