Category: Stock Market

Looking for a growth share or two to buy after the weekend break? Three that could be worth considering are listed below.

All three have been growing strongly in recent years and look well-placed for more of the same during the 2020s. Here’s what you need to know about these ASX growth shares:

Appen Ltd (ASX: APX)

The first growth share to look at is Appen. It is a leading developer of high-quality, human annotated datasets for machine learning (ML) and artificial intelligence (AI). It has been growing at a very impressive rate over the last few years. And while the pandemic has impacted demand and its growth, the future remains very bright. With AI and ML markets expected to continue their strong growth for many years to come, Appen appears well-placed over the next decade.

NEXTDC Ltd (ASX: NXT)

Another growth share to look at is NEXTDC. It is one of the Asia-Pacific region’s leading data centre operators. Due to strong demand for data centre capacity, which is being driven by the structural shift to the cloud, NEXTDC has been growing its sales and operating earnings at a solid rate. Positively, this is expected to continue as the shift to the cloud continues. It could also boost its growth further if its plan to expand into the Asian market is a success.

Pushpay Holdings Group Ltd (ASX: PPH)

A final growth share to look at is Pushpay. It is a fast-growing donor management platform provider for the faith sector. It has been growing at a rapid rate over the last few years and more of the same is expected over the 2020s. This is due to its target of winning a 50% share of the medium to large US church market. This is a US$1 billion opportunity and many multiples of its current revenue. Given the quality of its offering and favourable industry tailwinds, it looks well-placed to achieve this.

The post 3 ASX shares with strong growth potential appeared first on The Motley Fool Australia.

More reading

• Here’s a look at how ASX WAAAX shares compare on growth
• Brokers name 3 ASX shares to buy today
• 3 fantastic ASX shares that could be buys
• Top brokers name 3 ASX shares to buy today
• Top ASX shares to buy in September 2021

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends MEGAPORT FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Appen Ltd and PUSHPAY FPO NZX. The Motley Fool Australia has recommended MEGAPORT FPO and PUSHPAY FPO NZX. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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At the small end of the Australian share market, there are a number of companies with the potential to grow materially in the future.

Three that investors may want to get better acquainted with are listed below. Here’s what you need to know about them:

Alcidion Group Ltd (ASX: ALC)

The first small cap ASX share to watch is this growing informatics solutions company. It is the company behind healthcare software products Miya, Patientrack and Smartpage. Patientrack, for example, helps clinicians know a patient’s status in real-time. It uses predictive algorithms to support time-critical care, allowing doctors to intervene and prevent patient deterioration faster than ever before. Alcidion appears well-placed for growth in the future thanks to the shift to a paperless environment in the healthcare sector and a number of favourable industry tailwinds.

BlueBet Holdings Ltd (ASX: BBT)

Another small cap ASX share to watch is BlueBet. It is an online sports betting company that allows users to bet on all Australian and international racing and sports. BlueBet has been growing very strongly thanks to the increasing popularity of mobile sports betting. The good news is that management is confident that this trend can continue. It also believes it is well positioned to substantially grow its current ~1.2% share of the market in Australia. But it isn’t settling for that. The company is currently in the process of expanding into the massive US market.

Whispir Ltd (ASX: WSP)

A final small cap ASX share to watch is Whispir. It is a software-as-a-service company that provides a communications workflow platform automating interactions between organisations and people. The company notes that its offering enables organisations to improve their communications through automated workflows to ensure stakeholders receive accurate, timely, useful and actionable insights. Demand has been growing strongly, leading to stellar recurring revenue growth over the last 18 months.

The post 3 small cap ASX shares to watch appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Alcidion Group Ltd and Whispir Ltd. The Motley Fool Australia has recommended Alcidion Group Ltd, BlueBet Holdings Ltd, and Whispir Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Are you looking for some top ASX dividend shares to add to your income portfolio next week?

If you are, you might want to look at the ones listed below. Here’s what you need to know about these highly rated dividend shares:

Accent Group Ltd (ASX: AX1)

The first ASX dividend share to look at is Accent. It is a retail group with a collection of popular footwear-focused store brands. These include stores such as HYPEDC, Platypus, and The Athlete’s Foot.

