Reckon
Reckon Limited provides software solutions for small and medium businesses, larger businesses, accountants, bookkeepers, and lawyers in Australia, the United States, and others. The last earnings update was 22 days ago. More info.
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RKN Share Price and Events
7 Day Returns
1 Year Returns
RKN Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Reckon (RKN) | -5.3% | 9.9% | 5.1% | -43.3% | -49.7% | -63.5% |
| AU Software | -1.7% | -0.2% | 16.2% | 33.2% | 82.2% | 104.8% |
| AU Market | 0.7% | 1.1% | 6.5% | 4.7% | 17.5% | 4.9% |
1 Year Return vs Industry and Market
- RKN underperformed the Software industry which returned 33.2% over the past year.
- RKN underperformed the Market in Australia which returned 4.7% over the past year.
RKN Value
Is Reckon undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Reckon
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Reckon.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 3 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 10.6% |
| Perpetual Growth Rate | 10-Year AU Government Bond Rate | 2.3% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year AU Govt Bond Rate | 2.3% |
| Equity Risk Premium | S&P Global | 6% |
| Software Unlevered Beta | Simply Wall St/ S&P Global | 1.13 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.134 (1 + (1- 30%) (55.34%)) |
1.384 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.38 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (1.384 * 5.96%) |
10.56% |
Discounted Cash Flow Calculation for ASX:RKN using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Reckon is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (AUD, Millions) | Source |
Present Value Discounted (@ 10.56%) |
|
|---|---|---|---|
| 2019 | 9.30 | Analyst x1 | 8.41 |
| 2020 | 11.50 | Analyst x1 | 9.41 |
| 2021 | 12.10 | Analyst x1 | 8.95 |
| 2022 | 12.43 | Est @ 2.74% | 8.32 |
| 2023 | 12.76 | Est @ 2.61% | 7.72 |
| 2024 | 13.08 | Est @ 2.52% | 7.16 |
| 2025 | 13.40 | Est @ 2.46% | 6.64 |
| 2026 | 13.72 | Est @ 2.41% | 6.15 |
| 2027 | 14.05 | Est @ 2.38% | 5.69 |
| 2028 | 14.38 | Est @ 2.36% | 5.27 |
| Present value of next 10 years cash flows | A$73.72 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= A$14.38 × (1 + 2.31%) ÷ (10.56% – 2.31%) |
A$178.42 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= A$178.42 ÷ (1 + 10.56%)10 |
A$65.39 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= A$73.72 + A$65.39 |
A$139.11 |
| Equity Value per Share (AUD) |
= Total value / Shares Outstanding
= A$139.11 / 112.94 |
A$1.23 |
| Calculation | Result | |
|---|---|---|
| Value per share (AUD) | From above. | A$1.23 |
| Current discount | Discount to share price of
A$0.72
= -1 x (A$0.72 - A$1.23) / A$1.23 |
41.5% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- Reckon's share price is below the future cash flow value, and at a moderate discount (> 20%).
- Reckon's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Reckon's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Reckon's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in AUD | A$0.07 |
| ASX:RKN Share Price ** | ASX (2019-04-18) in AUD | A$0.72 |
| Australia Software Industry PE Ratio | Median Figure of 20 Publicly-Listed Software Companies | 35.57x |
| Australia Market PE Ratio | Median Figure of 545 Publicly-Listed Companies | 16.18x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Reckon.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = ASX:RKN Share Price ÷ EPS (both in AUD) = 0.72 ÷ 0.07 |
10.55x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Reckon is good value based on earnings compared to the AU Software industry average.
- Reckon is good value based on earnings compared to the Australia market.
Price based on expected Growth
Does
Reckon's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 10.55x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts |
6.9%per year |
| Australia Software Industry PEG Ratio | Median Figure of 13 Publicly-Listed Software Companies | 2.76x |
| Australia Market PEG Ratio | Median Figure of 361 Publicly-Listed Companies | 1.38x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 10.55x ÷ 6.9% |
1.52x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Reckon is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Reckon's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in AUD | A$0.14 |
| ASX:RKN Share Price * | ASX (2019-04-18) in AUD | A$0.72 |
| Australia Software Industry PB Ratio | Median Figure of 100 Publicly-Listed Software Companies | 3.54x |
| Australia Market PB Ratio | Median Figure of 1,676 Publicly-Listed Companies | 1.68x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = ASX:RKN Share Price ÷ Book Value per Share (both in AUD) = 0.72 ÷ 0.14 |
5.21x |
* Primary Listing of Reckon.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Reckon is overvalued based on assets compared to the AU Software industry average.
