If you have some cash to invest into ASX shares then there could be some businesses worth looking into right now.
Here are three businesses thinking about:
Pushpay Holdings Ltd (ASX: PPH)
Pushpay is an electronic donation ASX share that facilitates payments to large and medium US churches.
The company's role is not only to be a payments processor, but it also has a number of church management systems for the church to use, as well as offering a community app for the church.
One of the most useful tools is a livestreaming option which has been helpful during this period of the COVID-19 pandemic.
Over the long-term Pushpay is hoping to reach a 50% market share of this industry, which could translate into US$1 billion of annual revenue.
The ASX share is proving to be very scalable with how fast its profit margins are increasing. In most recent result, the FY21 half-year result, it saw its earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) margin rise from 17% to 31%. That result also saw operating revenue growth of 53%, EBITDAF growth of 177% and operating cashflow growth of 203%.
In a recent update, Pushpay upgraded its FY21 EBITDAF guidance again to a range of US$56 million to US$60 million.
At the current Pushpay share price, it's valued at 21x FY23's estimated earnings.
Bubs Australia Ltd (ASX: BUB)
Bubs is an infant formula company that specialises in goat milk products. It also has adult goat dairy products, grass-fed cow milk infant formula and a vitamins and minerals supplement range.
The ASX share recently gave its quarterly update for the three months to 31 December 2020 which showed a recovery of revenue in many categories compared to the first quarter of FY21.
Quarterly revenue went up 36% quarter on quarter to $12.8 million, though total revenue dropped 12% compared to last year.
Export sales to markets outside of China continued to see rapid growth, with revenue rising 194% quarter on quarter.
The corporate daigou trade was still softer than pre-COVID-19 levels, but it was up 122% on the first quarter.
Bubs boasted that it was fastest growing infant formula manufacturer across Woolworths Group Ltd (ASX: WOW), Coles Group Ltd (ASX: COL) and Chemist Warehouse with combined retail scan sales growth at the checkout of 41% quarter on quarter.
The Bubs infant nutrition portfolio, which represented 57% of total second quarter revenue, saw sales increase by 27%.
Bubs' goat dairy gross revenue went up 45% quarter on quarter. Finally, China cross border e-commerce (CBEC) sales went up 27% quarter on quarter.
Investors will need to monitor whether this was a one-off quarter for the ASX share or if the growth continues.
Pacific Current Group Ltd (ASX: PAC)
This business takes investment stakes in fund managers around the world and then tries to help them grow with Pacific's expertise.
Dean Fremder of Perpetual Limited (ASX: PPT) said about Pacific Current: "The stock's really cheap. It is on nine times earnings. It's growing earnings at double digits, so more than 10% a year. It's paying a 6.5% fully franked yield. And most excitingly, we think they can pay out a much larger portion of their earnings as dividends. We see no reason, given the surplus franking credits they have on the balance sheet, they can't be paying a 10 or 11% fully franked yield in the next 12 months. So, really excited about that one."
Largely thanks to the GQG investment, Pacific Current has continued to see FUM growth during FY21 after FY20's growth. In FY20 Pacific Current saw 18% growth of underlying earnings per share (EPS) and 62% growth of FUM to $93 billion. In the first quarter of FY21, FUM went up 14% to $106.4 billion and then in the second quarter FUM rose 8.3% to $112.8 billion.
At the current Pacific Current share price, it's valued at under 10x FY22's estimated earnings.