Accent certainly was on form in FY 2021. For the 12 months ended 30 June, the company reported a 19.9% increase in sales to $1.14 billion and a 38.6% jump in net profit after tax to $76.9 million.

Thanks to this strong form, the Accent Board was able to increase its full year dividend by 21.6% to 11.25 cents in FY 2021.

This went down well with the team at Bell Potter. In response to its results, the broker retained its buy rating but trimmed its price target to $2.90. The latter was due to its expectation that FY 2022’s result will be softer due to lockdowns.

Nevertheless, the broker remains positive on the future. Its team have pencilled in dividends per share of 9 cents in FY 2022 and 13 cents in FY 2023.

Based on the latest Accent share price of $2.19, this represents yields of 4.1% and 5.9%, respectively.

Sonic Healthcare Limited (ASX: SHL)

Another ASX dividend share to look at is Sonic Healthcare. It is a leading medical diagnostics company with operations across the world.

Over the last 30+ years Sonic has earned a reputation for excellence in pathology, diagnostic imaging, and primary care medical services. This is across operations spanning the ANZ, European and North American markets.

Sonic was also a very strong performer in FY 2021. Last month it delivered a 28% increase in revenue to $8.8 billion and a 149% lift in net profit to $1.3 billion. This was driven largely by strong demand for COVID-19 testing services.

Morgans is positive on the company and has an add rating and $45.98 price target on its shares. It is also forecasting dividends per share of 95 cents in FY 2022 and 99 cents in FY 2023. Based on the latest Sonic share price of $43.75, this will mean partially franked yields of 2.2% and 2.3%, respectively.

The post 2 highly-rated ASX dividend shares named as buys appeared first on The Motley Fool Australia.

More reading

• Top broker tips Accent (ASX:AX1) share price to rise 33%
• Top performing ASX 200 healthcare shares in August
• Sonic Healthcare (ASX:SHL) share price struggles despite COVID passport positioning
• 3 top ASX results from week four of reporting season
• Sonic Healthcare (ASX:SHL) share price hits record high at $43.43

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group and Sonic Healthcare Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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If you’re wanting to invest in the tech sector but aren’t sure which shares to buy, then you might want to consider exchange traded funds (ETFs).

There are a number of ETFs out there that allow investors to buy a slice of some of the world’s biggest and brightest tech companies. Two such ETFs that will allow you to achieve this are listed below:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The first ETF to consider is the BetaShares Asia Technology Tigers ETF. As its name implies, this ETF gives investors exposure to some of the largest tech companies in the Asian market.

BetaShares believes this is a good place to invest, noting that technological adoption in Asia is surpassing the West. And while there are regulatory risks to consider in China, overall, the risk appears to be skewed to the upside given the strong growth potential of the shares included in the fund.

Speaking of which, at present there are a total of 50 companies included in the fund. Among its holdings you’ll find Alibaba, Infosys, JD.com, Kakao, Meituan, Pinduoduo, Samsung, Taiwan Semiconductor, and Tencent.

In respect to Tencent, it is a multinational technology conglomerate and one of the world’s largest companies. It is best known for its communication and social platforms, Weixin (WeChat) and QQ, which connect over a billion users with each other.

BetaShares Global Cybersecurity ETF (ASX: HACK)

Another ASX ETF to look at is the BetaShares Global Cybersecurity ETF. This popular ETF gives investors exposure to the leading companies in the global cybersecurity sector.

The cybersecurity sector has been growing rapidly in recent years. And due to increasing demand for cybersecurity services because of the growing threat of cyber attacks and the shift to the cloud, it has been tipped to continue doing so in the years to come.

Included in the fund are both global cybersecurity giants and emerging players from a range of global locations. Among the companies you’ll be buying a piece of are Accenture, Cisco, Cloudflare, Crowdstrike, Okta, and Splunk.

