ASX:RDY

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ReadyTech Holdings

Executive Summary

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


Snowflake Analysis

High growth potential and fair value.


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

Stable Share Price: RDY is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: RDY's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

2.5%

RDY

-3.6%

AU Software

-0.3%

AU Market


1 Year Return

5.1%

RDY

19.3%

AU Software

-1.8%

AU Market

Return vs Industry: RDY underperformed the Australian Software industry which returned 19.3% over the past year.

Return vs Market: RDY exceeded the Australian Market which returned -1.8% over the past year.


Shareholder returns

RDYIndustryMarket
7 Day2.5%-3.6%-0.3%
30 Day1.0%-6.0%1.6%
90 Day1.0%1.4%9.9%
1 Year5.1%5.1%20.2%19.3%1.5%-1.8%
3 Yearn/a97.8%91.2%26.2%10.7%
5 Yearn/a168.7%164.6%69.0%35.8%

Long-Term 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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RDY (A$2.05) is trading below our estimate of fair value (A$14.29)

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


Price To Earnings Ratio

PE vs Industry: RDY is poor value based on its PE Ratio (41.6x) compared to the AU Software industry average (31.8x).

PE vs Market: RDY is poor value based on its PE Ratio (41.6x) compared to the Australian market (22.6x).


Price to Earnings Growth Ratio

PEG Ratio: RDY is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: RDY is good value based on its PB Ratio (5x) compared to the AU Software industry average (5.1x).


Next Steps

Future Growth

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

33.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RDY's forecast earnings growth (33.6% per year) is above the savings rate (2%).

Earnings vs Market: RDY's earnings (33.6% per year) are forecast to grow faster than the Australian market (18% per year).

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

Revenue vs Market: RDY's revenue (16.7% per year) is forecast to grow faster than the Australian market (5% per year).

High Growth Revenue: RDY's revenue (16.7% 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 (20.2%)


Next Steps

Past Performance

How has ReadyTech Holdings performed over the past 5 years?

-27.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RDY has high quality earnings.

Growing Profit Margin: RDY became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: RDY's earnings have declined by 27.4% per year over the past 5 years.

Accelerating Growth: RDY has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: RDY has become profitable in the last year, making it difficult to compare its past year earnings growth to the Software industry (20.2%).


Return on Equity

High ROE: RDY's Return on Equity (11.9%) is considered low.


Next Steps

Financial Health

How is ReadyTech Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: RDY's short term assets (A$15.0M) do not cover its short term liabilities (A$24.9M).

Long Term Liabilities: RDY's short term assets (A$15.0M) do not cover its long term liabilities (A$27.9M).


Debt to Equity History and Analysis

Debt Level: RDY's debt to equity ratio (75.6%) is considered high.

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 (55%).

Interest Coverage: RDY's interest payments on its debt are well covered by EBIT (6.2x coverage).


Balance Sheet


Next Steps

Dividend

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

2.17%

Forecast Dividend Yield


Dividend Yield vs Market

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.


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

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

1.1yrs

Average management tenure


CEO

Marc Washbourne

22yrs

Tenure

AU$358,196

Compensation

Mr. Marc Washbourne has been the Chief Executive Officer of ReadyTech Holdings Limited since 1999 and as its Executive Director since March 8, 2019. He is a founder of the ReadyTech business. With experien...


CEO Compensation Analysis

Compensation vs Market: Marc's total compensation ($USD276.47K) is about average for companies of similar size in the Australian market ($USD297.08K).

Compensation vs Earnings: Marc's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Marc Washbourne
CEO & Executive Director22yrsAU$358.20k4.3%
A$ 8.2m
Nimesh Shah
CFO & Joint Company Secretary3.42yrsAU$335.52k1.38%
A$ 2.6m
Tony Jones
Head of Operations & Delivery - Education and Pathways1yrno data0.93%
A$ 1.8m
Sam Giffney
Chief Information Security Officer1.33yrsno datano data
Daniel Wyner
Chief Executive of Workforce Solutions1.33yrsno datano data
Michael Benyon
Head of Revenue - Workforce Solutions1.33yrsAU$124.47kno data
Amanda Palmer
Head of Service Operations - Workforce Solutions1.25yrsno datano data
James Diamond
Chief Executive of Education & Pathways1yrno datano data
Chris Smith
Head of Strategy & Innovation - Education and Pathways0.25yrno datano data
Alison Ritchie
Head of Product & Technology - Education and Pathways0.25yrno datano data
Natalie Miller
Head of Marketing & Communications - Education and Pathways0.25yrno datano data
James Hourn
Head of Enterprise Sales - Education & Pathways0.25yrno datano data

1.1yrs

Average Tenure

Experienced Management: RDY's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Marc Washbourne
CEO & Executive Director22yrsAU$358.20k4.3%
A$ 8.2m
Timothy William Ebbeck
Independent Non-Executive Director1.83yrsAU$70.04k0.0071%
A$ 13.6k
Tony Faure
Independent Non-Executive Chairman1.83yrsAU$150.00k0.24%
A$ 460.9k
Thomas Matthews
Independent Non-Executive Director1.83yrsAU$31.85k1.36%
A$ 2.6m
Elizabeth Crouch
Independent Non-Executive Director1.83yrsAU$70.00k0.011%
A$ 20.4k
Mark Summerhayes
Alternate Non-Executive Director1.5yrsAU$30.16kno data

1.8yrs

Average Tenure

Experienced Board: RDY's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


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 16.6%.


Top Shareholders

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$191.272m
  • Shares outstanding: 93.30m
  • 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 in two segments, Education and Emp...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/16 07:08
End of Day Share Price2021/01/15 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.