It's easy to get stuck in our old ways, looking at the same handful of ASX shares. What we don't often realise is that we could be ignoring high-quality companies by only paying attention to those that make the most noise.
In fact, investing in under-the-radar companies that others may be overlooking can sometimes give you an edge as an investor. By doing the leg work to gain an in-depth understanding of a company prior to others, you can potentially capitalize on the undiscovered potential.
With that in mind, let's take a closer look at these five ASX shares that you may not have come across before.
ASX shares building the world around us
If you asked someone on the street if they had ever heard of Maas Group Holdings Ltd (ASX: MGH), the answer would probably be, 'Who?'. Yet, Maas is a leading construction materials company boasting profits of $61.6 million on $517.1 million of revenue in FY22.
The company is growing top-line aggressively by making several debt-fuelled acquisitions. In 2022 alone, Maas made five acquisitions including quarries, plant hire, and maintenance services. Maas shares are down 45% over the last year and trade on a price-to-earnings (P/E) ratio of 13.2.
Similarly, Emeco Holdings Ltd (ASX: EHL) is another ASX share that most people couldn't tell from a bar of soap. But for such an unrecognisable name, the company sure has built up an enviable heavy machinery rental company.
In FY22, net profits after tax (NPAT) were ratcheted up by 22% to $69 million. The company achieved this result despite labour shortages, supply chain interruptions, and adverse weather events. Emeco shares are 7% in the hole over the past 12 months and are trading on a P/E ratio of 6.6.
Now, if anyone knows Capral Limited (ASX: CAA) by name, I would be impressed. At a market capitalisation of $130 million, it could easily slide by undetected by most investors. However, the aluminium product manufacturer pulled in $638.7 million of revenue in FY22 at a profit margin of nearly 8%.
While profits have since been retreating, the company still maintained a fully franked dividend — producing a dividend yield of 9.5%. Capral shares are 22% lower than where they were a year ago with the company trading on a P/E ratio of around 3.
Cars and healthcare
This next ASX share is the most profitable, in percentage margin terms, out of the bunch mentioned here. Eclipx Group Ltd (ASX: ECX) doesn't ring bells quite like Telstra Group Ltd (ASX: TLS), but the vehicle fleet leasing and management company does tout a better profit margin.
At the end of September 2022, Eclipx netted $103.3 million in profits for the previous 12 months, representing a 15.3% margin. The below industry average P/E of 5 times earnings possibly reflects the lack of top-line growth over the last five years or so.
Finally, what if I told you there is an ASX share doing over $10 billion in revenue annually and you still probably don't know it by name? Ever heard of a pharmaceutical retail giant by the name of EBOS Group Ltd (ASX: EBO)?
Maybe not… but I'd say there's a good chance you do know TerryWhite Chemmart, or Pharmacy Choice, or Good Price Pharmacy Warehouse… EBOS Group operates these businesses and many others across Australasia.
The company operates on paper-thin margins of around 2% but has successfully done so for 100 years. EBOS shares are up 7% over the last year and trade on a P/E of 32 times earnings.
