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The Oceania Healthcare Ltd (ASX: OCA) share price is edging lower today, down 1.5% trading at $1.25 at the time of writing.

Below we look at the latest results from the aged care facilities company, covering the 10-month period ending 31 March.

Why a 10-month reporting period this year? Because Oceania changed its balance date from 31 May to 31 March.

What results did Oceania report?

Oceania’s share price is moving lower, despite the company reporting an 8% increase in unaudited underlying earnings before interest, tax, depreciation and amortisation (EBITDA).

Unaudited underlying EBITDA came in at $56.2 million, up from $52.1 million in the previous corresponding 10-month period.

The company also reported a 26% increase in sales volumes at its independent living apartments, villas and its care suites. Despite the COVID-19 headwinds, occupancy levels increased to 92.4%, up from 91.7% on the prior corresponding period.

During the 10-month reporting period, Oceania completed 217 units and care suites. The valuation of its total assets increased 22% to $1.9 billion. The company pointed to improved valuations following the initial COVID-related downgrades, as well as capital expenditures, for driving the increase.

Operating cash flow slipped to $96.0 million for the 10-month period, down from $99.4 million for the 12 months to 31 May 2020.

Oceania also completed a $100 million capital raise during the reported period, with a $20 million retail offer and an $80 million placement.

Management commentary

Oceania chair Liz Coutts advised that the board had declared a final dividend of 2.1 cents per share, unfranked. The record date is 8 June, and the dividend will be paid on 22 June. The company advised its dividend reinvestment plan will apply.

Commenting on the past 10 months of operations and the capital raise, Oceania’s CEO Brent Pattison said:

We increased our investment in the business, demonstrating our commitment to building an even better future for Oceania, our residents, their families and our staff…

Oceania is well positioned to leverage its established platform, with gearing under 25% as at 31 March 2021. We were delighted with the strong support from our existing and new shareholders for our highly successful and oversubscribed $100.0 million capital raise, comprising of a $80.0m placement and a $20.0m retail offer.

Oceania said it would use the money from the capital raise to acquire Waterford at Hobsonville Point in Auckland, New Zealand. Waterford is “a retirement village comprising 64 independent living villas and 36 independent living apartments, and our leasehold site in Franklin (Auckland), together with adjacent bare land”.

Oceania share price snapshot

Oceania shares have gained 68% over the past 12 months. By comparison, the All Ordinaries Index (ASX: XAO) is up 29% since this time last year.

So far in 2021, however, the Oceania share price has headed in the other direction and is currently down 4%.

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• 2 ASX tech shares sold off amid legal concerns

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When it comes to ASX dividend shares, income (preferably fully franked) is the name of the game. And yet, many ASX shares that pay a dividend have not been fantastic income shares to own. Especially when you take into account last year with the economic effects of the coronavirus pandemic and all.

With record low interest rates seemingly here to stay for a while, finding income on the share market has arguably never been more important from an investing perspective. So here are 2 ASX dividend shares that offer up a trailing dividend yield of 5% or greater today.

Coles Group Ltd (ASX: COL)

Coles is the first ASX dividend share to consider today. This grocery giant was one of the few ASX shares that actually managed to raise its dividend last year, a feat that managed to evade even its arch-rival Woolworths Group Ltd (ASX: WOW).

Coles potentially offers a lot of value as a dividend share due to its inelastic nature. We all need food, drinks and household items, and all of the time at that. As such, since that’s what Coles sells, its earnings base is very stable and somewhat immune to economic downturns.

The last two dividends that Coles paid out amounted to a September final dividend of 27.5 cents per share, and a March interim dividend of 33 cents per share, both fully franked. That gives the current Coles share price a trailing yield of 3.68% today. That grosses-up to 5.26% with full franking credits.

Telstra Corporation Ltd (ASX :TLS)

Telstra is another ASX dividend share to consider today. This ASX telco has long held a reputation as an income juggernaut, despite the infamous payout slash of 2017. That reputation continues today, largely thanks to Telstra’s ability to keep its rather generous dividend payouts steady last year at 2019 levels, despite the pandemic.

