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Reckon Limited (ASX:RKN) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of RKN, it is a notable dividend-paying company that has been a rockstar for income investors, currently trading at an attractive share price. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Reckon here.
Good value average dividend payer
RKN's shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of RKN's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the software industry, RKN is also trading below its peers, relative to earnings generated. This further reaffirms that RKN is potentially undervalued.
RKN is considered one of the top dividend payers in the market, and it has also been able to maintain it at a level in which net income is able to cover dividend payments.
For Reckon, I've compiled three relevant factors you should look at:
- Future Outlook: What are well-informed industry analysts predicting for RKN’s future growth? Take a look at our free research report of analyst consensus for RKN’s outlook.
- Historical Performance: What has RKN's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of RKN? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.