Company DescriptionRaiz 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. Financial Statement Overview

Summary

Raiz Invest Ltd. shows positive revenue growth and cash flow improvements. However, profitability remains a challenge with a negative net profit margin, despite improvement. The balance sheet is strong with low leverage and high equity, suggesting financial stability. Overall, the company demonstrates potential for future performance but needs to improve profitability.

Income Statement

Neutral

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

Positive

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

Neutral

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.

TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Breakdown
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. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5HK		€35.15M	―	-0.11%	―	―	―
Sector *	64 Neutral	$12.87B	9.81	7.76%	16985.65%	12.28%	-7.83%
APPEF		$197.54M	―	-19.32%	―	―	―
EMCHF		$284.94M	34.65	7.22%	―	―	―
SPHRF		$25.33M	―	-43.63%	―	―	―
XROLF		$18.87B	139.68	12.98%	―	―	―

* Financial Sector Average

Performance Comparison

DE:5HK

Raiz Invest Ltd.

0.31

0.11

55.00%

APPEF

Appen Ltd.

0.76

0.40

111.11%

EMCHF

EML Payments

0.70

0.08

12.90%

SPHRF

Starpharma Holdings Limited

0.07

0.00

0.00%

XROLF

Xero Limited

123.22

38.90

46.13%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.