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RDY

ReadyTech HoldingsASX:RDY Stock Report

Market Cap

AU$380.7m

7D

10.5%

1Y

84.0%

Updated

27 Sep, 2021

Data

Company Financials +
RDY fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance0/6
Financial Health2/6
Dividends0/6

RDY 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$3.57
52 Week HighAU$1.63
52 Week LowAU$3.58
Beta1.22
1 Month Change16.29%
3 Month Change48.75%
1 Year Change84.02%
3 Year Changen/a
5 Year Changen/a
Change since IPO100.56%

Recent News & Updates

Shareholder Returns

RDYAU SoftwareAU Market
7D10.5%-1.2%-0.8%
1Y84.0%42.6%25.3%

Return vs Industry: RDY exceeded the Australian Software industry which returned 42.6% over the past year.

Return vs Market: RDY exceeded the Australian Market which returned 25.3% over the past year.

Price Volatility

Is RDY's price volatile compared to industry and market?
RDY volatility
RDY Beta1.22
Industry Beta0.85
Market Beta1

Stable Share Price: RDY is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: RDY's weekly volatility (7%) 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$380.74m
Earnings (TTM)AU$2.16m
Revenue (TTM)AU$50.03m

176.7x

P/E Ratio

7.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RDY income statement (TTM)
RevenueAU$50.03m
Cost of RevenueAU$27.18m
Gross ProfitAU$22.84m
ExpensesAU$20.69m
EarningsAU$2.16m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.02
Gross Margin45.66%
Net Profit Margin4.31%
Debt/Equity Ratio41.2%

How did RDY perform over the long term?

See historical performance and comparison

Valuation

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

28.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RDY (A$3.57) is trading below our estimate of fair value (A$4.97)

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 (176.7x) compared to the Australian Software industry average (45.1x).

PE vs Market: RDY is poor value based on its PE Ratio (176.7x) compared to the Australian market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: RDY is poor value based on its PEG Ratio (3.9x)


Price to Book Ratio

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


Future Growth

How is ReadyTech Holdings forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

45.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RDY's forecast earnings growth (44.9% per year) is above the savings rate (1.9%).

Earnings vs Market: RDY's earnings (44.9% per year) are forecast to grow faster than the Australian market (11.9% per year).

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

Revenue vs Market: RDY's revenue (18.5% per year) is forecast to grow faster than the Australian market (5.7% per year).

High Growth Revenue: RDY's revenue (18.5% 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 (16.4%).


Past Performance

How has ReadyTech Holdings performed over the past 5 years?

-7.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RDY has a large one-off loss of A$1.8M impacting its June 30 2021 financial results.

Growing Profit Margin: RDY's current net profit margins (4.3%) are lower than last year (10%).


Past Earnings Growth Analysis

Earnings Trend: RDY's earnings have declined by 7.3% per year over the past 5 years.

Accelerating Growth: RDY's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RDY had negative earnings growth (-45.3%) over the past year, making it difficult to compare to the Software industry average (37.5%).


Return on Equity

High ROE: RDY's Return on Equity (2.9%) is considered low.


Financial Health

How is ReadyTech Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: RDY's short term assets (A$21.6M) do not cover its short term liabilities (A$44.6M).

Long Term Liabilities: RDY's short term assets (A$21.6M) do not cover its long term liabilities (A$49.9M).


Debt to Equity History and Analysis

Debt Level: RDY's debt to equity ratio (41.2%) 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 (63.1%).

Interest Coverage: RDY's interest payments on its debt are well covered by EBIT (5.8x coverage).


Balance Sheet


Dividend

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

1.57%

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?

1.8yrs

Average management tenure


CEO

Marc Washbourne

22.67yrs

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 ($USD259.58K) is below average for companies of similar size in the Australian market ($USD532.22K).

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


Leadership Team

Experienced Management: RDY's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: RDY's board of directors are not considered experienced ( 2.5 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: RDY 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 33.3%.


Top Shareholders

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
  • Market Cap: AU$380.741m
  • Shares outstanding: 106.65m
  • Website: https://readytech.com.au

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/27 15:48
End of Day Share Price2021/09/27 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.