I love investing in ASX growth shares. And I particularly love investing in ASX growth shares with scalable business models.

Scalability refers to how easy it is to expand a business and grow revenues at a much faster rate than costs. 

How is this possible? Well, scalable businesses have a higher proportion of fixed costs compared to variable costs. 

Take a software business, for example. Once the software has been created, there's typically very little cost involved in rolling it out to an extra customer. 

This can lead to a wonderful thing called operating leverage, where more and more sales dollars fall to the bottom line. 

With that in mind, let's take a look at three ASX 200 shares that benefit from scalable business models.

REA Group Limited (ASX: REA)

To kick things off, REA is the ASX 200 share behind one of the most prominent brands in Australia. 

Realestate.com.au is not only the nation's largest property portal. According to market research firm Nielsen, it's also the seventh-largest online brand in the country. It averages 124 million visits across nearly 13 million people each month, reaching 62% of Australia's adult population.

As a digital business, REA is highly scalable. It can attract new customers with ease, without having to invest significant amounts of capital to grow.

Take its core property portal, for example. REA generates listing revenue when a real estate agency advertises a property on its portal. But crucially, REA collects these fees without having to do much at all. The portal has already been built and it works seamlessly. There are hardly any costs involved in adding an extra property listing to the portal. 

In other words, REA generates this listing revenue at high gross profit margins. 

A fair chunk of this gross profit translates into earnings. In FY22, REA achieved an EBITDA margin of 57% across the group.

Deterra Royalties Ltd (ASX: DRR)

Next up, Deterra Royalties is a lesser-known ASX 200 share with a business model unique to the ASX. 

Deterra was spun off from Iluka Resources Limited (ASX: ILU) in 2020 to separate the mineral sands and royalty businesses.

Deterra currently holds six royalty assets in its portfolio, with its cornerstone asset being the Mining Area C (MAC) Royalty.

Operated by BHP Group Ltd (ASX: BHP), Mining Area C is set to become the largest iron ore hub in the world. It's expected to produce 145 million tonnes of iron ore each year when the recently-completed South Flank expansion reaches full production.

The MAC royalty is revenue-based, with Deterra earning 1.232% of revenue from the MAC royalty area plus capacity payments. As a result, Deterra's business model captures the upside of expansions and extensions without any exposure to the mine's operating costs or capital contributions.

This simple and scalable model enabled Deterra to achieve an unbelievable underlying EBITDA margin of 97% in FY22. As an added benefit for shareholders, the company is committed to paying out 100% of its net profit after tax (NPAT) as dividends.

Pro Medicus Limited (ASX: PME)

Last but not least is a company that I believe is one of the highest-quality growth shares on the ASX.

I recently profiled Pro Medicus as an ASX 200 share with juicy gross profit margins, which goes hand in hand with scalability.

But I think the economics of the business are deserving of another shout.

Pro Medicus is one of the very first companies that spring to mind when I think of operating leverage. It has it in spades. 

For those who are unfamiliar, Pro Medicus is a global leader in radiology imaging software through its Visage technology.

The company's scalability and operating leverage are best seen through its wide profit margins. In FY22, Pro Medicus achieved an EBIT margin of 67%. Put another way, Pro Medicus turned two-thirds of every sales dollar into profit before tax. 

What's more, as the company's topline flourishes, these margins have only been heading higher over time.

The post 3 ASX 200 shares with highly-scalable business models appeared first on The Motley Fool Australia.

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Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Pro Medicus. The Motley Fool Australia has recommended REA Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When it comes to analysing ASX shares, one important aspect to dig into is financial strength.

A snapshot of a company's financial position is found on its balance sheet. 

A quick way to get a pulse check on a company's financial health is by looking at its net debt position. In other words, its cash reserves against how much debt it has (if any).

I like to invest in companies with cash reserves that comfortably exceed their debts. Avoiding excessive debt helps a company weather economic downturns. And those with big cash balances are rewarded with optionality, having the ability to pounce on acquisition opportunities that may arise in the market or reinvest those funds back into the business for future growth.

What's more, balance sheets also provide insight into a company's business model and efficiency. 

The absence of debt often points to a capital-light and self-sufficient business. In other words, the company generates enough money on its own, without needing to rely on external funding.

There are some exceptions to this. For example, ASX 200 shares like Liontown Resources Ltd (ASX: LTR), Chalice Mining Ltd (ASX: CHN), and Core Lithium (ASX: CXO) all currently boast debt-free balance sheets. 

However, these companies are pre-revenue, capital-intensive, and far from being self-sufficient. Instead of debt, they've been relying on equity to fund the future growth story, turning to investors to raise capital.

Debt-free ASX 200 shares

Excluding those types of companies, let's take a look at three ASX 200 shares from different industries that don't have any borrowings on their balance sheet.

I've recently profiled ASX 200 shares with enormous insider ownership, founders steering the ship, juicy gross profit margins, and mission-critical products.

So even though WiseTech Global Ltd (ASX: WTC), Altium Limited (ASX: ALU), Pro Medicus Limited (ASX: PME), and Netwealth Group Ltd (ASX: NWL) all boast debt-free balance sheets, I'll be looking past them in favour of some new names.

Nanosonics Ltd (ASX: NAN)

First up, Nanosonics is an ASX 200 growth share involved in the business of infection prevention. Its flagship Trophon device disinfects ultrasound probes, replacing what's primarily been a manual process in the past.

The company operates a razor and blade business model, selling hospitals its Trophon device which requires Nanosonics' proprietary disinfectant liquid to operate.

Customers pay a bigger upfront price for the Trophon device. But Nanosonics actually makes the bulk of its revenue from the higher-margin consumables sales.

With respect to its balance sheet, Nanosonics ended FY22 with $95 million in cash and no debt. This provides the company with a strong foundation for continued investment in growth initiatives, such as global expansion and product innovation.

Nanosonics has been consistently profitable and operating cash flow positive for several years. 

ARB Corporation Limited (ASX: ARB)

Next up is ARB, the ASX 200 share behind Australia's favourite 4×4 accessories. 

With origins dating back to 1975, ARB has grown to become the nation's largest manufacturer and distributor of 4×4 accessories. Its strong local presence is complemented by an export network that extends through more than 100 countries across the globe.

ARB has a long track record of strong cash flow generation and profitability, going back decades. It's reinvested this cash at high rates of return, expanding its distributor network, product offering, manufacturing facilities, and original equipment manufacturer (OEM) relationships to great effect.

ARB has been debt-free for many years. It finished FY22 with cash reserves of $53 million, ensuring the company continues to be well-placed to take advantage of investment opportunities.

ASX Ltd (ASX: ASX)

Finally, let's take a closer look at the company that operates the Australian Securities Exchange. 

ASX Ltd is a vertically-integrated, multi-asset exchange group. It's best known for collecting annual listing fees from companies on the ASX. But it also operates futures and options markets, and offers a range of services including trading, clearing, settlement, and market data.

The company has a debt-free balance sheet, which currently boasts $5 billion in cash. However, a lot of this money doesn't belong to ASX. Instead, it is collateral put up by clearing participants to cover their margin obligations in the futures markets.

As a result, the company's balance sheet isn't as clean as a typical ASX share. This muddies the company's other financial statements as well. But its lack of reliance on external funding is a positive sign. 

ASX Ltd last raised capital in 2013 when it launched a $550 million entitlement offer. Around half of the proceeds were used to pay down debt, and the company has been debt-free ever since.

The post 3 ASX 200 shares boasting debt-free balance sheets appeared first on The Motley Fool Australia.

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Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ARB Corporation, Altium, Nanosonics, Netwealth Group, Pro Medicus, and WiseTech Global. The Motley Fool Australia has positions in and has recommended Nanosonics, Netwealth Group, Pro Medicus, and WiseTech Global. The Motley Fool Australia has recommended ARB Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I love investing in ASX shares that provide mission-critical products. Companies with products so deeply embedded and vital in their customers' operations that they're hard to give up.

These products are sticky, contributing to high levels of customer retention and recurring revenue. This stickiness can also act as leverage for lucrative pricing power.

With that in mind, let's take a look at three ASX 200 tech shares that, in my view, provide mission-critical products.

WiseTech Global Ltd (ASX: WTC)

Kicking things off, WiseTech is a leading provider of freight forwarding software through its flagship CargoWise product.

CargoWise is an all-in-one logistics platform used by 10 of the top 25 global freight forwarders.

Companies like Toll and DHL rely on CargoWise to execute complex logistics transactions and manage their freight operations from a single platform.

Demonstrating its stickiness, CargoWise boasts an enviable customer retention rate of 99%. In fact, the software platform has recorded less than 1% customer attrition every year for the last 10 years.

Due to the nature of the product, it's no surprise that a large majority of WiseTech's revenue is recurring. This figure sat at 89% in FY22, contributing to WiseTech's stable and predictable revenue streams. 

Xero Limited (ASX: XRO)

Next up is Xero, a pioneer of cloud-based accounting software that plays an integral role in the operations of its small to medium-sized business customers.

Xero is best known for its bookkeeping solution. But it can also handle everything from invoicing and payroll to inventory, quotes, and purchase orders.

This entrenches Xero into its customers' workflows, adding more value than the monthly subscription fees it extracts.

These subscription fees have only been heading higher over time, with minimal effect on customer retention. In other words, Xero has flexed its pricing power to great effect, with a consistent stream of new features also helping customers to stomach the steeper fees.

In Xero's most recent 1H23 results, the ASX 200 tech share reported average revenue per user (ARPU) of NZ$35.30, up from NZ$31.32 in the prior corresponding period. Meanwhile, churn remained stable at 0.91% of monthly recurring revenue.

As I've highlighted previously, I believe Xero is a business with terrific unit economics.

Altium Limited (ASX: ALU)

Altium rounds out this trio of ASX 200 tech shares that provide mission-critical products.

Coincidentally, all three of these companies are part of the once-infamous 'WAAAX' group of ASX tech shares.

Altium provides software for the design of printed circuit boards (PCBs). 

PCBs are those little boards (most commonly green in colour) that house a bunch of electronic components, such as chips and resistors.

These boards sit inside almost every electronic device, from cars and home appliances to mobile phones and manufacturing equipment. 

As you can imagine, there are a lot of intricacies involved in designing a board that mechanically supports and electrically connects a range of different components. 

This is where a PCB design software tool, such as Altium's flagship Designer product, enters the fray. 

