RAS Technology Holdings Limited (RTH) AI Stock Analysis

• Market Cap: AU$36.87M
• Dividend Yield: N/A
• Average Volume (3M): 26.66K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.60
• Revenue Growth: 31.44%
• EPS Growth: N/A
• Country: AU
• Employees: 67
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): <0.01
• Shares Outstanding: 47,885,900
• 10 Day Avg. Volume: 15,892
• 30 Day Avg. Volume: 26,662
• PEG Ratio: -0.34
• Price to Book (P/B): 2.93
• Price to Sales (P/S): 1.99
• P/FCF Ratio: 14.35
• 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$1.73
• Price Target Upside: 80.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.03
• Revenue Forecast (FY): AU$28.90M

• Rating: 61 Neutral
• Price Target: AU$0.83 ▼(-13.54% Downside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 02/04/26

The score is driven primarily by solid financial performance, led by strong free cash flow growth and improving margins alongside low leverage. Technicals are only moderately supportive, with neutral-to-mild momentum but the price still below longer-term moving averages. Valuation is the main downside due to the very high P/E and no dividend yield data.

Positive Factors

Cash generation

Exceptional free cash flow growth (340.87%) and a free cash flow to net income ratio near 1.0 demonstrate durable cash conversion. Strong ongoing cash generation reduces reliance on external financing, funds organic investment, and supports operational resilience over the next 2–6 months.

Revenue and gross margin improvement

Sustained revenue growth (~13.8%) combined with materially higher gross margin (45.8%) points to improving unit economics and better cost or pricing dynamics. This structural improvement supports scalable earnings potential as the business leverages fixed costs and deepens market penetration.

Low financial leverage

A very low debt-to-equity ratio (0.03) and a strong equity base provide durable financial flexibility. Low leverage reduces solvency risk, preserves optionality for M&A or capex, and allows the company to fund growth internally or withstand economic stress over the medium term.

Negative Factors

Low net profitability

Net profit margin of just 2.47% shows limited conversion of revenue into shareholder earnings despite improving gross margins. Persistently thin net margins constrain retained earnings and reinvestment capacity, making sustained margin expansion critical for long-term value creation.

Modest return on equity

ROE of 3.64% reflects modest efficiency in converting equity into profit. Over months this low return profile can limit attractiveness to growth capital, signal suboptimal capital allocation, and indicate that incremental investments may yield limited shareholder value without operational improvements.

Negative EPS growth / earnings volatility

Reported EPS growth of -165% indicates notable earnings deterioration or volatility versus prior periods. Such pronounced negative EPS trends suggest episodic charges or scaling losses that could impede steady profitability recovery and make near-term earnings visibility weak for investors.

RAS Technology Holdings Limited Business Overview & Revenue Model

Company Description

RAS Technology Holdings Limited provides integrated data, content, and software as a service (SaaS) solution to the racing and wagering industries in Australia, the United Kingdom, the United States, Sri Lanka, and internationally. It offers wholesale data, content distribution, wagering technology and services, specialist data services, digital and media, and consulting and integrity services to racing bodies and authorities, wagering operators, media and digital organizations, and retail and private clients. The company was founded in 1999 and is based in Kingston, Australia.

How the Company Makes Money

RAS Technology Holdings Limited generates revenue through multiple streams, primarily by offering telecommunications infrastructure services, which include the installation and maintenance of communication networks for corporate clients. Additionally, the company earns revenue from its cybersecurity solutions, which involve licensing its software products and providing ongoing support and consulting services. The custom software development segment also contributes to earnings, allowing clients to tailor solutions to their specific needs. Significant partnerships with telecom providers and technology firms enhance RTH's market reach and provide access to new customer bases, further bolstering its revenue potential.

RAS Technology Holdings Limited Financial Statement Overview

Summary

Financial statements indicate solid momentum: revenue growth of 13.82% and a higher gross margin (45.80%) support improving fundamentals. Cash generation is a key strength with free cash flow growth of 340.87% and strong free cash flow to net income (0.97). Offsetting this, net profit margin remains low (2.47%) and ROE is modest (3.64%), indicating profitability still needs improvement.

Income Statement

RAS Technology Holdings Limited has shown a strong revenue growth rate of 13.82% in the latest year, indicating a positive trajectory. The gross profit margin improved significantly to 45.80%, reflecting better cost management. However, the net profit margin remains low at 2.47%, suggesting limited profitability. The EBIT and EBITDA margins have improved but are still modest, indicating room for operational efficiency improvements.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.03, indicating prudent financial leverage. The return on equity is modest at 3.64%, reflecting moderate profitability on shareholders' investments. The equity ratio is healthy, suggesting a stable financial structure with a strong equity base.

Cash Flow

The cash flow statement shows a remarkable free cash flow growth rate of 340.87%, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is 0.56, indicating efficient cash conversion. The free cash flow to net income ratio is high at 0.97, suggesting effective cash management and reinvestment potential.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	25.13M	21.27M	16.18M	11.72M	8.33M	5.29M
Gross Profit	9.75M	9.74M	4.35M	1.59M	8.33M	3.35M
EBITDA	1.78M	1.84M	543.00K	-1.00M	-2.83M	2.63M
Net Income	-264.00K	526.00K	-381.00K	-1.30M	-2.99M	1.58M
Balance Sheet
Total Assets	21.59M	21.82M	19.47M	18.04M	18.29M	18.23M
Cash, Cash Equivalents and Short-Term Investments	4.39M	5.67M	8.35M	8.68M	10.77M	2.05M
Total Debt	278.00K	454.00K	785.00K	1.09M	1.14M	630.00K
Total Liabilities	7.30M	7.38M	6.87M	5.46M	4.46M	4.00M
Stockholders Equity	14.29M	14.43M	12.60M	12.58M	13.83M	14.23M
Cash Flow
Free Cash Flow	2.68M	2.94M	-30.00K	-1.93M	-3.80M	1.83M
Operating Cash Flow	2.83M	3.04M	2.31M	64.00K	-1.72M	2.95M
Investing Cash Flow	-7.09M	-6.94M	-2.34M	-1.91M	-2.08M	-1.12M
Financing Cash Flow	-343.00K	1.02M	-305.00K	-236.00K	12.52M	-728.00K

