Looking into more details at the cash flow statement for H1 24.
Obviously, there is a strong improvement with a free cash flow of 3.6 m$ vs - 3.4 m$ for H1 23.
However, it is tough to have a clear view on this given 2 elements :
- cash flow from operation of only 3.4 m$ vs statutory EBITDA of 10.9 m$,
- Capex of virtually 0 vs 4.7 m$ during H1 23.
So it is worth going into more details into these figures to better understand the underlying trends.
1/ Cash flow from operation
Looking at the period FY 21 to FY 23, there was a high level of EBITDA conversion into cash flow from operation (at least 90 % every year).
2/ Capex
The Capex was almost 0 during H1 24 (like depreciation ?). This was due to the fact that IRI has stopped capitalising some development costs.
Historically, Capex was very low excluding capitalised development costs.
3/ R and D
Historically, IRI had a high level of R&D/ sales : 24 % in FY 21, 36 % in FY 22 and 34 % in FY 23.
During H1 24, the company has largely reduced its R&D to only 16 % of sales vs 31 % for H1 23.
It looked logical as the company decided to reduce its costs basis due to the regular erosion of their main product (Collaborate). Going forward, I expect the company to increase again its R&D, in particular if there is an improvement for Collaborate sales.
In FY 25, I estimate that IRI could have a cash flow from operation of around 22 m$ before tax (in line with its EBITDA), like what they did in FY 21.
If we apply a normal tax rate*, I expect IRI to have a cash flow from operation (after tax) of around 15 m$, which is also estimated to be their free cash flow FY 25, after capex, lease and net interest received.
Based on these figures, IRI continues to look quite cheap for a software company, with a free cash flow yield of 12.9 % (even after the stock just doubled).
* tax rate was only 7 % during H1 24
- Forums
- ASX - By Stock
- Ann: FY24 Half Year Results Presentation
Looking into more details at the cash flow statement for H1...
-
- There are more pages in this discussion • 7 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add IRI (ASX) to my watchlist
(20min delay)
|
|||||
Last
65.5¢ |
Change
-0.015(2.24%) |
Mkt cap ! $116.1M |
Open | High | Low | Value | Volume |
66.0¢ | 69.0¢ | 64.5¢ | $259.0K | 390.8K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
2 | 43814 | 65.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
66.5¢ | 3969 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
2 | 43814 | 0.650 |
2 | 6382 | 0.645 |
2 | 4671 | 0.640 |
1 | 1588 | 0.630 |
2 | 11400 | 0.625 |
Price($) | Vol. | No. |
---|---|---|
0.665 | 3969 | 1 |
0.690 | 50000 | 1 |
0.700 | 62423 | 3 |
0.720 | 1800 | 1 |
0.725 | 3500 | 1 |
Last trade - 16.10pm 02/10/2024 (20 minute delay) ? |
Featured News
IRI (ASX) Chart |