Altium considers Designer as the default software tool of choice for electrical engineers, from those studying at university to those working at world-class companies, such as Tesla Inc (NASDAQ: TSLA) and ResMed CDI (ASX: RMD).

So not only is Altium Designer a mission-critical product, but it's also an industry-leading tool that benefits from a reinforcing loop. University students are trained to use Altium's products, and companies require their engineers to be proficient with these products, which only reinforces Altium's prominent position.

The post 3 ASX 200 tech shares with mission-critical products appeared first on The Motley Fool Australia.

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Motley Fool contributor Cathryn Goh has positions in Altium, ResMed, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium, ResMed, Tesla, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended ResMed, WiseTech Global, and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It was a brutal year for ASX tech shares as concerns over soaring inflation and rising interest rates ran rampant in 2022.

The ASX tech sector felt the brunt of the impact, faring far worse than other sectors due to its sensitivity to interest rates.

The S&P/ASX 200 Index (ASX: XJO) slid 5.5% across the year to finish at 7,039 points. 

As I covered recently, the S&P/ASX 200 Health Care Index (ASX: XHJ) slightly lagged behind, dropping 8.4%.

But these falls pale in comparison to that of the ASX tech sector. The S&P/ASX All Technology Index (ASX: XTX), an index designed to be a comprehensive measure of technology-oriented companies on the ASX, suffered a painful 32.8% fall. 

As it stands, there are currently 47 companies in the ASX All Tech index. 

Of these, only 10 companies managed to outperform the ASX 200 index in 2022. You can see the performance of these shares in the table below.

Let's take a closer look at the top three.

Fuelling up

In terms of annual share price performance, there was daylight between Silex and the rest of its ASX All Tech peers in 2022.

The Silex share price soared to lofty heights, propelled by a resurgence in nuclear energy during the year. 

There's been a growing acceptance that nuclear energy will be a key pillar in the fight against climate change. What's more, Russia's invasion of Ukraine has added another catalyst to the mix as energy markets have gone into a tailspin.

So how does Silex fit into this? Well, it's a company focused on commercialising its laser technology to enrich uranium, the fuel most widely used to produce nuclear energy.

The company believes it has the only third-generation laser-based uranium enrichment technology that is currently under commercial development.

According to Silex, uranium production and enrichment are the two largest value drivers of the nuclear fuel cycle, accounting for nearly 80% of the value of a reactor fuel bundle.

In August, Silex announced it had successfully completed extensive testing of its first full-scale laser system module. The company is aiming to complete the pilot demonstration program by 2025.

It's also trying to commercialise its technology for silicon enrichment, which is currently in stage three testing.

Gliding off the ASX

After first joining the ASX ranks in 2008, Nearmap's publicly-listed life reached the end of the road in 2022.

In August, software investment firm Thoma Bravo launched a takeover bid, proposing to acquire the aerial imagery company for $2.10 per share. At the time, this represented a 39% premium to Nearmap's last closing price of $1.51.

Around 78% of shareholders voted in favour of the deal; enough to narrowly satisfy the 75% hurdle. After receiving all the ticks of approval, the takeover went through and Nearmap was delisted from the ASX last month.

Cashing in on higher interest rates

Last but not least, Computershare took out the bronze medal as the third best-performing company in the ASX All Tech index in 2022.

The Computershare share price defied the tech downturn, finishing the year 31% higher than where it started.

This is because Computershare is in a unique position of benefitting from higher interest rates, in a big way at that. 

Computershare's core operations require it to hold large amounts of cash on behalf of its clients. For example, the cash for dividends before it's divvied out to shareholders.

In FY22, total client balances averaged roughly US$34 billion. Computershare earns interest income – also known as margin income – on these balances, which effectively falls straight to the bottom line.

This income came in at US$187 million in FY22, reflecting a yield of 0.56% which was steady year on year. But on the back of recent interest rate hikes, FY23 is where the benefits will start to kick into gear.

The company was initially expecting its FY23 margin income to land at around US$520 million, representing growth of nearly 180%. 

But in November, on the back of global interest rate rises being faster and larger than expected, Computershare cranked up this guidance to a mighty US$800 million. The company is expecting to earn an average weighted yield of 2.19%.

While it's still early days, as it stands, Computershare is forecasting its margin income in FY24 to reach the US$1 billion mark.

The post The 3 best-performing ASX tech shares of 2022 appeared first on The Motley Fool Australia.

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Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Elmo Software, Hansen Technologies, and Pushpay. The Motley Fool Australia has positions in and has recommended Pushpay. The Motley Fool Australia has recommended Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

2022 was a wild ride for ASX investors. The year was stamped by concerns over rising inflation and interest rates, sending the S&P/ASX All Ordinaries Index (ASX: XJO) down 7.2% to 7,222 points.

The broader market finished in the red. But as always, there were some standout ASX All Ords shares that soared well above the rest.

As you'll soon discover, an overwhelming majority of the five best-performing ASX All Ords shares of 2022 have one distinct characteristic in common. In terms of share price gains, four of the five top-ranked companies are ASX coal shares.

Let's take a look.

Whitehaven Coal Ltd (ASX: WHC)

Taking out the coveted title of the best-performing ASX All Ords share in 2022 was none other than Whitehaven Coal.

The Whitehaven Coal share price served up a stunning 261% gain, finishing the year at $9.42. Unsurprisingly, this staggering rise was enough to top the ASX 200 tables as well.

Like many other ASX coal shares, Whitehaven benefitted from a renaissance in coal prices in 2022, triggered by the war in Ukraine.

As a high-quality thermal coal producer, Whitehaven has been a major beneficiary of record-high coal prices. In FY22, the company delivered record revenue of $4.9 billion, underpinned by an achieved average coal price of $325/tonne. This was a dramatic improvement from $1.6 billion of revenue and an achieved average coal price of $95/tonne in FY21.

The improvement was even more dramatic on Whitehaven's bottom line. After posting a net loss of $544 million in FY21, the company generated a colossal net profit after tax (NPAT) of $2 billion. Naturally, New Hope also rewarded shareholders with a monster hike in dividends.

Stanmore Resources Ltd (ASX: SMR)

The next cab off the rank is Stanmore Resources, one of Australia's largest suppliers of metallurgical coal to global markets.

The Stanmore share price shot up a whopping 211% in 2022, closing out the year at $2.95. On the back of this meteoric rise, the company boasts a market capitalisation of roughly $2.7 billion.

Stanmore's most notable development in 2022 was the US$1.2 billion acquisition of BHP Group Ltd's (ASX: BHP) 80% interest in the BHP Mitsui Coal (BMC) joint venture. 

BMC owns the South Walker Creek and Poitrel mines, with combined metallurgical coal production of around 10 million tonnes per annum and total marketable reserves in excess of 135 million tonnes.

Stanmore finalised this acquisition in May, funding the US$1.2 billion upfront consideration through a combination of debt and equity.

In October, Stanmore acquired the remaining 20% stake from Mitsui for US$380 million.

New Hope Corporation Limited (ASX: NHC)

New Hope secured an all-coal podium, rounding out the top three with a mammoth 185% gain. The New Hope share price ended the year at $6.36, giving the ASX All Ords share a market cap of around $5.6 billion.

Sky-high coal prices underpinned New Hope's eye-catching set of FY22 results. Despite producing 18% less saleable coal, the company delivered a 143% upswing in revenue, which hit $2.6 billion, and a more than 12-fold increase in profit, which landed at $983 million. 

New Hope's average realised price surged 178% to $281.84/tonne in FY22. This helped the ASX All Ords share delight shareholders with bumper fully-franked dividends.

Silex Systems Ltd (ASX: SLX)

Next up is Silex, the only non-coal ASX All Ords share to make it into the top five. 

For those unfamiliar, Silex is a high-tech company focused on commercialising its laser technology to enrich uranium and silicon.

The Silex share price lit up in 2022, racing 141% higher to finish the year at $3.20. The company is a minnow compared to its top-performing ASX All Ords counterparts, commanding a market cap of around $650 million.

Silex has also been spurred on by the Russia-Ukraine conflict, which has led to a resurgence in nuclear energy.

Silex believes its technology could become a major contributor to nuclear fuel production for the world's current and future nuclear reactor fleet, through the production of three different grades of uranium.

The company also achieved several key milestones for its Zero-Spin Silicon (ZS-Si) project during the year. This was capped off in December with news of the successful achievement of target enrichment objectives during stage three testing.

Yancoal Australia Ltd (ASX: YAL)

Last but not least, the Yancoal share price also went gangbusters in 2022, soaring 133% to $6.06. This values the company at around $8 billion.

Yancoal is a leading producer of thermal and metallurgical coal. It's dual-listed on the Hong Kong stock exchange and is majority-owned by Chinese coal mining company Yankuang Energy, which holds a 62% stake.

Unsurprisingly, Yancoal has been another major beneficiary from sky-high coal prices. In the six months to 30 June 2022, the ASX All Ords share generated $4.8 billion of revenue, not far off the $5.4 billion achieved in FY21 which was a record year. This monumental growth was driven by a 234% increase in Yancoal's average realised coal price to $314/tonne.

The post These were the 5 top-performing ASX All Ords shares of 2022 appeared first on The Motley Fool Australia.

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Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Soaring inflation and rising interest rates plagued share markets in 2022, ultimately sending the S&P/ASX 200 Index (ASX: XJO) down 5.5%.

Despite being known for their defensive qualities, ASX 200 healthcare shares weren't spared from the pain. In fact, the S&P/ASX 200 Health Care Index (ASX: XHJ) underperformed the broader market, suffering an 8.4% fall.

This index comprises the 12 healthcare shares in the ASX 200. Notably, none of these companies delivered a positive return in 2022. And only one managed to outperform the ASX 200.

Without further ado, let's take a look at the top three ASX 200 healthcare shares of 2022, ranked by share price performance.

CSL Limited (ASX: CSL) 

CSL is the largest healthcare share on the ASX. And it just so happens to be the only ASX 200 healthcare share that outperformed the benchmark index in 2022.

Even still, the CSL share price marginally reversed in 2022, dropping 1% or roughly $3 to close out the year at $287.76.

Headlining 2022 was CSL's $16.4 billion acquisition of Swiss pharmaceuticals company Vifor Pharma. The deal was completed in August and diversified CSL's traditional immunology-focused portfolio, expanding its presence into the kidney disease and anaemia management markets.

