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RDY

ReadyTech Holdings ASX:RDY Stock Report

Last Price

AU$2.80

Market Cap

AU$326.6m

7D

0%

1Y

-19.1%

Updated

03 Oct, 2022

Data

Company Financials +
RDY fundamental analysis
Snowflake Score
Valuation5/6
Future Growth4/6
Past Performance5/6
Financial Health3/6
Dividends0/6

RDY Stock Overview

ReadyTech Holdings Limited provides SaaS technology for education and work pathways, workforce solutions, and government and justice markets in Australia.

ReadyTech Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for ReadyTech Holdings
Historical stock prices
Current Share PriceAU$2.80
52 Week HighAU$4.30
52 Week LowAU$2.50
Beta1.05
1 Month Change0%
3 Month Change-6.98%
1 Year Change-19.08%
3 Year Change57.30%
5 Year Changen/a
Change since IPO57.30%

Recent News & Updates

Shareholder Returns

RDYAU SoftwareAU Market
7D0%-2.7%-1.7%
1Y-19.1%-28.6%-10.8%

Return vs Industry: RDY exceeded the Australian Software industry which returned -28.6% over the past year.

Return vs Market: RDY underperformed the Australian Market which returned -10.8% over the past year.

Price Volatility

Is RDY's price volatile compared to industry and market?
RDY volatility
RDY Average Weekly Movement4.7%
Software Industry Average Movement10.7%
Market Average Movement9.4%
10% most volatile stocks in AU Market16.5%
10% least volatile stocks in AU Market4.2%

Stable Share Price: RDY is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: RDY's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1998365Marc Washbournehttps://readytech.com.au

ReadyTech Holdings Limited provides SaaS technology for education and work pathways, workforce solutions, and government and justice markets in Australia. It operates in three segments: Education, Workforce Solutions, and Government and Justice. The Education segment offers cloud-based student and learning management systems for education and training providers to manage the student lifecycle, including student enrolment and course completion.

ReadyTech Holdings Fundamentals Summary

How do ReadyTech Holdings's earnings and revenue compare to its market cap?
RDY fundamental statistics
Market CapAU$326.60m
Earnings (TTM)AU$8.79m
Revenue (TTM)AU$78.28m

36.4x

P/E Ratio

4.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RDY income statement (TTM)
RevenueAU$78.28m
Cost of RevenueAU$46.66m
Gross ProfitAU$31.63m
Other ExpensesAU$22.84m
EarningsAU$8.79m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.077
Gross Margin40.40%
Net Profit Margin11.23%
Debt/Equity Ratio34.6%

How did RDY perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is RDY undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RDY?

Other financial metrics that can be useful for relative valuation.

RDY key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue4.5x
Enterprise Value/EBITDA23.9x
PEG Ratio1.4x

Price to Earnings Ratio vs Peers

How does RDY's PE Ratio compare to its peers?

RDY PE Ratio vs Peers
The above table shows the PE ratio for RDY vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average49.4x
PPS Praemium
86.9x31.1%AU$344.3m
IFM Infomedia
50x34.5%AU$439.4m
BVS Bravura Solutions
10x7.3%AU$305.5m
EOL Energy One
41.6x22.1%AU$151.6m
RDY ReadyTech Holdings
36.4x25.6%AU$326.6m

Price-To-Earnings vs Peers: RDY is good value based on its Price-To-Earnings Ratio (36.4x) compared to the peer average (49.4x).


Price to Earnings Ratio vs Industry

How does RDY's PE Ratio compare vs other companies in the AU Software Industry?

Price-To-Earnings vs Industry: RDY is good value based on its Price-To-Earnings Ratio (36.4x) compared to the Australian Software industry average (45.3x)


Price to Earnings Ratio vs Fair Ratio

What is RDY's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RDY PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio36.4x
Fair PE Ratio37.7x

Price-To-Earnings vs Fair Ratio: RDY is good value based on its Price-To-Earnings Ratio (36.4x) compared to the estimated Fair Price-To-Earnings Ratio (37.7x).


Share Price vs Fair Value

What is the Fair Price of RDY when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RDY (A$2.8) is trading below our estimate of fair value (A$3.5)

Significantly Below Fair Value: RDY is trading below fair value, but not by a significant amount.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is ReadyTech Holdings forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


25.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RDY's forecast earnings growth (25.6% per year) is above the savings rate (1.8%).

Earnings vs Market: RDY's earnings (25.6% per year) are forecast to grow faster than the Australian market (6.4% per year).

High Growth Earnings: RDY's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RDY's revenue (14.8% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: RDY's revenue (14.8% 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 low in 3 years time (15.7%).


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Past Performance

How has ReadyTech Holdings performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


35.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: RDY has high quality earnings.

Growing Profit Margin: RDY's current net profit margins (11.2%) are higher than last year (4.3%).


Past Earnings Growth Analysis

Earnings Trend: RDY's earnings have grown significantly by 35.9% per year over the past 5 years.

Accelerating Growth: RDY's earnings growth over the past year (308.1%) exceeds its 5-year average (35.9% per year).

Earnings vs Industry: RDY earnings growth over the past year (308.1%) exceeded the Software industry -10.7%.


Return on Equity

High ROE: RDY's Return on Equity (9%) is considered low.


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Financial Health

How is ReadyTech Holdings's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: RDY's short term assets (A$23.3M) do not cover its short term liabilities (A$49.4M).

Long Term Liabilities: RDY's short term assets (A$23.3M) do not cover its long term liabilities (A$38.4M).


