06-Sep-2024: "IPD Group (IPG): Record Orders Fuel the Recovery in Organic Growth", Taylor Collison, Update [BUY, 12m TP=$5.80, published by TC on 02-Sep-2024]
I don't hold this one, but there's a free broker report (courtesy of the ASX free Friday broker reports email) on them by TC, FWIW. They reported on the 30th August, and the market liked it enough to send their SP up +9.23% on the day, and they're now trading at just over $5, so there's still some upside between here and TC's 12-month target price (TP) for IPG of $5.80, IF TC are right.
Most brokers tend to be bullish on the companies they cover, because the companies are either already clients or are potential clients of that broker, so take it all with a grain or three of salt, but there are sometimes some interesting details in these reports, like an overview of what the company does for instance, and their various divisions, and how those divisions have traditionally contributed to group earnings, that sort of thing. It's the "forward looking statements" that you have to watch out for.
TC's update starts off bullish, as you would expect: Revenue growth of 28% and adj. EBIT growth of 47% included recent acquisitions. Like-for-like (LFL) revenue and EBIT growth was 2 and 3 percent respectively. Disappointing, and down on IPD’s recent record, but no big deal. The devil is in the detail. Core IPD and Ex Engineering grew by double-digits, whilst CMI (5-month benefit) had LFL EBIT declines. Issues at CMI look mostly temporary. IPD carries a record order book, has new products launching and project wins, plus FY25 gets a full period of earnings from CMI. Growth ahead.
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I'll have a look at them over the next week if I get time. Here's their results announcement - idp-group-FY24-Results-Announcement.PDF
Everything appears to be trending up at a good clip except for a smallish decline in gross margin - but no biggy when their NPAT was up +44.7% on Revenue that was up +28%. One of the most important metrics, EPS, was up a very healthy +30.1% from 18.6 cps to 24.2 cps. Not sure what sort of base this is coming off - have to have a look at that during the week, but not horrible, so far. Their 30th June closing share price was $4.69 - now $5.02. Might be something there.
