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The Sigma Healthcare Ltd (ASX: SIG) share price has had a disappointing month, falling by more than 14% so far. This comes after the pharmacy chain operator and distributor provided investors with a trading update earlier in December.

At the time of writing, Sigma shares are going nowhere, trading flat at 43 cents a pop.

What’s driving Sigma shares lower?

Over the last few weeks, investors have sold off Sigma shares following the company’s admission of a difficult trading year.

On 6 December, Sigma released a trading update to the ASX advising a downgraded earnings guidance for FY22.

The company noted that earnings before interest, tax, depreciation and amortisation (EBITDA) will be 10% lower compared to FY21. In contrast, Sigma previously stated in September that EBIDTA is forecasted for a 5% growth.

The company acknowledged that it has been impacted by impacted by shorter-term operational issues as well as COVID-19. The former relates to the roll-out of its Enterprise Resource Planning (ERP), with Sigma switching to the live SAP environment.

The combination of these factors resulted in an unexpected increase in operating costs through the transition. One-off and non-operating costs are expected to come around at $25 million to $30 million.

Investor drew ire of the trading update, sending the Sigma share price 7.62% lower on the day. However, the selling didn’t stop there, with its shares continuing to slide another 10% over the next two days.

The Sigma share price has been yet to recover from the heavy selling, hitting a record-low of 42.5 cents yesterday.

While still months away, investors may want to pencil in the company’s FY22 results on 29 March 2022.

About the Sigma share price

Over the last 12 months, Sigma shares have traversed mostly sideways with a few hiccups along the way. Its shares are down 30% over the period, including year-to-date.

Based on today’s price, Sigma presides a market capitalisation of roughly $460.79 million, with over 1.06 billion shares outstanding.

The post Why has the Sigma (ASX:SIG) share price dived 14% so far in December? appeared first on The Motley Fool Australia.

More reading

• What’s the outlook for ASX healthcare shares in 2022?
• Why Appen, Cooper Energy, PolyNovo, and Sigma shares are falling
• Why Carsales, Magellan, Nickel Mines, and Sigma shares are dropping
• Why Bapcor, Kogan, Sigma, and Zip shares are dropping today
• Sigma (ASX:SIG) share price slides 7% to yearly low on guidance update

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The S&P/ASX 200 Index (ASX: XJO) is suffering through yet another day of pessimistic trading. At the time of writing, the ASX 200 is down 0.5% at 7,290 points after kangarooing downwards for most of the day.

But don’t let that get you down. Let’s take a moment to check out the ASX 200 shares currently topping the ASX’s share volume tables, according to investing.com.

3 most active ASX 200 shares by volume this Thursday

Sotuh32 Ltd (ASX: S32)

Diversified ASX 200 mining company South32 is the first share worth taking a look at today. This Thursday has seen a hefty 14.98 million South32 shares trade hands thus far. With no major announcements or news out of the company today, we can probably put this high volume down to the movements of the South32 share price itself.

This resources giant has seen its shares defy the broader market today, and put on an additional 0.8% at $3.84 at the time of writing. This move, together with South32’s ongoing share buyback program, is the likely cause behind this elevated trading volume that we are seeing.

Pilbara Minerals Ltd (ASX: PLS)

Pilbara Minerals is next up today. This ASX 200 lithium company has had a notable 15.34 million of its shares trade on the share market today. Again, there’s nothing newsworthy out today regarding Pilbara, so this is also likely to be related to this company’s share price moves.

Pilbara shares are also in the green today, presently up a robust 1.85% at $2.75. That’s just a touch off of Pilbara’s new all-time high of $2.80 that we saw it hit earlier this week.

Telstra Corporation Ltd (ASX: TLS)

Telstra rounds out our most traded ASX 200 shares today, with a whopping 18.13 million shares bought and sold thus far this Thursday. We do have a possible smoking gun for the elevated volume with this company though.

As my Fool colleague Tony outlined this morning, the ASX 200 telco has copped a $2.53 million fine after the media watchdog found that Telstra had inadvertently exposed some customers’ private phone numbers. The Telstra share price is down today, having lost around 0.12%. It’s currently asking $4.10 each. It’s this combination that has probably put Telstra at the top of today’s volume tables.

The post These 3 ASX 200 shares are topping the volume charts on Thursday appeared first on The Motley Fool Australia.

