IDP Education (ASX:IEL) Profitability Rank: 9 (As of Jun. 2026) — 29% Above Median

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ASX:IEL IDP Education Ltd ASX:IEL
63 GF Score
Price A$1.76
GF Value A$9.26
Valuation Possible Value Trap
! 8 Warning Signs
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What is IDP Education Profitability Rank?

IDP Education ASX:IEL +2.33% 63 Profitability Rank is 9 as of Jun. 2026, which is 29% above its 10-year median of 7.00. GuruFocus rates ASX:IEL with a GF Score™ of 63/100 and a GF Value™ of A$9.26 (Possible Value Trap). The stock has 8 warning signs investors should review.

IDP Education has the Profitability Rank of 9. It has a higher profitability and may stay that way.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is rated on a scale of 1 to 10 and is based on these factors:

1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank

A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.

IDP Education's Operating Margin % for the quarter that ended in Jun. 2026 was 2.09%. As of today, IDP Education's Piotroski F-Score is 4.


IDP Education Profitability Rank Related Terms


ASX:IEL vs EDU, TAL, LAUR: Profitability Rank Comparison

For the Education & Training Services subindustry, IDP Education's Profitability Rank, along with its competitors' market caps and Profitability Rank 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.


IDP Education Profitability Rank vs Education Industry

For the Education industry and Consumer Defensive sector, IDP Education's Profitability Rank distribution charts can be found below:

* The bar in red indicates where IDP Education's Profitability Rank falls into.


ASX:IEL
63GF Score
IDP Education Ltd ASX:IEL
Profitability Rank is just one metric. See GF Score™, valuation, warning signs, and more.
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IDP Education Profitability Rank Calculation

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.

The rank is rated on a scale of 1 to 10. A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.

IDP Education has the Profitability Rank of 9. It has a higher profitability and may stay that way.

Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

1. Operating Margin %

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

IDP Education's Operating Margin % for the quarter that ended in Jun. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Jun. 2026 ) / Revenue (Q: Jun. 2026 )
=6.995 / 335.09
=2.09 %

* 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.

2. Piotroski F-Score

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

IDP Education has an F-score of 4 indicating the company's financial situation is typical for a stable company.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

Warning Sign:

IDP Education Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -12.9%.

4. Consistency of the profitability

5. Predictability Rank

Frequently Asked Questions Learn more about Profitability Rank →
What does a Profitability Rank of 9 mean?
IDP Education (ASX:IEL) has a Profitability Rank of 9 as of Jun. 2026. Profitability and Growth ranks a company based on its profit margins and earnings growth. View historical data on IDP Education and its competitors. This is 29% above median its historical median of 7.00. Over the past decade, IDP Education's Profitability Rank has ranged from 3.00 to 8.00.
Is IDP Education's Profitability Rank too high?
IDP Education's current Profitability Rank of 9 is 29% above median its 10-year median of 7.00. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 8.00. Overall, IDP Education has a GF Score™ of 63/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does IDP Education's Profitability Rank compare to EDU and TAL?
IDP Education's Profitability Rank of 9 can be compared against companies in the Education industry. Historically, IDP Education's own Profitability Rank has ranged from 3.00 to 8.00 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 Profitability Rank for an Education company?
A good Profitability Rank depends on the Education industry context. However, Profitability Rank 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 Profitability Rank mean?
A high Profitability Rank can signal that a stock is expensive relative to its fundamentals. Profitability and Growth ranks a company based on its profit margins and earnings growth. View historical data on IDP Education and its competitors. IDP Education's current Profitability Rank is 9, which is 29% above median its own 10-year median of 7.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is IDP Education stock overvalued right now?
Based on GuruFocus' analysis, IDP Education (ASX:IEL) is currently considered Possible Value Trap. The stock's GF Value™ is A$9.26, compared to a current price of A$1.76 — trading 81% below its estimated fair value. The current Profitability Rank is 9, which is 29% above median its 10-year median of 7.00. IDP Education's overall GF Score™ is 63/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Profitability Rank calculated?
Profitability Rank is calculated from a company's financial statements. For IDP Education (ASX:IEL), the current Profitability Rank is 9 as of Jun. 2026. 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.

Is IDP Education (ASX:IEL) Overvalued in 2026?

Based on GuruFocus' analysis, IDP Education stock appears to be undervalued. The current stock price of A$1.76 is trading 81% below its estimated GF Value™ of A$9.26. GuruFocus considers IDP Education to be Possible Value Trap.

Key valuation signals for ASX:IEL:

  • Profitability Rank: 9 (29% above median its 10-year median of 7.00)
  • GF Value™: A$9.26 vs. price of A$1.76 (81% below fair value)
  • GF Score™: 63/100 with 8 warning signs

No single metric tells the full story. See the ASX:IEL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


IDP Education Business Description

Other Exchanges IDPUF:USA03F:Germany
Address 697 Collins Street, Level 10, Docklands, VIC, AUS, 3008
IDP Education performs English language testing and student placement services globally, constituting 31% and 57% of fiscal 2025 group gross profit, respectively. Additionally, IDP operates English language schools, organizes education events, and delivers consultancy services to education institutions, which constitutes the remainder of group gross profit. Originally established in Australia as an aid body for Southeast Asia, today IDP operates one of the world's most widely accepted English language tests and one of the world's largest student placement services businesses, predominantly connecting prospective migrants from India and China to Australia, Canada, and the United Kingdom.
63GF Score

Get the complete analysis for ASX:IEL

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

A$1.76
Price
A$9.26
GF Value