RAS Technology Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.96
• 50DMA: Negative
• 100DMA: Negative
• 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:RTH, the sentiment is Negative. The current price of 0.96 is above the 20-day moving average (MA) of 0.80, above the 50-day MA of 0.82, and above the 200-day MA of 0.94, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 43.43 is Neutral, neither overbought nor oversold. The STOCH value of 39.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:RTH.

RAS Technology Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
RTH	61 Neutral	AU$36.87M	-137.50	3.89%	―	31.44%	―
WHK	43 Neutral	AU$6.44M	-4.35	―	―	13.07%	68.60%
KNO	42 Neutral	AU$4.32M	-1.57	-23.31%	―	2.15%	-900.00%

RAS Technology Holdings Limited Corporate Events

RAS Technology outlines 1H FY26 results under strict investor disclaimers

RAS Technology Holdings has released an investor presentation covering its first-half fiscal 2026 results, reiterating that the material is a high-level summary of the group’s operations and financial history as at the presentation date. The company emphasises that the information is illustrative only, subject to rounding and third-party data limitations, and should be read with its other ASX disclosures rather than relied upon as a standalone basis for investment decisions.

The presentation underscores extensive disclaimers around accuracy, completeness and the non-reliance nature of any estimates or projections it contains. RAS Technology reminds investors that past performance is not indicative of future results, disclaims any duty to update forward-looking information except as required by law, and advises stakeholders to seek independent professional advice before making investment decisions based on the material.

The most recent analyst rating on (AU:RTH) stock is a Hold with a A$0.82 price target. To see the full list of analyst forecasts on RAS Technology Holdings Limited stock, see the AU:RTH Stock Forecast page.

RAS Technology Issues 509,390 Unquoted Performance Rights Under Employee Scheme

RAS Technology Holdings Limited has issued 509,390 unquoted performance rights under its employee incentive scheme, with the securities designated under the ASX code RTHAD. These performance rights, issued on 20 February 2026, are subject to transfer restrictions and will not be quoted on the ASX until those restrictions lapse, indicating a continued focus on equity-based incentives to align employee interests with long-term shareholder value.

The new performance rights issuance reflects the company’s ongoing use of equity remuneration to attract, retain and motivate key personnel in a competitive market. For stakeholders, the move signals potential future dilution if rights vest and convert, while also underscoring management’s emphasis on performance-linked compensation to support the company’s strategic and operational goals.

The most recent analyst rating on (AU:RTH) stock is a Hold with a A$0.84 price target. To see the full list of analyst forecasts on RAS Technology Holdings Limited stock, see the AU:RTH Stock Forecast page.

RAS Technology Issues Additional Performance Rights to Director Gary Crispe

RAS Technology Holdings Limited has reported a change in the interests of director Gary Crispe, as required under ASX listing rules. According to the notice, Crispe has been issued 108,750 unlisted performance rights for nil cash consideration, increasing his holding from 299,698 to 408,448 unlisted performance rights while maintaining 8,174,481 fully paid ordinary shares; the issue was made in line with shareholder approval granted at the company’s 21 November 2025 annual general meeting, highlighting ongoing use of equity-based incentives to align director remuneration with shareholder interests.

The most recent analyst rating on (AU:RTH) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on RAS Technology Holdings Limited stock, see the AU:RTH Stock Forecast page.

RAS Technology Issues 285,000 Unquoted Performance Rights Under Employee Incentive Scheme

RAS Technology Holdings Limited has issued 285,000 unquoted performance rights under its employee incentive scheme, with the new securities not intended to be quoted on the ASX. The grant of these performance rights, effective 19 December 2025, reflects the company’s continued use of equity-based remuneration to attract, retain and incentivise staff, aligning employee rewards with long-term company performance and potentially leading to future share dilution for existing shareholders if the rights vest and are exercised.

The most recent analyst rating on (AU:RTH) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on RAS Technology Holdings Limited stock, see the AU:RTH Stock Forecast page.

RAS Technology Announces Strategic Shift Amid Non-Renewal of Key Contract

RAS Technology Holdings Limited (ASX: RTH) has announced that its Complete Racing Solution contract with Stake will not be renewed when it concludes in May 2026. The non-renewal is not expected to have a material financial impact, with the company showcasing confidence in its future by citing a robust pipeline and a strategic focus on developing opportunities in international regulated markets, particularly in Asia. RAS emphasizes significant growth potential in these areas, bolstered by a new contract with LeoVegas Group, enhancing its position in the global racing and wagering industry.

The most recent analyst rating on (AU:RTH) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on RAS Technology Holdings Limited stock, see the AU:RTH Stock Forecast page.

RAS Technology Director Alters Shareholding

RAS Technology Holdings Limited has announced a change in the interest of its director, Gary Crispe, in the company’s securities. The company reported that Crispe sold 41,014 fully paid ordinary shares on the market, reducing his direct holding to 8,174,481 shares while maintaining 299,698 unlisted performance rights. This transaction may reflect personal financial planning by the director and does not indicate any major strategic shift within the company.

The most recent analyst rating on (AU:RTH) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on RAS Technology Holdings Limited stock, see the AU:RTH Stock Forecast page.