RKN Stock Overview

Provides software solutions in Australia, the United States, and internationally. More details

RKN fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	4/6
Past Performance	1/6
Financial Health	4/6
Dividends	3/6

Rewards

Trading at 90.5% below our estimate of its fair value

Earnings are forecast to grow 16.07% per year

Trading at good value compared to peers and industry

Risk Analysis

Does not have a meaningful market cap (A$66M)

Unstable dividend track record

My Notes

Capture your thoughts, links and company narrative

Reckon Limited Competitors

Integrated Research

ASX:IRI

AU$96.7m

Etherstack

ASX:ESK

AU$29.0m

Symbio Holdings

ASX:SYM

AU$225.7m

DUG Technology

ASX:DUG

AU$173.0m

Price History & Performance

Summary of share price highs, lows and changes for Reckon
Historical stock prices
Current Share Price	AU$0.57
52 Week High	AU$0.64
52 Week Low	AU$0.49
Beta	0.13
1 Month Change	0%
3 Month Change	10.68%
1 Year Change	-0.87%
3 Year Change	-43.00%
5 Year Change	-22.97%
Change since IPO	-71.36%

Recent updates

Shareholder Returns

	RKN	AU Software	AU Market
7D	1.8%	-1.2%	-2.7%
1Y	-0.9%	61.0%	6.5%

Return vs Industry: RKN underperformed the Australian Software industry which returned 61% over the past year.

Return vs Market: RKN underperformed the Australian Market which returned 6.5% over the past year.

Price Volatility

Is RKN's price volatile compared to industry and market?
RKN volatility
RKN Average Weekly Movement	3.5%
Software Industry Average Movement	9.1%
Market Average Movement	8.0%
10% most volatile stocks in AU Market	16.8%
10% least volatile stocks in AU Market	3.1%

Stable Share Price: RKN has not had significant price volatility in the past 3 months compared to the Australian market.

Volatility Over Time: RKN's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1987	n/a	Sam Allert	www.reckon.com/au/

Reckon Limited provides software solutions in Australia, the United States, and internationally. It offers Reckon One, software as a service cloud-based accounting and payroll software platform, which includes mobile app functionality for small businesses; Reckon Payroll, a cloud payroll software for employee self-service; Reckon invoice to create and send online invoices; Reckon business loans; Reckon Accounts Hosted, an online accounting software for large businesses; Reckon Insights, a financial reporting and analytics software; and Reckon Payments that accepts online payments. The company also provides bank reconciliation software that imports bank transactions; expense management software for small businesses; Reckon Timesheets, a software to track time and manage employee timesheets; and project management software for managing jobs and projects to track profitability.

Reckon Limited Fundamentals Summary

How do Reckon's earnings and revenue compare to its market cap?
RKN fundamental statistics
Market cap	AU$65.71m
Earnings (TTM)	AU$4.85m
Revenue (TTM)	AU$53.67m

13.6x

P/E Ratio

1.2x

P/S Ratio

Is RKN overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
RKN income statement (TTM)
Revenue	AU$53.67m
Cost of Revenue	AU$25.74m
Gross Profit	AU$27.93m
Other Expenses	AU$23.08m
Earnings	AU$4.85m

Last Reported Earnings

Jun 30, 2024

Next Earnings Date

n/a

Earnings per share (EPS)	0.043
Gross Margin	52.04%
Net Profit Margin	9.03%
Debt/Equity Ratio	0%

How did RKN perform over the long term?

See historical performance and comparison

Dividends

4.3%

Current Dividend Yield

58%

Payout Ratio

Company Analysis and Financial Data Status

Data	Last Updated (UTC time)
Company Analysis	2024/12/21 11:33
End of Day Share Price	2024/12/20 00:00
Earnings	2024/06/30
Annual Earnings	2023/12/31

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.

Package	Data	Timeframe	Example US Source ^*
Company Financials	10 years	Income statement Cash flow statement Balance sheet	SEC Form 10-K SEC Form 10-Q
Analyst Consensus Estimates	+3 years	Forecast financials Analyst price targets	Analyst Research Reports Blue Matrix
Market Prices	30 years	Stock prices Dividends, Splits and Actions	ICE Market Data SEC Form S-1
Ownership	10 years	Top shareholders Insider trading	SEC Form 4 SEC Form 13D
Management	10 years	Leadership team Board of directors	SEC Form 10-K SEC Form DEF 14A
Key Developments	10 years	Company announcements	SEC Form 8-K

^* 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

Reckon Limited is covered by 11 analysts. 3 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

Analyst	Institution
Darren Odell	CCZ Equities Pty Limited
Alva DeVoy	CGS International
Mike Younger	Goldman Sachs

RKN Stock Overview

Rewards

Risk Analysis

Reckon Limited Competitors

ASX:IRI

AU$96.7m

ASX:ESK

AU$29.0m

ASX:SYM

AU$225.7m

ASX:DUG

AU$173.0m

Price History & Performance

Recent News & Updates

Reckon Limited (ASX:RKN) agreed to acquire Money Management Group Pty Ltd for AUD 8.8 million.

