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.
RDY Price at posting:
$1.87 Sentiment: None Disclosure: Not Held
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