Value checks
We assess Reckon's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Software industry average (and greater than 0)? (1 check) Reckon has a total score of 4/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
RKN Future Performance
How is Reckon expected to perform in the next 1 to 3 years based on estimates from 3 analysts?
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Reckon's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
- Reckon's earnings growth is expected to exceed the Australia market average.
- Reckon's revenue growth is positive but not above the Australia market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| ASX:RKN Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts | 6.9% |
| ASX:RKN Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts | 0.3% |
| Australia Software Industry Earnings Growth Rate | Market Cap Weighted Average | 33.4% |
| Australia Software Industry Revenue Growth Rate | Market Cap Weighted Average | 17.9% |
| Australia Market Earnings Growth Rate | Market Cap Weighted Average | 6.6% |
| Australia Market Revenue Growth Rate | Market Cap Weighted Average | 3.1% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 3 Analyst Estimates (S&P Global) | See Below |
| Date (Data in AUD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | 76 | 28 | 10 | 3 |
| 2020-12-31 | 75 | 27 | 9 | 3 |
| 2019-12-31 | 75 | 25 | 9 | 3 |
| Date (Data in AUD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 75 | 11 | 8 |
| 2018-09-30 | 77 | 7 | |
| 2018-06-30 | 47 | 11 | 2 |
| 2018-03-31 | 48 | 10 | 2 |
| 2017-12-31 | 80 | 10 | 7 |
| 2017-06-30 | 50 | -1 | 3 |
| 2017-03-31 | 50 | 3 | 4 |
| 2016-12-31 | 50 | 8 | 4 |
| 2016-09-30 | 81 | 12 | |
| 2016-06-30 | 80 | 29 | 12 |
| 2016-03-31 | 86 | 31 | 13 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 3 Analyst Estimates (S&P Global) | See Below |
All data from Reckon Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in AUD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | 0.08 | 0.09 | 0.08 | 3.00 |
| 2020-12-31 | 0.08 | 0.08 | 0.08 | 3.00 |
| 2019-12-31 | 0.08 | 0.08 | 0.07 | 3.00 |
| Date (Data in AUD Millions) | EPS * |
|---|---|
| 2018-12-31 | 0.07 |
| 2018-09-30 | 0.07 |
| 2018-06-30 | 0.02 |
| 2018-03-31 | 0.02 |
| 2017-12-31 | 0.07 |
| 2017-06-30 | 0.03 |
| 2017-03-31 | 0.04 |
| 2016-12-31 | 0.04 |
| 2016-09-30 | 0.11 |
| 2016-06-30 | 0.11 |
| 2016-03-31 | 0.12 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Reckon's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Reckon has a total score of 3/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
RKN Past Performance
How has Reckon performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Reckon's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
- Reckon's 1-year earnings growth exceeds its 5-year average (3.2% vs -29%)
- Reckon's earnings growth has not exceeded the AU Software industry average in the past year (3.2% vs 7.7%).
Earnings and Revenue History
All data from Reckon Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in AUD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 75.43 | 7.71 | 7.34 | |
| 2018-09-30 | 76.68 | 7.44 | 7.16 | |
| 2018-06-30 | 46.52 | 1.91 | 5.92 | |
| 2018-03-31 | 47.72 | 2.06 | 6.00 | |
| 2017-12-31 | 80.34 | 7.47 | 7.15 | |
| 2017-06-30 | 49.78 | 3.39 | 6.30 | |
| 2017-03-31 | 49.73 | 3.93 | 6.20 | |
| 2016-12-31 | 49.68 | 4.46 | 6.09 | |
| 2016-09-30 | 81.33 | 11.82 | 7.62 | |
| 2016-06-30 | 79.70 | 12.29 | 7.36 | |
| 2016-03-31 | 85.58 | 13.43 | 7.42 | |
| 2015-12-31 | 91.45 | 14.58 | 7.48 | |
| 2015-09-30 | 97.54 | 15.56 | 7.19 | |
| 2015-06-30 | 103.64 | 16.55 | 6.91 | |
| 2015-03-31 | 102.22 | 16.76 | 6.91 | |
| 2014-12-31 | 100.80 | 16.96 | 6.92 | |
| 2014-09-30 | 100.28 | 16.94 | 7.00 | |
| 2014-06-30 | 99.76 | 16.92 | 7.09 | |
| 2014-03-31 | 98.94 | 17.37 | 7.06 | |
| 2013-12-31 | 98.13 | 17.81 | 7.03 | |
| 2013-09-30 | 98.09 | 18.17 | 6.56 | |
| 2013-06-30 | 98.06 | 18.52 | 6.10 | |
| 2013-03-31 | 97.41 | 17.93 | 6.06 | |
| 2012-12-31 | 96.77 | 17.34 | 6.03 | |
| 2012-09-30 | 94.51 | 17.16 | 5.94 | |
| 2012-06-30 | 92.26 | 16.98 | 5.85 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Whilst Reckon made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
- Reckon used its assets more efficiently than the AU Software industry average last year based on Return on Assets.