Telstra shares have actually had a few very successful months, share price wise. Telstra is up close to 30% since late October last year, and made a new 52-week high earlier this month.

Investors have been appreciating the company’s plans to structurally separate by the end of the year. Telstra’s successful (so far) and ongoing 5G rollout probably isn’t hurting sentiment either. That has dragged Telstra’s trailing dividend yield down a little. But the company’s 16 cents per share annual dividend still translates into a 4.68% trailing yield on current pricing. That grosses-up to 6.68% with Telstra’s full franking.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week on an underwhelming note. At the time of writing, the benchmark index is down 0.1% to 7,014.2 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are pushing higher:

A2 Milk Company Ltd (ASX: A2M)

The a2 Milk share price has jumped 6% to $5.54. Investors have been buying the fresh milk and infant formula company’s shares following the release of a broker note out of UBS. According to the note, the broker believes there are signs that its turnaround is working. Importantly, it believes this is being achieved without any brand damage. In light of this, UBS has put a buy rating and NZ$13.50 (A$12.50) price target on its shares.

EML Payments Ltd (ASX: EML)

The EML Payments share price has stormed 15.5% higher to $3.36. Investors have been buying the payments company’s shares after another leading broker weighed in on its recent issues that saw it crash 46% lower earlier this week. UBS has retained its buy rating and cut its price target down to $5.30. This implies potential upside of 58% even after today’s stellar gain. EML Payments’ shares were sold off amid Anti-Money Laundering and Counter-Terrorism Financing compliance concerns for its European operations.

Webjet Limited (ASX: WEB)

The Webjet share price is up 5% to 5% to $4.90. This also appears to be related to a broker note. This morning Goldman Sachs reaffirmed its buy rating and $6.40 price target on this online travel agent’s shares. The broker doesn’t appear concerned by news that Qantas Airways Limited (ASX: QAN) is cutting international travel agent commissions. It notes that this was already partially anticipated in its forecasts.

Xero Limited (ASX: XRO)

The Xero share price is up 5% to $128.59. Investors have continued to pile into the tech sector on Friday following another positive night of trade on the tech-focused Nasdaq index. At the time of writing, the S&P/ASX All Technology Index(ASX: XTX) is up a solid 1.5%.

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The Red 5 Limited (ASX: RED) share price is tumbling lower in morning trade, down 8% at the time of writing after earlier posting losses of more than 11%.

Below we take a look at the ASX gold miner’s latest production guidance for its Darlot Gold Mine.

What production guidance did Red 5 report?

Red 5’s share price is moving lower after production guidance for its Darlot Gold Mine for the 2021 financial year (FY2021) was revised downward while costs were forecast to be higher.

The new production guidance comes in at 74,000–78,000 ounces, down from the previous estimate of 80,000­–85,000 ounces. Meanwhile All In Sustaining Costs (AISC) nudged higher, to $2,240–2,290 per ounce, up from the previous $2,150–2,280 per ounce.

Red 5 reported that it was struggling to find enough labour at its Darlot underground mine and its Great Western open pit mine. The labour shortages continue to hamper production.

At the Great Western mine, it said a shortage of machine operators and truck drivers meant the contractor could not increase mining activities as fast as planned, following commencement of mining in the March quarter.

Commenting on the company’s gold operations, Red 5’s Managing Director, Mark Williams said:

Red 5 continues to make excellent progress on the King of the Hills Gold Project, however we continue to face challenges at our Darlot Gold Mine. The difficulty of sourcing skilled labour for both Darlot and for our new Great Western mine has impacted our ability to achieve our FY21 production guidance.

As previously announced, King of the Hills remains on schedule and budget and is expected to commence gold production in the June Quarter 2022.

The company said it is reviewing its Darlot gold mining operations and will provide production and cost guidance for the 2022 financial year in the September quarter this year.

Red 5 share price snapshot

It’s been a difficult year for Red 5 shareholders, with shares in the ASX gold miner down 39% over the past 12 months. By comparison, the All Ordinaries Index (ASX: XAO) is up 29% in that same time.

