Fund manager Wilson Asset Management has outlined two businesses in the WAM Microcap Ltd (ASX: WMI) portfolio that could be good performers in the coming years.

WAM Microcap, a listed investment company (LIC), is looking for the "most exciting undervalued growth opportunities in the Australian micro-cap market".

Let's take a look at which small businesses WAM likes.

Stealth Group Holdings Ltd (ASX: SGI)

The fund manager described Stealth Group Holdings as a diversified, multi-channel distribution business that supplies industrial, hardware, safety and consumer products to trade and retail customers across Australia.

During November 2025, the Stealth Group Holdings share price increased sharply (up 60%) after the company announced the acquisition of Hardware & Building Traders (HBT), Australia's largest privately-owned hardware and industrial buying group.

The acquisition significantly increased the ASX small-cap stock's scale, expanding distribution points from 32 to more than 1,200 independent retail and trade stores in Australia, raising purchasing volume by approximately $700 million and adding around 490 suppliers in the ecosystem.

The company increased its FY28 targets to more than $500 million in sales and provided profit margin targets that imply up to $40 million in net profit after tax (NPAT). The fund manager believes these targets are "relatively conservative" in the context of the "significant synergy potential and the company's ability to undertake further acquisitions over time, none of which are included in these targets".

Wilson Asset Management concluded on the ASX small-cap stock:

Whilst the share price increased by more than 60% over the month as investors priced in stronger medium-term growth and returns from the enlarged platform, we continue to see substantial re-rating potential.

EML Payments Ltd (ASX: EML)

WAM described EML Payments as a global payments solutions company that powers business processes "seamlessly for growth and exceptional customer experiences".

During the month, the EML Payments share price fell 11% after the company revealed operating trends that were weaker than expected at its annual general meeting (AGM).

The company's FY26 first quarter update revealed a decline of underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of approximately 42% year over year, as well as a small decline in revenue. But, the company did reaffirm its full-year EBITDA guidance.

WAM noted that the update was interpreted by the market as a "weak" trading result, with soft top-line momentum.

Why does the fund manager like the ASX small-cap stock, considering these headwinds? WAM said:

Led by Chief Executive Officer Anthony Hynes, we continue to have confidence in his ability to execute on the turnaround and drive a re-rating of the share price.

The EML share price is now down around 30% in the past six months, making it a lot cheaper for interested investors.

The post 2 ASX small-cap stocks this fund manager thinks are buys appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling:

Ausgold Ltd (ASX: AUC)

The Ausgold share price is down 8.5% to 80.5 cents. This morning, this gold miner announced a fully underwritten two-tranche placement to raise $80 million. The company is raising the funds at a discount of 80 cents per new share. Management notes that the capital raising proceeds, together with existing cash, will support the acceleration of its Katanning Gold Project (KGP) towards a final investment decision. Ausgold's executive chairman, John Dorward, said: "The successful completion in June of the Katanning Gold Project Definitive Feasibility Study and the recent freehold land acquisitions are major milestones on the road to Ausgold becoming Australia's next mid-tier gold producer."

DroneShield Ltd (ASX: DRO)

The DroneShield share price is down 13.5% to $2.12. Investors have been selling the counter drone technology company's shares after it announced the resignation of its US CEO, Matt McCrann, effective immediately. In response to the news, DroneShield's CEO, Oleg Vornik, commented: "DroneShield thanks Matt for his contribution to the business and wishes Matt well for his next steps. Our U.S. business includes talented, highly experienced personnel, with our counterdrone systems deployed with a number of tier 1 U.S. Government agencies. The U.S. represents a very important market for DroneShield, that is anticipated to grow across both military and civilian domains, as drones continue to pose an increasing threat."

EML Payments Ltd (ASX: EML)

The EML Payments share price is down 3% to 85.2 cents. This morning, this payments company released a trading update and revealed that its first quarter underlying EBITDA was down 42% on the prior corresponding period to $6.8 million. Despite this, management has reaffirmed its FY 2026 underlying EBITDA guidance range of $58 million to $63 million.

TPG Telecom Ltd (ASX: TPG)

The TPG Telecom share price is down 4% to $3.65. The catalyst for this has been the completion of the institutional component of its reinvestment plan, raising $300 million. Approximately 83 million new shares will be issued at a price of $3.61 per new share. This represents a 5% discount to TPG Telecom's last close price of $3.80. TPG Telecom's managing director and CEO, Iñaki Berroeta, said: "We wish to recognise the strong commitment of the TPG Telecom shareholders who supported this raising. The Reinvestment Plan is the final step of our Capital Management and Liquidity Plan."

The post Why Ausgold, DroneShield, EML, and TPG shares are falling today appeared first on The Motley Fool Australia.

At the time of writing, the ASX fintech stock is down a sizeable 22% to 70 cents.

Why is this ASX fintech stock crashing 22% today?

