Recent focus in the ASX market has shifted to small-cap stocks, with a spotlight on companies valued at less than $1 billion. Quarterly updates from various fund managers provide insight into the positions and potential of these smaller companies.
- Catapult Group International Ltd (ASX:CAT)
Catapult Group International Ltd has established a significant presence in several investment portfolios with its innovative wearable technology designed for professional sports teams. These devices provide real-time monitoring of player performance, contributing to the company's expected annual sales growth of over 15% for the next three years. Catapult's strong position is supported by its recurring revenue model and a low churn rate of just 4% annually, with the stock currently trading at $2.02 per share.
- Tyro Payments Ltd (ASX:TYR)
Tyro Payments Ltd is a major payment provider in Australia, serving around 70,000 merchants. Despite facing macroeconomic challenges, Tyro’s outlook remains positive due to its robust free cash flow yield of approximately 10%. The company's efforts to enhance profitability amidst economic pressures make it an appealing choice within the payment solutions sector.
- NZX Ltd (ASX:NZX)
NZX Ltd the operator of the New Zealand Stock Exchange, is known for its diversified revenue streams, which include exchange-traded funds (ETFs), low-cost funds management, and wealth technology services. While recent market turnover has been subdued, NZX is expected to benefit from its fixed cost base, leading to increased profitability. Projections indicate that NZX could achieve over a 10% free cash flow yield by FY26.
These small-cap ASX stocks are gaining attention for their growth potential and profitability. Catapult Group, Tyro Payments, and NZX Ltd each offer unique opportunities within their respective sectors. As always, conducting thorough research and seeking professional advice is recommended when considering investment options.