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• CBA (ASX:CBA) share price up amid another loan rate hike
• ASX 200 (ASX:XJO) midday update: CSL sinks, Qantas’ $1.1bn+ first half loss
• Telstra (ASX:TLS) pays huge fine for putting Australians in danger
• Qualitas (ASX:QAL) shares are hitting the ASX boards today following its IPO
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Sebastian Bowen owns Telstra Corporation 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 and has recommended Telstra Corporation 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 HUB24 Ltd (ASX: HUB) share price is in the green on Thursday after the company released its Scheme Booklet detailing its planned takeover of Class Ltd (ASX: CL1).

The scheme has also been lodged with the Australian Securities and Investments Commission (ASIC) as of today.

Class Ltd develops and delivers cloud-based software solutions for the wealth accounting market in Australia. HUB24 is a wealth management solutions fintech. 

At the time of writing, the HUB24 share price is $28.09, which is 3.58% higher than its previous close.

Let’s take a closer look at this latest news on the acquisition.

HUB24 share price lifts on scheme booklet release

After the market closed yesterday, Class announced that the Supreme Court of New South Wales approved the scheme meeting that will see shareholders voting on its takeover by HUB24.

Today, the acquisition plan has passed another hurdle with the release of the scheme booklet, which also houses the thumbs up of an independent expert.

The expert found HUB24’s part-cash, part-scrip offer values Class shares at between $2.85 and $3.03 – up to 34% higher than its true underlying value of $2.25 to $2.57.

They recommended all shareholders vote in favour of the takeover in the absence of a superior proposal.

Interestingly, the Class share price isn’t sharing in HUB24’s solid gains today. It is currently 0.77% higher than it was at yesterday’s close, trading for $2.63.

HUB24 is offering 1 HUB24 share for every 11 Class shares held by investors. It will also be providing Class shareholders with 12.5 cents for each security they own.

At the time of the initial offer, the deal represented a 73% premium on the Class share price.

Class shareholders will have their say on the takeover on 31 January. At least 75% need to be in favour of the acquisition.

Major Class shareholder, Spheria Asset Management, owns approximately 19.99% of the company’s stock and plans to vote ‘yes’.

As long as all conditions are met, the companies expect the acquisition to go ahead in February.

The post Here’s why the HUB24 (ASX:HUB) share price is climbing today appeared first on The Motley Fool Australia.

More reading

• Here’s why the HUB24 (ASX:HUB) share price slid 7% today
• HUB24 (ASX:HUB) share price slumps on upped takeover terms
• 3 bargain ASX tech shares to buy right now: expert

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Hub24 Ltd. The Motley Fool Australia owns and has recommended Class Limited. The Motley Fool Australia has recommended Hub24 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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The Doctor Care Anywhere Group PLC (ASX: DOC) share price has leapt today after the company announced a new offering to patients.

The telehealth company has introduced a new operating model, moving from the single option of a 20-minute virtual consultation with a doctor to multiple options for treatment advice. 

At time of writing, the Doctor Care Anywhere share price is up 12%, trading at 46.5 cents apiece. 

New Telehealth options in place for patients

With COVID-19 spearheading the uptake of remote appointments, the Federal Health Department this week announced a $308.6 million injection into the primary care health system. This includes a $106 million portion for permanent Telehealth for Australians.

The announcement times well for Doctor Care Anywhere, with its new model including options such as shorter appointments, meeting with a nurse, or completing a QuickConsult survey to be reviewed and returned with written advice or a prescription. 

The company said this model would assist in “the challenge of clinical workforce shortages and ever-increasing healthcare demand”. 

In addition, the telehealth company announced that its current agreement held with AXA Health would now vary to allow nurses to “make decisions in the assessment, diagnosis, and treatment of patients and to prescribe medication”.

Doctor Care Anywhere share price snapshot

The Doctor Care Anywhere share price has fallen 61.67% since the company listed on the ASX in December last year. The company saw a high volume of trading on Monday following the government’s healthcare investment.

Based on the current share price, the telehealth company has a market capitalisation of around $89 million.

The post Why Doctor Care Anywhere (ASX:DOC) is soaring 12% today appeared first on The Motley Fool Australia.