Since the acquisition was completed after the end of the financial year, Vifor didn't contribute to CSL's FY22 results. These results saw the ASX 200 healthcare giant deliver muted topline growth, which climbed 3% to US$10.7 billion, while net profit after tax (NPAT) slid by 6% to US$2.3 billion.

Due to the long-term nature of CSL's manufacturing cycle, it was still feeling the effects of COVID in FY22. Lockdowns put a clamp on the company's plasma collections, which are a crucial component for manufacturing its treatments. This led to reduced supply and increased costs within its Behring business; challenges that have since significantly improved.

In other notable news, CSL recently announced a CEO succession plan. Paul Perreault will be retiring in March after holding the top job for 10 years. Taking the reins will be Dr Paul McKenzie who currently serves as CSL's chief operating officer.

Cochlear Limited (ASX: COH)

Next up, the silver medal goes to Cochlear, taking out the title of the second best-performing ASX 200 healthcare share in 2022.

The Cochlear share price retraced 5.6% across the year, underperforming the ASX 200 by the smallest of margins. Cochlear shares finished the year at $204.12.

Like CSL, Cochlear also worked through an acquisition in 2022, albeit one much smaller in size. In April, it announced plans to acquire Oticon Medical from Demant A/S (CPH: DEMANT) for roughly $170 million. Oticon is a Danish hearing implant company with a base of more than 75,000 implant recipients.

However, this deal has hit a snag. Last month, the Australian Competition and Consumer Commission (ACCC) outlined "significant preliminary concerns" with Cochlear's proposed acquisition of Oticon.

Not long after, the UK Competition and Markets Authority (CMA) separately made the decision to refer the case to a further phase of review.

In terms of results, Cochlear continued its recovery from COVID in FY22. Cochlear implant unit volumes climbed 5%, contributing to cochlear implant sales revenue of $935 million, up 3% from the prior year. Meanwhile, underlying NPAT jumped 18% to $277 million.

More broadly, in FY22, the company helped more than 40,000 people hear with one or two of its cochlear or acoustic implants. Cochlear estimates this will provide a net societal benefit of more than $6 billion over the lifetime of the recipients from improved health outcomes, educational cost savings, and productivity gains.

Importantly, the company launched its new Nucleus 8 sound processor towards the end of the year, five years on from the launch of the Nucleus 7. This will act as a catalyst for revenue growth as recipients upgrade their devices.

Telix Pharmaceuticals Ltd (ASX: TLX)

Rounding out the podium finishes is Telix, a lesser-known ASX 200 healthcare share involved in diagnostic and therapeutic radiopharmaceuticals.

The Telix share price backtracked 6.2% in 2022, closing the year at $7.27. This gives the company a market capitalisation of around $2.3 billion. 

2022 was Telix's first year in the ASX 200. It joined the ranks in February, replacing Sydney Airport which was bought out in a $23.6 billion takeover deal.

But an even bigger milestone for Telix in 2022 was the launch of its first commercial product, Illuccix, in April. Used with PET scans, Illuccix is a prostate cancer imaging product designed to help doctors better detect the presence of cancer cells. 

Illuccix has received regulatory approval from the US Food and Drug Administration (FDA) and the Australian Therapeutic Goods Administration (TGA). However, commercialisation in Europe has been delayed.

In the quarter ended 30 September 2022, the second quarter of commercial sales in the US, Telix generated $53.7 million of revenue from Illuccix. This represented a 178% increase on the prior quarter, with sales momentum gathering pace since US reimbursement became effective on 1 July.

With Illuccix launched, the most advanced product in Telix's research and development pipeline is TLX250-CDx, an investigational renal cancer PET imaging agent. 

In November, Telix announced "highly positive top-line results" from the phase III study of TLX250-CDx. The study met all of its primary and secondary endpoints, exceeding sensitivity and specificity targets.

Based on these positive results, Telix plans to file a biologics license application with the US FDA and seek marketing authorisation in key commercial jurisdictions around the world.

The post The 3 best-performing ASX 200 healthcare shares of 2022 revealed appeared first on The Motley Fool Australia.

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Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Cochlear. The Motley Fool Australia has recommended Cochlear. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It's certainly been a wild year for ASX shares as inflation prints and interest rate hikes have pulled markets in every direction.

Despite a recent rally, the S&P/ASX All Ordinaries Index (ASX: XAO) is down around 7% since the start of 2022.

Amidst the volatility and uncertainty, investors have been flocking to defensive ASX shares, along with those that pay a dividend.

But high dividend yields don't necessarily have to come with modest capital growth.

Here are three high-flying ASX All Ords shares that have delivered juicy dividends and big share price gains in 2022.

New Hope Corporation Limited (ASX: NHC)

New Hope has been one of the best-performing ASX All Ords shares this year. With the New Hope share price currently fetching $5.64, shares have sky-rocketed 153% in the year to date.

The ASX 200 coal miner has been a major beneficiary of sky-high coal prices, which have surged on the back of the Russia-Ukraine conflict.

In FY22, New Hope's revenue soared by 143% to $2.6 billion. Meanwhile, profit went through the roof, rocketing 1,139% to $983 million. 

This came despite New Hope producing 18% less saleable coal compared to the prior year. It was all made possible by record-high coal prices, with New Hope's average realised prices surging from $101.36/tonne in FY21 to $281.84/tonne in FY22. 

These booming results helped New Hope to crank up its annual dividends by 681%, declaring fully franked dividends of 86 cents per share. At current prices, this puts New Hope shares on an eye-watering trailing dividend yield of 15.2%.

Looking ahead, Morgans believes New Hope's dividends will head further north in FY23. The broker is forecasting annual dividends of $1.00 per share, which spins up a forward dividend yield of 17.7%. Morgans currently has an add rating on New Hope shares with a 12-month price target of $6.80.

Woodside Energy Group Ltd (ASX: WDS)

Next up, Woodside is another ASX 200 share that's delivered lucrative dividend income this year in tandem with bumper share price gains.

With Woodside shares last changing hands at $34.45, its shares have punched 57% higher since the beginning of 2022.

Woodside has been another big winner from record-high oil and gas prices. The company's financial year runs until 31 December, so it's yet to hand in its FY22 report. 

But Woodside's strength was on full display in its first-half results, delivering a 132% increase in operating revenue which came in at US$5.8 billion. Underlying net profit after tax (NPAT) enjoyed an even bigger boost, leaping 414% to US$1.8 billion.

This was largely thanks to higher realised prices, which more than doubled year-on-year to US$96.40 per barrel of oil equivalent.

Woodside's multi-billion-dollar merger with BHP Group Ltd (ASX: BHP)'s oil and gas portfolio was completed on 1 June 2022. So, these assets had one month's contribution to Woodside's first-half results.

As part of the deal, Woodside received a merger completion payment of around US$1.1 billion in cash.

In August, Woodside declared an interim dividend of US$1.09. This payout was based on 80% of underlying NPAT plus 80% of the merger completion payment adjusted for working capital.

Excluding the merger completion payment, Woodside's ordinary interim dividend came in at 76 US cents, up 153% from the 30 US cent interim dividend declared in 1H21.

Over the last 12 months, Woodside has dished out fully franked dividends of US$2.14. As a result, Woodside shares are currently printing a trailing dividend yield of roughly 8.9%.

Myer Holdings Ltd (ASX: MYR)

Turning our attention away from ASX resources shares, Myer has been a surprise packet this year.

Consumers have been feeling the pinch of rising interest rates and cost of living, which has made life difficult for ASX retail shares.

But while most ASX retail shares flounder, the Myer share price has defied gravity, shooting up 56% this year to perch itself at 70 cents.

Myer is delivering on its turnaround, recently recording its highest second-half profit result in nearly a decade.

In FY22, the ASX retailer achieved comparable store sales growth of 15% while underlying NPAT doubled to $60 million.

Myer's bottom line has been bolstered by strong multi-channel execution, particularly from its online business.

It appears momentum is only gathering pace, with the first six weeks of FY23 seeing Myer achieve its best sales start to a financial year since 2006.

In terms of dividends, Myer shelled out an annual payment of 4 cents per share in FY22, fully franked. This translates to a trailing dividend yield of 5.7%, which grosses up to 8.2% including franking credits.

This is a marked turnaround for a company that, prior to this year, hadn't paid a dividend since 2017.

The post 3 high-yielding ASX dividend shares that have surged more than 50% this year appeared first on The Motley Fool Australia.

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Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX All Ordinaries Index (ASX: XAO) delightfully dished up another positive month in November.

Share markets have been buoyed by signs that inflation may have peaked and the pace of interest rate hikes could slow.

So, as optimism abounded, the ASX All Ords index continued its recovery, gaining 6.0% across the month to close out spring at 7,480 points.

As always, some ASX All Ords shares were soaring to loftier heights than the rest.

Without further ado, here are the three best-performing ASX All Ords shares in November in terms of share price gains.

Aeris Resources Ltd (ASX: AIS)

Topping the ASX All Ords tables in November was mid-tier base and precious metals producer Aeris Resources.

The Aeris Resources share price shot up 64% across the month to finish at 53 cents as its market capitalisation ballooned to $366 million.

On the last day of October, Aeris released its first-quarter results, which were met with an 18% share price slide.

But it appears this was a knee-jerk overreaction. As the market digested the results, the Aeris share price stormed higher, which set the tone for the rest of the month.

The biggest announcement from Aeris in November came in the form of a mineral resource update.

The ASX miner revealed an updated mineral resource estimate (MRE) for the Turbo lens at the Bentley deposit, located at Aeris' 100%-owned Jaguar Operations in Western Australia. 

The updated mineral resource materially increased the ore tonnes and metal content at the Turbo lens. The MRE now stands at 1.26 million tonnes at 1.82% copper, 8.5% zinc, 0.72 grams per tonne (g/t) gold, and 47g/t silver.

What's more, the drilling campaign resulted in the majority of the resource classification being upgraded to indicated status.

Renascor Resources Ltd (ASX: RNU)

The next cab off the rank is another ASX miner, with Renascor Resources taking out the title of the second best-performing ASX All Ords share in November.

The Renascor share price had a spring in its step, flying 59% across the month to finish at 35 cents. The company's market cap currently stands at around $750 million. 

Renascor is an exploration and development company with a portfolio of projects in South Australia. Its flagship project is the Siviour battery anode material project, the world's second-largest proven graphite reserve.

The Renascor share price steadily climbed throughout the month. Similarly to Aeris, Renascor released its quarterly results on the last day of October.

