Latest news with #Iress
Yahoo
29-03-2025
- Business
- Yahoo
Investors Could Be Concerned With Iress' (ASX:IRE) Returns On Capital
When it comes to investing, there are some useful financial metrics that can warn us when a business is potentially in trouble. Typically, we'll see the trend of both return on capital employed (ROCE) declining and this usually coincides with a decreasing amount of capital employed. Basically the company is earning less on its investments and it is also reducing its total assets. So after glancing at the trends within Iress (ASX:IRE), we weren't too hopeful. For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. To calculate this metric for Iress, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.098 = AU$53m ÷ (AU$730m - AU$184m) (Based on the trailing twelve months to December 2024). Therefore, Iress has an ROCE of 9.8%. In absolute terms, that's a low return and it also under-performs the Software industry average of 14%. Check out our latest analysis for Iress Above you can see how the current ROCE for Iress compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for Iress . The trend of returns that Iress is generating are raising some concerns. The company used to generate 13% on its capital five years ago but it has since fallen noticeably. On top of that, the business is utilizing 27% less capital within its operations. The combination of lower ROCE and less capital employed can indicate that a business is likely to be facing some competitive headwinds or seeing an erosion to its moat. Typically businesses that exhibit these characteristics aren't the ones that tend to multiply over the long term, because statistically speaking, they've already gone through the growth phase of their life cycle. While on the subject, we noticed that the ratio of current liabilities to total assets has risen to 25%, which has impacted the ROCE. If current liabilities hadn't increased as much as they did, the ROCE could actually be even lower. Keep an eye on this ratio, because the business could encounter some new risks if this metric gets too high. In summary, it's unfortunate that Iress is shrinking its capital base and also generating lower returns. And long term shareholders have watched their investments stay flat over the last five years. With underlying trends that aren't great in these areas, we'd consider looking elsewhere. If you'd like to know about the risks facing Iress, we've discovered 1 warning sign that you should be aware of. If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets and impressive returns on equity. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
18-03-2025
- Business
- Yahoo
QuantHouse expands US equity market data offering with Cboe One Feed
London, March 18, 2025 (GLOBE NEWSWIRE) -- Iress today announced that its QuantHouse division is partnering with Cboe Global Markets, a leading global derivatives and securities exchange network and one of the largest US equity exchange operators, to increase its US equity market data offering through the Cboe One Feed. The Cboe One Feed is Cboe's premier consolidated data feed and provides market participants with a cost-effective, high-quality and unified view of the market from Cboe's US equity exchanges, with real-time reference quotes and trade data. Cboe operates four US equity exchanges and is one of the largest exchange operators for equities trading in the US. On average, Cboe One Feed quotes are within 1% away from the National Best Bid and Offer (NBBO) 97.26% of the time.1 QuantHouse's Head of EMEA Sales and Business Development, Rob Kirby, said: 'We're delighted to add the Cboe One Feed to the wide range of trading venues available from QuantHouse. Demand for Cboe One has initially come from our clients in Asia Pacific and this continues to demonstrate that our clients value choice and access to the widest range of global market data available.' Cboe's Global Head of Data Vantage, Adam Inzirillo, added: 'Cboe is committed to meeting the growing demand for access to US markets, particularly from APAC investors, by delivering access to high-quality and real-time market data as seamlessly and efficiently as possible. We are thrilled to expand on this mission through our collaboration with QuantHouse and providing their clients with access to the Cboe One Feed. 'Data drives decision making and is critical for trading strategy implementation, and the Cboe One Feed helps participants better understand the markets by providing real-time and highly reliable US market data.' The Cboe One Feed is available now for all QuantHouse clients. 1Cboe: -Ends-For further details, please contact: Melanie Budden Mobile: +44 (0) 7974 937970 Email: QuantHouse QuantHouse ( part of Iress) is a leading provider of international market data. It delivers high-performance API data feeds, historical and analytics data products it has crafted over the past 20+years to hedge funds, investment banks, brokers, market makers, financial technology providers and trading venues supporting integrated trading strategies, applications, and analytic databases. For more information please visit the website. About Iress Iress ( is a technology company providing software to the financial services industry. We provide software and services for trading & market data, financial advice, investment management, superannuation, life & pensions and data intelligence in Asia-Pacific, North America, Africa, the UK and Europe. Melanie Budden Mobile: +44 (0) 7974 937970 Email:
Yahoo
13-03-2025
- Business
- Yahoo
Iress Limited (ASX:IRE) is a favorite amongst institutional investors who own 59%
Given the large stake in the stock by institutions, Iress' stock price might be vulnerable to their trading decisions 51% of the business is held by the top 8 shareholders Recent purchases by insiders To get a sense of who is truly in control of Iress Limited (ASX:IRE), it is important to understand the ownership structure of the business. We can see that institutions own the lion's share in the company with 59% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company. Because institutional owners have a huge pool of resources and liquidity, their investing decisions tend to carry a great deal of weight, especially with individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute. Let's delve deeper into each type of owner of Iress, beginning with the chart below. See our latest analysis for Iress Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing. We can see that Iress does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Iress, (below). Of course, keep in mind that there are other factors to consider, too. Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Iress is not owned by hedge funds. Challenger Limited is currently the company's largest shareholder with 10% of shares outstanding. First Sentier Investors (Australia) IM Ltd is the second largest shareholder owning 7.7% of common stock, and Dnr Capital Pty Ltd holds about 7.4% of the company stock. We also observed that the top 8 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent. Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too. The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO. I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. Our data suggests that insiders own under 1% of Iress Limited in their own names. It appears that the board holds about AU$2.4m worth of stock. This compares to a market capitalization of AU$1.5b. Many tend to prefer to see a board with bigger shareholdings. A good next step might be to take a look at this free summary of insider buying and selling. The general public, who are usually individual investors, hold a 35% stake in Iress. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Take risks for example - Iress has 1 warning sign we think you should be aware of. But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