More reading

• Why is the Doctor Care Anywhere (ASX:DOC) share price getting attention today?
• 2 fast growth ASX shares that could be buys in December 2021

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Doctor Care Anywhere Group PLC. The Motley Fool Australia has recommended Doctor Care Anywhere Group PLC. 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 Australian Strategic Materials Ltd (ASX: ASM) share price is up 5.66% at time of writing to $11.38 per share.

The ASX rare earths and strategic metals explorer is gaining today even as the All Ordinaries Index (ASX: XAO) dips 0.34% into the red.

Factoring in today’s intraday gains, the Australian Strategic Materials share price is up nearly 12% since the closing bell last Wednesday.

What’s driving ASX investor interest?

The Australian Strategic Materials share price has closed higher on 4 of the last 5 days of trading.

The most recent price-sensitive news from the miner was released after market close on Tuesday.

In that release Australian Strategic Materials reported that it had signed a Joint Statement of Cooperation with the Korean Mine Rehabilitation and Resource Corporation (KOMIR).

According to the Joint Statement of Cooperation, Australian Strategic Materials and KOMIR will work together to expand the use of rare earths and critical metals in Korea.

The 2 companies will also cooperate to develop import opportunities to secure the supply of rare earths and critical metals for Korea’s industries. The miner said this includes supplies for strategic stockpiling.

Commenting on the agreement, Australian Strategic Materials’ managing director, David Woodall said:

This builds on the cooperative and collaborative relationship between Korea and ASM, creating further opportunities to engage on the strategic issue of critical minerals and metal supply.

This Joint Statement of Cooperation is another firm sign of Korea’s commitment to securing its supply of critical metals and to working with ASM to deliver an outcome that is beneficial to the Korean supply chain.

Woodall said that Australian Strategic Materials will start producing critical metals at its Korean Metals Plant in 2022.

Australian Strategic Materials share price snapshot

The Australian Strategic Materials share price is up an impressive 132% over the past full year. By comparison the All Ords has gained 10% over that same time.

Over the last month, shares in Australian Strategic Materials have gone the other direction, down 16%.

The post Here’s why the Australian Strategic Materials (ASX:ASM) share price has leapt 12% in a week appeared first on The Motley Fool Australia.

More reading

• Australian Strategic Materials (ASX:ASM) share price loses 11% despite ‘strong financial results’
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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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The Treasury Wine Estates Ltd (ASX: TWE) share price is climbing today after the company updated the market on its sustainability push.

Treasury Wine Estates is Australia’s largest wine company and one of the biggest in the world. Its household brand names include Penfolds, Beringer, Lindemans, Wolf Blass and Rosemount Estate.

Shares in the winemaker are up 0.66% to $12.14 in afternoon trading. They rose by 1.5% in an early morning push to $12.24 before slipping back.

For context, the S&P/ASX 200 Index (ASX: XJO) is down 0.5% today.

Let’s take a look at what Treasury Wine Estates announced today.

Green push

Treasury Wine Estates announced it will convert $1.4 billion of its financial loans into sustainability-linked loans. The company claims that this is one of the biggest sustainability loans in the Asia-Pacific.

By establishing loans, the company will have a financial incentive to reach its green targets. These include 100% renewable electricity by 2024, reducing greenhouse emissions, and reviewing its water usage and footprint.

Sustainability loans tie the company’s performance on these targets to the cost of the loan.

Treasury Wine Estates also aims to have 50% of the company’s senior leadership positions filled by women. It also wants 42% of its company representatives to be women by 2025.

The Treasury Wine Estates share price has soared about 27% year-to-date after falling 41% in value in 2020.

As my Foolish colleague Mitchell reported this week, analysts expect the winemaker’s share price to rally by as much as 12.8% to $13.80 in 2022.

Company comment

Speaking about the announcement today, chief financial officer, Matt Young, said:

Integrating our sustainability performance with our financing framework is a really important step for both our sustainability and capital market journeys, incentivising us to move even more quickly towards achieving our sustainability ambitions and targets.

Chief sustainability and external affairs officer, Kirsten Gray, added:

As custodian of some of the world’s most iconic wine brands and with a large global footprint, we have a responsibility to be a leader in sustainability and recognise that it is fundamental to our long-term success.

Treasury Wine share price snapshot

While the Treasury Wine Estates share price has gained nearly 29% over the past 12 months, the ASX 200 is up 9%.

