ReadyTech Holdings Limited
ReadyTech Holdings Limited Fundamental Analysis
ReadyTech Holdings Limited (RDY.AX) shows weak financial fundamentals with a PE ratio of 113.48, profit margin of 0.98%, and ROE of 0.87%. The company generates $0.1B in annual revenue with moderate year-over-year growth of 7.06%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 28.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RDY.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakRDY.AX struggles to generate sufficient returns from assets.
Valuation Score
ModerateRDY.AX shows balanced valuation metrics.
Growth Score
ModerateRDY.AX shows steady but slowing expansion.
Financial Health Score
ModerateRDY.AX shows balanced financial health with some risks.
Profitability Score
ModerateRDY.AX maintains healthy but balanced margins.
Key Financial Metrics
Is RDY.AX Expensive or Cheap?
P/E Ratio
RDY.AX trades at 113.48 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, RDY.AX's PEG of 1.06 indicates fair valuation.
Price to Book
The market values ReadyTech Holdings Limited at 1.00 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.57 times EBITDA. This is generally considered low.
How Well Does RDY.AX Make Money?
Net Profit Margin
For every $100 in sales, ReadyTech Holdings Limited keeps $0.98 as profit after all expenses.
Operating Margin
Core operations generate 5.95 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.87 in profit for every $100 of shareholder equity.
ROA
ReadyTech Holdings Limited generates $0.50 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
ReadyTech Holdings Limited produces operating cash flow of $18.94M, showing steady but balanced cash generation.
Free Cash Flow
ReadyTech Holdings Limited generates strong free cash flow of $18.85M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.15 in free cash annually.
FCF Yield
RDY.AX converts 13.56% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
113.48
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.06
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.002
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.11
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.45
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.77
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.009
vs 25 benchmark
ROA
Return on assets percentage
0.005
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How RDY.AX Stacks Against Its Sector Peers
| Metric | RDY.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 113.48 | 33.61 | Worse (Expensive) |
| ROE | 0.87% | 1020.00% | Weak |
| Net Margin | 0.98% | -56528.00% (disorted) | Weak |
| Debt/Equity | 0.45 | 0.45 | Neutral |
| Current Ratio | 0.77 | 5.65 | Weak Liquidity |
| ROA | 0.50% | -291484.00% (disorted) | Weak |
RDY.AX outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews ReadyTech Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
173.57%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
-460.81%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
54.21%
Industry Style: Growth, Innovation, High Beta
High Growth