RDY 0.31% $3.25 readytech holdings limited

Under the radar?, page-2

  1. 4,073 Posts.
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    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.
 
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