In the past month, Treasury Wine Estates shares have gained nearly 7%.

The winemaker has a market capitalisation of about $8.7 billion.

The post Treasury Wine Estates (ASX:TWE) share price lifts amid latest green push appeared first on The Motley Fool Australia.

More reading

• Could 2022 be a good year for the Treasury Wine (ASX:TWE) share price?
• Leading brokers name 3 ASX shares to buy today
• Morgans names 2 ASX 200 shares to buy
• How did the Treasury Wine (ASX:TWE) share price perform in November?
• 2 hot ASX shares to snap up right now: expert

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 Treasury Wine Estates 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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As most ASX investors would be aware, the All Ordinaries Index (ASX: XAO) hasn’t had the best of months. Over the past four weeks or so, the All Ords has gone backwards by around 1.65%. But that’s nothing compared to the Core Lithium Ltd (ASX: CXO) share price.

Core Lithium shares have had a pretty depressing month, falling 5.36% since 16 November. That’s a drop from 56 cents a share to the 53 cent price tag we see today (at the time of writing).

So what’s been happening with Core Lithium that has made the past few weeks such a slog? Well, it’s not entirely clear. We have had some news from the company over the past month that might have contributed though. Core Lithium held its annual general meeting back on 25 November. However, that seemed to have little impact on investors, seeing as the AGM wasn’t marked as price-sensitive, meaning there were no meaningful company updates presented for shareholders there.

Then, just earlier this week, we got another update from Core Lithium. On Monday, the company informed investors that it had intersected “high grade spodumene mineralisation” during exploration drilling at its Finniss lithium project in the Northern Territory. The company stated that “these results are very encouraging” and “lay the foundation for production expansion within the broader Finniss Lithium Project”. More updates on this project are expected soon.

Why has the Core Lithium share price had a month to forget?

So investors seemed to have received these results with some warmth. That’s going off the fact that Core Lithium shares are up close to 5% since this announcement was made public.

However, even that move hasn’t been enough to pull Core Lithium away from its losses over the past month.

So perhaps investors have just decided to give Core Lithium shares a bit of a cool off. After all, this is a company that remains up an incredible 209% year to date, and an even more mind-boggling 483% over the past 12 months. It’s arguably quite normal for a share with those kinds of gains under the belt to have the odd pullback as investors take profits off the table.

Core Lithium shares are up 1.92% at the time of writing at 53 cents a share. At this share pricing, Core Lithium has a market capitalisation of roughly $884.72 million.

 

The post Why is the Core Lithium (ASX:CXO) share price having such a lousy month? appeared first on The Motley Fool Australia.

More reading

• Why has the WiseTech (ASX:WTC) share price popped 6% to a new all-time high?
• 2 buy-rated ASX travel shares that could take off
• Affirm share price rallies overnight, but how does it compare to Afterpay (ASX:APT)?
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Motley Fool contributor Sebastian Bowen 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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The S&P/ASX 200 Index (ASX: XJO) is once again suffering through a day of red ink thus far this Thursday. At the time of writing, the ASX 200 is down by 0.42% at 7,296 points. That puts its losses for the past month at 1.67%. So that’s why it’s rather startling to see the WiseTech Global Ltd (ASX: WTC) share price having such a strong day.

At the time of writing, WiseTech shares are up a healthy 6.39% at $59.10 a share. That’s after hitting a new all-time high of $59.25 earlier in intraday trading. That puts this WAAAX company’s gains for the past month at a robust 5.44%.

But zooming out a little, and the picture gets even better for investors. WiseTech is now up an incredible 89.4% over just the past 6 months, and 93.8% year to date. Its gains over the past 5 years now sit at more than 930%.

So what’s happened with WiseTech today that has made its share price such a market-beater?

Why has the WiseTech share price whizzed up today?

Well, unfortunately for those readers who like a straight answer, there isn’t one to give. There has been no official news or announcements out of WiseTech recently. Or even semi-recently. We haven’t seen any major announcements out of WiseTech since its annual general meeting that was held on 19 November.

So why then are WiseTech shares moving so convincingly higher today?

Well, a possible explanation is that WiseTech, a much-beloved ASX tech share, is benefitting from the general attraction that ASX investors seem to be feeling towards the entire tech sector today. Tech is the best performing sector on the ASX boards. The S&P/ASX 200 Information Technology Index (ASX: XIJ) is up a healthy 2.05% this afternoon.

