ReadyTech Holdings Ltd. (RDY) AI Stock Analysis

• Market Cap: AU$302.73M
• Dividend Yield: N/A
• Average Volume (3M): 61.92K
• Price to Earnings (P/E): 71.7
• Beta (1Y): 0.51
• Revenue Growth: 6.59%
• EPS Growth: -331.27%
• Country: AU
• Employees: 365
• Sector: Technology
• Sector Strength: 87
• Industry: Software - Application
• EPS (TTM): -0.16
• Shares Outstanding: 123,564,110
• 10 Day Avg. Volume: 96,388
• 30 Day Avg. Volume: 61,916
• 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$3.75
• Price Target Upside: 53.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 61 Neutral
• Price Target: AU$2.50 ▲(2.04%Upside)

The overall stock score for ReadyTech Holdings Ltd. is primarily influenced by its strong financial performance, which reflects solid revenue growth, efficient operations, and robust cash flow management. However, the technical analysis presents mixed signals with short-term bullishness but long-term bearish trends. The valuation is a significant concern due to the negative P/E ratio and lack of dividend yield, which negatively impact the overall score.

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
EBITDA	25.82M	32.58M	26.63M	26.75M	14.80M	14.97M
Net Income	-15.36M	5.46M	4.97M	8.79M	2.15M	3.94M
Balance Sheet
Total Assets	238.45M	261.43M	259.28M	185.97M	169.59M	85.85M
Cash, Cash Equivalents and Short-Term Investments	11.31M	21.87M	20.62M	9.20M	11.99M	9.21M
Total Debt	46.34M	47.06M	52.11M	37.34M	33.57M	28.14M
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: Neutral
• Last Price: 2.45
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RDY, the sentiment is Neutral. The current price of 2.45 is above the 20-day moving average (MA) of 2.28, above the 50-day MA of 2.25, and below the 200-day MA of 2.74, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 60.90 is Neutral, neither overbought nor oversold. The STOCH value of 84.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 *	63 Neutral	$34.07B	6.13	-11.73%	1.80%	5.33%	-18.31%
RDY	61 Neutral	AU$302.73M	71.67	-11.18%	―	6.59%	-331.27%
E8R		€243.44M	90.01	8.54%	―	―	―
YOJ	52 Neutral	AU$136.48M	―	-212.47%	―	-54.10%	82.31%
RCL		AU$16.13M	―	-1.14%	―	―	―
EVS	51 Neutral	AU$124.63M	―	-32.90%	―	-0.62%	-225.64%
AMX	44 Neutral	AU$20.42M	―	-24.21%	―	-11.35%	-49.13%

ReadyTech Holdings Ltd. Corporate Events

ReadyTech Issues Shares for Open Windows Acquisition

ReadyTech Holdings Ltd. has issued 1,424,032 fully paid ordinary shares to the vendors of Open Windows as part of the deferred consideration for an acquisition completed in December 2021. This issuance, conducted without disclosure under Part 6D.2 of the Corporations Act 2001, signifies ReadyTech’s ongoing compliance with relevant legal provisions, reinforcing its strategic growth and positioning in the SaaS industry.

The most recent analyst rating on (AU:RDY) stock is a Buy with a A$3.80 price target. To see the full list of analyst forecasts on ReadyTech Holdings Ltd. stock, see the AU:RDY Stock Forecast page.

ReadyTech Holdings Issues Shares for Open Windows Acquisition

ReadyTech Holdings Ltd. announced the issuance of 1,424,032 ordinary fully paid shares as part of a deferred consideration for the acquisition of Open Windows. This move is expected to enhance ReadyTech’s market position by integrating Open Windows’ capabilities, potentially benefiting stakeholders through expanded service offerings.

The most recent analyst rating on (AU:RDY) stock is a Hold with a A$3.15 price target. To see the full list of analyst forecasts on ReadyTech Holdings Ltd. stock, see the AU:RDY Stock Forecast page.

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.