Fund Manager Summary
The fund managers believe there is a significant investment opportunity in IPH Ltd, particularly given its status as a dominant intellectual property firm across multiple regions, including Australia, Canada, NZ, and Singapore. In their opinion, the company's high yield of 8% and aggressive buyback strategy enhance its attractiveness. While some concerns about losing market share in Australia have been raised, they argue that investors may be overlooking the deep, inherent value of IPH's long-established brands, which would take considerable time to replicate. Thus, the overall sentiment remains positive, positioning IPH as a compelling prospect for investors.
Source: Trading View
Commentary From The Managers
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Ellerston Capital
30 Sept 2025
$3.57
Summary
- Ellerston Capital noted that IPH delivered a weak result in August with underlying EBITDA below market expectations.
- Performance was negative across all regions, indicating widespread issues.
- The EBITDA margin compressed by 290bps, landing at 29.2%.
- There was a 9% year-over-year decline in patent filing activity.
- IPH's market share in Australia fell to 25.9%, the lowest level in the past 3 years.
- Given these factors, Ellerston Capital determined it was time to sell their investment.
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Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Ellerston Capital
30 Sept 2025
$3.57
- Ellerston Capital noted that IPH delivered a weak result in August with underlying EBITDA below market expectations.
- Performance was negative across all regions, indicating widespread issues.
- The EBITDA margin compressed by 290bps, landing at 29.2%.
- There was a 9% year-over-year decline in patent filing activity.
- IPH's market share in Australia fell to 25.9%, the lowest level in the past 3 years.
- Given these factors, Ellerston Capital determined it was time to sell their investment.
Summary
Contact Asset Management
30 Sept 2025
$3.57
- IPH Limited (ASX:IPH) is a leading intellectual property services firm with a global presence.
- FY25 results were robust despite a challenging macroeconomic environment.
- Concerns arose due to flat organic revenue growth linked to Canadian Intellectual Property Office backlogs and softer ANZ filings.
- IPH's share price has declined 36% over the past year.
- Contact Asset Management continues to hold because of several catalysts for rebound in FY26:
- Normalization of Canadian revenue as CIPO processing delays resolve.
- Anticipated double-digit growth in Asian patent filings.
- Cost-saving initiatives targeting $8-10 million in annualized efficiencies to enhance EBITDA margins.
- Valuation metrics show a forward P/E of less than 8 times and a dividend yield over 10%.
Summary
Katana Asset Management
31 Aug 2025
$4.46
- Katana Asset Management notes that IPH Ltd stock rallied strongly into the FY25 results.
- The disappointing update resulted in a similar fall on reporting day.
- There is a challenging outlook for the company.
- IPH Ltd is currently trading on a PER of 9x for the current year.
- The stock offers a yield of 8.6%, indicating deep value.
- Katana Asset Management identifies multiple profit drivers ahead in FY26.
Summary
BKI Investment Company
30 June 2025
$4.58
- BKI Investment Company continues to hold a position in IPH Limited (IPH-ASX).
- Recent addition to their existing position in IPH, although it remains small.
- IPH is described as an international intellectual property (IP) services group.
- Offers a wide range of services for the protection, commercialisation, enforcement, and management of IP.
- Covers all forms of IP, including patents, trademarks, and designs.
- Operates through a network of member firms across various jurisdictions.
- IPH provides a compelling dividend yield.
- Demonstrates a strong recurring revenue stream.
Summary
Katana Asset Management
30 June 2025
$4.58
- Katana Asset Management notes that IPH Ltd faced significant tax loss selling, akin to the situation with DMP.
- The fund manager anticipates a strong rebound for IPH Ltd as they move into FY26.
- This outlook parallels the recovery expectations seen with Domino’s.
- Katana Asset Management continues to hold its position in IPH Ltd based on this positive outlook.
Summary
Contract Asset Management
31 May 2025
$4.87
- Contract Asset Management believes that if IPH Limited (IPH.ASX) delivers a reasonable result in August, the stock has the potential to increase significantly.
- Earnings expectations have been extremely resilient, indicating stability in performance.
- Evidence of management bedding down acquisitions is crucial, rather than issuing more equity to pursue growth.
- IPH has a strong market position in the niche intellectual property segment.
- It operates a high recurring revenue business with solid margins.
- Over the past ten years, IPH has traded on an average P/E of 19x, while it is currently priced at 10x.