Year-to-date the Red 5 share price is down 31%.

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The post Why ASX gold miner Red 5’s (ASX:RED) share price is tumbling 10% lower appeared first on The Motley Fool Australia.

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Tech shares have had a rough time of it so far this year. Many of the companies that saw massive share price gains during COVID-19 lockdowns in 2020 – like Afterpay Ltd (ASX: APT), Bigtincan Holdings Ltd (ASX: BTH) and Whispir Ltd (ASX: WSP) – have been sold off heavily this year as investors rotate out of growth shares and into value stocks and beaten-down blue chips.

In this environment, the last thing a tech company needs is a regulator crackdown or an allegation of copyright infringement. This is the kind of news that can send already spooked investors running for the hills. And yet this is what has happened to two ASX tech companies recently.

Let’s take a look at the allegations made against the two companies.

Nearmap Ltd (ASX: NEA)

Nearmap is an aerial imagery company that provides high-resolution images and geospatial data to business and government clients. This allows people working in fields like engineering, infrastructure, mining and construction to plan and analyse complex projects and even conduct virtual site visits.

The Nearmap share price was rocked earlier this month when the company announced that a copyright infringement complaint had been filed against its American subsidiary, Nearmap US, Inc. in the United States District Court. The complaint has been made by two companies, Eagle View Technologies, Inc. and Pictometry International Corp, and alleges that Nearmap’s roof-estimation technology infringes on their patent.

In the announcement, Nearmap attempted to reassure investors that the complaint didn’t relate to the company’s core proprietary technology. Commenting on the news, Nearmap CEO and managing director Dr Rob Newman stated that “the allegations are without merit” and that “the business remains unaffected by the complaint.”

However, investors still fled in their droves. The Nearmap share price plunged over 20% on the day of the announcement and is now down by around 21% for the year.

EML Payments Ltd (ASX: EML)

EML is a payments solution company. Broadly speaking, EML operates in three key segments: branded gift cards, general-purpose reloadable cards (notably for bookmakers like Ladbrokes and BetEasy), and virtual account numbers that facilitate transactions between businesses and their suppliers.

Despite the impacts COVID-19 lockdowns had on the retail sector last year, the EML share price climbed steadily over the second half of 2020 and into 2021. In fact, as recently as early April this year, the company’s shares were trading at a record high price of $5.89.

But that all changed this week when EML announced that the Central Bank of Ireland had raised “significant regulatory concerns” over the operations of its Irish subsidiary PFS Card Services (Ireland) Limited. The concerns centre around the subsidiary’s anti-money laundering and counter-terrorism financing frameworks.

Any company announcements that mention money laundering and terrorism, whether proven or not, do not sound good to shareholders. And while EML stated the regulatory concerns do not affect its North American or Australian operations, it also revealed that 27% of its total revenues over the period 1 January 2021 to 31 March 2021 came from programs facilitated by PSF.

The EML share price collapsed on the day of the announcement, falling a whopping 46% to just $2.80. EML shares have since posted a partial recovery, trading at $3.38 as at the time of writing. However, this still means EML has lost around 42% of its market capitalisation in the last two months.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Over the past few years, the five FAANG stocks — Facebook, Amazon, Apple, Netflix, and Google parent company Alphabet — consistently generated big gains for investors.

Each of these companies dominates its respective markets. Facebook owns the world’s largest social network, Amazon is the top e-commerce and cloud platform company, and Apple is currently the No. 1 smartphone maker. Netflix owns the largest premium streaming video platform, and Google owns the largest online search engine, free streaming video site, mobile OS, and web browser.

The FAANG stocks are often considered growth stocks, but their deep pockets, wide moats, and recession-resistant businesses also make them reliable defensive plays during market downturns.

But this year, only two of those stocks — Facebook and Alphabet — have outperformed the S&P 500 so far as the rotation from growth to value slammed the tech sector. Are the FAANG stocks still good investments in this shifting market, or should investors buy more conservative stocks instead?

A history of beating the market

Three of the FAANG stocks have lost some steam this year, but all five have remained ahead of the S&P 500 over the past five years.

