Reckon Limited (RKN) AI Stock Analysis

• Market Cap: AU$53.24M
• Dividend Yield: 5.32%
• Average Volume (3M): 33.67K
• Price to Earnings (P/E): 12.1
• Beta (1Y): -0.37
• Revenue Growth: 1.32%
• EPS Growth: -21.53%
• Country: AU
• Employees: N/A
• Sector: Technology
• Sector Strength: 68
• Industry: Software
• EPS (TTM): 0.04
• Shares Outstanding: 113,294,830
• 10 Day Avg. Volume: 7,750
• 30 Day Avg. Volume: 33,669
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$0.67
• Price Target Upside: 41.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Reckon Limited's overall stock score is bolstered by strong financial performance, particularly in cash flow management and revenue growth. Valuation metrics further enhance the score, with a reasonable P/E ratio and attractive dividend yield. However, technical analysis indicators suggest a cautious approach due to neutral to bearish trends. The lack of immediate earnings call or significant corporate events maintains the focus on fundamental and technical assessments.

Reckon Limited Business Overview & Revenue Model

Company Description

Reckon Ltd provides accounting software to the small and medium enterprise market. It operates in three segments: Business Group, which develops, distributes, and supports business accounting and personal financial software, as well as related products and services; Practice Management Group, Accountant segment is into development, distribution, and support of practice management, tax, client accounting, and related software under the APS brand; and Practice Management Group, Legal segment is into development, distribution and support of cost recovery, scan and cloud-based integration platforms under the nQ Zebraworks brand. The company's geographical segments are Australia, United States, and Other countries.

How the Company Makes Money

Reckon Limited makes money primarily through subscription-based revenue models, where customers pay recurring fees to access its software solutions. The company's key revenue streams include its accounting software for small businesses and practice management software for accountants. Additionally, Reckon generates income from providing payroll solutions and other financial services. Significant partnerships with professional accounting bodies and businesses enhance its market reach and contribute to its earnings. By continually updating its software products and expanding its service offerings, Reckon maintains a steady flow of revenue from both existing clients and new customers.

Reckon Limited Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
53.41M	51.23M	49.52M	65.42M	63.61M
	Gross Profit
13.50M	13.50M	13.87M	15.19M	11.57M
	EBIT
5.34M	5.30M	6.23M	5.62M	-55.00K
	EBITDA
19.70M	17.96M	17.26M	29.74M	30.62M
	Net Income Common Stockholders
5.57M	7.31M	9.82M	9.74M	8.13M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
975.00K	1.23M	1.39M	1.13M	1.12M
	Total Assets
41.21M	39.94M	71.87M	83.04M	85.42M
	Total Debt
5.20M	6.49M	21.14M	38.41M	45.85M
	Net Debt
4.23M	5.26M	19.75M	37.27M	44.73M
	Total Liabilities
21.58M	22.03M	40.05M	57.66M	64.35M
	Stockholders Equity
19.57M	17.14M	30.53M	25.38M	21.07M
Cash Flow		Free Cash Flow
4.61M	7.47M	10.05M	12.42M	9.78M
	Operating Cash Flow
19.13M	7.69M	10.79M	12.91M	10.31M
	Investing Cash Flow
-15.29M	78.17M	12.90M	568.00K	999.00K
	Financing Cash Flow
-4.11M	-85.93M	-23.46M	-13.46M	-12.34M

Reckon Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.47
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RKN, the sentiment is Negative. The current price of 0.47 is below the 20-day moving average (MA) of 0.48, below the 50-day MA of 0.49, and below the 200-day MA of 0.53, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 43.35 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:RKN.

Reckon Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RKN	69 Neutral	AU$53.24M	12.05	21.21%	5.32%	1.32%	-21.53%
Sector *	60 Neutral	$10.94B	10.58	-7.08%	2.98%	7.52%	-12.04%

Reckon Limited Corporate Events

Reckon Limited Schedules 2025 Annual General Meeting

Reckon Limited has announced its Annual General Meeting (AGM) scheduled for May 14, 2025, where key agenda items include the re-election of Clive Rabie as a director and a non-binding vote on the Remuneration Report. These discussions and resolutions are part of the company’s ongoing governance and shareholder engagement efforts, reflecting its commitment to transparency and accountability in its operations.

Reckon Limited Director Adjusts Shareholding

Reckon Limited announced a change in the director’s interest, specifically regarding Clive Rabie’s holdings. Mr. Rabie disposed of 1,000,000 ordinary shares through an on-market trade, reducing his total holdings to 7,206,535 shares. This transaction reflects a strategic decision by the director, potentially impacting the company’s share distribution and signaling market movements to stakeholders.

Reckon Limited Releases FY 2024 Investor Presentation

Reckon Limited has released an investor presentation summarizing its financial results and outlook for the year ended December 31, 2024. This presentation is part of its periodic reporting and is intended to be read alongside other announcements made to the Australian Securities Exchange. The document highlights Reckon’s current and future operations, financial prospects, and opportunities, although it cautions that these statements are subject to change and should not be relied upon as investment advice.

Reckon Limited Reports Strong Cloud Growth and Strategic Expansion

Reckon Limited reported a 5% increase in Annual Recurring Revenue (ARR) and a stable overall financial performance, driven by a 7% growth in cloud revenue for its Business Group and a 13% increase in ARR for its Legal Group. The company continued to invest in transitioning its Business Group clients to its Reckon One platform and expanded its Legal Group through a significant acquisition. These strategic moves aim to bolster its market position and drive future growth, particularly in the cloud revenue and subscription services segment.