RECKON LIMITED (RKN)
Share Price Analysis and Chart

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RKN - RECKON LIMITED

FNArena Sector : Accountancy
Year End: December
GICS Industry Group : Software & Services
Debt/EBITDA: 0.26
Index:

LAST PRICE CHANGE +/- CHANGE % VOLUME

$0.56

20 Nov
2024

-0.010

OPEN

$0.56

-1.75%

HIGH

$0.56

7,512

LOW

$0.56

TARGET
$0.65 16.1% upside
Franking for last dividend paid out: 100%
OTHER COMPANIES IN THE SAME SECTOR
XRO .
FNARENA'S MARKET CONSENSUS FORECASTS
RKN: 1
Title FY22
Actual		 FY23
Actual		 FY24
Forecast		 FY25
Forecast
EPS (cps) xxx 4.9 5.0 xxx
DPS (cps) xxx 2.5 2.1 xxx
EPS Growth xxx - 23.7% 1.6% xxx
DPS Growth xxx - 95.8% - 16.0% xxx
PE Ratio xxx N/A 11.2 xxx
Dividend Yield xxx N/A 3.8% xxx
Div Pay Ratio(%) xxx 50.8% 42.0% xxx

Dividend yield today if purchased 3 years ago: 2.50%

DIVIDEND YIELD CALCULATOR

Dividend Yield Today On Last Actual Payout :

 4.46

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 © 2024 FactSet UK Limited. All rights reserved
Title 201820192020202120222023
EPS Basic xxxxxxxxxxxxxxx4.9
DPS All xxxxxxxxxxxxxxx2.5
Sales/Revenue xxxxxxxxxxxxxxx53.4 M
Book Value Per Share xxxxxxxxxxxxxxx17.3
Net Operating Cash Flow xxxxxxxxxxxxxxx19.1 M
Net Profit Margin xxxxxxxxxxxxxxx10.43 %

EPS Basic

DPS All

Sales/Revenue

Book Value Per Share

Net Operating Cash Flow

Net Profit Margin

Title 201820192020202120222023
Return on Capital Employed xxxxxxxxxxxxxxx30.33 %
Return on Invested Capital xxxxxxxxxxxxxxx24.15 %
Return on Assets xxxxxxxxxxxxxxx13.72 %
Return on Equity xxxxxxxxxxxxxxx30.33 %
Return on Total Capital xxxxxxxxxxxxxxx21.70 %
Free Cash Flow ex dividends xxxxxxxxxxxxxxx16.1 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 201820192020202120222023
Short-Term Debt xxxxxxxxxxxxxxx1 M
Long Term Debt xxxxxxxxxxxxxxx4 M
Total Debt xxxxxxxxxxxxxxx5 M
Goodwill - Gross xxxxxxxxxxxxxxx3 M
Cash & Equivalents - Generic xxxxxxxxxxxxxxx1 M
Price To Book Value xxxxxxxxxxxxxxx3.27

Short-Term Debt

Long Term Debt

Total Debt

Goodwill - Gross

Cash & Equivalents - Generic

Price To Book Value

Title 201820192020202120222023
Capex xxxxxxxxxxxxxxx14.5 M
Capex % of Sales xxxxxxxxxxxxxxx27.20 %
Cost of Goods Sold xxxxxxxxxxxxxxx40 M
Selling, General & Admin. Exp & Other xxxxxxxxxxxxxxx8 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

07/08/2024

3

Equal-weight

$0.65

16.07%

After reviewing Reckon's 1H results, Morgan Stanley concludes strong operational discipline continues but growth remains hard to come by, and consensus will need to lower sales forecasts.

Sales of $28.4m for H1 missed the broker's estimate by -4.4% with only 1% subscription growth in the Business Group division and a revenue deceleration for Legal Group.

Target 65c. Equal-weight. Industry view: In-Line.

FORECAST
Morgan Stanley forecasts a full year FY24 dividend of 2.10 cents and EPS of 5.00 cents.
Morgan Stanley forecasts a full year FY25 dividend of 2.10 cents and EPS of 5.70 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

Taylor Collison

12/08/2024

2

Outperform & Accumulate

-

-

Reckon's June-half result appears to have fallen short of Taylor Collison's forecasts as growth in cloud users and subscription revenue was offset by a fall in desktop subscription revenue. 

Free cash flow of $3.5m missed the broker's forecast of $4.3m but the broker still reads it as proof of the company's ability to produce solid cash flow, and expects this will translate into a 2.5c fully franked dividend in September.

EPS forecasts fall sharply for FY24 and FY25.

The broker appreciates the recovery in growth post the one-off decline in non-paying payroll customers. 

Outperform rating retained. 

FORECAST
Taylor Collison forecasts a full year FY24 dividend of 2.50 cents and EPS of 3.90 cents.
Taylor Collison forecasts a full year FY25 dividend of 2.50 cents and EPS of 4.30 cents.
Access Extra Coverage Research History >

RKN STOCK CHART

FNArena News on RKN

1
FNArena Corporate Results Monitor – 06-09-2024

Sep 06 2024 - Australia
2
Australian Broker Call *Extra* Edition – Aug 14, 2024

Aug 14 2024 - Daily Market Reports
3
In Brief: Data Centres, Reckon & Consumers

Jul 26 2024 - Weekly Reports
4
Australian Broker Call *Extra* Edition – Jun 17, 2024

Jun 17 2024 - Daily Market Reports
5
Australian Broker Call *Extra* Edition – Mar 27, 2024

Mar 27 2024 - Daily Market Reports

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