The All Ordinaries Index (ASX: XAO) is up 11.3% since this time last year, with one ASX All Ords stock doing plenty of the heavy lifting.
The high performer in question is global sports data and analytics company Catapult Group International Ltd (ASX: CAT).
Although the Catapult share price is down 3.9% in afternoon trade today at $3.45 a share, the ASX All Ords stock has gained a blistering 159.4% in a year.
And that's been good news for the Monash Investors Small Companies Fund. It has seen Catapult become one of its top 10 holdings following its strong 12-month gains.
Referring to Catapult's 40.5% share price gains in November alone in the fund's November update, Monash Investors stated:
The portfolio benefited from the 40% re-rate to sports technology leader, Catapult Communications. What was a relatively small position has grown in importance to the portfolio over the course of 2024, and November's jump brings it into our Top 10.
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This ASX All Ords stock could keep charging higher in 2025… and beyond
Explaining why Monash Investors has not trimmed its exposure to the ASX All Ords stock even as it's roared higher, the fund managers said:
Despite its near tripling over the year, we've maintained our position, and our view on the long-term potential for this business has been reinforced by recent results. In short, Catapult provides software solutions via wearable tracking devices with a focus on the big-money global sports industry.
They noted that Catapult has benefited from the growing reliance on technology among big sports teams to improve their performance:
Elite sport has increasingly relied on deep analytics to enhance performance, and Catapult is the global market leader with these technologies.
And the major investments the ASX All Ords stock has made over the past years appear to be paying off.
According to Monash Investors:
Having spent heavily over the years to build its global platform and capability, revenues have grown significantly, and the company is now at an inflection point where the group has reached cashflow break-even, and continued revenue growth is expected to drive an explosion in profitability in the years ahead.
The runway for this company in the years ahead is vast. It holds a dominant market position in a highly valuable niche which itself is growing in value as sports teams and organisations right across the professional and even amateur spectrums seek to invest in science-based analytics to enhance performance.
At Catapult's half-year results for the six months to 30 September, the company reported a 19% year-on-year boost in revenue to $85 million. And the ASX All Ords stock achieved free cash flow of $7 million for the half year.
Monash Investors was clearly pleased with these achievements.
According to the fund managers:
Recent results confirm the thesis is very much on track, with revenue growing at a strong double-digit rate, costs being well controlled, and the expectation for profitability to now expand significantly with incremental revenue delivering 30%+ earnings before interest, taxes, depreciation and amortisation (EBITDA) margins.
As for what's ahead, Monash Investors said, "Catapult is shaping up to become a truly global ASX success story.
"We expect its continued successful growth journey can support its rise through the market cap ranks in the years ahead."
