ReadyTech Holdings Ltd. (RDY) AI Stock Analysis

• Market Cap: AU$290.38M
• Dividend Yield: N/A
• Average Volume (3M): 62.38K
• Price to Earnings (P/E): 71.7
• Beta (1Y): 0.54
• Revenue Growth: 6.59%
• EPS Growth: -331.27%
• Country: AU
• Employees: 365
• Sector: Technology
• Sector Strength: 96
• Industry: Software - Application
• EPS (TTM): -0.16
• Shares Outstanding: 123,564,110
• 10 Day Avg. Volume: 60,164
• 30 Day Avg. Volume: 62,376
• PEG Ratio: 0.05
• Price to Book (P/B): 2.09
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.96
• 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: 61.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 62 Neutral
• Price Target: AU$2.50 ▲(7.76%Upside)

ReadyTech Holdings Ltd. shows strong financial performance, which is the most significant factor in its overall score. However, technical analysis indicates a lack of strong momentum, and the valuation is weak due to a negative P/E ratio and no dividend yield. These factors collectively result in a moderate overall stock score.

ReadyTech Holdings Ltd. Business Overview & Revenue Model

Company Description

ReadyTech Holdings Ltd. (RDY) is an Australian technology company specializing in providing software-as-a-service (SaaS) solutions across various sectors, including education, workforce management, and government. The company delivers innovative cloud-based software that helps organizations manage critical business operations, enhance efficiency, and improve customer engagement. ReadyTech's core products and services include student management systems, payroll and workforce management software, and platforms for government and justice services.

How the Company Makes Money

ReadyTech Holdings Ltd. generates revenue primarily through a subscription-based model, wherein its clients pay recurring fees for access to its SaaS solutions. Key revenue streams include the education sector, where institutions use ReadyTech's student management systems, and the workforce management sector, where businesses utilize its payroll and HR software to streamline operations. Additionally, the company partners with government agencies to provide platforms that enhance service delivery and efficiency. These long-term contracts and partnerships contribute significantly to ReadyTech's earnings by ensuring a stable and predictable revenue flow.

ReadyTech Holdings Ltd. Financial Statement Overview

Summary

ReadyTech Holdings Ltd. exhibits strong financial health with robust revenue and profit growth, efficient operations, and strong cash flow management. The company maintains a balanced financial structure with moderate leverage and a strong equity position.

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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	113.80M	103.31M	78.28M	50.03M	39.25M
Gross Profit	41.92M	18.31M	17.55M	11.79M	9.69M
EBITDA	32.58M	26.63M	26.75M	14.80M	14.97M
Net Income	5.46M	4.97M	8.79M	2.15M	3.94M
Balance Sheet
Total Assets	261.43M	259.28M	185.97M	169.59M	85.85M
Cash, Cash Equivalents and Short-Term Investments	21.87M	20.62M	9.20M	11.99M	9.21M
Total Debt	47.06M	52.11M	37.34M	33.57M	28.14M
Total Liabilities	110.22M	131.03M	87.80M	94.49M	52.78M
Stockholders Equity	151.21M	128.25M	98.17M	75.10M	33.07M
Cash Flow
Free Cash Flow	13.26M	8.10M	4.39M	13.36M	8.78M
Operating Cash Flow	31.59M	27.81M	17.00M	19.50M	13.75M
Investing Cash Flow	-23.67M	-27.78M	-21.29M	-48.84M	-13.27M
Financing Cash Flow	-6.67M	11.39M	1.49M	32.12M	2.41M

ReadyTech Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.32
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 2.32 is below the 20-day moving average (MA) of 2.40, below the 50-day MA of 2.32, and below the 200-day MA of 2.70, indicating a bearish trend. The MACD of 0.01 indicates Positive momentum. The RSI at 45.71 is Neutral, neither overbought nor oversold. The STOCH value of 16.21 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
EOL	63 Neutral	€409.80M	92.63	8.54%	―	13.18%	258.38%
Sector *	63 Neutral	$34.93B	5.90	-12.00%	2.00%	5.61%	-19.55%
RDY	62 Neutral	AU$290.38M	71.67	-11.18%	―	6.59%	-331.27%
EVS	51 Neutral	AU$126.32M	―	-32.90%	―	-0.62%	-225.64%
YOJ	48 Neutral	AU$146.53M	―	-212.47%	―	-54.10%	82.31%
AMX	45 Neutral	AU$20.90M	―	-24.21%	―	-11.35%	-49.13%

ReadyTech Holdings Ltd. Corporate Events

ReadyTech Holdings Announces Cessation of Performance Rights

ReadyTech Holdings Ltd. has announced the cessation of 93,688 performance rights due to the lapse of conditional rights that were not satisfied by the deadline of June 30, 2025. This cessation reflects a potential adjustment in the company’s equity structure, which may impact stakeholders’ expectations regarding future performance and strategic direction.

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 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.