- Reckon's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Reckon's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Reckon has a total score of 2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
RKN Health
How is Reckon's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Reckon's finances.
The net worth of a company is the difference between its assets and liabilities.
- Reckon is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Reckon's long term commitments exceed its cash and other short term assets.
Balance sheet
Assets
Liabilities and shares
- Low level of unsold assets.
- Debt is not covered by short term assets, assets are 0.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Reckon Company Filings, last reported 3 months ago.
| Date (Data in AUD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | 15.60 | 45.00 | 2.58 |
| 2018-09-30 | 15.60 | 45.00 | 2.58 |
| 2018-06-30 | 16.79 | 43.62 | 2.72 |
| 2018-03-31 | 16.79 | 43.62 | 2.72 |
| 2017-12-31 | 13.10 | 50.61 | 1.96 |
| 2017-06-30 | 38.96 | 52.43 | 2.37 |
| 2017-03-31 | 38.96 | 52.43 | 2.37 |
| 2016-12-31 | 36.72 | 52.55 | 1.72 |
| 2016-09-30 | 36.72 | 52.55 | 1.72 |
| 2016-06-30 | 35.43 | 55.44 | 2.77 |
| 2016-03-31 | 35.43 | 55.44 | 2.77 |
| 2015-12-31 | 33.92 | 50.08 | 1.64 |
| 2015-09-30 | 33.92 | 50.08 | 1.64 |
| 2015-06-30 | 33.46 | 41.26 | 3.87 |
| 2015-03-31 | 33.46 | 41.26 | 3.87 |
| 2014-12-31 | 30.07 | 43.72 | 2.25 |
| 2014-09-30 | 30.07 | 43.72 | 2.25 |
| 2014-06-30 | 53.12 | 15.69 | 4.79 |
| 2014-03-31 | 53.12 | 15.69 | 4.79 |
| 2013-12-31 | 48.12 | 17.49 | 2.57 |
| 2013-09-30 | 48.12 | 17.49 | 2.57 |
| 2013-06-30 | 48.35 | 11.86 | 2.60 |
| 2013-03-31 | 48.35 | 11.86 | 2.60 |
| 2012-12-31 | 44.42 | 11.13 | 1.93 |
| 2012-09-30 | 44.42 | 11.13 | 1.93 |
| 2012-06-30 | 45.97 | 0.00 | 2.89 |
- Reckon's level of debt (288.5%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has increased over the past 5 years (36.3% vs 288.5% today).
- Debt is well covered by operating cash flow (24.2%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 8.2x coverage).
Financial health checks
We assess Reckon's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Reckon has a total score of 3/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
RKN Dividends
What is Reckon's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
A$2,000 of
Reckon
shares you are expected to receive
A$167
in your first year as a dividend.
Dividend Amount
- Reckon's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.5%).