Data source: YCharts.

Facebook’s audience, which includes users of its namesake platform, Instagram, and WhatsApp, continued to expand and supported the growth of its core advertising business. Amazon’s business also fired on all cylinders as Prime subscription plans locked in more retail customers and Amazon Web Services (AWS) maintained its lead in the cloud infrastructure market.

Apple’s annual iPhone shipments dipped after hitting a historic high in 2015, but the expansion of its services segment, stable sales of iPads and Macs, and newer product lines like Apple Watches and AirPods all cushioned the blow. Apple’s iPhone shipments are expected to soar again this year as the iPhone 12, its first family of 5G devices, sparks a fresh wave of upgrades.

Netflix’s subscriber base continued to expand, even as aggressive new streaming rivals, like Walt Disney and AT&T‘s HBO Max, entered the market. Google’s advertising revenue continued growing as it maintained a near-duopoly in digital ads with Facebook across many countries. Alphabet’s cloud platform, which ranks third globally after AWS and Microsoft‘s Azure, also gained more enterprise customers.

But can they stay ahead of the market?

Investors should note that past performance never guarantees future gains. All these companies, with the exception of Netflix, currently face antitrust challenges.

Regulators are scrutinizing Facebook’s role in spreading “fake news,” its usage of personal data, and its dominance of the social media market. They’re examining Amazon’s e-commerce strategies, as well as Apple’s and Google’s high app store fees.

These tech titans also face new competitive threats. Younger social platforms like ByteDance’s TikTok, Snap‘s Snapchat, and Pinterest are all growing their niche platforms at faster rates than Facebook, which serves 3.45 billion people with its family of apps.

The digital transformation of resilient big-box retailers like Target and Shopify‘s self-serve tools could threaten Amazon’s e-commerce business, while AWS — its main profit engine — is still growing at a slower pace than Azure.

Apple’s strong iPhone sales should enable its biggest business to generate double-digit sales growth this year, but the global chip shortage is already throttling sales of iPads and Macs. Apple’s clashes with developers over its App Store fees and its recent privacy changes to iOS could also generate unpredictable headwinds for its growing services segment.

Netflix’s subscriber growth missed expectations last quarter, indicating that rivals like Disney were gaining ground, and it plans to spend up to $17 billion on new content this year to maintain its lead. Google seems poised for a strong recovery this year as its advertising business stabilizes, but the aforementioned antitrust challenges and Apple’s iOS privacy changes could still impact its search and advertising divisions.

Forecasts and valuations

These five companies all face some near-term uncertainties, but I believe their core businesses will remain resilient for years to come. All five companies could generate double-digit revenue and earnings growth this year, and they all seem reasonably valued compared to other high-growth tech stocks. Check out what analysts are predicting and what the companies’ have for price-to-earnings ratios based on those estimates.

Company	Estimated Revenue Growth (Current Fiscal Year)	Estimated EPS Growth (Current Fiscal Year)	Forward P/E Ratio
Facebook (NASDAQ: FB)	35%	30%	20
Amazon (NASDAQ:AMZN)	27%	33%	44
Apple (NASDAQ: AAPL)	29%	58%	23
Netflix (NASDAQ: NFLX)	19%	73%	38
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL)	30%	50%	24

Data source: Yahoo! Finance.

I prefer Amazon, Apple, and Alphabet over Facebook, which could hit a ceiling as newer platforms lure away its users, and Netflix, which might struggle to hold the House of Mouse at bay.

That being said, I still believe all five stocks are better investments today than many of the unprofitable “hyper-growth” tech stocks which are trading at nosebleed price-to-sales ratios. I’m not sure if all five FAANG stocks will outperform the S&P 500 over the next five years, but I think they’ll all be trading at higher levels than today.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The post Are the FAANG stocks still good buys today? appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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At lunch on Friday, the S&P/ASX 200 Index (ASX: XJO) has given back its morning gains and more. The benchmark index is currently down 0.25% to 7,001.3 points.

