The Tyro Payments Ltd (ASX: TYR) share price is down by 4.17% this morning, after the payment solutions company released its latest transaction volumes. Data released by Tyro shows transaction volumes recovering in June, with volumes up 7% for the month to date compared to 2019.

Despite these numbers, the Tyro Payments share price has dropped to $3.68 in morning trade. 

What does Tyro Payments do?

Tyro Payments is a technology company that provides payment solutions and complementary business banking products. The company is Australia’s 5th largest merchant acquiring bank by number of terminals in the market (behind the four major banks). Used by more than 32,000 merchants in the first half of FY20, Tyro processed over $11.1 billion in transaction value, generating $117.3 million in revenue.

Tyro Payment’s technology platform enables debit and credit card payments. It can be integrated with point of sale systems and is capable of accepting alternative payment types such as Alipay. Traditionally focused on in-store payments, Tyro has recently expanded to eCommerce. Tyro Payments also offers loans in the form of merchant cash advances as well as merchant transaction accounts. In 1H FY20, Tyro Payments originated $37.4 million in loans and held merchant deposits totalling $9.7 million.

How has Tyro Payments been performing?

Tyro Payments was recording significant increases in transaction volumes in early calendar 2020, prior to the onset of the COVID-19 crisis. Transaction volumes increased 27% in January and 30% in February. With the onset of the pandemic in March, growth in transaction volumes fell to 3% as many merchants closed stores.

Transaction volumes fell 38% in April (to $0.911 billion from $1.468 billion) and 18% in May (to $1.285 billion from $1.562 billion) as the crisis took hold. More recent data, however, has shown strong signs of recovery. June volumes are up 7% to $1.016 billion from $0.946 billion over the same period in FY19. Thanks to early strong gains, Tyro Payments’ year-to-date transaction volumes are up 15% to $19.491 billion from $16.890 billion in FY19.

What is the outlook for Tyro Payments?

The company IPO’d last year at an issue price of $2.75 per share in the biggest float of 2019. The Tyro Payments share price dropped dramatically in the March correction, losing nearly 80% of its value from peak to trough.

Since then, however, the Tyro Payments share price has almost quadrupled from a low of 97 cents with shares currently trading at $3.68. This indicates investors are bullish on Tyro Payments’ prospects. As a result of the increase in share price, Tyro Payments entered the S&PASX 300 Index (ASX: XKO) in the latest rebalance.

More reading

• Consider these 2 ASX fintech shares before they take off
• The Tyro Payments share price was down 12% on Monday, here’s why
• Keep a watch on the Zip Co share price and 1 other ASX tech this June
• Why ASX, Domain, Tyro, & Wesfarmers shares are dropping lower
• Are Aussies still withdrawing cash like crazy?

Kate O’Brien has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Tyro Payments. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Tyro Payments share price slumps despite strong transaction volumes appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3hRANEW

At lunch on Monday the S&P/ASX 200 Index (ASX: XJO) has recovered from a poor start and is trading roughly flat. The benchmark index is currently at 5,942.8 points.

Here’s what has been happening on the market today:

Altium update disappoints.

The Altium Limited (ASX: ALU) share price is sinking lower today after the electronic design software company warned that it was likely to fall short of analyst consensus estimates in FY 2020. This is because the pandemic is impacting its performance during the latter weeks of the financial year. This is historically a strong part of the year for Altium.

Metcash results.

The Metcash Limited (ASX: MTS) share price has edged lower today after releasing its full year results. In FY 2020 Metcash delivered a 2.9% increase in revenue to $13 billion and a 1.8% decline in underlying earnings before interest and tax (EBIT) to $324.2 million. On the bottom line, the company posted a reported loss after tax of $45.9 million due largely to non-cash impairment charges to goodwill. Excluding these charges, profit after tax would have been roughly flat at $209.7 million

SEEK’s encouraging update.