In respect to CrowdStrike, it provides the increasingly popular Falcon platform. This platform delivers incident response and forensic analysis services that are designed to help businesses understand whether a breach has occurred. It then allows the user to respond and recover from a breach with speed and precision to remediate the threat.

The post 2 excellent tech ETFs for ASX investors appeared first on The Motley Fool Australia.

More reading

• 2 top ETFs that might be buys in September 2021
• 3 high quality ETFs for ASX investors in September
• Here’s why the ASIA (ASX:ASIA) share price is up 4% in the last week
• How China is fuelling demand for this leading ASX ETF
• China gaming ban brings BetaShares’ ASIA (ASX:ASIA) ETF into focus

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia owns shares of and has recommended BETA CYBER ETF UNITS and BetaShares Asia Technology Tigers ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Qantas Airways Limited (ASX: QAN) share price has travelled higher over the past decade, up around 70%. However, this figure could have been much higher if not for COVID-19.

During late December 2019, the Qantas share price was hovering above the $7.30 mark, before freefalling thereafter. While the airline’s shares have somewhat recovered, they are still a long way off those previous levels.

Nonetheless, we wind the clock back and see how much an investor would have made if they had invested $1,000 in Qantas shares a decade ago.

How much would your initial investment be worth now?

If you spent $1,000 on Qantas shares exactly 10 years ago, you would have picked them up for $1.615 apiece. The purchase would deliver approximately 619 shares without reinvesting the dividends.

Looking at yesterday’s closing price, the Qantas share price finished at $5.34. This means those 619 shares would be worth $3,305.46 (619 shares x $5.34).

In percentage terms, the initial investment implies a gain of around 230.54% or a yearly average return of 12.70%. Comparing that to the S&P/ASX 200 Index (ASX: XJO), the index has given back 5.84% over a 10-year period.

And the dividends?

Over the course of the last decade, Qantas has made a total of 8 bi-annual dividend payments from 2015 to 2019. Its most recent dividend distributions have been suspended due to the pandemic severely affecting its operations and bottom line.

Adding those 8 dividends payments gives us an amount of 86 cents per share. Calculating the number of shares owned against the total dividend payment gives us a figure of $532.34 (619 shares x 0.86).

When putting both the initial investment gains and dividend distribution, an investor would have made roughly $3,837.80.

Qantas share price snapshot

Over the past 12 months, the Qantas share price has moved 30% higher and is up around 10% year to date.

Qantas presides a market capitalisation of roughly $10 billion, with more than 1.8 billion shares on its registry.

The post If you invested $1,000 in Qantas (ASX:QAN) shares a decade ago, here’s what they would be worth now appeared first on The Motley Fool Australia.

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• Qantas (ASX:QAN) share price falls while international ‘Points Planes’ considered
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• ASX 200 company bosses lobby for reopening plan
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• Why the Qantas (ASX:QAN) share price has beaten the ASX 200 in the last year

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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I’m a big fan of buy and hold investing and believe it is the best way for investors to grow their wealth.

To demonstrate how successful it can be, I like to pick out a number of popular ASX shares to see how much a single $20,000 investment 10 years ago would be worth today.

This time around I have picked out the three ASX shares that are listed below:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

This pizza chain operator has been a fantastic place to invest over the last decade. During this time the company has delivered consistently strong sales and earnings growth thanks to the popularity of its offering and its growing footprint. In respect to the latter, back in FY 2011 the company had 866 stores. Whereas last month it released its FY 2021 results and revealed that it opened 285 new stores during the year, bringing its total to 2,949 stores. Pleasingly, management believes it can grow this to 6,650 stores in existing markets by 2033. Over the last 10 years, the company’s shares have generated an average total return of 37.2% per annum. This would have turned a $20,000 investment into ~$473,000.

REA Group Limited (ASX: REA)

The REA Group share price has also been a very strong performer over the last 10 years. This has been driven by strong earnings growth that has been underpinned by the structural shift to online property listings, the dominance of its realestate.com.au website, and its growing international operations. This has ultimately led to the company’s shares providing investors with an average 29.3% per annum total return. This means that a $20,000 investment in REA Group’s shares in 2011 would now be worth ~$261,000.

