One of the reasons we like IRE, it has a near lock on wealth management software domestically (Xplan, which every reader of this blog has likely interacted with), has international optionality, but mostly, because it is capex light and produces tremendous free cashflow.

The buyback program continues, and guidance remains intact, albeit modestly towards the lower end of the guided range (on an underlying NPAT basis, is for 25% growth on pcp).

Based on our implied earnings trajectory calculations, IRE is tracking well to the aspirational growth targets (2025) and has what appears to be a reasonable hurdle rate to generate a total return of 7.5% annually. Broker estimates could come down a touch, and it should still get there.

Churn rates across products remains towards the lower end of recent history.

We remain happy holders in our direct equity portfolios, with IRE our anchor “tech” exposure, and provides a solid quality factor loading, on both the classic Fama french factors, below…

…and that of style benchmarks.

Important Information: This document has been prepared by Aequitas Investment Partners ABN 92 644 165 266 (“Aequitas”, “our”, “we”), a Corporate Authorised Representative (no. 1284389) of C2 Financial Services, (Australian Financial Services Licensee no. 502171), and is for distribution within Australia to wholesale clients and financial advisers only.

This document is based on information available at the time of publishing, information which we believe is correct and any opinions, conclusions or forecasts are reasonably held or made as at the time of its compilation, but no warranty is made as to its accuracy, reliability or completeness. To the extent permitted by law, neither Aequitas nor any of its affiliates accept liability to any person for loss or damage arising from the use of the information herein.

Please note that past performance is not a reliable indicator of future performance.

General Advice Warning: This document has been prepared without taking into account your objectives, financial situation or needs, and therefore you should consider its appropriateness, having regard to your objectives, financial situation and needs. Before making any decision about whether to acquire a financial product, you should obtain and read the relevant Product Disclosure Statement (PDS) or Investor Directed Portfolio Service Guide (IDPS Guide) and consider talking to a financial adviser.

Taxation warning: Any taxation considerations are general and based on present taxation laws and may be subject to change. Aequitas is not a registered tax (financial) adviser under the Tax Agent Services Act 2009 and investors should seek tax advice from a registered tax agent or a registered tax (financial) adviser if they intend to rely on this information to satisfy the liabilities or obligations or claim entitlements that arise, or could arise, under a taxation law.

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