Raiz Invest Ltd. (RZI) AI Stock Analysis

• Market Cap: AU$61.08M
• Dividend Yield: N/A
• Average Volume (3M): 54.71K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.79
• Revenue Growth: 12.91%
• EPS Growth: 73.27%
• Country: AU
• Employees: 31
• Sector: Financial
• Sector Strength: 77
• Industry: Financial - Capital Markets
• EPS (TTM): >-0.01
• Shares Outstanding: 105,315,490
• 10 Day Avg. Volume: 53,275
• 30 Day Avg. Volume: 54,713
• PEG Ratio: 0.16
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.45
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 53 Neutral
• Price Target: AU$0.50 ▼(-13.79%Downside)

Raiz Invest Ltd. exhibits solid financial stability with a strong balance sheet and improving cash flows, but faces challenges in achieving profitability, reflected in its negative P/E ratio. Technical indicators show neutral momentum, while the lack of dividend yield and ongoing losses weigh on the valuation.

Raiz Invest Ltd. Business Overview & Revenue Model

Company Description

Raiz Invest Ltd. (RZI) is a financial technology company based in Australia that specializes in micro-investing and personal finance services. The company operates a mobile platform that allows users to automatically invest their spare change from everyday purchases into diversified portfolios. Raiz aims to simplify investing by providing a seamless and accessible way for users to start and manage their investment journey.

How the Company Makes Money

Raiz Invest Ltd. generates revenue through various streams including management fees, account fees, and subscription services. The company charges a monthly account fee for accounts under a certain threshold, and a percentage-based management fee on the total value of assets under management (AUM). Additionally, Raiz offers premium features and financial services that users can subscribe to for an additional cost. Partnerships with financial institutions and retail businesses also contribute to its revenue, as these collaborations often involve referral fees or commissions.

Raiz Invest Ltd. Financial Statement Overview

Summary

Raiz Invest Ltd. shows a positive trend in revenue growth and improved cash flow positions. The company has a strong balance sheet with low leverage, though profitability remains a challenge with a negative net profit margin and return on equity. Despite these challenges, the stability in equity and cash flow improvements are promising.

Income Statement

Raiz Invest Ltd. has shown a positive trend in revenue growth, increasing from $19.2 million in 2023 to $22.6 million in 2024, representing a growth rate of approximately 17.9%. The gross profit margin for 2024 is strong at 75.4%, indicating efficient cost management. However, the company continues to face challenges with profitability, as evidenced by a negative net profit margin of -8.3% in 2024, though this is an improvement from -35.9% in 2023. The EBIT and EBITDA margins are low at 2.3%, suggesting operational challenges, but there is a positive trajectory compared to previous years.

Balance Sheet

The company's balance sheet shows a solid equity position with a debt-to-equity ratio of 0.03, indicating minimal leverage. The equity ratio is high at 88.6%, reflecting a strong capital structure. However, the return on equity (ROE) remains negative at -4.9% due to persistent net losses, though this is an improvement over prior years. Overall, the balance sheet is stable, with low debt levels and significant equity.

Cash Flow

Raiz Invest Ltd. has improved its cash flow position, with operating cash flow turning positive at $3.6 million in 2024 from -$3 million in 2023. Free cash flow is also positive at $342,000, showing a significant recovery. The operating cash flow to net income ratio is favorable, indicating strong cash generation relative to reported losses. Despite these improvements, the company has yet to achieve consistent free cash flow growth.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
23.23M	22.60M	19.17M	19.34M	13.97M	10.29M
	Gross Profit
19.13M	17.05M	16.07M	16.03M	11.23M	7.82M
	EBIT
1.80M	524.00K	-7.88M	-10.97M	-4.64M	-4.73M
	EBITDA
1.53M	524.00K	-3.15M	-7.66M	-1.95M	-2.31M
	Net Income Common Stockholders
-948.00K	-1.87M	-6.90M	-9.63M	-3.52M	-4.53M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
12.77M	10.25M	13.19M	22.09M	19.67M	13.39M
	Total Assets
46.71M	42.88M	44.75M	54.19M	42.04M	35.59M
	Total Debt
1.43M	1.11M	637.00K	1.34M	705.00K	800.00K
	Net Debt
-10.61M	-8.62M	-7.81M	-14.20M	-18.49M	-12.10M
	Total Liabilities
7.59M	6.52M	6.17M	8.16M	4.80M	3.85M
	Stockholders Equity
39.12M	37.99M	41.44M	47.95M	38.25M	31.40M
Cash Flow		Free Cash Flow
1.33M	342.00K	-6.62M	-5.79M	-2.57M	-2.86M
	Operating Cash Flow
2.79M	3.61M	-3.00M	-2.76M	-604.00K	-1.06M
	Investing Cash Flow
-1.68M	-3.27M	-3.40M	-2.39M	-2.06M	644.00K
	Financing Cash Flow
3.88M	951.00K	-706.00K	1.45M	9.16M	6.50M

Raiz Invest Ltd. Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RZI, the sentiment is Negative. The current price of 0.58 is below the 20-day moving average (MA) of 0.64, below the 50-day MA of 0.60, and above the 200-day MA of 0.54, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 39.61 is Neutral, neither overbought nor oversold. The STOCH value of 17.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:RZI.

Raiz Invest Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XRO	71 Outperform	AU$28.84B	139.68	12.98%	―	23.95%	―
Sector *	65 Neutral	$12.93B	9.81	7.84%	78.03%	12.20%	-7.74%
EML	54 Neutral	AU$433.68M	37.42	7.22%	―	-27.00%	―
RZI	53 Neutral	AU$61.08M	―	-0.11%	―	12.91%	73.27%
APX	51 Neutral	$278.15M	―	-19.32%	―	-13.61%	86.37%
SPL	42 Neutral	$37.22M	―	-43.63%	―	-67.07%	-47.32%

Raiz Invest Ltd. Corporate Events

Raiz Invest Reports Strong Q3 Growth and Product Innovation

Raiz Invest Ltd. reported strong growth in Q3 FY25, with a 6.9% increase in active customers and a 5.9% rise in ARPU. The company saw significant inflows of $60 million, boosting its funds under management to $1.65 billion, a 23.1% year-over-year increase. The launch of new products like Raiz Jars and the recognition from the Canstar Innovation Excellence Awards have bolstered its market position. Despite market volatility in March, Raiz maintained a positive cash flow and a strong cash balance, indicating robust financial health and continued expansion across all customer segments.

Raiz Invest Reports Strong Growth and Product Innovation in Q3 FY25

Raiz Invest Ltd. reported solid growth in Q3 FY25, with a 6.9% year-over-year increase in active customers and a 5.9% rise in annualized revenue per user. The company achieved strong net inflows of $60 million, boosting funds under management to $1.65 billion, a 23.1% increase from the previous year. The successful launch of Raiz Jars and recognition from the 2025 Canstar Innovation Excellence Awards highlight Raiz’s commitment to product innovation. Despite market volatility, the company maintained a strong cash position and continued to expand its customer base across all segments, particularly in Raiz Kids and Plus Portfolios.

Raiz Invest Director Increases Shareholding

Raiz Invest Ltd. has announced a change in the interest of its director, Jon Brett, who has increased his indirect holdings by acquiring 40,000 fully paid ordinary shares through an on-market transaction. This change, which raises his total holdings to 60,000 shares, reflects a potential vote of confidence in the company’s future prospects and could influence stakeholder perceptions positively.