Raiz Invest Ltd. (RZI) AI Stock Analysis

• Market Cap: €75.06M
• Dividend Yield: N/A
• Average Volume (3M): 84.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.87
• Revenue Growth: 12.91%
• EPS Growth: 73.27%
• Country: AU
• Employees: 31
• Sector: Financial
• Sector Strength: 73
• Industry: Financial - Capital Markets
• EPS (TTM): >-0.01
• Shares Outstanding: 105,352,380
• 10 Day Avg. Volume: 120,187
• 30 Day Avg. Volume: 84,947
• PEG Ratio: 0.80
• Price to Book (P/B): 1.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 46.07
• 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: -29.91% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 62 Neutral
• Price Target: AU$1.00 ▲(40.85%Upside)

Raiz Invest Ltd. receives a score of 62, primarily influenced by its strong financial stability and positive revenue growth trends. The technical analysis supports a positive market sentiment, but the overbought indicators suggest caution. Valuation remains a concern due to negative earnings.

Raiz Invest Ltd. Business Overview & Revenue Model

Company Description

Raiz Invest Limited provides financial services and products through its mobile micro-investing platform in Australia, Indonesia, and Malaysia. The company operates through two segments, Raiz Invest Micro-Investing Platform and Other Financial segments. Its platform offers customers a way to invest money using the Raiz mobile application or through the Raiz Website. The company was incorporated in 2016 and is based in Sydney, Australia.

How the Company Makes Money

Raiz Invest Ltd. makes money primarily through management fees charged on the funds invested by users. The company charges a monthly account fee for accounts with balances below a certain threshold and a management fee as a percentage of funds for larger accounts. Additionally, Raiz may earn revenue through partnerships with financial institutions and other businesses, offering promotional features or products to its user base. The company might also generate income from interest earned on cash held within users' accounts before being invested.

Raiz Invest Ltd. Financial Statement Overview

Summary

Raiz Invest Ltd. shows positive revenue growth and improved cash flow. Despite a strong balance sheet with minimal leverage, profitability remains a challenge, highlighted by a negative net profit margin. Improvements in cash flows and solid equity position indicate potential for future performance.

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
EBITDA	1.53M	524.00K	-3.15M	-7.66M	-1.95M	-2.31M
Net Income	-948.00K	-1.87M	-6.90M	-9.63M	-3.52M	-4.53M
Balance Sheet
Total Assets	46.71M	42.88M	44.75M	54.19M	42.04M	35.59M
Cash, Cash Equivalents and Short-Term Investments	12.77M	10.25M	13.19M	22.09M	19.67M	13.39M
Total Debt	1.43M	1.11M	637.00K	1.34M	705.00K	800.00K
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: Positive
• Last Price: 0.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RZI, the sentiment is Positive. The current price of 0.71 is above the 20-day moving average (MA) of 0.67, above the 50-day MA of 0.63, and above the 200-day MA of 0.58, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 58.46 is Neutral, neither overbought nor oversold. The STOCH value of 49.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:RZI.

Raiz Invest Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PPS	70 Outperform	AU$336.79M	32.49	9.89%	1.42%	23.52%	7.96%
COG	68 Neutral	AU$375.42M	30.15	7.94%	4.11%	16.16%	32.97%
Sector *	67 Neutral	¥757.60B	11.12	7.57%	3.18%	7.70%	14.02%
OFX	66 Neutral	AU$194.22M	7.93	14.15%	―	-4.69%	-18.65%
RZI	62 Neutral	€75.06M	―	-0.11%	―	12.91%	73.27%
FNX	62 Neutral	AU$17.13M	196.43	-0.72%	1.82%	17.07%	-107.76%
ABE	37 Underperform	AU$3.72M	―	-138.44%	―	-24.65%	38.99%

Raiz Invest Ltd. Corporate Events

Raiz Invest Unveils New Products and Enhancements to Empower Investors

Raiz Invest Limited has launched Raiz Lite, a new investment plan aimed at first-time investors, offering three portfolio options and a lower monthly fee to encourage consistent investing habits. Additionally, Raiz has expanded the investment options for its Raiz Plus plan and will launch Raiz Academy to enhance financial literacy among Australians, reflecting the company’s commitment to providing innovative solutions and maintaining a competitive edge.

Raiz Invest Limited Reports Robust Growth in Q4 FY25

Raiz Invest Limited reported strong growth in its Q4 FY25 business update, with active customers increasing by 7.3% year-over-year to 329,277 and a 6.9% rise in annualized revenue per user to $77.2. The company’s funds under management reached a record $1.82 billion, driven by net inflows and positive market movements, while strategic partnerships and recognition as a top fintech company further bolster its market position.

Raiz Invest Ltd. Expands Capital with New Securities Quotation

Raiz Invest Ltd. has announced the issuance of 36,893 fully paid ordinary securities, which will be quoted on the Australian Securities Exchange (ASX) under the code RZI. This move is part of the company’s strategy to enhance its market presence and provide additional value to its stakeholders by expanding its capital base.

Raiz Invest Ltd. Announces Director’s Interest Change

Raiz Invest Ltd. announced a change in the director’s interest, with Brendan Barry Malone acquiring 715,348 Performance Rights following shareholder approval. This change reflects the company’s ongoing commitment to aligning management incentives with shareholder interests, potentially impacting its operational strategy and market positioning.

Raiz Invest Ltd Announces Change in Substantial Holder Interests

Raiz Invest Ltd has announced a change in the interests of a substantial holder, TIGA Trading Pty Ltd, which now holds a 13.96% voting power in the company, up from 12.83%. This increase in voting power, achieved through a series of market purchases and share purchase plans, reflects a strategic move by TIGA Trading Pty Ltd and its associates to strengthen their influence within Raiz Invest Ltd, potentially impacting the company’s governance and strategic direction.

Thorney Technologies Increases Stake in Raiz Invest Ltd.

Raiz Invest Ltd. has announced a change in the substantial holding interests of Thorney Technologies Ltd., which now holds a 13.96% voting power in Raiz, up from 12.83%. This increase in voting power indicates a growing interest and investment from Thorney Technologies, potentially impacting Raiz’s strategic decisions and market positioning.