The All Ordinaries (ASX: XAO), or ASX All Ords, stock space is a great area of the market to look for opportunities right now because of the volatility and much lower share prices.
Small businesses can be just as good of an investment as a large business, perhaps an even better one, mainly due to their long-term earnings growth potential.
I'm optimistic that the following businesses have a very positive future.
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Propel Funeral Partners Ltd (ASX: PFP)
Propel is one of the largest operators of funerals and crematoria in Australia and New Zealand.
It's a morbid industry, but it's an important one for society. Sadly, the sector does see a certain level of demand each year. As the saying goes, there are two things certain in life – death and taxes.
Due to Australia's growing and ageing population, the number of deaths per year is expected to grow in the coming years, which gives the business ultra-long-term tailwinds.
Death volumes are expected to increase by an average of 2.9% between 2026 to 2035 and then grow by a further 2.4% from 2036 to 2045. New Zealand is also expected to long-term growth, though not quite as strong.
Inflation is another useful boost for the ASX All Ords stock's revenue because it helps boost the average revenue per funeral. Propel Funeral Partners reported that its compound annual growth rate (CAGR) has been 2.8% since FY15, though it was faster during the inflationary period earlier this decade.
I think this company's net profit can steadily grow over the long-term, making the recent decline an appealing time to buy, in my view.
Siteminder Ltd (ASX: SDR)
Siteminder is another ASX All Ords stock that I'm bullish about over the long-term because of its growth rate and plans for the future.
The business provides software to hotels around the world to help them run their operations and generate more revenue for their rooms over the course of a year.
The ASX All Ords stock has a goal of growing its revenue by 30% per year, which is a tremendous rate of compounding if it can achieve that goal. The business is offering new modules to clients to help them be even better at generating revenue from the software (such as analysis of data), including an offering that enables Siteminder to automatically adjust room prices for the hotel.
The company is currently growing revenue at a growth rate that's in mid-20% range and I think the market is underestimating at how much it could grow in the next few years.
Additionally, the company's operating profit (EBITDA) margins and cash flow margins are growing, particularly as it is now generating positive figures in those two areas (it has been in the minus but improving in previous years).
With the Siteminder share price down more than 60% in the past six months, I think this is a great time to invest.
