Yes, I agree. It is a decent business.
It was recently discussed on Friday on ****** by Claude Walker.
Difficult to know if it is a buy for me.
Obviously, the stock is cheap for a SAAS company with an EV/EBITDA of around 10 and a free cash flow yield of 5 %+.
Readytech has reached a high level of profitability (EBITDA margin around 40 %, in particular due to development costs which are capitalised and not expensed).
So what are the problems/risks :
- rather slow growth for a SAAS (10 % organic),
- not obvious to understand if they have a strong differentiation with a lot of existing competitors, in the HR, payroll business.
Except Microequities (which owns around 11 %), there are not yet many fund managers interested in this stock.
Under the radar?, page-2
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$2.85 |
Change
-0.030(1.04%) |
Mkt cap ! $341.5M | |||
| Open | High | Low | Value | Volume |
| $2.85 | $2.86 | $2.78 | $1.302M | 457.1K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 4084 | $2.83 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $2.90 | 17918 | 2 |
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| Last trade - 16.10pm 05/09/2024 (20 minute delay) ? |
| RDY (ASX) Chart |