Infomedia (ASX:IFM) Financial Strength: 8 (As of Jun. 2024) — Near Median

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Director of Data and Quant Analytics at GuruFocus
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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

ASX:IFM Infomedia Ltd ASX:IFM
72 GF Score
Price A$1.70
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What is Infomedia Financial Strength?

Infomedia ASX:IFM 72 Financial Strength is 8 as of Jun. 2024, which is at its 10-year median of 8.00. GuruFocus rates ASX:IFM with a GF Score™ of 72/100.

Infomedia has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Infomedia's Interest Coverage for the quarter that ended in Jun. 2024 was 8.62. Infomedia's debt to revenue ratio for the quarter that ended in Jun. 2024 was 0.06. As of today, Infomedia's Altman Z-Score is 0.00.


Infomedia  (ASX:IFM) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Infomedia has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.


Infomedia Financial Strength Related Terms


ASX:IFM vs CRM, SHOP, UBER: Financial Strength Comparison

For the Software - Application subindustry, Infomedia's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Infomedia Financial Strength vs Software Industry

For the Software industry and Technology sector, Infomedia's Financial Strength distribution charts can be found below:

* The bar in red indicates where Infomedia's Financial Strength falls into.


ASX:IFM
72GF Score
Infomedia Ltd ASX:IFM
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
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Infomedia Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Infomedia's Interest Expense for the months ended in Jun. 2024 was A$-2.3 Mil. Its Operating Income for the months ended in Jun. 2024 was A$19.5 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2024 was A$5.9 Mil.

Infomedia's Interest Coverage for the quarter that ended in Jun. 2024 is

Interest Coverage=-1*Operating Income (Q: Jun. 2024 )/Interest Expense (Q: Jun. 2024 )
=-1*19.458/-2.257
=8.62

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Infomedia's Debt to Revenue Ratio for the quarter that ended in Jun. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(2.428 + 5.946) / 142.478
=0.06

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Infomedia has a Z-score of 0.00, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 8 mean?
Infomedia (ASX:IFM) has a Financial Strength of 8 as of Jun. 2024. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Infomedia and its competitors. This is near median its historical median of 8.00. Over the past decade, Infomedia's Financial Strength has ranged from 7.00 to 10.00.
Is Infomedia's Financial Strength too high?
Infomedia's current Financial Strength of 8 is near median its 10-year median of 8.00. Over the past 10 years, this metric has ranged from a low of 7.00 to a high of 10.00. Overall, Infomedia has a GF Score™ of 72/100, reflecting its overall financial health beyond just this single metric.
How does Infomedia's Financial Strength compare to CRM and SHOP?
Infomedia's Financial Strength of 8 can be compared against companies in the Software industry. Historically, Infomedia's own Financial Strength has ranged from 7.00 to 10.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Software company?
A good Financial Strength depends on the Software industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Infomedia and its competitors. Infomedia's current Financial Strength is 8, which is near median its own 10-year median of 8.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Infomedia stock overvalued right now?
Infomedia (ASX:IFM) has a current Financial Strength of 8. The current Financial Strength is 8, which is near median its 10-year median of 8.00. Infomedia's overall GF Score™ is 72/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Infomedia (ASX:IFM), the current Financial Strength is 8 as of Jun. 2024. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Infomedia Business Description

Address 155 Clarence Street, Level 5, Sydney, NSW, AUS, 2000
Infomedia Ltd is a provider of software-as-a-service (SaaS) to the parts and service sector of the automotive industry. The company's activities consist of the development and supply of SaaS offerings, including electronic parts catalogues, service quoting software systems, and e-commerce solutions for the parts and service sectors of the automotive industry globally; and the information management, provision of DaaS, and analytics to assist automakers and dealers in optimizing operations, growing sales, and improving customer retention. The group's reportable segments are Asia Pacific; Europe, Middle East and Africa (EMEA); and Americas, representing the combined North, Central, and South America. Maximum revenue for the group is generated from its business in the Asia Pacific region.
72GF Score

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Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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