RECKON LIMITED (RKN)
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RKN

RKN - RECKON LIMITED

FNArena Sector : Accountancy
Year End: December
GICS Industry Group : Software & Services
Debt/EBITDA: 0.35
Index:

LAST PRICE CHANGE +/- CHANGE % VOLUME

$0.495

01 Apr
2025

0.005

OPEN

$0.50

1.02%

HIGH

$0.50

513

LOW

$0.50

TARGET
$0.58 17.2% upside
Franking for last dividend paid out: 100%
OTHER COMPANIES IN THE SAME SECTOR
XRO .
FNARENA'S MARKET CONSENSUS FORECASTS
RKN: 1
Title FY23
Actual		 FY24
Actual		 FY25
Forecast		 FY26
Forecast
EPS (cps) xxx 3.9 5.4 xxx
DPS (cps) xxx 0.0 2.1 xxx
EPS Growth xxx - 20.7% 38.5% xxx
DPS Growth xxx N/A N/A xxx
PE Ratio xxx N/A 9.1 xxx
Dividend Yield xxx N/A 4.3% xxx
Div Pay Ratio(%) xxx N/A 38.9% xxx

Dividend yield today if purchased 3 years ago: 0.00%

DIVIDEND YIELD CALCULATOR

Dividend Yield Today On Last Actual Payout :

 0.00

Estimated Dividend Growth
(Average Of Past Three Years)

  %

Amount Invested

 $ 

Tell Me The Dividend After This Many Years
Past performance is no guarantee for the future. Investors should take into account that heavy swings in share price or exceptional circumstances (a la 2009) can have a significant impact on short term calculations and averages

Last ex-div: 15/08 - ex-div 2.5c (franking 100%)

HISTORICAL DATA ARE ALL IN AUD
Copyright © 2025 FactSet UK Limited. All rights reserved
Title 201920202021202220232024
EPS Basic xxxxxxxxxxxxxxx3.9
DPS All xxxxxxxxxxxxxxx0.0
Sales/Revenue xxxxxxxxxxxxxxx54.1 M
Book Value Per Share xxxxxxxxxxxxxxx19.6
Net Operating Cash Flow xxxxxxxxxxxxxxx17.9 M
Net Profit Margin xxxxxxxxxxxxxxx8.17 %

EPS Basic

DPS All

Sales/Revenue

Book Value Per Share

Net Operating Cash Flow

Net Profit Margin

Title 201920202021202220232024
Return on Capital Employed xxxxxxxxxxxxxxx21.14 %
Return on Invested Capital xxxxxxxxxxxxxxx16.94 %
Return on Assets xxxxxxxxxxxxxxx10.09 %
Return on Equity xxxxxxxxxxxxxxx21.14 %
Return on Total Capital xxxxxxxxxxxxxxx16.51 %
Free Cash Flow ex dividends xxxxxxxxxxxxxxx14.7 M

Return on Capital Employed

Return on Invested Capital

Return on Assets

Return on Equity

Return on Total Capital

Free Cash Flow ex dividends

Title 201920202021202220232024
Short-Term Debt xxxxxxxxxxxxxxx1 M
Long Term Debt xxxxxxxxxxxxxxx6 M
Total Debt xxxxxxxxxxxxxxx7 M
Goodwill - Gross xxxxxxxxxxxxxxx3 M
Cash & Equivalents - Generic xxxxxxxxxxxxxxx1 M
Price To Book Value xxxxxxxxxxxxxxx3.04

Short-Term Debt

Long Term Debt

Total Debt

Goodwill - Gross

Cash & Equivalents - Generic

Price To Book Value

Title 201920202021202220232024
Capex xxxxxxxxxxxxxxx14.8 M
Capex % of Sales xxxxxxxxxxxxxxx27.36 %
Cost of Goods Sold xxxxxxxxxxxxxxx42 M
Selling, General & Admin. Exp & Other xxxxxxxxxxxxxxx7 M
Research & Development xxxxxxxxxxxxxxx-
Investments - Total xxxxxxxxxxxxxxx0 M

Capex

Capex % of Sales

Cost of Goods Sold

Selling, General & Admin. Exp & Other

Research & Development

Investments - Total

EXPERT VIEWS
Display All Commentary

Sentiment Indicator

0.0

No. Of Recommendations

1
BROKER DATE RATING RECOMMENDATION TARGET PRICE % TO REACH TARGET COMMENTARY

Morgan Stanley

12/02/2025

3

Equal-weight

$0.58

17.17%

Morgan Stanley identifies few surprises in yesterday's FY24 result for Reckon and changes to forecasts largely reflect the Cashflow Manager acquisition and additional nQ Zebraworks investment.

The 58c target and Equal-weight rating are unchanged. Industry view: In-Line.

Given modest sales and earnings growth in recent years, the analysts require evidence of execution in order to become more constructive. The Equal-weight rating and 58c target are unchanged. Industry view: In-Line.

FORECAST
Morgan Stanley forecasts a full year FY25 dividend of 2.10 cents and EPS of 5.40 cents.
Morgan Stanley forecasts a full year FY26 dividend of 2.10 cents and EPS of 5.30 cents.
Access Stockbroker Research History >
EXTRA COVERAGE
Display All Commentary

No. Of Recommendations

1

Please note: unlike Broker Call Report, BC Extra is not updated daily. The info you see might not be the latest. FNArena does its best to update ASAP.

BROKER DATE RATING RECOMMENDATION TARGET PRICE % TO REACH TARGET COMMENTARY

Moelis

12/02/2025

1

Buy

$0.76

53.54%

Reckon's FY24 revenue was slightly higher than Moelis' forecast but the EBITDA margin of 37.3% was lower than the 38.0% estimate.

The broker notes capitalised software development of $14.8m was flat vs FY23, resulting in free cash flow of $1.7m and providing capacity to fund the 2.5c dividend.

The analyst estimates drawn debt will rise to over $9m in FY25 as Cashflow Manager and the Legal Group growth strategy are funded, with the final $1.25m payment tranche for Cashflow due in 2026.

The broker raised FY25 revenue estimate but lowered EPS forecast by -3.8% reflecting a moderately higher amortisation expense run rate than previously estimated.

Target price 76c and Buy rating maintained.

FORECAST
Moelis forecasts a full year FY25 dividend of 2.50 cents and EPS of 4.10 cents.
Access Extra Coverage Research History >

RKN STOCK CHART

FNArena News on RKN

1
FNArena Corporate Results Monitor – 12-02-2025

Feb 12 2025 - Australia
2
Australian Broker Call *Extra* Edition – Feb 12, 2025

Feb 12 2025 - Daily Market Reports
3
Australian Broker Call *Extra* Edition – Dec 23, 2024

Dec 23 2024 - Daily Market Reports
4
Australian Broker Call *Extra* Edition – Dec 10, 2024

Dec 10 2024 - Daily Market Reports
5
FNArena Corporate Results Monitor – 06-09-2024

Sep 06 2024 - Australia

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