Reckon Limited (RKN) AI Stock Analysis

• Market Cap: €67.96M
• Dividend Yield: 4.17%
• Average Volume (3M): 74.36K
• Price to Earnings (P/E): 12.6
• Beta (1Y): -0.16
• Revenue Growth: 9.30%
• EPS Growth: 11.68%
• Country: AU
• Employees: 180
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.04
• Shares Outstanding: 113,294,830
• 10 Day Avg. Volume: 87,029
• 30 Day Avg. Volume: 74,356
• PEG Ratio: -0.74
• Price to Book (P/B): 3.04
• Price to Sales (P/S): 1.25
• P/FCF Ratio: 3.86
• 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: €0.84
• Price Target Upside: 45.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• 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 Business Overview & Revenue Model

Company Description

Reckon 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 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	58.66M	54.04M	53.41M	51.23M	71.06M	65.42M
Gross Profit	29.98M	11.90M	13.50M	13.50M	63.05M	15.19M
EBITDA	-293.00K	20.19M	19.70M	17.77M	29.02M	29.74M
Net Income	5.41M	4.42M	5.57M	7.31M	9.82M	9.74M
Balance Sheet
Total Assets	57.06M	46.40M	41.21M	39.94M	71.87M	83.04M
Cash, Cash Equivalents and Short-Term Investments	829.00K	986.00K	975.00K	1.23M	1.39M	1.13M
Total Debt	8.93M	6.96M	5.20M	6.49M	21.14M	38.41M
Total Liabilities	31.24M	23.78M	21.58M	22.03M	40.05M	57.66M
Stockholders Equity	25.82M	22.25M	19.57M	17.14M	30.53M	25.38M
Cash Flow
Free Cash Flow	20.13M	17.53M	4.61M	7.47M	10.05M	12.42M
Operating Cash Flow	20.44M	17.89M	19.13M	7.69M	10.79M	12.91M
Investing Cash Flow	-22.79M	-14.82M	-15.29M	78.17M	12.90M	568.00K
Financing Cash Flow	1.34M	-3.08M	-4.11M	-85.93M	-23.46M	-13.46M

Reckon Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.58
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RKN	74 Outperform	€67.96M	12.55	21.98%	4.17%	9.30%	11.68%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
FLX	49 Neutral	AU$67.16M	―	-1801.55%	―	21.82%	6.83%
AMX	48 Neutral	AU$28.50M	―	-31.01%	―	-3.43%	-40.65%
XF1	46 Neutral	AU$34.11M	―	―	―	7.32%	67.11%
PRO	41 Neutral	AU$14.38M	―	-133.07%	―	-4.90%	-52.78%

Reckon Limited Corporate Events

Reckon Limited Releases Half-Year 2025 Investor Presentation

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

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

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

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.