First half 2024 earnings released: EPS: AU$0.031 (vs AU$0.037 in 1H 2023)

Reckon Limited, Annual General Meeting, May 24, 2024

Reckon Limited, Annual General Meeting, May 24, 2024

Full year 2023 earnings released: EPS: AU$0.049 (vs AU$0.04 in FY 2022)

Upcoming dividend of AU$0.025 per share at 8.6% yield

Recent updates

Reckon Limited (ASX:RKN) agreed to acquire Money Management Group Pty Ltd for AUD 8.8 million.

First half 2024 earnings released: EPS: AU$0.031 (vs AU$0.037 in 1H 2023)

Reckon Limited, Annual General Meeting, May 24, 2024

Reckon Limited, Annual General Meeting, May 24, 2024

Full year 2023 earnings released: EPS: AU$0.049 (vs AU$0.04 in FY 2022)

Upcoming dividend of AU$0.025 per share at 8.6% yield

New minor risk - Profit margin trend

First half 2023 earnings released: EPS: AU$0.037 (vs AU$0.033 in 1H 2022)

Now 21% undervalued after recent price drop

Full year 2022 earnings released: EPS: AU$0.04 (vs AU$0.055 in FY 2021)

Now 21% undervalued after recent price drop

Now 21% undervalued after recent price drop

Full year 2022 earnings released: EPS: AU$0.04 (vs AU$0.086 in FY 2021)

Reckon Limited Declares No Final Dividend for the Year of 2022

Insufficient new directors

Now 44% undervalued after recent price drop

Upcoming dividend of AU$0.57 per share

Reckon Limited Declares A Special Dividend, 2022, Payable on 21 November 2022

Insufficient new directors

Non-Executive Director recently sold AU$255k worth of stock

Upcoming dividend of AU$0.03 per share

First half 2022 earnings released: EPS: AU$0.033 (vs AU$0.028 in 1H 2021)

Reckon Limited Declares an Interim Fully Franked Dividend for the Six Months Ended June 30, 2022, Payable on 23 September 2022

Access UK Limited completed the acquisition of Accountants Practice Management Group from Reckon Limited (ASX:RKN).

Access UK Limited entered into an agreement to acquire Accountants Practice Management Group from Reckon Limited (ASX:RKN) for $100 million.

Investor sentiment improved over the past week

Insufficient new directors

Insufficient new directors

Full year 2021 earnings released: EPS: AU$0.086 (vs AU$0.086 in FY 2020)

Reckon Limited, Annual General Meeting, May 25, 2022

Insufficient new directors

Insufficient new directors

Reckon Limited Declares Ordinary Dividend for the Six Months Ended December 31, 2021, Payable on March 25, 2022

Insufficient new directors

Upcoming dividend of AU$0.03 per share

First half 2021 earnings released: EPS AU$0.046 (vs AU$0.041 in 1H 2020)

Novatti Group Limited (ASX:NOV) completed the acquisition of 19.9% stake in Reckon Limited (ASX:RKN) from institutional investors for AUD 22.5 million.

Novatti Group Limited (ASX:NOV) entered into a share purchase agreement to acquire a stake in Reckon Limited (ASX:RKN) from institutional investors for approximately AUD 17 million.

Full year 2020 earnings released: EPS AU$0.086 (vs AU$0.072 in FY 2019)

NowInfinity Pty Ltd completed the acquisition of ReckonDocs Business from Reckon Limited.

New 90-day low: AU$0.74

Full year 2020 earnings released: EPS AU$0.086 (vs AU$0.072 in FY 2019)

Revenue misses expectations

NowInfinity Pty Ltd enter into an agreement to acquire ReckonDocs Business from Reckon Limited for AUD 13 million.

Reckon Limited (ASX:RKN) completed the acquisition of ZebraWorks, Inc.

New 90-day high: AU$0.89

New 90-day high: AU$0.86

New 90-day high: AU$0.89

New 90-day high - AU$0.85

New 90-day high - AU$0.78

First half earnings released

Reckon Limited (ASX:RKN) sign an agreement to acquire ZebraWorks, Inc

Shareholder Returns

Price Volatility

About the Company

Reckon Limited Fundamentals Summary

13.6x

1.2x

Earnings & Revenue