I think the ASX share market sell-off means there are some compelling ASX All Ordinaries (ASX: XAO) shares to consider.
Investors have been keeping in mind a number of different factors including inflation and rising interest rates.
While higher interest rates do, in theory, justify lower asset prices, I think the lower valuations are attractive and worthwhile pursuing.
I love buying investments at good prices, which I believe we are now being widely presented with.
With that in mind, I rate these two ASX All Ords shares as buys:
GQG Partners Inc (ASX: GQG)
GQG is one of the largest fund managers on the ASX, with a market capitalisation of around $4 billion, according to the ASX.
In terms of how much better value it is, the GQG Partners share price has fallen by 27% over the last six months and is currently $1.34.
The business generates a "vast majority" of its net revenue from management fees rather than performance fees. Therefore, changes in the funds under management (FUM) can have a major impact on revenue, net profit after tax (NPAT) and cash flow. It also affects the dividend because the company has committed to paying dividends of 90% of its distributable earnings.
The monthly FUM update for May 2022 showed FUM rose US$4.2 billion to US$94.6 billion. GQG's latest quarterly update for the three months to 31 March 2022 showed net inflows of US$3.4 billion. That quarterly update included commentary about business momentum across multiple geographies and channels.
Estimates on CMC Markets indicate a possible 2022 dividend of 13.1 cents, equating to a dividend yield of 9.8%. I think there's a lot to like about this ASX All Ords share, with its growing FUM, big dividend yield, and expanding reach.
Altium Limited (ASX: ALU)
Altium is a leading electronic PCB design software and it's becoming increasingly involved in the wider electronics industry.
Since the start of the 2022 year, the Altium share price has fallen around 35%. For a quality company like Altium, I think a price of under $30 is attractive.
There are several things that attract me to this business. It has a goal of being the dominant market leader of its sector. By FY26, it hopes to be generating US$500 million of revenue, with 100,000 subscribers. In 2025 it wants 95% of its revenue (excluding China) to be recurring revenue.
Altium can benefit from the huge surge in electronics in various places, such as cars. The company says that printed circuit boards are "central to the design and realisation of electronics and smart connected products".
It has numerous blue-chip customers including Tesla, NASA, Boeing, Cochlear Limited (ASX: COH), Alphabet, Amazon.com, Disney, Apple, Microsoft, Broadcom and many more.
The company is expecting to grow its profit margins as it gets bigger and it's also steadily growing its dividend. Altium is also debt-free.
I'm quite excited by the rapid client adoption of its cloud offering called Altium 365 which connects different parts of the electronics value chain, as well as Altimade.
Altimade "provides cloud-based smart manufacturing that will improve productivity and manufacturability of electronics hardware and manage the supply chain of components as well as production risk".
