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Undervalued
Morningstar Quantitative Rating as of 30 OCT 2026.
Quantitative Equity Rating Methodology – view here
Five-star price 1.13 Fair value 1.69 One-star price 2.53
Morningstar Quantitative Rating as of 30 OCT 2026.
Morningstar Quantitative Rating as of 30 OCT 2026. The slider runs from the five-star price (1.13) to the one-star price (2.53).
| Ratios |
|---|
| Currency (Price/reporting): AUD/AUD |
| Exchange Rate: 1.0000 |
| Price - closing or last bid | 1.36 |
| Price - 12 month high | 2.72 |
| Price - 12 month low | 1.10 |
| Pricing date | 29 OCT 2026 |
| Volume - avg. trading volume for the last ten days | 0.15 |
| Market capitalization | 168.05 |
| 12 Month High price date | 20 JAN 2026 |
| 12 Month Low price date | 1 APR 2026 |
| Volume - avg. trading volume for the last 3 months | 0.07 |
| Price - 1 Day % Change | 1.12% |
| Price - 13 week price percent change | -16.31% |
| Price - 26 week price percent change | 1.87% |
| Price - 5 Day % Change | 8.80% |
| Price - 52 week price percent change | -36.74% |
| Price - YTD price percent change | -44.49% |
| Price % Change Month To Date | -4.23% |
| EPS excluding extraordinary items - most recent fiscal year | -0.040 |
| EPS excluding extraordinary items - trailing 12 month | -0.040 |
| EPS Normalized - most recent fiscal year | -0.032 |
| Revenue/share - most recent fiscal year | 1.012 |
| Revenue/share - trailing 12 month | 1.012 |
| Book value per share - most recent fiscal year | 1.090 |
| Book value per share - most recent half-year | 1.090 |
| Book value (tangible) per share - most recent fiscal year | -0.454 |
| Book value (tangible) per share - most recent half-year | -0.454 |
| Cash per share - most recent fiscal year | 0.222 |
| Cash per share - most recent half-year | 0.222 |
| Cash Flow per share - most recent fiscal year | 0.199 |
| Cash Flow per share - trailing 12 month | 0.199 |
| Dividend per share - most recent fiscal year | — |
| Dividends per share - trailing 12 month | 0.000 |
| EBITD per share - trailing 12 month | 0.227 |
| EPS Basic excluding extraordinary items - most recent fiscal year | -0.040 |
| EPS Basic excluding extraordinary items - trailing 12 month | -0.040 |
| EPS including extraordinary items - most recent fiscal year | -0.040 |
| EPS including extraordinary items - trailing 12 month | -0.040 |
| Free Cash Flow per share - trailing 12 month | 0.047 |
| P/E excluding extraordinary items, most recent fiscal year | — |
| P/E Normalized, most recent fiscal year | — |
| Price to sales - most recent fiscal year | 1.34 |
| Price to Tangible Book - most fiscal year | — |
| Price to Free Cash Flow per Share - most recent fiscal year | 28.94 |
| Price to Cash Flow per share - trailing 12 month | 6.84 |
| Price to Book - most recent fiscal year | 1.25 |
| P/E excluding extraordinary items high, trailing 12 months | 153.91 |
| P/E excluding extraordinary items low, trailing 12 months | 97.83 |
| Net Debt, LFI | 46.39 |
| Net Debt, LFY | 36.01 |
| Dividend Yield - 5 Year Average | — |
| Dividend Yield - indicated annual dividend divided by closing price | — |
| Current Dividend Yield - Common Stock Primary Issue, LTM | 0.00% |
| Free Cash Flow - most recent fiscal year | 5.81 |
| LT debt/equity - most recent fiscal year | 46.18% |
| Payout ratio - most recent fiscal year | — |
| Total debt/total equity - most recent fiscal year | 47.12% |
| LT debt/equity - most recent half-year | 41.53% |
| Total debt/total equity - most recent half-year | 42.33% |
| Free Cash Flow - trailing 12 month | 5.81 |
| Payout ratio - trailing 12 month | — |
| Revenue - most recent fiscal year | 125.01 |
| Revenue - trailing 12 month | 125.01 |
| EBITD - most recent fiscal year | 28.08 |
| EBITD - trailing 12 month | 28.08 |
| Earnings before taxes - most recent fiscal year | -6.39 |
| Earnings before taxes - trailing 12 month | -6.39 |
| Net Income available to common - most recent fiscal year | -4.89 |
| Net Income available to common - trailing 12 months | -4.89 |
| Earnings before taxes Normalized - most recent fiscal year | -5.25 |
| Net Income Available to Common, Normalized - most recent fiscal year | — |
| Earnings per Share, Normalized, Excluding Extraordinary Items, Avg. Diluted Shares Outstanding, TTM | -0.03 |
| Net Profit Margin % - 1st historical fiscal year | -3.91% |
| Net Profit Margin % - trailing 12 month | -3.91% |
| Operating margin - 1st historical fiscal year | -0.62% |
| Operating margin - trailing 12 month | -0.62% |
| Pretax margin - trailing 12 month | -5.11% |
| Pretax margin - 1st historical fiscal year | -5.11% |
| Operating Margin - 5 year average | 8.01% |
| Pretax Margin - 5 year average | 1.96% |
| Free Operating Cash Flow/Revenue, 5 Year Average | 7.10% |
| Free Operating Cash Flow/Revenue, TTM | 4.65% |
| Net Profit Margin - 5 year average | 0.74% |
| Return on average assets - most recent fiscal year | -1.95% |
| Return on average assets - trailing 12 month | -1.95% |