Investors have been quick to hit the sell button today after the company unceremoniously kicked out its CEO.

According to the release, the EML Payments board elected to discontinue Ron Hynes's employment agreement as managing director and CEO from 21 December 2024. Hynes only commenced in the role at the end of June.

The company advised that it made the decision to oust its leader having resolved that alternate leadership is required to execute the company's strategy, EML 2.0.

Hynes's will receive six months' notice but will not receive any equity grants given he will not be in employment on the relevant vesting dates.

Hynes out, Hynes in

Current independent non-executive Chair, Anthony Hynes (no apparent relation), will now assume the role of executive chair effective today.

The ASX fintech stock notes that Anthony Hynes brings a wealth of experience in the operation of successful global payments businesses and has developed a deep understanding of the EML business over the past six months since his appointment.

His remuneration during the period of his executive chair appointment will be $67,000 per month, inclusive of his current chair fee. This is the equivalent of the former CEO's total fixed remuneration.

Commenting on the change, EML Payments' new executive chair, Anthony Hynes, said:

Our energised, passionate and broadened leadership team is building momentum and I'm excited to lend them my further support as we work hard to build a high-performance culture and make 2025 a formative year for EML. I love the payments industry having dedicated a significant part of my professional life to it and the upside for EML following the successful execution of our strategy is significant.

It is never a good look for a company to have a CEO exit with immediate effect and without any real explanation. Especially one that has been in the job for less than six months. As a result, it isn't surprising that this ASX fintech stock is sinking today.

One positive, though, is that management has reiterated its guidance for FY 2025. It continues to expect its underlying EBITDA to be in the range of A$54 million to $60 million for the 12 months.

The post Why is this ASX fintech stock suddenly crashing 22%? appeared first on The Motley Fool Australia.

Four ASX shares that are failing to follow the market higher today are listed below. Here's why they are falling:

EML Payments Ltd (ASX: EML)

The EML Payments share price is down 22% to 70.5 cents. Investors have been hitting the sell button today after the payments company announced a shock change of leadership. It advised that its board elected to discontinue CEO Ron Hynes's employment agreement from 21 December. It advised that it made the decision "having resolved that alternate leadership is required to execute the Company's strategy, EML 2.0." Hynes will receive six months' notice but will not receive any equity grants given he will not be in employment on the relevant vesting dates.

GQG Partners Inc (ASX: GQG)

The GQG Partners share price is down 5% to $2.06. The fund manager's shares have been bouncing around recently due to concerns over its investments in Adani Group. Goldman Sachs believes this has created a buying opportunity. The broker recently put a buy rating and $2.80 price target on its shares. It said: "We retain our Buy rating on GQG. We lower our PT to $2.80 from A$3.00 to reflect the relatively muted impact on flows to date despite an outsized share price reaction resulting in a year P/E of <9x. We've moderated our flows reflecting some slowdown, albeit manageable in our view."

IGO Ltd (ASX: IGO)

The IGO share price is down 3% to $4.64. This follows the release of an update relating to the company's Kwinana Lithium Hydroxide Refinery (Kwinana). It owns 49% of this business through the Tianqi Lithium Energy Australia (TLEA) joint venture. IGO revealed that as a result of prevailing market conditions for lithium hydroxide chemical, TLEA has experienced a build in lithium hydroxide inventory at Kwinana over recent months. This is expected to continue in the short to medium term. As a result, IGO does not expect TLEA to be in a position to pay a dividend in FY 2025. IGO received dividends of $761 million from TLEA in FY 2024.

Integrated Research Limited (ASX: IRI)

The Integrated Research share price is down 20% to 43.5 cents. This morning this user experience and performance management solutions provider released a trading update. It advised that total contract value (TCV) for the first half is expected to be $23 million to $27 million. The midpoint of this range represents a 39% decline year on year. Things are even worse for its EBITDA which is expected to be in the range of negative $0.5 million to positive $2 million. This will be a 93% decrease at the midpoint.

The post Why EML, GQG Partners, IGO, and Integrated Research shares are sinking today appeared first on The Motley Fool Australia.

ASX small-cap stocks are young, developing companies with a market capitalisation of between a few hundred million and $2 billion.

Let's take a look at three ASX small-cap stocks that have captured the attention of brokers this week.

3 ASX small-cap stocks primed for growth: brokers

EML Payments Ltd (ASX: EML)

Tamim Asset Management maintains its bullish view on this ASX payment solutions provider.

The ASX small-cap financial stock is steady at 94 cents today and up 18% in the year to date.

In a new note this month, Tamim described EML Payments as being at a 'pivotal juncture'.

It noted the company's "strong revenue base" and opportunity to derive more value from its 1,100 customer relationships through cross-selling and expanded partnerships.

Tamim reckons EML shares are also an attractive takeover target, commenting:

…with a $95 million EBITDA target in three years versus a current EV [enterprise value] of approximately $350 million, EML presents itself as a compelling takeover candidate.

