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RCL

ReadCloudASX:RCL Stock Report

Market Cap

AU$28.1m

7D

-6.4%

1Y

-45.0%

Updated

20 Oct, 2021

Data

Company Financials +
RCL fundamental analysis
Snowflake Score
Valuation3/6
Future Growth5/6
Past Performance0/6
Financial Health5/6
Dividends0/6

RCL Overview

ReadCloud Limited provides eBook solutions to secondary schools in Australia.

Price History & Performance

Summary of all time highs, changes and price drops for ReadCloud
Historical stock prices
Current Share PriceAU$0.22
52 Week HighAU$0.23
52 Week LowAU$0.84
Beta1.71
1 Month Change-18.52%
3 Month Change-34.33%
1 Year Change-45.00%
3 Year Change-29.03%
5 Year Changen/a
Change since IPO-18.52%

Recent News & Updates

Feb 22
A Look At ReadCloud's (ASX:RCL) CEO Remuneration

A Look At ReadCloud's (ASX:RCL) CEO Remuneration

Lars Lindstrom is the CEO of ReadCloud Limited ( ASX:RCL ), and in this article, we analyze the executive's...

Shareholder Returns

RCLAU SoftwareAU Market
7D-6.4%5.5%1.7%
1Y-45.0%25.0%20.2%

Return vs Industry: RCL underperformed the Australian Software industry which returned 25% over the past year.

Return vs Market: RCL underperformed the Australian Market which returned 20.2% over the past year.

Price Volatility

Is RCL's price volatile compared to industry and market?
RCL volatility
RCL Beta1.71
Industry Beta0.84
Market Beta1

Stable Share Price: RCL is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: RCL's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
200924Lars Lindstromhttps://www.readcloud.com

ReadCloud Limited provides eBook solutions to secondary schools in Australia. Its eBooks allows students and teachers to share notes, questions, videos, and web links, as well as to make comments and import third party content. The company also offers vocational education and training (VET) course materials and services to schools comprising approximately 50 VET courses and Auspicing services.

ReadCloud Fundamentals Summary

How do ReadCloud's earnings and revenue compare to its market cap?
RCL fundamental statistics
Market CapAU$28.14m
Earnings (TTM)-AU$1.15m
Revenue (TTM)AU$7.29m

3.6x

P/S Ratio

-22.9x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RCL income statement (TTM)
RevenueAU$7.29m
Cost of RevenueAU$3.37m
Gross ProfitAU$3.92m
ExpensesAU$5.07m
Earnings-AU$1.15m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.0096
Gross Margin53.72%
Net Profit Margin-15.79%
Debt/Equity Ratio3.6%

How did RCL perform over the long term?

See historical performance and comparison

Valuation

Is ReadCloud undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RCL (A$0.22) is trading below our estimate of fair value (A$2.89)

Significantly Below Fair Value: RCL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RCL is unprofitable, so we can't compare its PE Ratio to the Australian Software industry average.

PE vs Market: RCL is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RCL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RCL is good value based on its PB Ratio (2.1x) compared to the AU Software industry average (5.2x).


Future Growth

How is ReadCloud forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

101.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RCL is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: RCL is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: RCL's is expected to become profitable in the next 3 years.

Revenue vs Market: RCL's revenue (31.8% per year) is forecast to grow faster than the Australian market (5.4% per year).

High Growth Revenue: RCL's revenue (31.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RCL's Return on Equity is forecast to be low in 3 years time (13.9%).


Past Performance

How has ReadCloud performed over the past 5 years?

-22.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RCL is currently unprofitable.

Growing Profit Margin: RCL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RCL is unprofitable, and losses have increased over the past 5 years at a rate of 22.5% per year.

Accelerating Growth: Unable to compare RCL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RCL is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (37.5%).


Return on Equity

High ROE: RCL has a negative Return on Equity (-9.04%), as it is currently unprofitable.


Financial Health

How is ReadCloud's financial position?


Financial Position Analysis

Short Term Liabilities: RCL's short term assets (A$7.3M) exceed its short term liabilities (A$2.5M).

Long Term Liabilities: RCL's short term assets (A$7.3M) exceed its long term liabilities (A$689.7K).


Debt to Equity History and Analysis

Debt Level: RCL's debt to equity ratio (3.6%) is considered satisfactory.

Reducing Debt: RCL's debt to equity ratio has reduced from 62.3% to 3.6% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: RCL has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if RCL has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Dividend

What is ReadCloud current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate RCL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate RCL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RCL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RCL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RCL's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Lars Lindstrom

no data

Tenure

AU$273,503

Compensation

Mr. Lars Peder Lindstrom serves as Managing Director, Chief Executive Officer and an Executive Director of ReadCloud Limited. Mr. Lindstrom Co-founded ReadCloud in 2009 and has extensive tech startup exper...


CEO Compensation Analysis

Compensation vs Market: Lars's total compensation ($USD204.49K) is below average for companies of similar size in the Australian market ($USD302.06K).

Compensation vs Earnings: Lars's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: RCL's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: RCL's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 20.1%.


Top Shareholders

Company Information

ReadCloud Limited's employee growth, exchange listings and data sources


Key Information

  • Name: ReadCloud Limited
  • Ticker: RCL
  • Exchange: ASX
  • Founded: 2009
  • Industry: Application Software
  • Sector: Software
  • Market Cap: AU$28.145m
  • Shares outstanding: 119.76m
  • Website: https://www.readcloud.com

Number of Employees


Location

  • ReadCloud Limited
  • 284 Bay Street
  • Brighton
  • Victoria
  • 3186
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/20 07:04
End of Day Share Price2021/10/20 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.