| Return on average equity - most recent fiscal year | -3.53% |
| Return on average equity - trailing 12 month | -3.53% |
| Return on average assets - 5 year average | 0.38% |
| Return on average equity - 5 year average | 1.05% |
| Net Income/employee - most recent fiscal year | — |
| Revenue/employee - most recent fiscal year | — |
| Revenue growth rate, 5 year | 20.10% |
| EPS growth rate, 5 year | — |
| Growth rate% - dividend, 3 year | — |
| Revenue/share (5 yr growth) | 13.24% |
| Growth rate% - Revenue, 3 year | 6.56% |
| Growth rate% - EPS, 3 year | — |
| Book value per share growth rate, 5 year | 8.20% |
| Capital Spending growth rate, 5 year | 25.07% |
| Earnings Before Interest, Taxes, Depreciation & Amortization, 5 Year CAGR | 13.67% |
Financial forecast (AUD, millions except per share)
| Actuals | Estimates | |||||||
| 2026 | 2027 | 2028 | 2029 | |||||
| Estimate breakdown | ||||||||
Financials (AUD, millions)
| Period end: | JUN 22 | JUN 23 | JUN 24 | JUN 25 | JUN 26 |
| Fiscal year: | 2022 | 2023 | 2024 | 2025 | 2026 |
| Period length: | 12 months | 12 months | 12 months | 12 months | 12 months |
Announcements
| DATE | TIME | HEADING | PAGES |
| Price sensitive |
RDY +6.45%: announced it has been selected as the Student Management System platform provider for the Victorian TAFE Network, a strategically important win that reinforces the quality and relevance of its education software platform.
RDY +21.64%: surged after receiving a takeover approach from Canadian software group TSS, though the board has already rejected the proposal as opportunistic and materially undervaluing the business. TSS initially lodged an off-market bid at $1.75/share before improving its proposal to $2.00/share via a scheme of arrangement, valuing the business at ~$250m.
ReadyTech is a software provider servicing education, workforce and government clients, underpinned by strong recurring revenue and low customer churn. The share price has suffered on a few fronts in recent times:
RDY -29.77%: hit hard today after a 1H FY26 result that came in below expectations, with investors losing patience as strategy execution continues to lag near-term earnings delivery.
We haven’t revisited this Emerging Companies Portfolio holding for some time, and it’s been a frustrating one. Since initiating the position in early 2023 at $2.89, the share price has drifted lower, now trading around $2.52. We originally bought roughly four months after the failed Pacific Equity Partners (PEP) takeover bid at $4.50/share, on the view that while the deal didn’t proceed, it established a clear valuation anchor.
The student and workforce management software company announced half-year results yesterday with a strong first 6 months overshadowed by some softer outlook comments, seeing the stock close at 6-month lows on the day. We had a chance to speak to the management team following the result yesterday, and we remain confident in the position following the update.
We are currently sitting on a ~16% profit in ReadyTech (RDY), the provider of people management software, but its shares have waned following the spike post their FY23 results.
RDY +4.19%: results for the people management software business today went off largely without issue. Revenue of $103m was up 32% and only a small miss to consensus, while EBITDA jumped 21.7% to $34.8m which was in line with expectations.
We are making a number of amendments to the Emerging Companies Portfolio.
RDY -7.52%: An interesting smaller software business exposed to defensive areas such as local government, education & justice that we’ve owned in the past reported their 1H23 result today and talked to positive trends for the 2H – the share price was down but three things stood out to us.
MM owns RDY in the Emerging Companies Portfolio
MM remains long and bullish RDY
MM is bullish towards RDY around $1.30
MM has turned neutral on RDY
MM remains long and bullish RDY ~$2.50
MM remains bullish & long RDY in the Emerging Companies Portfolio
MM is bullish & long RDY in the Emerging Companies Portfolio
MM remains long and bullish RDY
MM is buying RDY in the Emerging Companies Portfolio, taking a 4% weighting around $3
MM is bullish on RDY ~$3.40
ReadyTech Holdings Ltd is a provider of people management software for educators, employers, and facilitators of career transitions. Its products are JR Plus, A2E, HR3, ePayroll, JR Gov, Aussiepay, and others. The company's operating segments include Education and Work pathways, Workforce Solutions, and Government and Justice. It generates maximum revenue from the Government and Justice. The education segment mainly provides products and services to tertiary education providers. Its Workforce segment provides products and services to a mid-sized company across various industries. The Government division provides government and justice case management software as a service solution to local governments, state governments, and justice departments.
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