ReadCloud Limited

CHIA:RCL Stock Report

Market Cap: AU$11.6m

ReadCloud Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: RCL (A$0.08) is trading below our estimate of fair value (A$0.72)

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

Key Valuation Metric

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

Key metric: As RCL is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for RCL. This is calculated by dividing RCL's market cap by their current revenue.
What is RCL's PS Ratio?
PS Ratio1x
SalesAU$11.90m
Market CapAU$11.55m

Price to Sales Ratio vs Peers

How does RCL's PS Ratio compare to its peers?

The above table shows the PS ratio for RCL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average5.3x
CF1 Complii FinTech Solutions
1.9xn/aAU$14.3m
KNO Knosys
0.9xn/aAU$10.2m
CAG Cape Range
17.8xn/aAU$11.4m
NET Netlinkz
0.6xn/aAU$11.6m
RCL ReadCloud
1x12.8%AU$11.6m

Price-To-Sales vs Peers: RCL is good value based on its Price-To-Sales Ratio (1x) compared to the peer average (5.3x).

Price to Sales Ratio vs Industry

How does RCL's PS Ratio compare vs other companies in the AU Software Industry?

12 CompaniesPrice / SalesEstimated GrowthMarket Cap
MOQ MOQ
0.3xn/aUS$15.57m
NOV Novatti Group
0.3x9.4%US$8.68m
NET Netlinkz
0.6xn/aUS$7.76m
99L 99 Loyalty
0.3x25.1%US$7.80m
RCL 1.0xIndustry Avg. 3.1xNo. of Companies21PS02.85.68.411.214+
12 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: RCL is good value based on its Price-To-Sales Ratio (1x) compared to the Australian Software industry average (3.1x).

Price to Sales Ratio vs Fair Ratio

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

RCL PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate RCL's Price-To-Sales Fair Ratio for valuation analysis.

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/27 17:56
End of Day Share Price 2024/12/17 00:00
Earnings2024/09/30
Annual Earnings2024/09/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

ReadCloud Limited is covered by 1 analysts. 1 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Graeme CarsonRaaS Advisory Pty Ltd