Here’s what is happening on the market today:

Kogan update disappoints

The Kogan.com Ltd (ASX: KGN) share price is crashing lower again on Friday following the release of an update. The ecommerce company advised that its adjusted EBITDA was going to fall short of consensus estimates in FY 2021 at $58 million to $63 million. This compares to first half adjusted EBITDA of $51.7 million. Inventory issues, promotional activities, and cost inflation have been weighing on its margins. Management expects its inventory levels and marketing spend to return to normal levels in the coming months.

EML rebound continues

The EML Payments Ltd (ASX: EML) share price is continuing to rebound on Friday. The payments company’s shares were given another boost today from a leading broker. This morning analysts at UBS retained their buy rating but slashed their price target down to $5.30. This compares to its current share price of $3.29. EML Payments’ shares were sold off earlier this week amid Anti-Money Laundering and Counter-Terrorism Financing compliance concerns for its European operations.

A2 Milk shares jump on broker note

The A2 Milk Company Ltd (ASX: A2M) share price is charging higher today in response to a broker note out of UBS. According to the note, the broker believes there are signs that its turnaround is working without any brand damage. It has put a buy rating and NZ$13.50 (A$12.50) price target on its shares. This is more than double the current A2 Milk share price.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Friday has been the EML Payments share price with a 16% gain. Bargain hunters appear to be swooping in again today. The worst performer has been the Kogan share price with a 13% decline following its trading update.

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The post ASX 200 down 0.25%: Kogan sinks, EML & A2 Milk jump appeared first on The Motley Fool Australia.

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Shares in Nuix Ltd (ASX: NXL) have been on a rollercoaster this week after intensive reporting by a number of media outlets. At the time of writing, the Nuix share price is up 2.9%, with shares in the company swapping hands for $3.51.

The media reports come off the back of a disappointing start to Nuix’s time on the ASX.

The company’s December initial public offering (IPO) was sold as having the potential to be the jewel in the S&P/ASX All Technology Index‘s (ASX: XTX) crown. Such hopes turned sour when Nuix released its results for the first half of the 2021 financial year. They’ve continued to go downhill since.

Over the course of this week, the Nuix share price has dramatically surged or fallen a number of times.

Following a 9.4% drop on Monday, which saw it hit an all-time low, the Nuix share price gained 12.7% the following day. Then, after a 3.3% gain on Wednesday, it fell again yesterday, closing 7% lower.

Let’s take a look at the claims made against Nuix this week.

What’s driving the Nuix share price?

Monday

Many market watchers woke up on Monday to find Nuix in the news across three former Fairfax publications. Of course, Fairfax merged with Nine Entertainment Co Holdings Ltd (ASX: NEC) in 2018.

The report was part of a series of articles resulting from a joint investigation by the Australian Financial Review, The Age, and The Sydney Morning Herald. It claimed the company has a history of poor governance and questionable financial disclosers.

Monday’s report discussed Castagna’s 2018 money laundering and tax evasion charges, which he was acquitted of the following year.

It also stated Castagna left Nuix’s board the day its ASX float prospectus was launched. Supposedly, this meant retail investors would have been largely unaware of Castagna’s involvement with the company.

Nuix’s board responded to the claims on Monday, saying:

Nuix has in place robust processes to measure forward indicators of performance in order to ensure that it keeps the market fully informed and has done so on a timely and regular basis. Nuix is committed to the highest standards of corporate governance

Tuesday

The following day, Nuix held its investor day presentation. There, its CEO Rod Vawdrey apologised to shareholders for Nuix’s performance since its float, saying:

That’s on us, that’s our bad. Building trust with you, our investors really is our top priority. I take full responsibility for the performance of the business.

Wednesday

Following Nuix’s investor presentation, the three publications reported more claims against Nuix’s history of disclosing information and its relationship with Castagna.

They claimed there was a gap in the company’s recording of options held by Castagna’s company Blackall (formerly named Ferodale).

According to the publications, Blackall was issued with 300,000 shares in Nuix in exchange for $3,000 in 2005. Though, only one single piece of paperwork noted the options’ existence between 2005 and 2011.

The options were supposedly cashed out for $80 million during Nuix’s IPO.