ResMed Inc. (ASX: RMD)

Finally, the ResMed share price has beaten the market by some distance over the last decade. This has been driven by its consistently solid sales and earnings growth over the period. ResMed’s growth reflects its industry-leading solutions and the growing awareness and prevalence of sleep disorders. Over the last 10 years, ResMed’s shares have provided investors with an average total return of 30.3% per annum. This means that an investment of $20,000 into its shares in 2011 would have grown to be worth ~$282,000 this year.

The post How to turn $20,000 into $475,000 in 10 years with ASX shares appeared first on The Motley Fool Australia.

More reading

• If you invested $1,000 in ResMed (ASX:RMD) shares a decade ago, here’s what they would be worth now
• 3 top ASX 200 shares that could be buys
• 3 quality ASX growth shares analysts rate as buys
• 3 ASX 200 shares hit new all-time highs this earnings season
• Will the ResMed (ASX:RMD) share price continue its massive bull run?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited, REA Group Limited, and ResMed Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) was on form again last week. The benchmark index rose 34.6 points or 0.5% over the five days to end the week at 7,522.9 points.

While a good number of shares pushed higher with the market, some climbed more than most. Here’s why these were the best performing ASX 200 shares last week:

Alumina Limited (ASX: AWC)

The Alumina share price was the strongest performer on the ASX 200 last week with a gain of 19.1%. This appears to have been driven by news that New Day Aluminum curtailed alumina production at its facility in the United States due to Hurricane Ida. Any supply disruptions are likely to support prices, which had already been improving in recent weeks prior to the hurricane.

Whitehaven Coal Ltd (ASX: WHC)

The Whitehaven Coal share price wasn’t far behind with a gain of 18.3% over the five days. Investors were buying the coal miner’s shares for a couple of reasons. One was an increase in coal prices last week, the other was a bullish broker note out of Ord Minnett. In respect to the latter, on Thursday the broker retained its buy rating and lifted its price target to $4.00. This is materially higher than the current Whitehaven Coal share price of $2.84.

Clinuvel Pharmaceuticals Limited (ASX: CUV)

The Clinuvel share price was among the best performers on the ASX 200 for a second week in a row with a gain of 17.3%. Investors have been buying the biopharmaceutical company’s shares since a leading broker responded positively to its full year results. In FY 2021, Clinuvel reported a 43% increase in revenue to $48.5 million and a 63.5% jump in net profit after tax to $24.7 million. This led to Jefferies upgrading the company’s shares to a buy rating with a $36.80 price target. The Clinuvel share price has now breached this and hit a record high of $40.96 on Friday.

South32 Ltd (ASX: S32)

The South32 share price was on form and stormed 13.1% higher last week. Investors were fighting to get hold of the mining giant’s shares last week after aluminium prices hit their highest levels in 10 years. This was driven by concerns over shortages in China, which is the largest producer of aluminium in the world. Aluminium prices hit a high of US$2,727 a tonne on the London Metal Exchange on Tuesday according to the Financial Times.

The post These were the best performing ASX 200 shares last week appeared first on The Motley Fool Australia.

More reading

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• ASX 200 rises, TechnologyOne climbs, Milton up
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• Why has the Alumina (ASX:AWC) share price rocketed 20% in the last week?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Is the Rio Tinto Limited (ASX: RIO) share price worth looking at after dropping 17% over the last month?

It has been a rough time in recent weeks for businesses that operate in the iron ore industry like BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG).

The iron ore price has been sinking with lower demand from China. The Chinese are the key customer of Australian iron ore. So, China has a very important role to play in the supply and demand relationship with iron ore.

But the Rio Tinto dividend has also gone ex-dividend, meaning new investors after the ex dividend date aren’t entitled to the FY21 interim dividend.

Rio Tinto’s big dividends

The mining giant declared an ordinary dividend of US$3.76 per share for the first six months of FY21 – that was an increase of 143% compared to the first half of FY20.

