ASX:RDY

Stock Analysis Report

ReadyTech Holdings

Executive Summary

ReadyTech Holdings Limited provides mission-critical people management software for educators, employers, and facilitators of career transitions in Australia.

Snowflake

Fundamentals

High growth potential with worrying balance sheet.


Similar Companies

Share Price & News

How has ReadyTech Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.1%

RDY

-5.7%

AU Software

0.1%

AU Market


1 Year Return

n/a

RDY

42.6%

AU Software

11.9%

AU Market

Return vs Industry: Insufficient data to determine how RDY performed against the Australian Software industry.

Return vs Market: Insufficient data to determine how RDY performed against the Australian Market.


Shareholder returns

RDYIndustryMarket
7 Day0.1%-5.7%0.1%
30 Day9.7%-6.0%-1.1%
90 Day16.3%-4.7%-1.4%
1 Yearn/a43.8%42.6%18.5%11.9%
3 Yearn/a125.8%116.7%36.4%18.1%
5 Yearn/a165.9%144.1%50.9%16.7%

Price Volatility Vs. Market

How volatile is ReadyTech Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

5.29x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: RDY (A$1.93) is trading above our estimate of fair value (A$0.79)

Significantly Below Fair Value: RDY is trading above our estimate of fair value.


Price To Earnings Ratio

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

PE vs Market: RDY 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 RDY's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RDY is overvalued based on its PB Ratio (5.3x) compared to the AU Software industry average (4.3x).


Next Steps

Future Growth

How is ReadyTech Holdings forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

59.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RDY is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.3%).

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

High Growth Earnings: RDY's loss is forecast to worsen by 0% next year.

Revenue vs Market: RDY's revenue (14.9% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: RDY's revenue (14.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RDY's Return on Equity is forecast to be high in 3 years time (30%)


Next Steps

Past Performance

How has ReadyTech Holdings performed over the past 5 years?

35.8%

Last years earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: RDY is unprofitable, and there is insufficient past data to establish if their past 5-year earnings growth rate was positive.

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

Earnings vs Industry: RDY is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (22.6%).


Return on Equity

High ROE: RDY has a negative Return on Equity (-5.1%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: RDY is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: RDY is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is ReadyTech Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: RDY's short term assets (A$10.3M) do not cover its short term liabilities (A$16.0M)

Long Term Liabilities: RDY's short term assets (10.3M) do not cover its long term liabilities (24.5M)


Debt to Equity History and Analysis

Debt Level: RDY's debt to equity ratio (73.6%) is considered high

Reducing Debt: Insufficient data to determine if RDY's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: RDY has a low level of unsold assets or inventory.

Debt Coverage by Assets: RDY's debt is not covered by short term assets (assets are 0.5x debt).


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: RDY has sufficient cash runway for more than 3 years based on its current free cash flow.

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


Next Steps

Dividend

What is ReadyTech Holdings's current dividend yield, its reliability and sustainability?

2.94%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%2.4%markettop25%5.6%industryaverage1.2%forecastin3Years2.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

Growing Dividend: Insufficient data to determine if RDY'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 RDY's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

What is the CEO of ReadyTech Holdings's salary, the management and board of directors tenure and is there insider trading?

0.08yrs

Average management tenure


CEO

Marc Washbourne 0

20.8yrs

Tenure

0

Mr. Marc Washbourne has been the Chief Executive Officer of ReadyTech Holdings Limited since 1999 and as its Executive Director since March 8, 2019. With experience in building technology for the education ...


Management Age and Tenure

0.08yrs

Average Tenure

Experienced Management: RDY's management team is not considered experienced ( 0.1 years average tenure), which suggests a new team.


Board Age and Tenure

0.6yrs

Average Tenure

Experienced Board: RDY's board of directors are not considered experienced ( 0.6 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyAU$7,651,07817 Oct 19
Pie Funds Management Ltd
EntityCompany
Shares4,005,800
Max PriceAU$1.91
BuyAU$023 Apr 19
Wilsons Holding Company Pty Ltd., Asset Management Arm
EntityCompany
Shares33,000
Max PriceAU$1.78
SellAU$023 Apr 19
Wilsons Holding Company Pty Ltd., Asset Management Arm
EntityCompany
Shares130,000
Max PriceAU$1.80
BuyAU$7,699,32623 Apr 19
Wilsons Holding Company Pty Ltd., Asset Management Arm
EntityCompany
Shares5,098,893
Max PriceAU$1.51

Ownership Breakdown


Management Team

  • Nimesh Shah

    CFO & Joint Company Secretary

    • Tenure: 2.2yrs
  • Melissa Jones

    Joint Company Secretary

    • Tenure: 0yrs
  • Marc Washbourne

    CEO & Executive Director

    • Tenure: 20.8yrs
  • Sam Giffney

    Chief Information Security Officer

    • Tenure: 0.08yrs
  • Daniel Wyner

    Chief Executive of Employment

    • Tenure: 0.08yrs
  • Michael Benyon

    Head of Revenue Employment

    • Tenure: 0.08yrs
  • Rick Verloop

    Head of Technology & Product

    • Tenure: 0.08yrs
  • Amanda Palmer

    Head of Service Operations & Employment

    • Tenure: 0yrs

Board Members

  • Tim William Ebbeck (58yo)

    Independent Non-Executive Director

    • Tenure: 0.6yrs
  • Tony Faure

    Independent Non-Executive Chairman

    • Tenure: 0.6yrs
  • Tom Matthews

    Independent Non-Executive Director

    • Tenure: 0.6yrs
  • Elizabeth Crouch

    Independent Non-Executive Director

    • Tenure: 0.6yrs
  • Marc Washbourne

    CEO & Executive Director

    • Tenure: 20.8yrs
  • Mark Summerhayes

    Alternate Director

    • Tenure: 0.3yrs

Company Information

ReadyTech Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ReadyTech Holdings Limited
  • Ticker: RDY
  • Exchange: ASX
  • Founded: 1998
  • Industry: Application Software
  • Sector: Software
  • Market Cap: AU$156.010m
  • Shares outstanding: 80.01m
  • Website: https://www.readytech.com.au

Number of Employees


Location

  • ReadyTech Holdings Limited
  • 35 Saunders Street
  • Level 1
  • Pyrmont
  • New South Wales
  • 2009
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RDYASX (Australian Securities Exchange)YesOrdinary SharesAUAUDApr 2019
RDYCHIA (Chi-X Australia)YesOrdinary SharesAUAUDApr 2019

Biography

ReadyTech Holdings Limited provides mission-critical people management software for educators, employers, and facilitators of career transitions in Australia. It operates through Education and Employment s ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 10:41
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.