Reckon Limited (RKN) AI Stock Analysis

• Market Cap: €56.63M
• Dividend Yield: 5%
• Average Volume (3M): 45.58K
• Price to Earnings (P/E): 12.8
• Beta (1Y): -0.51
• Revenue Growth: 1.32%
• EPS Growth: -21.53%
• Country: AU
• Employees: 180
• Sector: Technology
• Sector Strength: 93
• Industry: Software - Application
• EPS (TTM): 0.04
• Shares Outstanding: 113,294,830
• 10 Day Avg. Volume: 27,139
• 30 Day Avg. Volume: 45,576
• PEG Ratio: -1.40
• Price to Book (P/B): 2.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.17
• 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: €0.50
• Price Target Upside: -0.48% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: AU$0.50 ▲(0.00%Upside)

Reckon Limited's overall stock score reflects its strong financial performance and fair valuation. The company's robust cash flow and operational efficiency are positives, while the neutral technical analysis suggests limited short-term momentum. With a reasonable P/E ratio and attractive dividend yield, the stock offers a balanced investment opportunity.

Reckon Limited Business Overview & Revenue Model

Company Description

Reckon Limited (RKN) is a leading provider of software solutions that cater to the accounting, bookkeeping, and practice management sectors. The company develops and markets a comprehensive suite of software products designed to enhance business productivity and streamline financial management processes for small and medium-sized enterprises (SMEs), accountants, and bookkeepers. With a focus on innovation and user-friendly interfaces, Reckon offers both desktop and cloud-based solutions, ensuring flexibility and accessibility for its diverse client base.

How the Company Makes Money

Reckon Limited generates revenue through the sale of its software products and subscription services. The primary revenue streams include licensing fees from desktop software solutions, subscription fees from cloud-based services, and ancillary services such as technical support and training. The company also benefits from strategic partnerships with accounting professionals and firms that promote its products to end-users. Additionally, Reckon may engage in cross-promotional activities and collaborations that help expand its market reach and drive sales. Its cloud offerings, in particular, provide a recurring revenue model that contributes to steady financial performance.

Reckon Limited Financial Statement Overview

Summary

Reckon Limited demonstrates solid financial health with strong revenue growth, operational efficiency, and robust cash flow generation. Despite a decline in net profit margin and ROE, the company maintains a healthy balance sheet with moderate leverage and solid equity.

Income Statement

Reckon Limited demonstrates a positive revenue growth trend with a 1.32% increase from 2023 to 2024. The gross profit margin improved significantly, reaching 50.92% in 2024. However, net profit margin decreased to 8.17% in 2024 due to a lower net income. EBIT and EBITDA margins are healthy at 16.95% and 9.15% respectively, showcasing operational efficiency.

Balance Sheet

The company maintains a manageable debt-to-equity ratio of 0.31, indicating moderate leverage. The equity ratio stands at 47.95%, reflecting a solid equity base. However, return on equity (ROE) declined to 19.87% in 2024, suggesting reduced profitability on shareholders' investments.

Cash Flow

Reckon Limited exhibits strong cash flow management with a significant free cash flow of 17.53 million and a remarkable free cash flow growth rate of 280.63% from 2023 to 2024. The operating cash flow to net income ratio is robust at 4.05, indicating efficient conversion of income into cash.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	54.04M	53.41M	51.23M	71.06M	75.22M
Gross Profit	11.90M	13.50M	13.50M	63.05M	66.52M
EBITDA	20.19M	19.70M	17.77M	29.02M	32.46M
Net Income	4.42M	5.57M	7.31M	9.82M	9.74M
Balance Sheet
Total Assets	46.40M	41.21M	39.94M	71.87M	83.04M
Cash, Cash Equivalents and Short-Term Investments	986.00K	975.00K	1.23M	1.39M	1.13M
Total Debt	6.96M	5.20M	6.49M	21.14M	38.41M
Total Liabilities	23.78M	21.58M	22.03M	40.05M	57.66M
Stockholders Equity	22.25M	19.57M	17.14M	30.53M	25.38M
Cash Flow
Free Cash Flow	17.53M	4.61M	7.47M	10.05M	12.42M
Operating Cash Flow	17.89M	19.13M	7.69M	10.79M	12.91M
Investing Cash Flow	-14.82M	-15.29M	78.17M	12.90M	568.00K
Financing Cash Flow	-3.08M	-4.11M	-85.93M	-23.46M	-13.46M

Reckon Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RKN, the sentiment is Positive. The current price of 0.5 is above the 20-day moving average (MA) of 0.48, above the 50-day MA of 0.49, and below the 200-day MA of 0.52, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 58.77 is Neutral, neither overbought nor oversold. The STOCH value of 26.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:RKN.

Reckon Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RKN	65 Neutral	€56.63M	12.82	21.21%	5.00%	1.32%	-21.53%
JAN	54 Neutral	€44.18M	―		―	6.10%	51.94%
Sector *	51 Neutral	AU$1.55B	2.02	-31.50%	3.11%	16.21%	-7.40%
XF1	50 Neutral	AU$40.72M	―		―	0.40%	66.36%
PRO	46 Neutral	AU$33.19M	―	-52.29%	―	4.10%	-115.05%
AMX	46 Neutral	AU$19.95M	―	-24.21%	―	-11.35%	-49.13%
FLX	43 Neutral	AU$45.19M	―	-1801.55%	―	27.94%	28.75%

Reckon Limited Corporate Events

Reckon Limited Director Increases Shareholding

Reckon Limited announced a change in the director’s interest, as Samuel Allert, a director, increased his direct holding of company securities by acquiring 80,000 shares through an on-market trade. This transaction, executed at $0.4975 per share, raises Allert’s total holdings to 1,017,779 shares. This move may reflect the director’s confidence in the company’s future prospects and could influence stakeholder perceptions positively.

The most recent analyst rating on (AU:RKN) stock is a Hold with a A$0.65 price target. To see the full list of analyst forecasts on Reckon Limited stock, see the AU:RKN Stock Forecast page.

Reckon Limited Secures Strong Shareholder Support at AGM

Reckon Limited announced that all resolutions at its Annual General Meeting were passed, including the re-election of Clive Rabie as a director and the adoption of the Remuneration Report. The results indicate strong shareholder support, with over 95% voting in favor of the re-election and over 99% supporting the remuneration report. This outcome reflects positively on the company’s governance and strategic direction, potentially strengthening its position in the software industry.

The most recent analyst rating on (AU:RKN) stock is a Hold with a A$0.65 price target. To see the full list of analyst forecasts on Reckon Limited stock, see the AU:RKN Stock Forecast page.