But the resources company generated so much profit, it decided to declare a special dividend of US$1.85 per share as well.

That meant the total dividend per share for the first six months was US$5.61, representing an increase of 262%.

Rio Tinto generated US$7.52 of underlying earnings per share (EPS) in the first half of FY21, so is still retaining some of that profit generated.

There were high growth numbers across the board, as Rio Tinto benefited from the profitability improvement from very high commodity prices.

FY21 half-year operating cashflow jumped 143% to US$13.66 billion. Underlying earnings increased 156% to US$12.17 billion and free cashflow soared 262% higher to US$10.2 billion.

The company’s balance sheet also improved significantly, going from US$664 million of net debt at 31 December 2020 to $3.14 billion of net cash at 30 June 2021.

Lithium expansion

One of the main headlines out of Rio Tinto recently is that it has committed $2.4 billion of funding for the Jadar lithium-borates project in Serbia, subject to receiving all relevant approvals, permits and licences.

It’s targeting first saleable production in 2026 and ramp up to full annual production of around 58,000 tonnes of battery-grade lithium carbonate in 2029.

Rio Tinto says that this positions it as the largest source of lithium supply in Europe. Jadar could supply enough lithium to power over one million electric vehicles per year.

Is the Rio Tinto share price a buy?

It depends on who you ask.

The broker UBS thinks Rio Tinto is actually a sell, with a price target of $102. It was expecting the iron ore price to fall substantially – and it already has fallen a lot. UBS believes that higher supply will lead to an even lower iron ore price over the coming months.

But then there are still buy ratings out there, such as Macquarie Group Ltd (ASX: MQG) which has a price target of $153 on the Rio Tinto share price. The resumption of operations at Richards Bay Minerals in South Africa is a positive for the broker, after stabilisation of the security situation around the mine, supported by the local government.

The post The Rio Tinto (ASX:RIO) share price has dropped 17% in one month. Is it a buy? appeared first on The Motley Fool Australia.

More reading

• Why the Rio Tinto (ASX:RIO) share price is down 17% in a month
• These were the worst performing ASX 200 shares in August
• ASX 200 miners beware as UBS warns iron ore will sink under US$100 in 2022
• August hasn’t been a great month for the Rio Tinto (ASX:RIO) share price
• Fortescue (ASX:FMG) share price bounces despite looming iron ore supply outlook

Motley Fool contributor Tristan Harrison owns shares of Fortescue Metals Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Collins Foods Ltd (ASX: CKF) share price has been a strong performer in 2021.

It hasn’t exactly been a smooth ride, but the quick service restaurant operator’s shares have thoroughly smashed the market during this year.

Since the start of the year, the Collins Foods share price is up over 31%. This is more than double the gain of the S&P/ASX 200 Index (ASX: XJO).

Can the Collins Foods share price keep climbing?

The good news is that one leading broker still believes the Collins Foods share price has further to run.

According to a note out of Canaccord Genuity, its analysts were pleased with the company’s full year results in June.

In case you missed it, the KFC operator reported a 12.4% increase in revenue to $1.07 billion and an 18.2% lift in underlying net profit after tax to $56.9 million. This was driven largely by its KFC Australia business, which delivered same store sales growth of 12.9% during the 12 months.

In response to the result, the team at Canaccord Genuity retained their buy rating and lifted their price target to $13.35 price target.

Based on the latest Collins Foods share price of $12.55, this implies further upside of 6.5% over the next 12 months before dividends.

And with Canaccord Genuity forecasting fully franked dividends per share of 26 cents in FY 2022, the potential return on offer stretches to approximately 8.5%.

While the broker notes that Collins Foods will be cycling some very strong sales growth in FY 2022, it is still forecasting modest earnings and dividend growth for the year. This is largely due to the strength of its Australian KFC operations.

All in all, Canaccord Genuity appears to believe this makes its shares good value at the current level.

The post Top broker says Collins Foods (ASX:CKF) share price is a buy appeared first on The Motley Fool Australia.