The publications questioned whether the options were actually issued in 2011 and backdated. They said that in 2011, the options were worth $1.8 million.

Thursday

The Nuix share price took a big hit on Thursday as the publications reported on looming legal action from the company’s former CEO and two potential class actions.

They said former Nuix CEO Eddie Sheehy is taking legal action against Nuix due to options within his 2008 renumeration package.

The reports stated in order for Sheehy to exercise the options, Nuix had to sell or list in an IPO for more than $40 million.

The main issue is due to a 50 for 1 share split conducted in 2017. Nuix’s lawyers say the split didn’t apply to Sheehy’s options and the December IPO didn’t meet the criteria for which the options were exercisable.

Sheehy claims the share split cost him $118 million.

Sheehy was quoted by the publications as saying:

Currently, and by all accounts, Nuix is going to owe me over $200 million in damages. So, the big question for all shareholders is, where is Nuix going to find the funds to pay me? And, if it can’t find the funds, what happens next?

Two class actions are also being evaluated by law firms. The class actions mainly relate to missing prospectus forecasts during Nuix’s first year on the ASX, which has left some shareholders jaded.

 Nuix share price snapshot

Despite its wild ride this week, the Nuix share price is up 7.34% since Monday. However, its share price has dropped 56% since its ASX IPO – leaving many shareholders disappointed.

The company has a market capitalisation of around $1 billion, with approximately 317 million shares outstanding.

More reading

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The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price is in the green today. At the time of writing, shares in Australia’s busiest airport are trading for $5.85 – up 1.39%. By comparison, the S&P/ASX 200 Index (ASX: XJO) is currently sitting 0.14% higher.

The company comes into focus as it holds its 2021 annual general meeting (AGM) today.

Let’s take a closer look at today’s update.

What’s affecting the Sydney Airport share price

Chair’s address

In the first of two presentations to shareholders, Sydney Airport chair, Trevor Gerber, talked about the challenges the airport faced in the wake of the COVID-19 pandemic and outlined some of its plans for the future.

Gerber revealed Sydney Airport is aiming to become a net-zero carbon emitter by 2030. Net-zero means that any carbon emissions are offset by other means, which differs from zero-carbon emissions. The federal government considers both direct and indirect emissions relevant when trying to achieve net-zero emissions.

According to Gerber, 2020 was a tale of contrasts. The first quarter of the calendar year was strong for the company. Passenger traffic was comparable to the previous year before plunging to 25% passenger levels compared to 2019.

In 2020, revenue was down 51% to $803.7 million, according to the chair. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) fell 62% $508.1 million. Most astonishingly, net operating receipts fell a mammoth 95% to $45.5 million. Gerber revealed, unsurprisingly, Sydney Airport would not pay a dividend at the end of the financial year.

Despite the lack of dividend payment, the Sydney Airport share price is rising in late morning trade.

Also in 2020, Sydney Airport undertook extreme measures to “protect the Airport’s balance sheet,” as Gerber put it.

The company secured an additional $850 million bank facility and raised $2 billion via an equity raise in 2020. Although not stated by Gerber today, in 2020, total expenses before depreciation and amortisation fell by 41% in 2020 to $291.6 million.

No guidance was issued for the remainder of the calendar year.

CEO’s address

In the second presentation to shareholders, CEO Geoff Culbert expanded on the talking points of the chair.

He called 2020 “the toughest year in the history of Sydney Airport.” Revenue in its airplane, carparking and ground transportation businesses collapsed by 70% on 2019. Retail revenue’s fall was not further behind. Culbert revealed income from that business segment was 63.5% lower compared to 2019. Furthermore, 25% of Sydney Airport’s workforce was made redundant in the third quarter of 2020, Culbert said.

Looking forward, Culbert said there was “pent-up demand” evident in domestic travel numbers. When state borders were open, domestic travel surged before falling when shut again. Passenger numbers surged again when borders were reopened, especially between Queensland and Victoria.