In addition to the gains we see with WiseTech shares, other ASX tech shares are also enjoying some time in the sun. Appen Ltd (ASX: APX) for example, is currently up 3.68% at $10.13. Nearmap Ltd (ASX: NEA) shares are up 2.6% at $1.57. And Tyro Payments Ltd (ASX: TYR) has gained 2.85% at $2.89.

WiseTech and Appen’s fellow WAAAX shares are all faring well. Xero Limited (ASX: XRO) is up 1.8%, while Afterpay Ltd (ASX: APT) and Altium Limited (ASX: ALU) have put on 1.63% and 0.9% respectively.

It’s very possible that WiseTech’s gains are just part of a broader buying pattern for the ASX tech space that we seem to be witnessing this Thursday. Whatever the reason for WiseTech’s stellar run, shareholders will no doubt be rejoicing.

At the current share price, WiseTech has a market capitalisation of $19.17 billion. It has a price-to-earnings (P/E) ratio of 177 and a dividend yield of 0.11%.

The post Why has the WiseTech (ASX:WTC) share price popped 6% to a new all-time high? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Why is the WiseTech (ASX:WTC) share price having such a lousy end to the week?
• Why Nanosonics, WiseTech, and Zip shares are dropping
• ASX 200 (ASX:XJO) midday update: Crown jumps, WiseTech tumbles
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended AFTERPAY T FPO, Altium, Appen Ltd, Nearmap Ltd., Tyro Payments, WiseTech Global, and Xero. The Motley Fool Australia owns and has recommended AFTERPAY T FPO, Appen Ltd, Nearmap Ltd., WiseTech Global, and Xero. The Motley Fool Australia has recommended Tyro Payments. 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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Some of the under pressure ASX travel shares could actually be longer-term opportunities according to the buy ratings of some analysts and brokers.

COVID-19 impacts have hurt demand and travel volumes for nearly two years. But, despite the Omicron variant, these ASX travel shares might be compelling ideas according to some brokers:

Webjet Limited (ASX: WEB)

Morgans currently rates Webjet as a buy, with a price target of $6.60. That implies that the Webjet share price could rise by around 25% over the next year, if the broker is right.

The broker thinks that Webjet can continue to be profitable for the next result after a promising recent report. However, Morgans still thinks it will take some time before full travel volumes return.

Over the last month the Webjet share price has dropped over 15%.

When Webjet released its FY22 first half result, it said that the business was turning around as global travel markets start to reopen. Webjet said that positive working capital was delivering a $3.5 million cash surplus per month.

WebBeds has been profitable since July, with FY22 first half costs down 31% compared to pre-COVID times and is on track to be 20% more cost efficient at scale. The November 2021 total transaction value was 63% of pre-COVID volumes with many key markets yet to open.

The Webjet online travel agency (OTA) returned to profitability in October, despite the lockdowns and border closures in the second quarter.

This ASX travel share is seeing “rapid returns to high booking volumes as markets reopen”. At the time of the report release, third quarter tracking was ahead of the second quarter of FY22.

According to Morgans, the Webjet share price is valued at 35x FY23’s estimated earnings.

Corporate Travel Management Ltd (ASX: CTD)

Corporate Travel is rated as a buy by Citi as well, with a price target of $27.11. That suggests a potential increase of the Corporate Travel Management share price of more than 20% over the next year.

This ASX travel share recently announced an acquisition, though the broker was not particularly impressed by the decision to buy the Helloworld Travel Ltd (ASX: HLO) corporate business.

Corporate Travel Management is buying the corporate and entertainment travel business for $175 million.

This deal is expected to add 3% to earnings per share (EPS) on a FY19 pro forma basis, before synergies. Including those synergies, it’s expected to add 7% when earnings have recovered. If the deal goes ahead – it requires various approvals including the ACCC – it is expected to happen in the first quarter of 2022.

Despite all of the impacts of COVID-19, including the Omicron variant, Corporate Travel Management was able to generate positive underlying earnings before interest, tax, depreciation and amortisation (EBITDA) in the second quarter of FY22 to the end of November 2021.

It had cash of $102 million and no debt at 30 November 2021.