Following this, the company kicked off November by presenting at the International Mining and Resources Conference in Sydney. 

It was then radio silence for the rest of the month until Rensacor revealed it had received a key approval for its Saviour Project.

Specifically, the South Australian Department of Energy and Mining has granted Renascor approval for the Program for Environment Protection and Rehabilitation (PEPR) for its proposed Siviour mine and concentrator.

The PEPR approval permits Renascor to process up to 1.65 million tonnes per annum. This would allow the ASX All Ords share to produce up to 150,000 tonnes of graphite concentrates per year.

With this approval under its belt, Renascor can now develop the upstream graphite mine and concentrator portion of the Siviour project.

Ainsworth Game Technology Limited (ASX: AGI)

Last but not least, Ainsworth Game Technology rounds out the podium finishes with a whopping share price gain of 58% in November.

Ainsworth designs and manufactures a range of slot machines and a catalogue of standalone and linked games. The ASX gaming share currently boasts a market cap of $420 million.

It was a rather quiet affair at Ainsworth for most of the month, with its share price marching upward despite no news coming from the company.

But the Ainsworth share price received an added boost when the ASX All Ords share held its 2022 annual general meeting (AGM) at the end of November.

Notably, the company instated guidance at its AGM. Based on its current forecasts, Ainsworth expects to achieve around $18 million in normalised profit before tax in the first half of FY23.

The company is building on strong momentum, which saw it deliver normalised profit before tax of $17.3 million in 2H22, up considerably from $10.0 million in 1H22.

Looking ahead, Ainsworth expects to have continued growth in North America, further improvements in Latin America, and steady performance in Australia.

The post These were the 3 best-performing ASX All Ords shares in November appeared first on The Motley Fool Australia.

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Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Here's a round-up of companies in the S&P/ASX 200 Index (ASX: XJO) turning ex-dividend next week.

The ex-dividend date is the cut-off to determine which investors are eligible for a company's upcoming dividend payment.

If you buy shares on or after the ex-dividend date, you won't be able to bag the upcoming payment. Instead, the dividend will remain with the seller on the other side of the transaction.

However, a company's shares typically drop on the day they turn ex-dividend as the value of the dividend payment leaves the share price.

Without further ado, let's take a look at the trio of ASX 200 shares going ex-dividend next week.

Collins Foods Ltd (ASX: CKF)

First up, shares in fast food franchisee Collins Foods will be trading ex-dividend on Monday.

This means that today will be the last day to lock in the company's latest fully franked dividend of 12 cents per share.

Investors on Collins Foods' share registry by the closing bell today can pencil in a payment date of 29 December.

Alternatively, the ASX 200 share has a dividend reinvestment plan (DRP) available. Shareholders will have until Wednesday, 7 December to elect to participate in the DRP.

Collins Foods handed in its first-half FY23 results earlier this week, much to the dismay of the market.

The Collins Foods share price ended the day 20% lower as investors digested a set of results impacted by cost inflation.

The company delivered 15% top-line growth, with revenue coming in at $614 million. But inflation and wage increases squeezed Collins Foods' earnings margins.

Earnings before interest, tax, depreciation, and amortisation (EBITDA) climbed by just 1% to $93.4 million. Meanwhile, net profit after tax (NPAT) slumped 58% to $11 million, weighed down by an $11.9 million non-cash impairment of eight Taco Bell restaurants.

Nonetheless, Collins Foods kept its interim dividend steady at 12 cents per share. This puts Collins Foods shares on a trailing 12-month dividend yield of 3.5%. Throwing in the benefit of franking credits dials up this yield to 4.9%. 

Incitec Pivot Ltd (ASX: IPL)

Like Collins Foods, Incitec Pivot is another ASX 200 share turning ex-dividend on Monday.

Today will be the last day that Incitec Pivot shares will trade with rights to the company's FY22 final dividend of 17 cents per share.

This fully franked dividend is set to land in shareholders' bank accounts on 21 December.

Last month, the explosives and fertilisers company released its full-year results. FY22 was a bumper year for Incitec Pivot, underpinned by volume growth and higher prices.

Revenue jumped by 45% to $6.3 billion, while normalised NPAT rocketed by 186% to $1.0 billion.

This tremendous growth allowed the company to more than triple its annual dividends to 27 cents, fully franked. This is on top of a $400 million on-market share buyback that will be conducted over the next 12 months.

Based on current prices, Incitec Pivot shares are spinning up an eye-catching trailing dividend yield of 6.8%. Including franking credits, this yield cranks up to 9.6%.

The company is still planning to separate its fertilisers and explosives businesses to create two separately-listed companies on the ASX.

Fisher & Paykel Healthcare Corp Ltd (ASX: FPH)

Rounding out this trio of ASX 200 shares going ex-dividend next week is Fisher & Paykel, the dual-listed ASX healthcare share.

Fisher & Paykel shares will be turning ex-dividend on Thursday, trading without claims to the company's latest unfranked interim dividend of 17.5 NZ cents.

As part of a Kiwi tax regime, the company will also be paying a supplementary dividend of roughly 3 NZ cents per share to shareholders who aren't New Zealand residents.

Fisher & Paykel has locked in a payment date of 21 December. Alternatively, the company has reactivated its DRP for shareholders residing in New Zealand, Australia, and the UK. These shareholders will have until 12 December to opt in. Those who do will receive a 3% discount for their troubles.

Earlier this week, Fisher & Paykel posted its first-half FY23 results. These results were headlined by total operating revenue of NZ$690.6 million, which came in ahead of guidance of NZ$670 million.

Despite beating guidance, revenue was down 23% compared to the prior corresponding period as the company lapped significant COVID-driven demand. 

However, it's settled on a higher base, with revenue sitting 21% above the comparable pre-pandemic period.

Profits took an even bigger tumble but Fisher & Paykel still increased its interim dividend by 3% to 17.5 NZ cents. 

At current levels, Fisher & Paykel shares are flashing a trailing 12-month dividend yield of around 1.9%.

The post Here are 3 ASX 200 shares going ex-dividend next week appeared first on The Motley Fool Australia.

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Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Collins Foods. The Motley Fool Australia has recommended Collins Foods. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When it comes to analysing ASX shares, there are countless fundamental factors and characteristics to look at.

Last week, I zeroed in on management, profiling some ASX 200 shares with founders steering the ship and others with enormous insider ownership.

Today, it's all about gross profit margins. 

Put simply, gross profit is the money that a company has left after paying for the stuff it sold. 

These selling costs are typically listed as 'cost of sales' or 'cost of goods sold'. You'd find this towards the top of a company's income statement. 

But in some cases, companies bypass this line item altogether and don't break out cost of sales from the rest of their operating expenses.

The gross profit margin simply represents gross profit as a proportion of revenue. The higher, the better, because it means the company is holding onto a greater portion of every sales dollar.

With that in mind, let's take a look at five ASX 200 shares with deliciously-high gross margins.

Pro Medicus Limited (ASX: PME)

Topping this list is ASX 200 healthcare share Pro Medicus, a global leader in radiology imaging software. 

In FY22, Pro Medicus generated $93.5 million in revenue against cost of sales of just $465,000. This translates to a staggeringly-high gross margin of 99.5%.

Crucially, Pro Medicus is a software-only business, so there are minimal costs involved in rolling out new contracts. The outcome is an incredibly capital-light, scalable business.

But while there are varying interpretations of what goes into cost of sales from company to company, Pro Medicus backs this up with extremely wide profit margins.

In fact, Pro Medicus turns two-thirds of every sales dollar into profit before tax. These margins have only been heading higher over time, demonstrating tremendous operating leverage.

Carsales.com Ltd (ASX: CAR)

Next up is the ASX 200 tech share behind Australia's leading automotive classifieds business.

In FY22, Carsales incurred cost of sales of $50 million on the way to generating revenue of $509 million. This spins up a stunning gross margin of 90%.

Carsales operates an extensive network of classifieds websites, covering everything from motorbikes and boats to caravans, trucks, construction equipment, and tyres.

In a similar vein to REA Group Limited (ASX: REA), it also lays claim to a range of different automotive classified portals around the world through a mix of full and partial ownership stakes.

Importantly, Carsales' juicy gross margin isn't lost further down the income statement. It boasts an earnings margin of 53%, achieving earnings before interest, tax, depreciation, and amortisation (EBITDA) of $270 million in FY22.

Xero Limited (ASX: XRO)

I'm sure it's no surprise to see Xero on this list, a software-as-a-service (SaaS) business leading the shift to cloud accounting.

As a Kiwi company, Xero handed in its first-half FY23 results last month. Across this period, the ASX 200 tech share drummed up revenue of NZ$658.5 million while cost of revenue came in at NZ$85.6 million.

So, all up, Xero held its gross margin steady over the prior year at an impressive 87%.

Unlike Pro Medicus and Carsales, Xero makes it easy for investors by specifying what goes into cost of revenue.

As detailed in its interim report, Xero's cost of revenue comprises expenses directly associated with hosting its services, sourcing relevant data from financial institutions, and providing support to subscribers.

Breaking this down even further, the company noted that this includes hosting costs, bank feed costs, employee-related expenses directly associated with cloud infrastructure and subscriber support, and related depreciation and amortisation.

Despite its strong gross margins, Xero continues to operate at a loss. This is because the ASX 200 tech share is prioritising future growth, ploughing droves of money into product development and marketing efforts at attractive rates of return.

WiseTech Global Ltd (ASX: WTC)

Continuing the tech theme, WiseTech is another ASX 200 share with terrific margins.

In FY22, WiseTech posted revenue of $632.2 million against cost of revenues of $92.5 million. This spits out an eye-catching gross margin of 85%, up from 83% in the prior year.

The ASX 200 tech share attributed this margin expansion to the impact of revenue growth and continuing efficiencies from its cost reduction initiatives.

WiseTech notes that its cost of revenues consists of expenses directly associated with hosting its services and providing support to customers.

Similarly to Xero, this includes data centre costs, employee-related expenses directly associated with cloud infrastructure and customer support, contracted third-party costs, and related depreciation and amortisation. 

WiseTech is another ASX 200 share boasting a strong duo of gross margins and earnings margins. In FY22, the logistics software provider delivered an EBITDA margin of 50%.

Lovisa Holdings Ltd (ASX: LOV)

The common thread from the four ASX 200 shares I've profiled so far is that they're all software-only businesses.