International travel numbers were down 97% on 2019 but the new trans-Tasman bubble between Australia and New Zealand is “an obvious bright spot” according to Culbert. He added its effects have been immaterial so far and that “it’s still early days.” Furthermore, Culbert said the company believes travel between Australia and New Zealand will continue to pick up over the course of 2021, especially heading into the winter school holidays.

The CEO added this optimism is reflected by the 96% occupancy rate of its retail stores. He concludes from this figure that retail partners “share [its] view on the long-term fundamentals of Sydney Airport.” Investors seemingly agree, judging by today’s rise in the Sydney Airport share price.

Finally, Mr Culbert called on the government to increase the speed of the vaccine rollout.

“The faster we get the country vaccinated, the earlier we can talk about opening the border. It’s as simple as that,” he said.

Sydney Airport share price snapshot

Over the past 12 months, the Sydney Airport share price has increased by 7.33%. It has still, however, not fully recovered from the impacts of the pandemic. Sydney Airport shares are around 27% lower when compared to their closing price on 24 February 2020.

Sydney Airport has a market capitalisation of $15.7 billion.

More reading

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There are a few really good reasons why the Pushpay Holdings Ltd (ASX: PPH) share price could be worth looking at.

Pushpay is a payments and technology business. It provides electronic donation capabilities for large and medium US churches. Pushpay also provides number of church management and community tools.

Some of those tools include kids and volunteer pre-check, group participation, events, custom content and branding, sermons and audio player, push notifications, app giving and transaction history, giving analytics. It also has a livestreaming option.

Pushpay can claim multiple benefits for the church – increased participation, the ability to engage with new donors, increase recurring giving and removing barriers to generosity.

There are many reasons why the Pushpay share price might be worth owning, including these three:

Strong top line growth

ASX shares that are growing revenue at a double digit pace give themselves a better chance of producing shareholder returns.

Pushpay is seeing a number of positive growth numbers that help revenue. Over FY21, its total customers increased by 2% to 11,099. Average revenue per customer (ARPC) per month grew 12% to US$1,475. Total processing volume in FY21 rose 39% to US$6.9 billion.

All of these different measures helped operating revenue rise by 40% to US$179.1 million.

Over the long-term, Pushpay is aiming to grow its annual revenue to US$1 billion. That would represent a market share of around 50%.

One of the main ways that Pushpay is attracting so much demand for its software is Churchstaq. That’s the offering of Pushpay tools, combined with all of the tools offered by Church Community Builder.

Pushpay quoted a client from the Emmanuel Christan Centre who said that the functionality of the Pushpay tool is the best he has ever experienced.

The annual revenue retention rate is more than 100% – customers appear to be loyal and sticky.

Operating leverage

Not only is Pushpay seeing strong growth of revenue, but it’s also experiencing profit growth at a much faster pace.

As margins grow, it means that net profit can rise at a faster pace than revenue. Net profit is one of the key factors that investors look at when deciding what the Pushpay share price should be.

During FY21, Pushpay’s gross profit margin increased by three percentage points from 65% to 68%. This helped net profit after tax increase by 95% to US$31.2 million and operating cashflow grow by 145% to US$57.6 million.

Pushpay said that it’s going to continue to balance expanding its operating margins with opportunities to increase revenue growth.

Investing for the future

Pushpay is growing within its core customer base, but it’s also going to invest for growth.

In FY22 it plans to invest US$6 million to US$8 million to establish relationships and increase engagement with key stakeholders in the Catholic segment. Two thirds of that money will be spent on product design and development. The rest will be spent on sales and marketing.

Management expect to see the benefits of this expenditure over the course of the following financial years.

Pushpay said that it’s the “first step” in investing to grow outside of its existing core customer base. It has set a goal of winning more than 25% of the Catholic church management system and donor management system market over the next five years.

The ASX share pointed out that the Catholic church is closely associated with many education providers and non-profit organisations, which presents further opportunities within the US and other international jurisdictions.

It continues to look for acquisition opportunities to bolster its growth prospects.

Pushpay share price valuation

According to Commsec, the Pushpay share price is currently valued at 24x FY23’s estimated earnings per share (EPS).

More reading

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