Citi’s numbers put the Corporate Travel Management share price at 21x FY23’s estimated earnings.

The post 2 buy-rated ASX travel shares that could take off appeared first on The Motley Fool Australia.

More reading

• The Corporate Travel (ASX:CTD) share price will resume trading tomorrow. Here’s what you need to know
• ASX 200 (ASX:XJO) midday update: CSL upgraded, Westpac AGM update
• Why is the Corporate Travel Management (ASX:CTD) share price halted?
• When it comes to the Webjet (ASX:WEB) share price, do the brokers or the shorters have it right?
• These are the 10 most shorted ASX shares

Motley Fool contributor Tristan Harrison 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 Corporate Travel Management Limited and Webjet 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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The United States-based buy now, pay later (BNPL) company, Affirm Holdings Inc (NASDAQ: AFRM) rose 4.9% in overnight trade. As a result, the Affirm share price is now sitting at $110.98, which might prompt local investors to wonder how the US company stacks up against local BNPL legend Afterpay Ltd (ASX: APT).

Since joining the public markets in January this year the instalment payment provider has traded between US$46.50 and US$176.65. Yet, the erratic swings in the company’s share price have only amounted to a 14% gain for the year so far.

Not all too exciting when you consider an investment in the S&P/ASX 200 Index (ASX: XJO) delivered a 9.5% return over the same period without having your heart in your throat.

Nonetheless, let’s look at how Afterpay compares to Affirm after its share price rise last night.

Survival of the fastest growing

When it comes to the BNPL industry there aren’t too many companies worried about profitability. Instead, it’s all about growing the top line as fast as possible, taking market share from competitors in the process. For this reason, investors will seldom fret over the bottom line.

So, let’s lift the lid on Affirm and ASX-listed Afterpay’s last annual growth metrics.

Firstly, the gross merchandise volume (GMV) processed by BNPL companies is an important indicator of market penetration. In FY21, Affirm delivered a GMV of US$8.3 billion (A$11.57 billion), compared to Afterpay’s A$22.4 billion worth of underlying sales during the financial period.

Similarly, Afterpay claimed the trophy when it comes to active customers at the end of FY21. The ASX-listed company reported 16 million shoppers actively using its platform. Meanwhile, Affirm reached 7.1 million active customers using its product. But, how does this translate into real revenue for the companies?

Well, in FY21 Affirm recorded US$870.5 million (A$1,213 million) in revenue — representing an increase of 71% on the prior corresponding period. In comparison, ASX-listed Afterpay notched up A$836 million, which was an increase of 75% compared to the previous year.

Though these figures might seem relatively inconspicuous at first, the interesting aspect is how Affirm is driving roughly 45% more revenue from nearly half as much in underlying sales.

Looking a little closer at Affirm’s financial statements, it can be seen that the BNPL company made US$326.4 million in interest income in FY21. Whereas, Afterpay does not charge interest on any of its payments. Affirm offers 6 monthly payments and 12 monthly payments which both come with an annualised 15% interest rate.

How does Affirm’s share price compare to Afterpay on the ASX?

Compared to Afterpay’s abysmal ~25% share price fall, Affirm’s share price has provided a positive return for investors so far this year (as shown below).

Since being announced in August, Afterpay’s acquisition by Block Inc (NYSE: SQ) (formerly Square) has been jumping through all the hurdles that come with such a deal. For the ASX-listed company, it has meant that its share price has been tied to Block’s due to the all-scrip deal.

In turn, Afterpay’s ASX-quoted market capitalisation is now ~A$26.4 billion. In comparison, based on Affirm’s current share price, the US-listed company commands a market cap of A$43.5 million.

The post Affirm share price rallies overnight, but how does it compare to Afterpay (ASX:APT)? appeared first on The Motley Fool Australia.

More reading

• Why Afterpay, Cardno, Mesoblast, and Woolworths shares are falling
• ASX 200 (ASX:XJO) midday update: Afterpay takeover vote, Woolworths crashes
• Zip (ASX:Z1P) shares just topped these end-of-year rankings
• Afterpay (ASX:APT) shareholders vote in favour of Square takeover
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Mitchell Lawler owns AFTERPAY T FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended AFTERPAY T FPO and Block, Inc. The Motley Fool Australia owns and has recommended AFTERPAY T FPO. 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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