| Snowflake Score | |
|---|---|
| Valuation | 5/6 |
| Future Growth | 2/6 |
| Past Performance | 5/6 |
| Financial Health | 3/6 |
| Dividends | 3/6 |
RKN Stock Overview
Reckon Limited provides software solutions in Australia, the United States, and internationally.
Reckon Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | AU$0.96 |
| 52 Week High | AU$1.20 |
| 52 Week Low | AU$0.74 |
| Beta | 0.85 |
| 1 Month Change | 1.59% |
| 3 Month Change | -6.34% |
| 1 Year Change | 15.66% |
| 3 Year Change | 38.13% |
| 5 Year Change | -41.46% |
| Change since IPO | -65.84% |
Recent News & Updates
Shareholder Returns
| RKN | AU Software | AU Market | |
|---|---|---|---|
| 7D | -1.0% | -2.1% | -2.8% |
| 1Y | 15.7% | 4.5% | 5.8% |
Return vs Industry: RKN exceeded the Australian Software industry which returned 4.5% over the past year.
Return vs Market: RKN exceeded the Australian Market which returned 5.8% over the past year.
Price Volatility
| RKN volatility | |
|---|---|
| RKN Average Weekly Movement | 3.5% |
| Software Industry Average Movement | 8.7% |
| Market Average Movement | 8.6% |
| 10% most volatile stocks in AU Market | 15.4% |
| 10% least volatile stocks in AU Market | 3.7% |
Stable Share Price: RKN is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: RKN's weekly volatility (3%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1987 | n/a | Sam Allert | https://www.reckon.com |
Reckon Limited provides software solutions in Australia, the United States, and internationally. It operates through Business Group; Practice Management Group, Accountants; and Practice Management Group, Legal segments. The company offers Reckon One, an online accounting software for small businesses; Single Touch Payroll software for managing pay runs, allowances, leave, and superannuation; Reckon Accounts Hosted, an online accounting software to manage finances, payroll, and inventory; Reckon Cloud POS, an online point of sale software; and Better Clinics, an online practice management software for health and fitness professionals.
Reckon Fundamentals Summary
| RKN fundamental statistics | |
|---|---|
| Market Cap | AU$108.76m |
| Earnings (TTM) | AU$10.33m |
| Revenue (TTM) | AU$75.63m |
10.5x
P/E Ratio1.4x
P/S RatioIs RKN overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| RKN income statement (TTM) | |
|---|---|
| Revenue | AU$75.63m |
| Cost of Revenue | AU$34.03m |
| Gross Profit | AU$41.60m |
| Expenses | AU$31.26m |
| Earnings | AU$10.33m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 0.091 |
| Gross Margin | 55.00% |
| Net Profit Margin | 13.66% |
| Debt/Equity Ratio | 52.8% |
How did RKN perform over the long term?
See historical performance and comparisonDividends
5.2%
Current Dividend Yield55%
Payout RatioValuation
Is Reckon 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: RKN (A$0.96) is trading below our estimate of fair value (A$2.5)
Significantly Below Fair Value: RKN is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: RKN is good value based on its PE Ratio (10.5x) compared to the Australian Software industry average (43.6x).
PE vs Market: RKN is good value based on its PE Ratio (10.5x) compared to the Australian market (18.6x).
Price to Earnings Growth Ratio
PEG Ratio: RKN is poor value based on its PEG Ratio (3.1x)
Price to Book Ratio
PB vs Industry: RKN is good value based on its PB Ratio (3.8x) compared to the AU Software industry average (5.3x).
Future Growth
How is Reckon forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
3.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RKN's forecast earnings growth (3.4% per year) is above the savings rate (1.9%).
Earnings vs Market: RKN's earnings (3.4% per year) are forecast to grow slower than the Australian market (10.9% per year).
High Growth Earnings: RKN's earnings are forecast to grow, but not significantly.
Revenue vs Market: RKN's revenue (0.9% per year) is forecast to grow slower than the Australian market (4.9% per year).
High Growth Revenue: RKN's revenue (0.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: RKN's Return on Equity is forecast to be high in 3 years time (33.2%)
Past Performance
How has Reckon performed over the past 5 years?
4.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RKN has high quality earnings.
Growing Profit Margin: RKN's current net profit margins (13.7%) are higher than last year (10.2%).
Past Earnings Growth Analysis
Earnings Trend: RKN's earnings have grown by 4.6% per year over the past 5 years.
Accelerating Growth: RKN's earnings growth over the past year (37.5%) exceeds its 5-year average (4.6% per year).
Earnings vs Industry: RKN earnings growth over the past year (37.5%) underperformed the Software industry 37.5%.
Return on Equity
High ROE: RKN's Return on Equity (33.6%) is considered high.
Financial Health
How is Reckon's financial position?
Financial Position Analysis
Short Term Liabilities: RKN's short term assets (A$8.7M) do not cover its short term liabilities (A$16.3M).
Long Term Liabilities: RKN's short term assets (A$8.7M) do not cover its long term liabilities (A$25.4M).
Debt to Equity History and Analysis
Debt Level: RKN's net debt to equity ratio (46.8%) is considered high.
Reducing Debt: RKN's debt to equity ratio has reduced from 156.3% to 52.8% over the past 5 years.
Debt Coverage: RKN's debt is well covered by operating cash flow (75.3%).
Interest Coverage: RKN's interest payments on its debt are well covered by EBIT (14.8x coverage).
Balance Sheet
Dividend
What is Reckon current dividend yield, its reliability and sustainability?
5.21%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RKN's dividend (5.21%) is higher than the bottom 25% of dividend payers in the Australian market (2.25%).
High Dividend: RKN's dividend (5.21%) is low compared to the top 25% of dividend payers in the Australian market (5.56%).
Stability and Growth of Payments
Stable Dividend: RKN's dividend payments have been volatile in the past 10 years.
Growing Dividend: RKN's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (54.9%), RKN's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: RKN's dividends in 3 years are forecast to be covered by earnings (63.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
17.3yrs
Average management tenure
CEO
Sam Allert
3.5yrs
Tenure
AU$914,741
Compensation
Mr. Samuel Allert, also known as Sam, has been Group Chief Executive Officer and Executive Director at Reckon Limited since July 1, 2018. Mr. Allert served as Managing Director of Business and Accountant G...
CEO Compensation Analysis
Compensation vs Market: Sam's total compensation ($USD659.08K) is above average for companies of similar size in the Australian market ($USD291.61K).
Compensation vs Earnings: Sam's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: RKN's management team is seasoned and experienced (17.3 years average tenure).
Board Members
Experienced Board: RKN's board of directors are seasoned and experienced ( 10.1 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
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Reckon Limited's employee growth, exchange listings and data sources
Key Information
- Name: Reckon Limited
- Ticker: RKN
- Exchange: ASX
- Founded: 1987
- Industry: Application Software
- Sector: Software
- Implied Market Cap: AU$108.763m
- Shares outstanding: 113.29m
- Website: https://www.reckon.com
Location
- Reckon Limited
- 100 Pacific Highway
- Level 2
- North Sydney
- New South Wales
- 2060
- Australia
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/23 07:03 |
| End of Day Share Price | 2022/01/21 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.