ReadyTech Holdings Ltd. (RDY) AI Stock Analysis

• Market Cap: AU$273.59M
• Dividend Yield: N/A
• Average Volume (3M): 56.64K
• Price to Earnings (P/E): 71.7
• Beta (1Y): 0.50
• Revenue Growth: 6.59%
• EPS Growth: -331.27%
• Country: AU
• Employees: 365
• Sector: Technology
• Sector Strength: 82
• Industry: Software - Application
• EPS (TTM): -0.13
• Shares Outstanding: 122,140,076
• 10 Day Avg. Volume: 64,822
• 30 Day Avg. Volume: 56,642
• PEG Ratio: 0.04
• Price to Book (P/B): 1.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.22
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$3.45
• Price Target Upside: 54.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: AU$2.50 ▲(11.61%Upside)

ReadyTech Holdings Ltd. has strong financial performance, which is its primary strength, contributing significantly to the overall score. However, the technical analysis indicates a bearish trend, and the valuation is poor due to a negative P/E ratio and lack of dividend yield. These factors result in a mediocre overall score, highlighting potential risks if the negative valuation persists.

ReadyTech Holdings Ltd. Business Overview & Revenue Model

Company Description

ReadyTech Holdings Limited provides SaaS technology for education and work pathways, workforce solutions, and government and justice markets in Australia. It operates in three segments: Education, Workforce Solutions, and Government and Justice. The Education segment offers cloud-based student and learning management systems for education and training providers to manage the student lifecycle, including student enrolment and course completion. This segment also provides platforms to help state governments to manage vocational education and training programs; software platforms for the pathways and back-to-work sector to manage apprentices and job seekers; and a competency assessment and skills profiling tools to track on-the-job training through a qualification. The Workforce Solutions segment offers payroll software, outsourced payroll services, and human resource management software solutions to mid-sized company to assist with payroll and management of their employees. This segment also provides human resource (HR) administration services, such as employee records, workplace health and safety, and organizational structure, as well as talent management services. The Government and Justice segment offers government and justice case management software as a service solutions to local and state governments, and justice departments; and provides asset management, property, licensing and compliance, finance, HR and payroll, and customer management products. ReadyTech Holdings Limited was founded in 1998 and is headquartered in Pyrmont, Australia.

How the Company Makes Money

ReadyTech Holdings Ltd. generates revenue through a subscription-based model, where clients pay recurring fees for access to its software platforms. The company's key revenue streams include product subscriptions for its education and workforce management solutions, such as student administration systems and payroll services. Additionally, ReadyTech benefits from implementation and training fees associated with onboarding new clients. Partnerships with educational institutions, government entities, and private enterprises also play a significant role in expanding its market reach and customer base, further driving revenue growth. ReadyTech's emphasis on continuous product innovation and customer support helps maintain high client retention and recurring income.

ReadyTech Holdings Ltd. Financial Statement Overview

Summary

ReadyTech Holdings Ltd. demonstrates strong financial health with solid revenue and profit growth, efficient operations, and sound cash flow management. The company maintains a balanced financial structure with moderate leverage and a strong equity position, providing stability and growth potential in the competitive software application industry.

Income Statement

ReadyTech Holdings Ltd. has shown strong revenue growth, with a 10.2% increase from 2023 to 2024. The gross profit margin stands at 18.5%, and the net profit margin is 4.8%, both indicating a profitable operation. The EBIT margin is 12.4%, and the EBITDA margin is 28.6%, reflecting efficient operations and good cost management. Overall, the company demonstrates healthy financial performance with consistent profit growth over the years.

Balance Sheet

The company maintains a sound balance sheet with a debt-to-equity ratio of 0.31, indicating moderate leverage. The return on equity (ROE) is 3.6%, which is relatively low but stable. The equity ratio is 57.8%, showing a strong equity position. Overall, the company has a stable financial structure with a balance between debt and equity.