So while its gross margin isn't quite as high as the others on this list, I wanted to give a nod to an ASX 200 share with enviable margins for a retailer.

Retailing is traditionally known as a low-margin business. But as I've covered previously, Lovisa flips the script with its vertically-integrated business model and low-cost products.

Surveying the ASX retail landscape, Accent Group Ltd (ASX: AX1) has gross margins of 55%, Temple & Webster Group Ltd (ASX: TPW) has gross margins of 45%, and JB Hi-Fi Limited (ASX: JBH) has gross margins of 23%, to pick out just a few.

But one of the things that set Lovisa apart is that all of the products it sells are designed and manufactured in-house. In contrast, many ASX retailers sell a mix of own-brand and third-party products.

This boosts Lovisa's gross margins, which came in at a whopping 79% in FY22. Put another way, for every pair of $10 earrings flying off the shelves, it paid suppliers on average just $2.10.

The ASX 200 retailer's small-store footprint also bodes well for earnings margins, with Lovisa achieving an EBITDA margin of 31% in FY22.

The post 5 ASX 200 shares with juicy gross profit margins appeared first on The Motley Fool Australia.

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Motley Fool contributor Cathryn Goh has positions in Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa Holdings Ltd, Pro Medicus Ltd., Temple & Webster Group Ltd, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended Pro Medicus Ltd., WiseTech Global, and Xero. The Motley Fool Australia has recommended Accent Group, JB Hi-Fi Limited, Lovisa Holdings Ltd, REA Group Limited, Temple & Webster Group Ltd, and carsales.com Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The TASK Group Holdings Ltd (ASX: TSK) share price is lighting up today after the ASX tech share released its interim FY23 results and upgraded guidance.

In early afternoon trade, the TASK share price has raced 35.7% higher to 38 cents.

The group formerly traded as Plexure (ASX: PX1), a mobile engagement software company behind the MyMacca's mobile app.

But in late 2021, Plexure made a $120 million play for TASK, a transaction management platform for enterprise clients across food service companies, stadiums, and casinos.

TASK's platform takes care of everything from point of sale and online ordering to loyalty, mobile apps, and other engagement products, all on a single technology stack. 

Its customer base includes the likes of Starbucks Australia, Guzman Y Gomez, Retail Food Group Limited (ASX: RFG), Crown Casino, and Marvel Stadium.

Last month, the merged group changed its name and ticker code to reflect the completion of its business transformation.

And today, this group has handed in its interim results for the six months ended 30 September 2022. Let's take a look.

Up to the task

Starting with the topline, the group delivered total revenue of NZ$26.6 million. This represents a whopping 97% growth over the pre-merger period of 1H22, but it includes the contribution from TASK.

TASK generated revenue of NZ$9.6 million during the half, an increase of 50% on 2H22. 

The Plexure division achieved the remaining NZ$17 million of revenue, up 26% on 1H22, reflecting increased user numbers and customer engagement. 

Notably, the Plexure division was cashflow positive during the half, aided by a 25% reduction in staff costs on the back of the business restructuring undertaken in FY22.

Before the merger, Plexure was operating at a loss. But it's now added a profitable TASK to the fray, helping to improve the earnings of the combined group.

In the most recent half, the group achieved positive adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) of NZ$2 million. This is a marked turnaround from the adjusted EBITDA loss of NZ$7 million in the prior period.

On the bottom line, the group posted a net loss after tax of NZ$4.6 million, a 46% improvement on the prior period. This was driven by the contribution from TASK, along with benefits from the restructuring of the Plexure division.

The group boasts a debt-free balance sheet with NZ$24.2 million of cash at its disposal.

It achieved positive operating cash flows of NZ$10.1 million during the half, a dramatic improvement from outflows of NZ$7.8 million in the prior period. 

At the same time, the group's deferred revenue increased from NZ$9.8 million to NZ$22.1 million.

Management commentary

Commenting on the results, TASK CEO Dan Houden said:

The strong growth in revenue and turnaround in profitability we have delivered this half is testament to team's progress in transforming the business. 

The results demonstrate the merged Group's turnaround following a corporate restructuring of the Plexure division in FY22 and the renegotiated contracts with McDonald's on 1 August 2022, as well as increased customer demand across both divisions.

Earnings guidance receives big boost

Pleasingly for shareholders, TASK has upgraded its FY23 guidance.

It's now expecting total revenue of between NZ$59 million and NZ$62 million compared to prior guidance of NZ$56 million. 

Adjusted EBITDA is also expected to come in between NZ$8.5 million and NZ$9.5 million, a stellar improvement from prior guidance of NZ$3.7 million.

This has been driven by the group's strong first-half results and management's confidence in the impact of new terms with McDonald's and other contracts executed throughout 1H23.

In August, Plexure entered into new agreements with its largest customer, McDonald's.

Under the new deal, Plexure will continue to provide its platform to McDonald's over the next five years, for net positive cash flow per annum, subject to operational performance. This compares to previous losses from the Plexure division.

TASK share price snapshot

Even after today's meteoric rise, TASK is still a minnow in the ASX tech space, currently commanding a market capitalisation of around $135 million.

Shareholders will be hoping the TASK merger will be the impetus of a sustained turnaround after the Plexure business faced a rocky start to listed life on the ASX.

So far, it's been delivering. The TASK share price has rocketed 81% over the last six months. But it's still down 67% since listing on the ASX at the end of 2020.

The post Guess which ASX tech share is rocketing 36% on a huge 'turnaround in profitability' appeared first on The Motley Fool Australia.

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Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

We're well and truly past August reporting season but some companies in the S&P/ASX 200 Index (ASX: XJO) operate on different financial calendars to the rest.

As a result, some ASX 200 shares have released their full-year results this month. And in the process, they've also declared dividends.

With every dividend comes an ex-dividend date, which marks the day that a company's shares no longer trade with rights to the recently-declared dividend.

In other words, investors who purchase shares on or after the ex-dividend date won't be eligible for the upcoming payment. 

But since shares typically drop on the day they turn ex-dividend, investors may be able to pick up shares at a reduced price.

Without further ado, here are three ASX 200 shares going ex-dividend next week.

GrainCorp Ltd (ASX: GNC)

First up, GrainCorp handed in its full-year FY22 results last week and delighted shareholders by declaring a special dividend.

All up, the ASX 200 agribusiness announced a fully franked final dividend of 30 cents per share, which will be paid on 14 December.

GrainCorp shares will turn ex-dividend for this payment on Tuesday. So, to be eligible for this dividend, investors must be on GrainCorp's share register by the closing bell on Monday.

FY22 was a record year for GrainCorp as net profit after tax (NPAT) rocketed by 173% to $380 million.

Each of the company's business segments delivered an increase in activity and volumes. This was driven by more grain handled and exported, higher oilseed crush volumes, and stronger food sales.

The company noted that against a backdrop of operational challenges, global demand for Australian grains, oilseeds, and vegetable oils remained strong throughout the year.

This helped GrainCorp to dish up a three-fold increase in its annual dividends to 54 cents per share, fully franked. With GrainCorp shares last trading at $8.27, this spins up a trailing dividend yield of 6.5%.

Taking out the special dividend, this yield comes in at 4.6%, which grosses up to 6.6%, including franking credits. 

Aristocrat Leisure Limited (ASX: ALL)

The next cab off the rank is ASX 200 slot machine and casino game manufacturer Aristocrat, which also released its FY22 results last week.

Aristocrat shares will be going ex-dividend on Wednesday, trading without claims to the company's fully franked final dividend of 26 cents per share.

Aristocrat doesn't have a dividend reinvestment plan (DRP), so all eligible shareholders will receive this payment in cash on 16 December.

FY22 was another year of growth for Aristocrat. On the top line, revenue climbed 18% to $5.6 billion, while NPAT jumped 30% to $1.0 billion.

The company said this growth reflected sustained investment in top-performing product portfolios, differentiating capabilities, increased operational diversification, and business resilience.

Aristocrat's North American gaming operations and global outright sales division were standouts.

Across the financial year, Aristocrat returned $660 million to shareholders through dividends and an on-market share buyback.

The ASX 200 gaming company dialled up its annual dividends by 27% in FY22, declaring total dividends of 52 cents. This puts Aristocrat shares on a trailing dividend yield of 1.5%, which grosses up to 2.1%.

Pendal Group Ltd (ASX: PDL)

Rounding out this trio of ASX 200 shares going ex-dividend next week is investment management business Pendal.

As of Thursday, Pendal shares will be trading without rights to the company's fully franked final dividend of 3.5 cents per share. 

Like GrainCorp and Aristocrat, Pendal isn't running a DRP for this payment. So, shareholders will have no choice but to receive this dividend in cash on 15 December.

It's been a busy year for Pendal, with its proposed takeover by Perpetual Limited (ASX: PPT) currently awaiting shareholder approval.

Perpetual first lobbed a bid for Pendal in April this year and there's been plenty of back and forth between the two parties since. 

Just last week, the terms of the offer were revised again, changing the split between cash and scrip.

If the deal proceeds, Pendal shareholders will receive one Perpetual share for every 7 Pendal shares, plus $1.65 cash. However, this cash component will be reduced by 3.5 cents to account for Pendal's FY22 final dividend.

Based on Perpetual's last closing price, this currently values Pendal at around $5.28 per share. In comparison, Pendal shares last swapped hands on-market for $4.83.

Pendal shareholders are set to vote on the proposal next month on 23 December.

The post 3 ASX 200 shares trading ex-dividend next week appeared first on The Motley Fool Australia.

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• Top brokers name 3 ASX shares to buy today

Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When it comes to analysing ASX shares, one big tick for me is a founder-led business.

Founders are passionate, driven, hold a wealth of unrivalled knowledge, and often treat the business as their legacy or baby. 

Add to that what's usually a sizeable amount of skin in the game and it's often a recipe for success, with numerous studies showing that founder-led businesses tend to outperform the rest.

Earlier this week, I profiled three ASX 200 shares with enormous insider ownership. Only one of those companies is technically founder-led.

So, today, let's take a look at five ASX 200 shares with founders sitting at the helm.

WiseTech Global Ltd (ASX: WTC)

Kicking things off, logistics software provider WiseTech continues to be led by its founder Richard White.

A former musician, White used to repair guitars for the likes of AC/DC and The Angels.

Then, in the 1990s, he ran a computer consulting business, and after doing some work for logistics companies, he realised how disjointed their systems were.