More reading

• 2 top ASX dividend shares rated as buys this month
• 2 top ASX dividend shares tipped to grow at a solid rate

Motley Fool contributor James Mickleboro owns shares of Collins Foods Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Collins Foods Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Now that the ASX August earnings season has drawn to a close, it’s a good time to run the ruler over the WAAAX shares.

Armed with the FY21 full-year reports of all 5 ASX-listed technology shares, let’s assess how these companies compare to each other.

Is there still growth in WAAAX shares?

Firstly, a friendly reminder, WAAAX shares is an abbreviated term for five of the most recognisable tech companies on the ASX: WiseTech Global Ltd (ASX: WTC), Afterpay Ltd (ASX: APT), Appen Ltd (ASX: APX), Altium Limited (ASX: ALU), and Xero Limited (ASX: XRO).

While the notoriety of all these companies has been high in recent years, the performance of their respective share prices has been mixed. The fact is each of these companies operates in vastly different industries. For instance, logistics management software and payment solutions are like chalk and cheese.

However, there are likely many investors out there grappling with which investment might provide the best returns in the future. For that reason, let’s compare the growth figures of each for FY21.

How do the WAAAX shares compare?

Revenue

There are many ways to evaluate growth, but there are a few common ones. In this comparison, we’ll be focusing on revenue and earnings.

Revenue tends to be a go-to metric for evaluating growth because often ‘growth’ companies prioritise this over profitability.

Below is a table that summarises each of the five companies FY21 revenue growth:

ASX-listed company	FY21 revenue	Growth year-over-year
WiseTech Global Ltd (ASX: WTC)	$507.5 million	24%
Afterpay Ltd (ASX: APT)	$924.7 million	78%
Altium Limited (ASX: ALU)	US$180.2 million	6%
Appen Ltd (ASX: APX)	US$196.6 million	-2%
Xero Limited (ASX: XRO)	NZ$848.8 million	18%

As we can see, Afterpay delivered the highest rate of growth year-over-year (YoY) out of the WAAAX shares. This was underpinned by strong customer growth in North America and an increase in repeat use.

At the other end of the scale, Appen failed to grow its revenue in FY21. Reportedly, this was the result of its project delivery being skewed to the second half of the year. In addition, Appen customers broadened their spending outside of digital advertising.

Earnings

It is reassuring when ASX shares are delivering double-digit revenue growth. However, that is only half the story when it comes to comparing growth figures.

At some stage, investments need to grow profits to return value to shareholders. On that note, let’s take a look at how the WAAAX shares performed on an earnings basis in FY21.

ASX-listed company	FY21 profit/(loss)	Growth year-over-year
WiseTech Global Ltd (ASX: WTC)	$105.8 million	100%
Afterpay Ltd (ASX: APT)	($159.4 million)	-597%
Altium Limited (ASX: ALU)	US$35.3 million	79%
Appen Ltd (ASX: APX)	US$6.7 million	-55%
Xero Limited (ASX: XRO)	NZ$19.8 million	493%

Although Afterpay achieved the highest revenue growth, its bottom-line loss widened in FY21. Meanwhile, cloud-based accounting company, Xero, shot the lights out with a staggering 493% increase in profits.

Additionally, WiseTech and Altium posted similarly impressive earnings growth. Based on this data, WiseTech has become the most profitable of the WAAAX shares, pumping out $105.8 million in net profits after tax.

The post Here’s a look at how ASX WAAAX shares compare on growth appeared first on The Motley Fool Australia.

More reading

• These were the worst performing ASX 200 shares last week
• Here’s why the Afterpay (ASX:APT) share price is up 42% in the last 3 months
• Here’s why the Afterpay (ASX:APT) share price is sliding on Friday
• The WiseTech Global (ASX:WTC) share price is up 5% in the last week
• How has the Square share price performed since announcing the Afterpay deal?

Motley Fool contributor Mitchell Lawler owns shares of AFTERPAY T FPO and Appen Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, Altium, Appen Ltd, WiseTech Global, and Xero. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO, Altium, Appen Ltd, WiseTech Global, and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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