The SEEK Limited (ASX: SEK) share price is trading slightly higher after the release of a trading update. The job listings company’s update revealed that its weekly billings have been improving since falling heavily at the peak of the pandemic. It also provided its expectations for the full year. It expects revenue of approximately $1,575 million and earnings before interest, tax, depreciation, and amortisation (EBITDA) of ~$410 million in FY 2020.

Best and worst ASX 200 shares.

The Austal Limited (ASX: ASB) share price has been a standout performer on the ASX 200 on Monday. It is up 9% to $3.67 after revealing that the U.S. government will invest US$50 million into its U.S. business. The Altium share price is the worst performer on the ASX 200 today with a disappointing 10% decline after its update.

More reading

• Here are 3 ASX 200 shares with dividend yields over 8%
• Why Austal, James Hardie, Northern Star, & Ramelius are storming higher
• Is the Domino’s Pizza share price a good buy at $68?
• These 5 ASX shares saw the biggest losses last week
• A $73m boost sends the Austal share price to the top of the ASX 200 today

James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Altium and Austal Limited. The Motley Fool Australia has recommended SEEK Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post ASX 200 flat: Altium update disappoints, Metcash posts full year loss appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2V3N3Zx

The Domino’s Pizza Enterprises Ltd. (ASX: DMP) share price rocketed 9.0% to a new, 52-week high of $68.32 last week. This was before falling back slightly in morning trade today to $67.99 at the time of writing. 

Investors have been bullish on the Aussie food group in recent weeks but is there still good value in Domino’s shares?

Why the Domino’s Pizza share price hit a 52-week high

You’d have to be pretty happy as a long-term investor in this Aussie food group. The Domino’s Pizza share price has climbed 29.9% in 2020, 73.8% in the last 12 months and 88.0% over the last 5 years.

Given we’ve just seen a steep bear market followed by a slingshot recovery, those who bought and held Domino’s shares would be sitting on a tidy profit.

I think a strong delivery model has been a big factor in Domino’s being able to achieve a new, 52-week high. Even during the height of coronavirus restrictions, Domino’s was still able to maintain its operations through its delivery and takeaway options.

I feel communication has also been key, with Domino’s providing regular updates throughout COVID-19. The company has restaurants across Australia, New Zealand, Asia and Europe which were all subject to different trading restrictions.

In its last announcement on 24 April, Domino’s advised that all stores “continue to adapt to changes in customer behaviour, community expectations, various support measures and local trading conditions”. 

I think the Domino’s Pizza share price has benefitted greatly from consistent, same-store Australian sales over recent months. This has offset lower revenues from France and New Zealand where stores were forced to close temporarily.

There’s also the company’s strong balance sheet that is likely to be playing a part in its recent share price growth. Domino’s has no short-term debt, with its existing facilities due for renewal in the first half of FY 2023.

This leaves the company in an enviable position to remain focused on its strategy during these turbulent times.

I believe another strong factor behind the strong performance of the Domino’s Pizza share price has been the company reaffirming its medium-term outlook for new store openings, same-store sales and net capex.

Is Domino’s good value at $68?

The Domino’s share price closed at a new, 52-week high of $68.32 per share on Friday afternoon and is now trading at $67.99. 

Many investors are reluctant to buy companies at 52-week highs which is understandable. However, I think this reflects a short-term investing mindset.

If you really want to invest in Domino’s Pizza for the long term, then today’s share price or next week’s shouldn’t matter.

Instead, I think it’s preferable to consider the opportunities for the company’s expansion over the coming decades. Personally, I’m not bullish enough to be buying Domino’s shares at their current valuation.

Having said that, I don’t think a 52-week high should necessarily deter you from buying if you’re holding for the long term.

More reading

• Here are 3 ASX 200 shares with dividend yields over 8%
• ASX 200 flat: Altium update disappoints, Metcash posts full year loss
• These 5 ASX shares saw the biggest losses last week
• A $73m boost sends the Austal share price to the top of the ASX 200 today
• These 5 ASX shares were last week’s top performers

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Domino’s Pizza Enterprises Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Is the Domino’s Pizza share price a good buy at $68? appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2V3N2Vt