So, in 1994, with the help of WiseTech's current chief technology officer, Brett Shearer, he created the first generation of the company's flagship CargoWise One solution.

Today, CargoWise is a leading all-in-one logistics platform used by 10 of the top 25 global freight forwarders, including Toll and DHL.

White continues to head up the company as CEO and holds nearly 122 million WiseTech shares. This represents roughly 37% of the business, worth a whopping $6.7 billion at current prices.

White's fellow co-founder, Maree Isaacs, is also still involved with the business. She's currently the head of licensing and is an executive director on the board.

Pro Medicus Limited (ASX: PME)

Pro Medicus holds one of the greatest acquisition tales I've heard of. In the depths of the global financial crisis, it acquired US radiology imaging company Visage for around $5 million.

Three years later, Pro Medicus offloaded some unwanted pieces of the Visage business for $15 million. But that's just the beginning.

What remained formed the backbone of Pro Medicus' success, propelling the ASX 200 healthcare share to a market capitalisation that currently stands at $6 billion.

Driving this success have been co-founders Dr Sam Hupert and Anthony Hall. Hupert has long held the reins as CEO, while Hall heads up the company's technology efforts and sits as an executive director on the board.

The pair hold roughly 27 million Pro Medicus shares each, representing a combined 52% of the business.

Block Inc CDI (ASX: SQ2)

Next up, we have a dual-listed payments giant led by none other than Jack Dorsey, the highest-profile founder so far.

Dorsey started the payments company in 2009, armed with an ambition to find an easy way for small businesses to accept card payments.

In what was then known as Square, the company created a square-shaped card reader that plugged straight into a smartphone's headphone jack.

Today, Square forms one formidable half of the booming payments business, which also operates the uber-popular peer-to-peer payments platform Cash App.

Remarkably, Dorsey also co-founded Twitter in 2006 and led the social media platform until 2021. He remains the CEO of Block and owns around 8% of the ASX 200 tech share.

Flight Centre Travel Group Ltd (ASX: FLT)

The man behind Australia's largest travel agency group is Graham 'Skroo' Turner, whose nickname comes from the Turner brand of screwdrivers. 

His entrepreneurial streak began in the 1970s when he and a friend bought a double-decker bus to start the tour group company now known as Topdeck Travel. 

In 1982, he opened the first Flight Centre retail store in Sydney, quickly expanding to nine stores by the end of that year. The brand spread its wings to London first before venturing into South Africa, Canada, and the US in the 1990s. 

Today, Flight Centre is one of the world's largest travel agency groups, with many different brands under its banner. 

Turner continues to lead Flight Centre to this day, and it seems his entrepreneurial spirit rubbed off on his son, Matt. 

Matt followed his father into business by co-founding 99 Bikes, Australia's largest bicycle retailer, which is 50%-owned by Flight Centre.

In terms of skin in the game, Turner holds around 8% of Flight Centre. This stake is currently worth $263 million, which is equivalent to roughly 390x his annual salary.

Mineral Resources Limited (ASX: MIN)

Finally, Mineral Resources came to life in 2006 through the acquisitions of three different mining businesses. 

Two of these businesses provided contracting services to the resources industry. Meanwhile, the other was a minerals processor and marketer of industrial minerals.

The man behind all three of these businesses was Chris Ellison, who took over the managing director reins in 2012 and has been leading Mineral Resources ever since. 

Today, Mineral Resources provides mining services to some of the world's largest mining companies. 

But it's no longer just a mining services company. It's also growing its own portfolio of iron ore and lithium operations.

Mineral Resources is the fifth-largest iron ore producer in Australia. And it jointly owns two of the world's largest hard rock lithium mines, Mt Marion and Wodgina.

Leading from the front, Ellison retains a 12% stake in Mineral Resources. This shareholding is currently valued at a monstrous $1.9 billion.

The post 5 ASX 200 shares with founders steering the ship appeared first on The Motley Fool Australia.

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• 5 ASX 200 shares I'd buy as the share market rebounds
• Why is the Flight Centre share price soaring 9% on Wednesday?
• After a 30% 2026 slide, Pro Medicus shares are rocketing again
• Pro Medicus announces $23m US contract

Motley Fool contributor Cathryn Goh has positions in Block, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Inc., Pro Medicus Ltd., and WiseTech Global. The Motley Fool Australia has positions in and has recommended Block, Inc., Pro Medicus Ltd., and WiseTech Global. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are many factors and characteristics I look at when it comes to analysing ASX shares.

I like to understand the business inside and out. Identify if the company has any sustainable competitive advantages. Dig into the industry landscape, various growth drivers, and key risks.

But another important consideration is the management team.

And when it comes to assessing who's steering the ship, one big tick in my book is skin in the game.

When a management team holds a meaningful chunk of shares in the business they're running, it helps to align their interests with shareholders. After all, their money is on the line as well.

With this in mind, here are three ASX 200 shares boasting significant insider ownership.

Reece Ltd (ASX: REH)

First up, we have an ASX 200 share with a history that dates all the way back to 1920, when H.J. Reece started selling hardware supplies from the back of his truck. Later that year, he opened the very first Reece store in Caulfield, Victoria.

In 1969, on the same day that humans first stepped on the moon, the Wilson family became majority shareholders in Reece. And from here, a beautiful partnership was formed.

Fast forward half a century and Reece is a leading distributor of plumbing and HVAC-R products through more than 800 branches in Australia, New Zealand, and the United States.

Three generations of the Wilson family have been involved in taking Reece to new heights. The company is currently led by Peter Wilson. Meanwhile, his father Alan, who held the CEO reins for 40 years, remains an executive director on the board.

Over the years, there have been many family members involved in the business, several of whom hold shares through various investment vehicles. This makes it hard to pinpoint the exact number of shares held by the Wilson family, as various shareholding notices and disclosures often relate to the same shares.

But from Reece's 2022 annual report, we know that the Wilsons hold interests in at least 362 million Reece shares. This represents roughly 56% of the company and is worth a monstrous $5.4 billion at current prices. 

Over the last 10 years, Reece shares have delivered share price gains of around 250%, not to mention consistent dividend income. 

Netwealth Group Ltd (ASX: NWL)

Next up, Netwealth is another ASX 200 share with strong family ties. 

With a passion for finance and building businesses, Michael Heine launched the wealth management platform in 1999.

Positioning itself as a superior, independent alternative to the incumbent platforms, such as those offered by AMP Ltd (ASX: AMP) and BT, Netwealth has shaken up the industry.

Today, it's the fastest-growing platform provider by net funds flows in Australia. In the 12 months to June 2022, it accounted for 45% of industry net funds flows, raking in $13 billion. 

It's a family affair at Netwealth, with Michael and his son Matt sharing the reins as joint managing directors.

Together, the pair hold combined interests in nearly 128 million Netwealth shares, representing roughly 52% of the business. With Netwealth shares last closing at $13.92, these holdings are currently worth a whopping $1.8 billion.

Since listing on the ASX almost five years ago to the day, Netwealth shares have soared 160% whilst also paying out dividends along the way.

Lovisa Holdings Ltd (ASX: LOV)

Last but not least, ASX 200 jewellery retailer Lovisa also boasts strong insider ownership. 

The company began in 2010 when former CEO Shane Fallscheer spotted a gap in the market for on-trend fashionable jewellery at ready-to-wear prices. 

Prior to this, Fallscheer had been managing Diva, a tween jewellery chain owned by veteran retailer Brett Blundy. Diva was growing quickly but its narrow, young customer demographic meant there were question marks over the company's long-term sustainability.

So, Fallscheer came to Blundy with a proposal for Lovisa. And the rest is history.

In the years that followed, Diva's stores were either closed down or rebranded to Lovisa, which had discovered a sweet spot in the market.

Today, Lovisa is truly a global force, with a network of 676 stores across 26 countries. Its store rollout and international expansion continue at pace, with the ASX 200 retailer on track to open its first stores in Italy, Mexico, and Hungary in the coming weeks.

After leading the company for 12 years, Fallscheer stepped away from Lovisa in 2021 and has sold his shares. 

But Blundy continues to chair the board and through his private investment company, BB Retail Capital, he retains a hefty 40% stake in Lovisa.

This stake seems to be getting more valuable by the minute, with the Lovisa share price going from strength to strength. It's been able to brush aside concerns of rising interest rates and inflation to shoot 58% higher over the last six months, lasting trading at $24.45.

The post 3 ASX 200 shares with enormous insider ownership appeared first on The Motley Fool Australia.

More reading

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• Pro Medicus announces $23m US contract
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Motley Fool contributor Cathryn Goh has positions in Netwealth. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa Holdings Ltd and Netwealth. The Motley Fool Australia has positions in and has recommended Netwealth. The Motley Fool Australia has recommended Lovisa Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) is struggling to find its feet on Thursday.

At the time of writing, the benchmark index has slumped 0.3% to 6,981 points.

But despite this weakness, some ASX 200 shares are bucking the trend and racing higher. Let's take a look.

Origin Energy Ltd (ASX: ORG)

Today's biggest ASX news story is Origin's takeover bid from Brookfield Asset Management. If that name sounds familiar, it's likely because Brookfield made a widely-publicised play for AGL Energy Limited (ASX: AGL) that ultimately fell through. 

Today's move has seen the Origin share price catapult 36.3% higher to currently sit at $7.92.

Brookfield has tabled an indicative non-binding proposal to acquire Origin for $9 cash per share. This indicative proposal values Origin at an enterprise value of $18.4 billion.

What's more, Origin revealed today that this isn't the first offer from Brookfield. On 8 August, the consortium made an indicative proposal at an offer price of $7.95 cash per share. 

Then, on 18 September, the consortium made a further proposal at an indicative price of between $8.70 to $8.90.

This time, Origin has entered into a confidentiality and exclusivity agreement with the consortium. 

The company notes that following due diligence, if the consortium makes a binding offer at $9 cash per share, the board intends to unanimously recommend shareholders vote in favour of the proposal.

With Origin shares last changing hands at $7.92 apiece, there is currently 13.6% upside on the table if the deal goes through.

It's worth noting that if the scheme of arrangement is implemented after 15 May 2023, the takeover price will decrease by $0.03 per month. 

News Corporation (ASX: NWS)

The News Corp share price is also having a day in the sun. The dual-listed media and publishing company released its first-quarter results yesterday, which was met with disappointment from the market. The News Corp share price finished the day 10.9% lower. 

