The recent rout of Top Tech Companies on Wall Street failed to dampen the spirit of ASX Investors when it comes to select Best Tech Stocks. Already on the run, these Fundamental Stocks fit the bill.
Gentrack Group Limited (ASX: GTK)
Gentrack Group Limited (ASX: GTK) announced its half-year results for the period ended 31 December 2023 on 20 May 2024.
During this half year period, revenues increased by 21% compared to the prior year, reaching $102 million. Within the Utilities sector, total revenue rose by 17% to $86.5 million. Apart from revenue of $19.7 million from insolvent customers in the earlier year, underlying Utilities revenue surged by 60%.
The company saw significant growth in non-recurring revenues, rising by 85% to $28.9 million, driven by major projects commencing during the period, such as new contracts in Saudi Arabia secured in October 2023 and projects with Genesis Energy in New Zealand.
Additionally, wins and upsells from prior periods boosted underlying annual recurring revenues by 49% over the previous year, amounting to $57.6 million.
The company reported an EBITDA of $12.3 million, which aligns well with its FY24 guidance. Net profit after tax (NPAT) during this period was $5.3 million. In the previous period, it was $7.9 million as it included one-off profits from the exit of a high-margin customer, Bulb.
As of 31 March 2024, Gentrack maintained a cash position of $39.3 million.
The company's significant contract wins and customer upgrades have propelled it onto a robust revenue and EBITDA growth path. As a result, the company has recently revised its FY24 revenue guidance upward from $170 million to $200 million.
Gentrack is good for Long Term Holding as it is keeping its focus on penetrating five key neighbouring markets in South-East Asia, alongside plans to target over 200 utilities in the Europe and Middle East region. These initiatives are expected to complement the company's current strong financial and revenue growth trajectory, potentially standing to enhance earnings and cash generation.
Codan Limited (ASX: CDA)
Codan's full-year results for the period that ended on 30 June 2024 demonstrated strong operational efficiency, growth potential, and a commitment to enhancing shareholder value, positioning Codan favorably for continued success.
CDA revealed a robust performance, with a 21% increase in group revenue driven by significant growth in both communications and metal detection segments. The communications division saw a 19% rise in revenue and profit, while the metal detection segment excelled with a 25% revenue increase and a notable 37% boost in profit.
This impressive performance led to a 29% growth in EBIT and a 24% rise in NPAT. The company also improved shareholder returns with a higher annual dividend of 22.5 cents per share, up from 18.5 cents the previous year.
Looking ahead, Codan is strategically positioned for continued growth and innovation. The Communications division targets a 10 to 15% organic revenue increase, backed by $120 million in secured revenues for FY25 and a strong pipeline.
Codan’s renewed growth strategy represents a well-rounded approach to achieving sustained growth, financial stability, and increased shareholder value. The company's focus on enhancing core financial metrics and investing in innovation underscores its commitment to strengthening financial performance and maintaining market leadership.
These strategic initiatives will support Codan's growth trajectory by leveraging technological advancements and pursuing valuable expansion opportunities. This approach positions the company for continued success and alue creation, enhancing its market leadership and long-term shareholder value.
Source: Company’s Report
Veye Pty Ltd(ABN 58 623 120 865), holds (AFSL No. 523157 ). All information provided by Veye Pty Ltd through its website, reports, and newsletters is general financial product advice only and should not be considered a personal recommendation to buy or sell any asset or security. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation, or needs. You should look at the Product Disclosure Statement or other offer document associated with the security or product before making a decision on acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Any recommendation contained herein may not be suitable for all investors as it does not take into account your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure accuracy of the content and that the information is gathered and processed from reliable resources, we strongly recommend that you seek professional advice from your financial advisor or stockbroker before making any investment decision based on any of our recommendations. All the information we share represents our views on the date of publishing as stocks are subject to real time changes and therefore may change without notice. Please remember that investments can go up and down and past performance is not necessarily indicative of future returns. We request our readers not to interpret our reports as direct recommendations. To the extent permitted by law, Veye Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss, or data corruption) (as mentioned on the website www.veye.com.au), and confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing this report. Veye Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services.