Summary
Contract Asset Management
30 Apr 2025
$4.57
- Contract Asset Management continues to hold an investment in IPH Limited due to its position as a leading intellectual property (IP) services provider in Australia, Canada, and the Asia-Pacific.
- IPH has demonstrated notable earnings resilience in recent years, despite poor share price performance.
- The company operates a network of IP firms, including Spruson & Ferguson and AJ Park, offering essential patent, trademark, and legal services.
- IPH's defensive business model and stable demand for IP services contribute to its resilience.
- Recent financial results showed a 19% increase in revenue and a 16% increase in EBITDA.
- While IPH has been acquisitive, concerns arose regarding capital raisings and increased borrowings to fund growth.
- Contract Asset Management acknowledges the strategic rationale behind IPH’s expansion but notes that management execution of M&A could improve.
- There is an expectation that management will successfully integrate acquisitions, leading to improved profitability.
- The disconnect between resilient earnings and M&A execution has resulted in a decline in share price and earnings multiples.
- IPH's diversified operations across regions help to mitigate regional risks.
- Demand for patents and trademarks remains steady, highlighting the growing need for IP protection in a knowledge-driven economy.
- Contract Asset Management has been actively adding IPH to the portfolio.
Summary
Katana Asset Management
21 Mar 2025
$4.48
- Katana Asset Management views IPH Ltd as a dominant intellectual property firm with a strong market presence in Australia, Canada, NZ, and Singapore.
- According to Sala Tenna, IPH offers a high yield (8%) and is engaging in an aggressive buyback.
- Despite losing small amounts of market share in Australia, Katana Asset Management believes investors are overlooking the deep, inherent value in IPH's brands.
- Most of these brands have been operating for many decades and would take many years to replicate.
- Katana Asset Management continues to hold its position in IPH because of its long-term value proposition.
Summary
Contract Asset Management
28 Feb 2025
$4.78
- IPH Limited reported a solid update demonstrating effective integration of recent acquisitions.
- Market share is being built as the company improves its operational momentum.
- Patent filing volumes were mixed globally, yet the business is generating impressive cash flow.
- IPH is trading well below its intrinsic value, indicating potential for growth.
- The business features annuity-style long-term revenues and global growth prospects.
- A buyback is in place, expected to be complemented by an attractive dividend stream.
- There is also a plan for paydown of debt to strengthen financial position.
Summary
Contract Asset Management
31 Aug 2024
$6.30
- Contract Asset Management notes a solid IPH result coinciding with a capital raising announcement.
- The capital raising aims to fund an acquisition in Canada.
- Contract Asset Management believes the timing of the raising overshadowed a strong performance and potential re-rating.
- Despite this, IPH’s prospects remain excellent and the stock is considered cheap.
- Contract Asset Management suggests a focus on ensuring existing acquisitions are well integrated.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
ANALYST INSIGHT
Equity Research Analyst
"While IPH may appear to be losing a bit of ground in Australia, the deep-rooted value of its brands suggests a resilience that could surprise investors. With an enticing yield and aggressive buybacks, it seems the real opportunity lies beneath the surface."
Last Updated: 30 Sept 2025
Query The Data
Frequently Asked Questions
Who is investing in IPH Ltd (ASX:IPH)?
Fund managers including Katana Asset Management, Contract Asset Management, BKI Investment Company, Ellerston Capital and Contact Asset Management have invested in IPH Ltd (ASX:IPH).
Why do fund managers invest in IPH Ltd?
Fund managers are investing in IPH Ltd due to its dominant position in the intellectual property sector across Australia, Canada, New Zealand, and Singapore. The company offers an attractive yield of 8% and is engaged in aggressive share buybacks. Despite minor market share losses in Australia, fund managers recognize the intrinsic value of IPH's well-established brands, which have significant longevity and are difficult to replicate.
What happened to IPH Ltd (ASX:IPH)?
Fund managers have invested in IPH Ltd due to its current valuation metrics indicating deep value, with a forward P/E ratio below 8 and a dividend yield exceeding 10%. Despite recent disappointing results and a decline in patent filings, they see potential catalysts for recovery in FY26, including normalization of Canadian revenues and growth in Asian markets. Cost-saving initiatives are expected to improve EBITDA margins, making the investment appealing in a challenging macroeconomic environment.