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Reckon Limited (AU:RKN)
ASX:RKN
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Reckon Limited (RKN) AI Stock Analysis

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AU:RKN

Reckon Limited

(Sydney:RKN)

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Outperform 74 (OpenAI - 4o)
Rating:74Outperform
Price Target:
AU$0.50
▼(-13.79% Downside)
Reckon Limited's strong financial performance and attractive valuation are the primary drivers of its stock score. The company's robust cash flow and operational efficiency support its financial health, while its valuation metrics suggest potential for value appreciation. Technical indicators show positive momentum, though caution is advised due to the RSI nearing overbought levels.

Reckon Limited (RKN) vs. iShares MSCI Australia ETF (EWA)

Reckon Limited Business Overview & Revenue Model

Company DescriptionReckon Limited provides software solutions in Australia, the United States, and internationally. The company operates through three divisions: Business Group; Practice Management Group, Accountants; and Practice Management Group, Legal. It offers Reckon One, an online accounting software for small businesses; Single Touch Payroll software for managing pay runs, allowances, leave, and superannuation; Reckon Accounts Hosted, an online accounting software to manage finances, payroll, and inventory for large businesses; Reckon Cloud POS, a cloud-based point of sale software; and Better Clinics, an online practice management software for allied health professionals. The company also provides Reckon Loans, which offers business loans; Reckon Accounts Desktop, a desktop accounting software for businesses; Desktop Point of Sale software; personal finance software; Reckon APS, an accounting practice management software; and Reckon Elite, a small and medium firms practice management software. In addition, it delivers digitalization, practice management, and cost recovery and analytics solutions under the nQ Zebraworks brand primarily to the law firms, and government and corporate legal departments. The company was incorporated in 1987 and is based in North Sydney, Australia.
How the Company Makes MoneyReckon 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
75
Positive
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
70
Positive
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
80
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue58.66M54.04M53.41M51.23M71.06M65.42M
Gross Profit29.98M11.90M13.50M13.50M63.05M15.19M
EBITDA-293.00K20.19M19.70M17.77M29.02M29.74M
Net Income5.41M4.42M5.57M7.31M9.82M9.74M
Balance Sheet
Total Assets57.06M46.40M41.21M39.94M71.87M83.04M
Cash, Cash Equivalents and Short-Term Investments829.00K986.00K975.00K1.23M1.39M1.13M
Total Debt8.93M6.96M5.20M6.49M21.14M38.41M
Total Liabilities31.24M23.78M21.58M22.03M40.05M57.66M
Stockholders Equity25.82M22.25M19.57M17.14M30.53M25.38M
Cash Flow
Free Cash Flow20.13M17.53M4.61M7.47M10.05M12.42M
Operating Cash Flow20.44M17.89M19.13M7.69M10.79M12.91M
Investing Cash Flow-22.79M-14.82M-15.29M78.17M12.90M568.00K
Financing Cash Flow1.34M-3.08M-4.11M-85.93M-23.46M-13.46M

Reckon Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.58
Price Trends
50DMA
0.61
Negative
100DMA
0.55
Positive
200DMA
0.52
Positive
Market Momentum
MACD
<0.01
Positive
RSI
46.13
Neutral
STOCH
58.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RKN, the sentiment is Neutral. The current price of 0.58 is below the 20-day moving average (MA) of 0.62, below the 50-day MA of 0.61, and above the 200-day MA of 0.52, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 46.13 is Neutral, neither overbought nor oversold. The STOCH value of 58.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:RKN.

Reckon Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
€67.96M12.5521.98%4.17%9.30%11.68%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
49
Neutral
AU$67.16M-1801.55%21.82%6.83%
48
Neutral
AU$28.50M-31.01%-3.43%-40.65%
46
Neutral
AU$34.11M7.32%67.11%
41
Neutral
AU$14.38M-133.07%-4.90%-52.78%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:RKN
Reckon Limited
0.58
0.07
12.84%
AU:PRO
Prophecy International Holdings Ltd
0.20
-0.45
-69.23%
AU:AMX
Aerometrex Ltd.
0.30
-0.02
-6.25%
AU:XF1
Xref Ltd
0.16
-0.05
-23.81%
AU:FLX
Felix Group Holdings Ltd.
0.22
0.00
0.00%

Reckon Limited Corporate Events

Reckon Limited Releases Half-Year 2025 Investor Presentation
Aug 4, 2025

Reckon Limited has released its investor presentation for the half year ended 30 June 2025, providing insights into its current and future operations, outlook, and opportunities. The document highlights the company’s financial prospects and strategic intentions, though it cautions that these forward-looking statements are subject to change and should not be relied upon as investment advice.

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 Reports Robust First Half 2025 Financial Results
Aug 4, 2025

Reckon Limited reported strong financial results for the first half of 2025, with a 16% increase in revenue, 21% growth in EBITDA, and a 35% rise in NPAT. The company’s acquisition of Cashflow Manager and the performance of its cloud-based product, Reckon One, contributed significantly to this growth. The Legal Group also saw an 18% increase in subscription revenue, driven by the Billing Workflows products. The company continues to focus on transitioning legacy product users to Reckon One and investing in high-growth opportunities, maintaining a strong balance sheet and rewarding shareholders with dividends.

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 Declares Dividend Distribution for 2025
Aug 4, 2025

Reckon Limited has announced a dividend distribution of AUD 0.025 per fully paid ordinary share, with the ex-date set for August 14, 2025, and the payment date scheduled for September 2, 2025. This announcement reflects the company’s ongoing commitment to delivering shareholder value and may influence its market positioning by signaling financial health and stability to investors.

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 Director Increases Shareholding
May 29, 2025

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
May 14, 2025

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.

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: Aug 06, 2025