- Reckon's dividend is above the markets top 25% of dividend payers in Australia (5.81%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 3 Analyst Estimates (S&P Global) | See Below |
| Australia Software Industry Average Dividend Yield | Market Cap Weighted Average of 13 Stocks | 1.3% |
| Australia Market Average Dividend Yield | Market Cap Weighted Average of 417 Stocks | 4.3% |
| Australia Minimum Threshold Dividend Yield | 10th Percentile | 1.6% |
| Australia Bottom 25% Dividend Yield | 25th Percentile | 2.5% |
| Australia Top 25% Dividend Yield | 75th Percentile | 5.8% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in A$) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2021-12-31 | 0.05 | 3.00 |
| 2020-12-31 | 0.04 | 3.00 |
| 2019-12-31 | 0.04 | 3.00 |
| Date (Data in A$) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2018-08-06 | 0.060 | 8.120 |
| 2018-03-27 | 0.000 | 0.000 |
| 2018-02-12 | 0.000 | 0.000 |
| 2017-08-07 | 0.000 | 0.000 |
| 2017-03-30 | 0.050 | 3.069 |
| 2017-02-13 | 0.050 | 2.888 |
| 2016-08-08 | 0.040 | 2.483 |
| 2016-03-08 | 0.073 | 4.809 |
| 2015-02-09 | 0.090 | 4.390 |
| 2014-08-11 | 0.090 | 4.722 |
| 2014-02-10 | 0.088 | 4.235 |
| 2013-08-12 | 0.088 | 3.960 |
| 2013-02-04 | 0.085 | 3.461 |
| 2012-08-07 | 0.083 | 3.540 |
| 2012-02-06 | 0.080 | 3.623 |
| 2011-08-09 | 0.080 | 3.306 |
| 2011-03-30 | 0.080 | 3.239 |
| 2011-02-07 | 0.080 | 3.177 |
| 2010-08-10 | 0.075 | 3.226 |
| 2010-03-31 | 0.070 | 3.443 |
| 2010-02-08 | 0.070 | 3.638 |
| 2009-08-11 | 0.065 | 3.837 |
| 2009-04-20 | 0.060 | 4.966 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
- No dividend growth in 10 years.
Current Payout to shareholders
What portion of
Reckon's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are well covered by earnings (2.3x coverage).
- Dividends after 3 years are expected to be covered by earnings (1.8x coverage).
Income/ dividend checks
We assess Reckon's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Reckon afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Reckon has a total score of 4/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
RKN Management
CEO
| COMPENSATION | A$664,566 |
CEO Bio
Mr. Sam Allert has been Group Chief Executive Officer and Executive Director at Reckon Limited since July 1, 2018. Mr. Allert served as Managing Director of Business and Accountant Group - ANZ at Reckon Limited from October 1, 2012 to July 1, 2018. Mr. Allert served as the Chief Executive Officer of Professional Division at Reckon Ltd., since October 1, 2012.
CEO Compensation
- Sam's compensation has been consistent with company performance over the past year.
- Sam's remuneration is higher than average for companies of similar size in Australia.
Management Team Tenure
Average tenure and age of the Reckon management team in years:
- The average tenure for the Reckon management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team
Greg Wilkinson
Founder & Chairman
A$120K
62
32.3 yrs
Sam Allert
Group CEO & Executive Director
A$665K
Clive Rabie
Group MD & Executive Director
A$1M
58
Chris Hagglund
Group Chief Financial Officer
A$785K
57
14.5 yrs
Myron Zlotnick
Company Secretary
A$623K
53
16.5 yrs
Paul James
General Manager of Professional Division Australia and General Manager of Aps Australia
A$320K
Grant Linton
General Manager of Professional Division - New Zealand
A$186K
Board of Directors Tenure
Average tenure and age of the Reckon board of directors in years:
- The average tenure for the Reckon board of directors is less than 3 years, this suggests a new board.
Board of Directors
Greg Wilkinson
Founder & Chairman
A$120K
62
0.8 yrs
Sam Allert
Group CEO & Executive Director
A$665K
0.8 yrs
Clive Rabie
Group MD & Executive Director
A$1M
58
14.3 yrs
Phil Hayman
Independent Non-executive Director
59
0.8 yrs
Who owns this company?
Recent Insider Trading
- More shares have been bought than sold by Reckon insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price (A$) | Value (A$) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 10. Apr 19 | Buy | Spheria Asset Management Pty Ltd | Company | 26. Mar 19 | 09. Apr 19 | 1,602,528 | A$0.67 | A$1,061,633 | ||
| 27. Feb 19 | Buy | Sam Allert | Individual | 22. Feb 19 | 25. Feb 19 | 28,500 | A$0.68 | A$19,054 | ||
Management checks
We assess Reckon's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Reckon has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
RKN News
Simply Wall St News
Will Reckon Limited's (ASX:RKN) Earnings Grow Over The Next Year?
On 31 December 2018, Reckon Limited (ASX:RKN) released its earnings update. … with profits predicted to increase by 0.8% next year … the past 5-year average growth rate of -29%.
Simply Wall St - – Full articleDid You Manage To Avoid Reckon's (ASX:RKN) Painful 65% Share Price Drop?
For example the Reckon Limited (ASX:RKN) share price dropped 65% over five years. … During the five years over which the share price declined, Reckon's earnings per share (EPS) dropped by 13% each year. … Readers should note that the share price has fallen faster than the EPS, at a rate of 19% per year, over the period.
