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RS2

RS2 Software MTSE:RS2 Stock Report

Last Price

€1.66

Market Cap

€320.3m

7D

0.6%

1Y

-7.8%

Updated

17 May, 2022

Data

Company Financials
RS2 fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance1/6
Financial Health6/6
Dividends0/6

RS2 Stock Overview

RS2 Software p.l.c., together with its subsidiaries, engages in the development, installation, implementation, marketing, and licensing of computer software for financial institutions under the BankWORKS name.

RS2 Software Competitors

Price History & Performance

Summary of all time highs, changes and price drops for RS2 Software
Historical stock prices
Current Share Price€1.66
52 Week High€2.12
52 Week Low€1.57
Beta0.47
1 Month Change-1.19%
3 Month Change-4.05%
1 Year Change-7.78%
3 Year Change20.29%
5 Year Change22.46%
Change since IPO948.15%

Recent News & Updates

May 07
RS2 Software's (MTSE:RS2) Promising Earnings May Rest On Soft Foundations

RS2 Software's (MTSE:RS2) Promising Earnings May Rest On Soft Foundations

RS2 Software p.l.c.'s ( MTSE:RS2 ) robust earnings report didn't manage to move the market for its stock. Our analysis...

Shareholder Returns

RS2MT SoftwareMT Market
7D0.6%2.2%0.6%
1Y-7.8%-15.9%-5.7%

Return vs Industry: RS2 exceeded the MT Software industry which returned -15.9% over the past year.

Return vs Market: RS2 underperformed the MT Market which returned -5.4% over the past year.

Price Volatility

Is RS2's price volatile compared to industry and market?
RS2 volatility
RS2 Average Weekly Movementn/a
Software Industry Average Movement7.5%
Market Average Movement6.5%
10% most volatile stocks in MT Market12.0%
10% least volatile stocks in MT Market3.6%

Stable Share Price: Insufficient data to determine RS2's volatility over the past 3 months.

Volatility Over Time: Insufficient data to determine RS2's volatility change over the past year.

About the Company

FoundedEmployeesCEOWebsite
1988480Radi El Hajhttps://www.rs2.com

RS2 Software p.l.c., together with its subsidiaries, engages in the development, installation, implementation, marketing, and licensing of computer software for financial institutions under the BankWORKS name. The company operates through Software (License) Solutions, Processing Solutions, and Merchant Solutions segments. Its BankWORKS platform offers end-to-end payment solutions, such as payment gateway, switching of payment transactions originated from POS, ATM, e-Commerce, InAPP, clearing and settlement, chargeback management integrated in the merchant portal, fraud, and risk monitoring, reporting and statement, and a sub-GL accounting and automated reconciliation that integrates with the client’s general ledger.

RS2 Software Fundamentals Summary

How do RS2 Software's earnings and revenue compare to its market cap?
RS2 fundamental statistics
Market Cap€320.33m
Earnings (TTM)€3.01m
Revenue (TTM)€38.68m

106.4x

P/E Ratio

8.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RS2 income statement (TTM)
Revenue€38.68m
Cost of Revenue€21.73m
Gross Profit€16.95m
Other Expenses€13.93m
Earnings€3.01m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.016
Gross Margin43.81%
Net Profit Margin7.79%
Debt/Equity Ratio6.4%

How did RS2 perform over the long term?

See historical performance and comparison

Valuation

Is RS2 Software undervalued compared to its fair value and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


106.41x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate RS2's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate RS2's fair value for valuation analysis.


Price To Earnings Ratio

PE vs Industry: RS2 is poor value based on its PE Ratio (106.4x) compared to the European Software industry average (33.9x).

PE vs Market: RS2 is poor value based on its PE Ratio (106.4x) compared to the MT market (24.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RS2's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RS2 is overvalued based on its PB Ratio (10.8x) compared to the XE Software industry average (3.2x).


Future Growth

How is RS2 Software forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


23.5%

Forecasted Software industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as RS2 Software has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has RS2 Software performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-30.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: RS2 has a high level of non-cash earnings.

Growing Profit Margin: RS2 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: RS2's earnings have declined by 30.5% per year over the past 5 years.

Accelerating Growth: RS2 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: RS2 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Software industry (21.8%).


Return on Equity

High ROE: RS2's Return on Equity (13.2%) is considered low.


Financial Health

How is RS2 Software's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: RS2's short term assets (€20.4M) exceed its short term liabilities (€12.9M).

Long Term Liabilities: RS2's short term assets (€20.4M) exceed its long term liabilities (€9.2M).


Debt to Equity History and Analysis

Debt Level: RS2 has more cash than its total debt.

Reducing Debt: RS2's debt to equity ratio has reduced from 13.4% to 6.4% over the past 5 years.

Debt Coverage: RS2's debt is well covered by operating cash flow (59.1%).

Interest Coverage: RS2's interest payments on its debt are well covered by EBIT (49.1x coverage).


Balance Sheet


Dividend

What is RS2 Software current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate RS2's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate RS2'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 RS2's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RS2's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: RS2 is not paying a notable dividend for the MT market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as RS2 has not reported any payouts.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Radi El Haj

10.33yrs

Tenure

Mr. Radi Abd El Haj has been the Chief Executive Officer since January 2012 and Executive Director since 12 June 2012 at RS2 Software PLC. Mr. El Haj served as a Director of RS2 Software PLC until January...


Leadership Team

Experienced Management: RS2's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: RS2's board of directors are considered experienced (9.9 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

RS2 Software p.l.c.'s employee growth, exchange listings and data sources


Key Information

  • Name: RS2 Software p.l.c.
  • Ticker: RS2
  • Exchange: MTSE
  • Founded: 1988
  • Industry: Application Software
  • Sector: Software
  • Implied Market Cap: €320.328m
  • Shares outstanding: 192.97m
  • Website: https://www.rs2.com

Number of Employees


Location

  • RS2 Software p.l.c.
  • RS2 Buildings
  • Triq Il-Fortizza
  • Mosta
  • 1859
  • Malta

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/17 00:00
End of Day Share Price2022/05/13 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.