But there appears to be a change in sentiment today, with News Corp shares rebounding by 9.29% at the time of writing to sit at $25.18.

In the first quarter of FY23, News Corp delivered sales of US$2.48 billion, down 1% year on year.

The group noted that a strong US dollar, which reduces the value of its international revenue, and lower book sales dragged on the top line.

The result was dire on the bottom line, with net income tumbling by 75% to US$66 million.

During yesterday's earnings call, CFO Susan Panuccio painted a cautious outlook for the coming quarter:

We continue to expect higher costs due to supply chain and inflationary pressures. Advertising conditions and mix and visibility remains limited across the businesses.

Computershare Limited (ASX: CPU)

Computershare is another ASX 200 share racing higher today. The Computershare share price gained as much as 9% in early morning trade. But shares have since taken a breather. At the time of writing, Computershare shares have climbed 4.81% to $27.25.

This upward swing has been driven by a guidance upgrade at the company's annual general meeting (AGM) today.

Computershare revealed that in the first four months of FY23, global interest rate rises have been faster and larger than expected. 

Computershare is a beneficiary of rising interest rates because it generates margin income on the cash balances it holds on behalf of clients. 

The company is now expecting to generate US$800 million of margin income in FY23; up from the US$520 million figure that was guided in August.

As a result, the company has also upgraded its FY23 guidance for management earnings per share (EPS). Back in August, the company expected management EPS to grow by around 55% in FY23. It's now expecting growth to be around 90%.

In FY22, Computershare delivered management EPS of 57.95 US cents. So, a 90% increase would result in management EPS of roughly US$1.10. This would see Computershare generating normalised profit of around US$660 million in FY23.

The post 3 ASX 200 shares shooting the lights out on Thursday appeared first on The Motley Fool Australia.

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Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Reliance Worldwide Corporation Ltd (ASX: RWC) share price has gone down the drain this year.

Like many other ASX 200 shares, Reliance Worldwide has been battling sharp cost inflation, supply chain bottlenecks, and logistics disruptions. 

But it's also been suffering from a turn in investor sentiment. As a plumbing parts company, the demand for its products is linked to repair, maintenance, and remodelling activity.

As a result, Reliance is exposed to consumer confidence, which is being threatened by rising interest rates and soaring inflation. 

So, the Reliance Worldwide share price is reeling this year. With shares last changing hands at $2.99, the Reliance Worldwide share price has tumbled 52% in the year to date.

This downward slide has only been continuing recently, with Reliance Worldwide shares retreating 15% in the past month to languish at 52-week lows.

The market didn't react kindly to the company's recent quarterly trading update, which showed earnings margins heading south.

Reliance Worldwide directors go on a buying spree 

The Reliance Worldwide share price isn't getting any love from investors. But the company's directors have seen this as an opportunity to pick up shares.

It appears as though these directors have banded together, with six of Reliance's eight directors purchasing shares on-market in recent weeks. The company's CEO, Heath Sharp, hasn't joined in.

As the great investor Peter Lynch once said, "insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise".

Non-executive chair Stuart Crosby kicked off the buying at the end of October, picking up 31,250 Reliance Worldwide shares for around $100,000. 

Non-executive director Christine Bartlett came to the table on 31 October. She bought up 20,000 Reliance Worldwide shares, splashing $64,000 in the process.

In the past week, four more non-executive directors have joined the buying party. They've each purchased parcels of between 15,000 and 27,000 shares, forking out between $45,000 and $83,000.  

Overall, these purchases are on the smaller end of the scale. And the directors' total holdings aren't sizeable either, with four of these directors owning 50,000 Reliance Worldwide shares or fewer after the transactions.

Nonetheless, these efforts can be seen as a vote of confidence and a positive signal for investors. 

What's next for Reliance Worldwide shares?

Reliance held its 2022 annual general meeting (AGM) at the end of last month.

Commenting on the outlook, CEO Heath Sharp noted that there continues to be a backlog of work in most of its markets. This is because demand has run ahead of the ability of contractors to satisfy it.

The company believes this backlog will underpin volumes in FY23.

What's more, Reliance believes its position in the market should help it weather some of the economic storm:

We continue to believe that our market orientation helps cushion us from any marked economic downturn should it eventuate. We are principally focussed on repair, maintenance and remodel activity, with lower exposure to cyclical construction markets. 

At the same time, the company acknowledged the risks of continued inflationary pressure, rising interest rates, geopolitical tensions, higher energy costs, and supply chain disruptions.

As it stands, Reliance commands a market capitalisation of nearly $2.4 billion. 

The company generated net profit after tax (NPAT) of US$137 million in FY22, down 3% from the prior year.

This means that Reliance Worldwide shares are currently trading on a trailing price-to-earnings (P/E) ratio of around 11x.

The post 4 directors have been buying up this ASX 200 share in the past week appeared first on The Motley Fool Australia.

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Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Reliance Worldwide Corporation Limited. The Motley Fool Australia has recommended Reliance Worldwide Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Allkem Ltd (ASX: AKE) share price has been a bright spot in the S&P/ASX 200 Index (ASX: XJO) this year. 

While many ASX 200 shares have trudged lower, the Allkem share price has surged 34% since the beginning of the year as ASX lithium shares continue to steal the spotlight.

The attention will stay on Allkem next week as the company holds its 2022 annual general meeting (AGM) on Tuesday.

With proceedings kicking off at 10.30am, shareholders will be able to attend this AGM either virtually or in person at the Museum of Sydney.

In the meantime, let's see what leading brokers think about the Allkem share price.

Is the Allkem share price a buy?

Analysts at Macquarie are fighting for the bulls. The broker currently has an outperform rating on Allkem shares, with a price target of $21.00. This implies potential upside of 40% over the next 12 months.

Macquarie notes that Allkem is planning to triple its production by 2026 to 120 kilotonnes per annum and there are a number of studies underway to increase volumes further. What's more, in Macquarie's eyes, buoyant lithium prices continue to drive material upside.

Bell Potter is another broker siding with the bulls. After digesting Allkem's first-quarter results, Bell Potter retained its buy rating and slightly trimmed its price target to $19.45. This implies potential upside of 30% over the next 12 months.

On the back of ongoing strength in lithium demand, commodity prices, and production growth, the broker expects Allkem's cash generation to lift substantially into 2023.

Summarising its positive view, Bell Potter noted:

​​AKE is aiming to maintain 10% share of supply in a global lithium market experiencing unprecedented growth; it has a portfolio of growth projects, balance sheet strength and cash flow from existing projects to achieve this. AKE's portfolio is also diversified across lithium commodity, mode of production, asset location and end-user country.  

Has the Allkem share price peaked?

While Macquarie and Bell Potter are bullish on Allkem shares, Morgans remains sceptical. 

Its analysts weren't impressed with Allkem's latest quarterly update. As a result, Morgans retained its hold rating on Allkem shares and trimmed its price target to $15, in line with where shares sit today.

The broker acknowledges that Allkem is a well-diversified lithium producer across different products and geographies. It also believes Allkem will outperform its peers over the cycle. However, summarising its cautious view, Morgans concluded:

…it's not clear to us whether or not there will be shorter term interruptions to the likely long term uptrend in lithium demand that means there could be a better entry point. Given the stock's previous sensitivity to the outlook for lithium prices and, in our view, the potential for prices to move away from their recent new found highs, we maintain our HOLD rating.

Allkem share price snapshot

Investors last heard from Allkem when the ASX lithium share released its first-quarter results last month. So, instead of a trading update, next week's AGM could focus on the company's strategy and outlook.

It's been a bumper year for the Allkem share price, with shares rocketing by 58% over the last 12 months. 

Allkem is one of the largest lithium miners in the world. And it's the second-largest lithium share on the ASX, commanding a market capitalisation of $9.5 billion.

Holding the top spot is Pilbara Minerals Ltd (ASX: PLS), which currently boasts a market cap of $15.5 billion.

The post Is the Allkem share price a buy ahead of next week's AGM? appeared first on The Motley Fool Australia.

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Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Novatti Group Ltd (ASX: NOV) share price is lighting up today after the ASX fintech share revealed it's been granted a restricted banking license.

The Novatti share price emerged from a trading halt to rocket 54% higher this morning. At the time of writing, Novatti shares are trading at 28 cents apiece, up 49%, giving the company a market capitalisation of $94.2 million.

Novatti granted its banking wish

The ASX fintech share has been trying to get its hands on a banking license for some time now. It first submitted an application to the Australian Prudential Regulation Authority (APRA) in November 2019.

This morning, Novatti revealed that this license finally has been granted after years of waiting.

Specifically, Novatti's dedicated banking subsidiary, International Bank of Australia, has been granted a restricted authorised deposit-taking institution (RADI) license. This license allows holders to conduct limited business banking in Australia before meeting the requirements of the full prudential framework. 

Part of this restriction phase comes with the expectation that a RADI will progress to an authorised deposit-taking institution (ADI) license. As a result, the restricted phase is for a maximum of two years. After that, the RADI will either progress to an ADI license or the holder will exit banking.

Other ASX shares currently holding an ADI license include Commonwealth Bank of Australia (ASX: CBA), Macquarie Group Ltd (ASX: MQG), AMP Ltd (ASX: AMP), and Tyro Payments Ltd (ASX: TYR).

Novatti holds a 91% interest in International Bank of Australia and will tip in a further $5 million as part of a series A funding round to launch the banking business.

What does Novatti have planned for banking?

Novatti's managing director, Peter Cook, sees banking services as significant across card issuing, merchant acquiring, billing, and cross-border payments.

It underpins the infrastructure and capability of Novatti's core payments business. So, in turn, it brings the opportunity to increase margins.

What's more, Cook noted that International Bank of Australia has the advantage of leveraging Novatti's existing payments ecosystem and global footprint to help win customers quickly.

International Bank of Australia has its sights set on fintech customers, believing this market segment has been underserved by traditional banks.

Guy Carvalho, CEO of International Bank of Australia, commented:

For a long time, we have known that traditional banks have not been able to keep up with the requirements of the disruptive business models of fintechs, particularly those offering alternative ways to make or accept payments, domestically or internationally. IBOA will overcome this challenge, leveraging technology to enable the seamless end-to-end movement of money.

International Bank of Australia also sees significant potential in the underserved migrant sector. Commenting on the opportunity, Carvalho said:

The bank will have the advantage of being able to leverage Novatti's existing payments ecosystem and global operating base to reach potential customers overseas and enable them to set-up bank accounts and transact before they even set foot in Australia.