Simply Wall St - – Full articleDo Directors Own Reckon Limited (ASX:RKN) Shares?
With a market capitalization of AU$75m, Reckon is a small cap stock, so it might not be well known by many institutional investors. … Taking a look at our data on the ownership groups (below), it's seems that. … institutional investors have bought into the company
Simply Wall St - – Full articleWhy Reckon Limited's (ASX:RKN) CEO Pay Matters To You
First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Sam Allert's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that Reckon Limited has a market cap of AU$75m, and is paying total annual CEO compensation of AU$665k.
Simply Wall St - – Full articleHere's How P/E Ratios Can Help Us Understand Reckon Limited (ASX:RKN)
This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … Reckon has a price to earnings ratio of 9.82, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleWhy Fundamental Investors Might Love Reckon Limited (ASX:RKN)
I've been keeping an eye on Reckon Limited (ASX:RKN) because I'm attracted to its fundamentals. … Looking at the company as a whole, as a potential stock investment, I believe RKN has a lot to offer. … that has been a rockstar for income investors, currently trading at an attractive share price
Simply Wall St - – Full articleShould Reckon Limited (ASX:RKN) Be Part Of Your Portfolio?
Historically, Reckon Limited (ASX:RKN) has paid dividends to shareholders, and these days it yields 9.0%. … Let's dig deeper into whether Reckon should have a place in your portfolio. … Check out our latest analysis for Reckon
Simply Wall St - – Full articleIs It Too Late To Consider Buying Reckon Limited (ASX:RKN)?
received a lot of attention from a substantial price movement on the ASX over the last few months, increasing to A$0.77 at one point, and dropping to the lows of A$0.65. … Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price? … A question to answer is whether Reckon's current trading price of A$0.66 reflective of the actual value of the?
Simply Wall St - – Full articleBefore You Buy Reckon Limited (ASX:RKN), Consider Its Volatility
If you're interested in Reckon Limited (ASX:RKN), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility).
Simply Wall St - – Full articleIs Reckon Limited's (ASX:RKN) 11% ROE Worse Than Average?
To keep the lesson grounded in practicality, we'll use ROE to better understand Reckon Limited (ASX:RKN). … One way to conceptualize this, is that for each A$1 of shareholders' equity it has, the company made A$0.11 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleRKN Company Info
Description
Reckon Limited provides software solutions for small and medium businesses, larger businesses, accountants, bookkeepers, and lawyers in Australia, the United States, and others. It operates through Business Group, Legal Practice Management Group, and Accountant Practice Management Group segments. The Business Group segment engages in the development, distribution, and support of business accounting and personal wealth management software products, which include Reckon One and Reckon Accounts Hosted cloud software products, Reckon Accounts Business, and Reckon Accounts Personal. The Legal Practice Management Group segment develops and distributes software solutions to legal firms and corporations for revenue management, expense management, print solutions, business process automation, business intelligence, document service automation, and scan and document management solutions under the Reckon nQueue and Reckon Billback brands. The Accountant Practice Management Group segment engages in development, sales, and support of practice management, and compliance and efficiency tools for professional accounting firms under the Reckon APS and Reckon Elite brands. This segment also supplies corporate services, such as company registration and company secretarial tools; and supplies relevant content under the Reckon Docs brand. The company was founded in 1987 and is headquartered in North Sydney, Australia.
Details
| Name: | Reckon Limited |
| RKN | |
| Exchange: | ASX |
| Founded: | 1987 |
| A$81,313,983 | |
| 112,936,088 | |
| Website: | http://www.reckon.com |
| Address: |
Reckon Limited 100 Pacific Highway, Level 2, North Sydney, New South Wales, 2060, Australia |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| ASX | RKN | Ordinary Shares | Australian Securities Exchange | AU | AUD | 19. Jul 1999 | |
| DB | UVW | Ordinary Shares | Deutsche Boerse AG | DE | EUR | 19. Jul 1999 | |
| CHIA | RKN | Ordinary Shares | Chi-X Australia | AU | AUD | 19. Jul 1999 |
Number of employees
Current staff
Industry
| Application Software | |
| Software |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/04/19 10:32 |
| End of day share price update: | 2019/04/18 00:00 |
| Last estimates confirmation: | 2019/04/15 |
| Last earnings filing: | 2019/03/28 |
| Last earnings reported: | 2018/12/31 |
| Last annual earnings reported: | 2018/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
