There are some ASX shares that could be really compelling ideas to look at in April 2021.
Opportunities are always presenting themselves as share prices change, results are revealed and new business announcements are made.
This month could be the time to look at the following three ASX shares:
Temple & Webster Group Ltd (ASX: TPW)
Temple & Webster has a goal of becoming the largest retailer furniture and homewares in its home market.
The company can point to several tailwinds that are helping accelerate its growth. There’s the long-term adoption of online shopping, an acceleration of that trend due to COVID-19, a higher level of discretionary spending because of travel restrictions (and higher saving) and finally there’s the strength of the housing market and unemployment levels.
Temple & Webster is growing rapidly, the FY21 interim result saw revenue increase 118% and earnings before interest, tax, depreciation and amortisation (EBITDA) went up 556% to $14.8 million.
As the ASX share grows, its operating leverage is improving. In the latest result, the fixed cost as a percentage of sales decreased from 11.6% to 7.5%.
The company is cashflow positive and seeing good growth with its trade and commercial division, which saw a revenue increase of 89% year on year.
Temple & Webster says it’s going to continue investing in its operations, customer offering and marketing to keep growing strongly.
According to Commsec, the Temple & Webster share price is valued at 34x FY23’s estimated earnings.
EML Payments Ltd (ASX: EML)
EML Payments that offers a variety of payment services to clients globally. It says that its payment solutions offers options for disbursing payouts, gifts, incentives and rewards. EML has clients across 28 countries in Australia, Europe and North America, with payment solutions in 27 currencies.
EML is one of the ASX shares benefiting from a shift to digital payments.
As the COVID-19 impacts subside, EML is seeing a recovery for some of its most disrupted segments. Shopping centre gift cards have been particularly impacted.
Yet, despite that, the company is forecasting strong growth for the rest of FY21. Revenue for the year is expected to be between $180 million to $190 million (up 48% to 56%) and EBITDA is forecast to be between $50 million to $54 million (up 54% to 66%).
The ASX share continues to win new clients and that is boosting the growth prospects of the business.
Volpara Health Technologies Ltd (ASX: VHT)
Volpara has announced a number of promising business developments over the last couple of months.
The breast screening healthcare tech share has a high gross profit margin and the company recently made a very compelling acquisition called CRA Health.
This acquisition added US$4 million of annual recurring revenue (ARR) for the ASX share and a higher average revenue per user (ARPU), along with a market share of around 6% of US breast screenings. Perhaps mostly importantly, CRA software is integrated with the major electronic health record and genetics companies.
Volpara has already won its largest contract to date thanks to CRA Health and there’s promising progress in Europe that Volpara could start winning important contracts in another region.
The new contracts that Volpara is winning and signing has much higher ARPU than its current level.