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ReadyTech Holdings Ltd. (AU:RDY)
ASX:RDY
Australian Market

ReadyTech Holdings Ltd. (RDY) AI Stock Analysis

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AU

ReadyTech Holdings Ltd.

(Sydney:RDY)

Rating:61Neutral
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. (RDY) vs. iShares MSCI Australia ETF (EWA)

ReadyTech Holdings Ltd. Business Overview & Revenue Model

Company DescriptionReadyTech 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 MoneyReadyTech 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
86
Very Positive
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
78
Positive
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
82
Very Positive
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.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue117.41M113.80M103.31M78.28M50.03M39.25M
Gross Profit32.19M21.09M18.31M17.55M11.79M9.69M
EBITDA25.82M32.58M26.63M26.75M14.80M14.97M
Net Income-15.36M5.46M4.97M8.79M2.15M3.94M
Balance Sheet
Total Assets238.45M261.43M259.28M185.97M169.59M85.85M
Cash, Cash Equivalents and Short-Term Investments11.31M21.87M20.62M9.20M11.99M9.21M
Total Debt46.34M47.06M52.11M37.34M33.57M28.14M
Total Liabilities101.11M110.22M131.03M87.80M94.49M52.78M
Stockholders Equity137.33M151.21M128.25M98.17M75.10M33.07M
Cash Flow
Free Cash Flow18.29M13.26M8.10M4.39M13.36M8.78M
Operating Cash Flow27.93M31.59M27.81M17.00M19.50M13.75M
Investing Cash Flow-28.99M-23.67M-27.78M-21.29M-48.84M-13.27M
Financing Cash Flow-2.55M-6.67M11.39M1.49M32.12M2.41M

ReadyTech Holdings Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2.45
Price Trends
50DMA
2.25
Positive
100DMA
2.47
Negative
200DMA
2.74
Negative
Market Momentum
MACD
0.03
Negative
RSI
60.90
Neutral
STOCH
84.55
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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
$34.07B6.13-11.73%1.80%5.33%-18.31%
AURDY
61
Neutral
AU$302.73M71.67-11.18%6.59%-331.27%
DEE8R
€243.44M90.018.54%
AUYOJ
52
Neutral
AU$136.48M-212.47%-54.10%82.31%
AURCL
AU$16.13M-1.14%
AUEVS
51
Neutral
AU$124.63M-32.90%-0.62%-225.64%
AUAMX
44
Neutral
AU$20.42M-24.21%-11.35%-49.13%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:RDY
ReadyTech Holdings Ltd.
2.45
-0.83
-25.30%
DE:E8R
Energy One Limited
7.50
4.46
146.71%
AU:YOJ
Yojee Ltd.
0.45
0.41
1025.00%
AU:RCL
ReadCloud Ltd.
0.10
-0.02
-16.67%
AU:EVS
EnviroSuite Ltd
0.08
0.02
33.33%
AU:AMX
Aerometrex Ltd.
0.22
-0.23
-51.11%

ReadyTech Holdings Ltd. Corporate Events

ReadyTech Issues Shares for Open Windows Acquisition
Jun 30, 2025

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
Jun 30, 2025

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
Apr 15, 2025

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
Apr 11, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 26, 2025