All Ordinaries (ASX: XAO) shares have certainly had a rough 12 months, with the index down 11% over the past year.
No doubt the technology sector has played some role — tech is the worst performing sector in that time. The S&P/ASX 200 All Technology Index (ASX: XTX) is down 35.3% while the S&P/ASX 200 Info Technology Index (ASX: XIJ) is even lower, down 38.6% over the past 12 months.
Clearly, the rotation out of tech stocks has hit the sector hard although it's also delineated clear "earners and burners", according to one fund manager.
Pie Funds portfolio manager Chris Bainbridge told the Australian Financial Review:
We believe this correction is one of the best things that could have happened for a number of tech companies because it enforces a financial discipline that hasn't been there for the last few years. There are now depressed valuations for companies with demonstrably better earnings than anyone was projecting six months ago, and that's something the market is missing. The caveat is you have to find the right stocks. Buying the index won't work.
So, here's a list of some of those earners flying above their peers that may present good buying opportunities.
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Codan Ltd (ASX: CDA)
Codan reported $162 million in earnings before interest, taxes, depreciation, amortisation (EBITDA) and a record net profit after tax (NPAT) of $100.5 million for FY22.
Revenues also saw a 16% increase year over year (yoy) to $506.1 million.
Codan produces"rugged" communications equipment such as transceivers and mining technology. It notes that it will likely record further growth in FY23. This will be supported by a strong order book of $149 million and further opportunities in the pipeline.
Codan's shares are down 34% year to date.
Hansen Technologies Ltd (ASX: HSN)
Hansen is another profitable tech company although its earnings for FY22 were in a slump. NPAT finished at $41.9 million, down 27%, with EBITDA of $99.9 million, down 16% yoy.
Revenues were also down to $296.5 million, 4% lower yoy.
Hansen is a software development company that creates billing systems, mostly for companies in the energy and telecommunications sector. It noted in its outlook that it's looking to expand into additional markets.
Hansen shares are down 13.97% year to date.
Dicker Data Ltd (ASX: DDR)
Finally, Dicker Data reported growth in its top and bottom lines for HYFY22. Total revenue surged 36.5% yoy to $1,459.4 million. NPAT grew 7% yoy to $34.3 million, while EBITDA grew 19.5% to $61.2 million.
Dicker Data is a distributor of both software and hardware. It provided outlook for the rest of its reporting period, stating it sees additional opportunities in the cybersecurity industry with its Hills Security and SIT division.
Dicker Data's shares are down 30% year to date.
