The All Ordinaries Index (ASX: XAO) is up 4.1% in 12 months, but ASX All Ords stock Smart Parking Ltd (ASX: SPZ) has managed to almost double investors' money over the year.
In early afternoon trade today, shares in the integrated global parking services provider are up 7.6%, changing hands for 85 cents apiece.
That sees the Smart Parking share price up an impressive 98% since this time last year.
Although the company hasn't been immune to the broader fallout from US President Donald Trump's tariff war with China.
Despite a strong rebound from the 7 April lows, shares in the ASX All Ords stock remain down 16.7% from the 19 February all-time closing high.
But according to Hayden Beamish, chief investment officer at Endeavour Asset Management, that retrace offers a potentially opportune long-term entry point (courtesy of The Australian Financial Review).
ASX All Ords stock on the growth path
Beamish said his fund has been taking advantage of the tariff-driven sell-down in ASX small-caps by buying stocks that have fallen "30% to 50% but show no earnings impact".
He said these are "companies with recurring revenues, net-cash balance sheets and wide moats – such as high-quality technology and industrial names".
Asked which stock his fund owns that he believes has the most near-term upside, Beamish named Smart Parking.
On 7 April, the ASX All Ords stock was down 32.4% from its 19 February closing high. And despite soaring 23.2% since then, Beamish believes there are more gains to be had.
"Smart Parking Systems is one of our top picks for the next three to six months," he said.
Beamish explained:
Analysts forecast revenue growth of 25% and a move to profitability by next June, with earnings before interest, taxes, depreciation, and amortisation margins expanding from 10% to 15%.
It trades on about eight times forward enterprise value to its earnings before interest, taxes, depreciation and amortisation, well below its long-run average of 12 times when contract wins drove re-ratings.
Beamish is also bullish on Smart Parking's recent US$36 million acquisition of US company Peak Parking. The Smart Parking's expanding footprint is helping the ASX All Ords stock capture a greater share of a soon to be US$10 billion (AU$15.7 billion) parking market.
According to Beamish:
The global smart-parking market is set to reach US$10 billion by 2028, and Smart Parking's USA expansion story gives clear catalysts.
Compared to peers trading at 14 times EV/EBITDA, we see significant re-rating potential as new contracts are announced.
With the Smart Parking share price and market cap flying higher over recent years, the company officially became an ASX All Ords stock on 24 March as part of the S&P Dow Jones Indices quarterly review.