In its investor presentation, the company noted it would be the first bank in Australia to offer a service of this kind.

As an example, with a borderless bank account, it says customers would be able to pay for their university fees and apartment bond instantly before arriving in Australia, avoiding costly foreign exchange and international transaction fees.

Novatti share price snapshot

While ultra-competitive, payments and banking are big business, so it's no surprise to see the Novatti share price race higher today.

Today's surge has almost erased all of Novatti's share price losses this year. At 28 cents, Novatti shares are now sitting just 5% below where they ended 2021. But they're still far from the lofty heights achieved in mid-2021 when shares catapulted to around 80 cents.

In FY22, Novatti doubled its sales revenue to $32.5 million but extended its net loss to $16.6 million.

The post This ASX fintech just got a banking license, and its share price surged 54% appeared first on The Motley Fool Australia.

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Motley Fool contributor Cathryn Goh has positions in Tyro Payments. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Tyro Payments. The Motley Fool Australia has recommended Macquarie Group Limited and Tyro Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

We've all heard stories of investors striking gold on the share market.

The beauty of investing in ASX shares for the long term is that your downside is capped, but your upside is unlimited. 

In other words, you can only lose as much as your initial investment. But there's no ceiling on what that investment could become.

Of course, it isn't easy finding multi-baggers on the ASX. But with fundamental research, temperament, and perhaps a sprinkle of luck, opportunities abound.

The road to becoming a millionaire doesn't necessarily require a big upfront investment either. 

As you'll see, a $5,000 investment 10 years ago in each of the ASX shares below would have turned into more than $1 million today. Let's take a look.

Altium Limited (ASX: ALU)

Kicking things off, Altium shares have returned a whopping 3,600% over the last 10 years. So, a $5,000 investment would now be worth around $180,000 today.

In FY12, Altium booked US$61 million of sales, with subscription sales representing 44% of the total. 

Fast-forward a decade and the ASX 200 tech share has grown its top line at a compound annual growth rate (CAGR) of 14%. 

Altium delivered sales of US$221 million in FY22, with recurring revenue making up 75% of the pie as the company transitions from perpetual licenses to term-based licenses and subscriptions.

PolyNovo Ltd (ASX: PNV)

PolyNovo announced itself on the ASX stage in 2019, taking out the title of the second best-performing ASX 200 share with a yearly gain of 231%.

But PolyNovo's history on the ASX dates back to 2008 when ASX-listed biotechnology company Calzada acquired it. The group divested its other operations and changed its name to PolyNovo in 2014.

In 2012, a $5,000 investment in what was then Calzada would have blossomed into $187,000 today, returning an eye-catching 3,730%.

Rewinding a decade, PolyNovo had just completed its first two human clinical trials for its NovoSorb BTM technology.

Today, NovoSorb BTM is sold across Australia and New Zealand, the United States, the United Kingdom, and Europe, generating global sales of $38 million in FY22.

Pinnacle Investment Management Group Ltd (ASX: PNI)

Next up, we have investment management company Pinnacle, which has grown its share price by 3,445% over the last 10 years. This means a $5,000 investment would be worth a chunky $172,000 today.

Pinnacle has come a long way since 2012 when it operated under the banner of Wilson HTM Investment Group. At the time, it had funds under management (FUM) of $10 billion across six affiliated boutique funds. This included the likes of Hyperion and Plato, which are still around today.

As we know, the Pinnacle of today is a much more formidable force, boasting FUM of $84 billion across an affiliate network of 15 fund managers.

HUB24 Ltd (ASX: HUB)

ASX 200 fintech share HUB24 has also been a standout performer over the last decade, flaunting returns of 3,700%. In other words, a $5,000 investment 10 years ago would have grown to a handsome $185,000 today.

Back then, the HUB24 platform had funds under administration (FUA) of $190 million. And it had only just rolled out its personal superannuation product.

Fast forward to today and HUB24 is one of the fastest-growing platforms in the market, boasting FUA of $68 billion through a network of 3,639 advisers.

Objective Corporation Limited (ASX: OCL)

Objective Corp isn't a well-known tech name but it's been one of the best performers on the ASX over the last decade. Rocketing 2,530%, a $5,000 investment 10 years ago would have turned into $127,000 today.

In FY12, the founder-led ASX tech share generated $40 million of revenue, 23% of which was reinvested in research and development. The business would have been trading on less than 1x sales at the time.

Today, Objective commands a market capitalisation of $1.3 billion, delivering $21 million of profit in FY22 from revenue of $107 million. Suffice to say, its valuation multiples have certainly expanded. 

Dicker Data Ltd (ASX: DDR)

Last but not least, Dicker Data shares have catapulted 1,970% over the last 10 years. This means that a $5,000 investment would have shot up to almost $100,000 today.

In 2012, Dicker Data delivered record results but CEO David Dicker noted that despite the strong performance, it continued to struggle with most of the analyst community. In the company's 2012 annual report, he commented:

I am constantly told that our dividends are too high, we do not have 'independent' directors and there are not enough shares with the public. Rather than discuss this in detail I will just say that our results speak loudly and that I am very comfortable with our strategies.

A decade and a return of 1,970% later, David Dicker continues to lead the business and prove sceptics wrong.

The road to becoming a millionaire

All up, $5,000 investments into each of these six ASX shares would be worth a tidy $950,000 today purely from capital growth.

Adding in dividend income, particularly from Pinnacle and Dicker Data, tips us into the million-dollar territory.

In fact, those $5,000 worth of Pinnacle shares in 2012 would have generated $8,000 in dividends this year alone. That's more than the initial investment!

The post If you invested $5,000 in each of these ASX shares 10 years ago, you'd be a millionaire today appeared first on The Motley Fool Australia.

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• Three ASX 200 stock picks to consider now, to drive gains as markets and the gold price recover

Motley Fool contributor Cathryn Goh has positions in Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium, Dicker Data Limited, Hub24 Ltd, Objective Corporation Limited, PINNACLE FPO, and POLYNOVO FPO. The Motley Fool Australia has positions in and has recommended Dicker Data Limited, Hub24 Ltd, and PINNACLE FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Vanguard Australian Shares Index ETF (ASX: VAS) is arguably the most popular exchange-traded fund (ETF) on the ASX.

But the BetaShares Australia 200 ETF (ASX: A200) is also popular, especially among retail investors.

The two ASX ETFs are similar in that they both track an index, providing broad-based exposure to Australian shares.

But there are some distinct differences. Let's take a look.

Underlying benchmark

The A200 aims to track the S&P/ASX 200 Index (ASX: XJO), the most prominent index on the ASX. The ASX 200 comprises the ASX's largest 200 companies, weighted in terms of market capitalisation.

In contrast, the VAS ETF aims to track the S&P/ASX 300 Index (ASX: XKO), which, as its name suggests, comprises the top 300 companies.

Holdings and weightings

Since these two ASX ETFs have different benchmarks, they also have different holdings and weightings.

Naturally, the VAS ETF has around 300 holdings, while the A200 ETF has 200.

But since both of these indices are weighted in terms of market capitalisation, they mirror each other more closely than I thought. 

Both ETFs share the same top 10 holdings in identical order, with very similar weightings, as shown below.

Sector exposure is also very similar across these two ASX ETFs, with some minute differences. You can check it out for yourself below. 

VAS wins on popularity

The VAS ETF had a whopping $10.8 billion invested in it at the end of September. This makes VAS the largest ETF on the ASX by a country mile.

Vanguard also offers this product in the form of a retail fund and a wholesale fund. So in total, this strategy ended the month with assets under management of $26.6 billion.

The A200 ETF is a minnow in comparison but it's BetaShares' largest ASX ETF, slightly edging out the BetaShares Nasdaq 100 ETF (ASX: NDQ). At the end of September, A200 had net assets of $2.4 billion.

The ASX's monthly investment products update shows that the VAS ETF enjoyed $242 million of net inflows during September. Meanwhile, the A200 ETF brought in $72 million of net flows.

A200 takes the cake on fees

The VAS ETF incurs yearly management fees of 0.10%. So, A200 takes the cake here with annual fees of 0.07%.

Based on a $10,000 investment, this would spin up fees of $10 and $7, respectively.

As I've discussed previously, fees compound over time and can eat into investment returns. But given that we're dealing with very small differences here, the effect isn't nearly as pronounced.

To demonstrate, let's use $50,000 portfolios earning annual returns of 7%. One invests in VAS and the other invests in A200. After 25 years, the VAS portfolio would be worth around $215,000, while the A200 portfolio would be worth roughly $230,000.

But this hypothetical example assumes both ETFs have identical returns, which certainly isn't the case…

Which ASX ETF has performed better? 

So, last but not least, let's take a look at how the VAS ETF has performed compared to the A200 ETF.

It would be remiss of me not to mention that past performance is not a reliable indicator of future performance. But in my mind, it's still valuable insight.

In the last year, the VAS ETF has dropped 7.94% while A200 has fared slightly better, sliding by 7.21%.

Zooming out across the last three years, VAS has delivered an average annual return of 2.81%, again slightly lagging A200, which has achieved an average annual return of 2.92%.

Over the last five years, VAS has served up an average return of 6.83% per annum. Given that the A200 ETF was launched in 2018, it doesn't have a five-year track record. However, its benchmark ASX 200 index has averaged a return of 7.00% per annum over the last five years.

So, the A200 ETF appears to have historically performed slightly better than the VAS ETF.

Personally, I think both of these ASX ETFs are top choices for an investment portfolio. However, given their similarities, I'd be choosing one or the other, not both.

The post Here's how the Vanguard Australian Shares ETF (VAS) stacks up against the BetaShares Australia 200 ETF (A200) appeared first on The Motley Fool Australia.

More reading

• New to investing? 3 ASX ETFs to set and forget for 10 years
• 3 simple ASX ETFs to start investing with $5,000
• How long does it take to become a millionaire with ASX shares?
• Why now could be the time to buy these popular ASX ETFs
• Own A200 or other Betashares ASX ETFs? Dividends just announced

Motley Fool contributor Cathryn Goh has positions in BETANASDAQ ETF UNITS and BetaShares Australia 200 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BETANASDAQ ETF UNITS and CSL Ltd. The Motley Fool Australia has positions in and has recommended BETANASDAQ ETF UNITS, Telstra Corporation Limited, and Wesfarmers Limited. The Motley Fool Australia has recommended Macquarie Group Limited and Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.