Readytech Holdings Ltd
ASX:RDY
Intrinsic Value
ReadyTech Holdings Ltd. engages in the provision of software as a service (SaaS) solutions. [ Read More ]
The intrinsic value of one
RDY
stock under the Base Case scenario is
5.26
AUD.
Compared to the current market price of 3.36 AUD,
Readytech Holdings Ltd
is
Undervalued by 36%.
RDY could be a value trap.A value trap occurs when a stock looks inexpensive based on fundamental analysis but fails to reach its intrinsic valuation over time, often due to underlying issues not reflected in quantitative data.
Scrutinize beyond numbers; assess long-term potential.
Readytech Holdings Ltd's market capitalization is 392.6m AUD.
RDY stock price is 3.36 AUD.
RDY stock price (3.36 AUD) is 36% less than its Intrinsic Value (5.26 AUD).
RDY has upside potential of 24% compared to the average analyst price target.
Open Wall St Estimates
RDY has positive Operating Income for the last twelve months.
RDY's ROIC (Return on Invested Capital) has decreased in the last 3 years from 5% to 4%.
RDY's ROE (Return on Equity) has decreased in the last 3 years from 7% to 5%.
RDY has positive Net Income for the last twelve months.
RDY's ROE (Return on Equity) for the past 12 months is very low and is equal to 5%.
RDY's ROIC (Return on Invested Capital) for the past 12 months is very low and is equal to 4%.
RDY's Revenue has grown by an exceptional 22% over the past 12 months.
RDY's Revenue is forecast to grow at a rate of 13% per year over the next 3 years.
RDY has positive three-year average ROE (Return on Equity): 6%. The company is efficient at transforming stockholders' equity into net income.
RDY has a very low three-year average ROIC (Return on Invested Capital): 4%. The company is not efficient at using invested capital to generate operating income.
RDY's Altman Z-Score is equal to 2.14.
RDY has positive Free Cash Flow for the last twelve months.
RDY has positive Net Debt. This means that the company has more debt (47m AUD) than cash and short-term investments (15m AUD).
RDY's long-term assets (255m AUD) exceed its long-term liabilties (117m AUD).
RDY's Revenue has been growing by an exceptional 38% per year for the last 3 years.
RDY's short-term liabilties (54m AUD) exceed its short-term assets (32m AUD).
RDY has positive Gross Profit for the last twelve months.
RDY's D/E (Debt to Equity) is very low and is equal to 0.34.
RDY doesn't generate enough operating income (11m AUD) to safely cover interest payments on its debt (-3m AUD).
Valuation Backtest
Readytech Holdings Ltd
Run backtest to discover the historical profit from buying and selling
RDY
stocks based on their intrinsic value.
Analyze the historical link between intrinsic value and market price to make more informed investment decisions.
Fundamental Analysis
Readytech Holdings Ltd
Balance Sheet Decomposition
Readytech Holdings Ltd
| Current Assets | 31.5m |
| Cash & Short-Term Investments | 14.9m |
| Receivables | 14m |
| Other Current Assets | 2.6m |
| Non-Current Assets | 223.4m |
| PP&E | 6.6m |
| Intangibles | 214.1m |
| Other Non-Current Assets | 2.6m |
| Current Liabilities | 53.7m |
| Accounts Payable | 7.9m |
| Accrued Liabilities | 6.7m |
| Other Current Liabilities | 39m |
| Non-Current Liabilities | 63.7m |
| Long-Term Debt | 47m |
| Other Non-Current Liabilities | 16.8m |
Earnings Waterfall
Readytech Holdings Ltd
|
Revenue
|
110.2m
AUD
|
|
Cost of Revenue
|
-9.2m
AUD
|
|
Gross Profit
|
100.9m
AUD
|
|
Operating Expenses
|
-89.7m
AUD
|
|
Operating Income
|
11.2m
AUD
|
|
Other Expenses
|
-4.9m
AUD
|
|
Net Income
|
6.3m
AUD
|
Free Cash Flow Analysis
Readytech Holdings Ltd
What is Free Cash Flow?
RDY Profitability Score
Profitability Due Diligence
Readytech Holdings Ltd's profitability score is 56/100. The higher the profitability score, the more profitable the company is.
Score
Readytech Holdings Ltd's profitability score is 56/100. The higher the profitability score, the more profitable the company is.
RDY Solvency Score
Solvency Due Diligence
Readytech Holdings Ltd's solvency score is 39/100. The higher the solvency score, the more solvent the company is.
Score
Readytech Holdings Ltd's solvency score is 39/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
RDY Price Targets Summary
Readytech Holdings Ltd
According to Wall Street analysts, the average 1-year price target for
RDY
is 4.18 AUD
with a low forecast of 3.54 AUD and a high forecast of 5.15 AUD.
Shareholder Return
RDY Price
Readytech Holdings Ltd
| Average Annual Return | 22.39% |
| Standard Deviation of Annual Returns | 40.78% |
| Max Drawdown | -57% |
| Market Capitalization | 392.6m AUD |
| Shares Outstanding | 118 936 000 |
| Percentage of Shares Shorted |
N/A
|
Company Profile
Readytech Holdings Ltd
Country
Industry
Market Cap
Dividend Yield
Description
ReadyTech Holdings Ltd. engages in the provision of software as a service (SaaS) solutions. The company is headquartered in Sydney, New South Wales. The company went IPO on 2019-04-17. The company operates through three segments: Education, Workforce Solutions, and Government and Justice. Education segment provides products and services to tertiary education providers, including Technical and Further Education (TAFE). Its education segments products are its cloud-based student management systems and learning management systems for education and training providers to manage the student lifecycle from enrolment to course completion. Its workforce solutions segment provides products and services to mid-sized company across various industries with payroll software, outsourced payroll services and human resource management software solutions to employers. The company also engaged in talent acquisition and onboarding. Its government and justice segment provides government and justice case management SaaS solutions to local governments, state governments and justice departments.
Contact
IPO
Employees
Officers
The intrinsic value of one
RDY
stock under the Base Case scenario is
5.26
AUD.
Compared to the current market price of 3.36 AUD,
Readytech Holdings Ltd
is
Undervalued by 36%.
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