Cash Flow

ReadyTech Holdings Ltd. exhibits robust cash flow management with a 63.5% growth in free cash flow from 2023 to 2024. The operating cash flow to net income ratio is 5.78, and the free cash flow to net income ratio is 2.43, indicating strong cash generation relative to earnings. The company effectively converts its profits into cash, which supports its financial flexibility and operational needs.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
117.41M	113.80M	103.31M	78.28M	50.03M	39.25M
	Gross Profit
32.19M	21.09M	18.31M	17.55M	11.79M	9.69M
	EBIT
23.61M	14.15M	13.72M	12.71M	5.92M	6.13M
	EBITDA
25.82M	32.58M	26.63M	26.75M	14.80M	14.97M
	Net Income Common Stockholders
-15.36M	5.46M	4.97M	8.79M	2.15M	3.94M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.31M	21.87M	20.62M	9.20M	11.99M	9.21M
	Total Assets
238.45M	261.43M	259.28M	185.97M	169.59M	85.85M
	Total Debt
46.34M	47.06M	52.11M	37.34M	33.57M	28.14M
	Net Debt
35.03M	25.20M	31.49M	28.14M	21.57M	18.92M
	Total Liabilities
101.11M	110.22M	131.03M	87.80M	94.49M	52.78M
	Stockholders Equity
137.33M	151.21M	128.25M	98.17M	75.10M	33.07M
Cash Flow		Free Cash Flow
18.29M	13.26M	8.10M	4.39M	13.36M	8.78M
	Operating Cash Flow
27.93M	31.59M	27.81M	17.00M	19.50M	13.75M
	Investing Cash Flow
-28.99M	-23.67M	-27.78M	-21.29M	-48.84M	-13.27M
	Financing Cash Flow
-2.55M	-6.67M	11.39M	1.49M	32.12M	2.41M

ReadyTech Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RDY, the sentiment is Negative. The current price of 2.24 is below the 20-day moving average (MA) of 2.29, below the 50-day MA of 2.28, and below the 200-day MA of 2.81, indicating a bearish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 46.21 is Neutral, neither overbought nor oversold. The STOCH value of 10.66 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:RDY.

ReadyTech Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$11.90B	10.64	-7.50%	2.90%	7.41%	-8.19%
RDY	54 Neutral	AU$273.59M	71.67	-11.18%	―	6.59%	-331.27%
RW8		€7.95B	96.12	37.44%	0.61%	―	―
WTCHF		$23.36B	115.70	13.73%	0.19%	―	―
XROLF		$19.19B	142.39	12.98%	―	―	―
73X		€388.30M	14.19	3.67%	17.51%	―	―
BVS	71 Outperform	AU$1.09B	15.13	57.04%	2.64%	18.63%	―

ReadyTech Holdings Ltd. Corporate Events

ReadyTech Holdings Announces Cessation of Performance Rights

ReadyTech Holdings Ltd. announced the cessation of 18,429 performance rights due to the lapse of conditional rights, as the conditions were not met or became incapable of being satisfied. This announcement may impact the company’s financial structure and stakeholder interests, as it reflects on the company’s ability to meet certain performance conditions.

ReadyTech Announces Share Registry Address Change

ReadyTech Holdings Limited has announced a change in the address of its share registry, effective from April 14, 2025. This operational update signifies a logistical adjustment for the company, maintaining its commitment to efficient stakeholder communication and management, without altering its existing contact details.

ReadyTech CFO Nimesh Shah Steps Down Amid Global Search for Successor

ReadyTech Holdings Ltd. announced the departure of its Chief Financial Officer, Nimesh Shah, who played a crucial role in the company’s financial strategy and growth, including its successful ASX listing in 2019. The company has initiated a global search for a new CFO, with Shah assisting in the transition, and remains well-positioned for continued growth with a strong leadership team and strategic direction.

ReadyTech Holdings Announces Director’s Share Acquisition

ReadyTech Holdings Ltd. announced a change in the director’s interest, with Helen Lea acquiring 11,538 fully paid ordinary shares through an on-market trade valued at $29,998.80. This acquisition reflects a strategic move within the company’s leadership, potentially impacting its market position and signaling confidence in the company’s future prospects.