Debt to Equity History and Analysis

Debt Level: RDY's net debt to equity ratio (25.2%) is considered satisfactory.

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

Debt Coverage: RDY's debt is well covered by operating cash flow (50.1%).

Interest Coverage: RDY's interest payments on its debt are well covered by EBIT (10.6x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.12%

Forecast Dividend Yield

Dividend Yield vs Market

ReadyTech Holdings Dividend Yield vs Market
How does ReadyTech Holdings dividend yield compare to the market?
SegmentDividend Yield
Company (ReadyTech Holdings)n/a
Market Bottom 25% (AU)2.8%
Market Top 25% (AU)7.1%
Industry Average (Software)1.1%
Analyst forecast in 3 Years (ReadyTech Holdings)1.1%

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

High Dividend: Unable to evaluate RDY'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 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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as RDY has not reported any payouts.


Discover strong dividend paying companies

Management

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

2.8yrs

Average management tenure


CEO

Marc Washbourne

3.58yrs

Tenure

AU$845,280

Compensation

Mr. Marc Raymond Washbourne has been the Chief Executive Officer of ReadyTech Holdings Limited since 1999 and as its Executive Director since March 8, 2019. He is Co-Founder of ReadyTech Holdings Limited....


CEO Compensation Analysis

Marc Washbourne's Compensation vs ReadyTech Holdings Earnings
How has Marc Washbourne's remuneration changed compared to ReadyTech Holdings's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022AU$845kAU$375k

AU$9m

Mar 31 2022n/an/a

AU$8m

Dec 31 2021n/an/a

AU$7m

Sep 30 2021n/an/a

AU$4m

Jun 30 2021AU$544kAU$310k

AU$2m

Mar 31 2021n/an/a

AU$3m

Dec 31 2020n/an/a

AU$3m

Sep 30 2020n/an/a

AU$4m

Jun 30 2020AU$358kAU$310k

AU$4m

Mar 31 2020n/an/a

AU$3m

Dec 31 2019n/an/a

AU$1m

Sep 30 2019n/an/a

-AU$101k

Jun 30 2019AU$316kAU$285k

-AU$1m

Jun 30 2018AU$289kAU$260k

-AU$2m

Compensation vs Market: Marc's total compensation ($USD544.57K) is about average for companies of similar size in the Australian market ($USD615.36K).

Compensation vs Earnings: Marc's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: RDY's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: RDY's board of directors are considered experienced (3.6 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

ASX:RDY Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
21 Jun 22BuyAU$99,322Tony FaureIndividual37,015AU$2.73
17 Jun 22BuyAU$26,998Elizabeth CrouchIndividual10,344AU$2.61
26 Nov 21BuyAU$86,150Mark SummerhayesIndividual24,025AU$3.59

Ownership Breakdown

What is the ownership structure of RDY?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders7,362,4526.4%
Institutions12,382,39210.8%
Private Companies14,234,63912.5%
VC/PE Firms36,593,61832.0%
General Public43,622,58438.2%

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.1%.


Top Shareholders

Top 23 shareholders own 61.8% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
32.04%
Pemba Capital Partners Pty Limited
36,593,618A$102.5m5.95%no data
10.48%
Microequities Asset Management Pty Limited
11,967,676A$33.5m0%21.97%
4.39%
Open Office Pty Ltd
5,012,288A$14.0m18.97%no data
3.63%
Marc Washbourne
4,146,229A$11.6m2.14%no data
2.47%
Synergysoft Pty Ltd
2,823,650A$7.9m0%no data
1.65%
Nanayakkara Holdings Pty Ltd
1,884,890A$5.3m-15.74%no data
1.21%
Nimesh Shah
1,378,336A$3.9m6.81%no data
0.95%
Sycamore Management Pty Ltd
1,080,190A$3.0m-15.62%no data
0.88%
Malvern Avenue Mangement Pty Ltd
1,005,509A$2.8m-22.98%no data
0.77%
Marish Pty Ltd
878,646A$2.5m0%no data
0.75%
Anksh Pty Ltd
860,288A$2.4m0%no data
0.69%
Darren Coppin
793,545A$2.2m-5.93%no data
0.6%
Sapioinvest Pty Ltd
689,178A$1.9m0%no data
0.49%
Mark Summerhayes
555,036A$1.6m0%no data
0.33%
Tony Faure
378,819A$1.1m0%no data
0.33%
Dimensional Fund Advisors LP
372,436A$1.0m0.02%no data
0.045%
Thomas Matthews
51,315A$143.7k0%no data
0.037%
Elizabeth Crouch
41,899A$117.3k0%no data
0.015%
Timothy William Ebbeck
17,273A$48.4k0%no data
0.012%
SEI Investments Company
14,039A$39.3k0%no data
0.011%
Acadian Asset Management LLC
12,739A$35.7k0%no data
0.0082%
Bessemer Investment Management LLC
9,386A$26.3k0%no data
0.0054%
PFM Asset Management LLC
6,116A$17.1k0%no data

Company Information

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


Key Information

  • Name: ReadyTech Holdings Limited
  • Ticker: RDY
  • Exchange: ASX
  • Founded: 1998
  • Industry: Application Software
  • Sector: Software
  • Implied Market Cap: AU$326.600m
  • Shares outstanding: 114.20m
  • Website: https://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

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/03 00:00
End of Day Share Price2022/10/03 00:00
Earnings2022/06/30
Annual Earnings2022/06/30


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.