A bid in the range of $500-600 million ($1.50 per share) seems highly plausible within the next six months, offering significant upside for shareholders.

Bluebet Holdings (ASX: BBT)

Morgans has maintained its add rating on online sports betting company, Bluebet. It has also raised its 12-month share price target marginally from 35 cents to 36 cents.

The Bluebet share price is 30 cents per share on Tuesday, up 0.67% today and up 51% in the year to date.

Bluebet has a market cap of $170 million, which means it is technically an ASX micro-cap share.

In a new note, Morgans said Bluebet shares remain "attractive at current levels".

The broker explained:

November's net win margin was 12.8%, supported by robust trading and efficient promotions using its proprietary tech platform.

2QTD's margin stands at 11.5% and reassures us that the company is on track to meet earnings targets and build momentum for next year.

BBT confirmed it was EBITDA-positive in November and remains on course for an EBITDA-positive FY25 result.

… we expect 1H25 underlying EBITDA of $0.5m and a NPAT loss of $2.2m.

Our full-year earnings estimates for FY25-26F increase by 3.5% and 1% respectively.

Acusensus Ltd (ASX: ACE)

Acusensus develops AI solutions for road safety. It is also a micro-cap with a valuation of $158 million.

Canaccord Genuity has maintained its buy rating and $1.30 price target on this ASX tech share.

The Acusensus share price is $1.14, down 0.87% today but up 43% in the year to date.

In a new note, Canaccord analysts Owen Humphries and Annabelle Holden said momentum was building across all markets.

The analysts wrote:

ACE is in the early stages of its global expansion, leveraging its patented technology to capture the ~$1.8b global market opportunity.

The company is undertaking a period of investment to seize the opportunity with the global business absorbing cash, while the Australian business remains strongly earnings positive.

We estimate the Australian business generates revenues of $50m, with growth of 15%-20% with look-through EBITDA margins ~20%.

In our view, this implies the domestic business trades on 10x EV/EBITDA, with investors getting the large global expansion for free which we estimate generates >$4m revenue in FY25E at >100% growth rates and could be valued higher than the domestic business over time given the size of the opportunity.

The post 3 ASX small-cap stocks to buy for 2025: brokers appeared first on The Motley Fool Australia.

Investors piled into the payments company after it revealed its Q1 FY25 growth numbers at its annual general meeting (AGM) late last month.

Two fundies have posted their bullish views on EML in updates following November's rally, each noting the company's growth potential for 2025. Let's see.

ASX All Ords stock primed for growth

EML came in with strong performance this past month after revealing solid numbers for the first quarter of FY25.

The stock spiked from a close of 66.5 cents apiece on Friday 22 November, before closing at a high of $1.01 a week later. It has since retreated slightly to trade at 98 cents apiece at the time of writing.

This was to the delight of Forager Funds and Tamim Asset Management. Both firms hold the ASX All Ords stock and reported solid gains on their positions in November.

EML was the "biggest mover for the month" for the Forager Australian Shares Fund, which booked an 8.17% return on all its holdings, outpacing its benchmark by approximately 450 basis points.

As of 30 November, 5% of the fund's total net asset value (NAV) was held via its position in EML shares.

It says that "growing optimism for small-cap stocks" was a catalyst for the month's performance. But for EML, it was due to the business.

A strategy update alongside its AGM trading update assuaged market concerns and sent the share price up 58% for the month.

It is only back where it was in June and we think it has a long way to go.

Meanwhile, the team at Tamim, which has been bullish on EML for some while, said in a note released last week that the company is at a "pivotal juncture".

The asset manager said numerous factors make EML attractive, including its new strategy and growth targets.

On the core business, EML acknowledged they have a solid foundation with a presence in three of the world's largest and fastest growing payments markets – Europe, North America, and Australia.

They process over $23 billion in GDV and have $2.1 billion in stored value float, providing a strong revenue base.

The focus here will be on extracting more value from their existing 1,100 customer relationships through cross-selling and deepening partnerships

But Tamim also pegs the ASX All Ords stock as a takeover candidate, which could unlock further value for investors if it were to eventuate.

…with a $95 million EBITDA target in three years versus a current EV [enterprise value] of approximately $350 million, EML presents itself as a compelling takeover candidate.

A bid in the range of $500-600 million ($1.50 per share) seems highly plausible within the next six months, offering significant upside for shareholders.

Fundies not alone

These aren't the only two players with skin in the game who have highlighted their outlook for this ASX All Ords stock.

The team at WAM Microcap Ltd (ASX: WMI) recently attended an investor day held by EML, noting this correlated with the improved share price performance over the past month.

WAM said it is "positive" on EML in the medium term and sees potential for the company to beat its pre-tax earnings guidance for FY25.

EML would need to beat earnings before interest, tax, depreciation, and amortisation (EBITDA) of $54 million to $60 million to achieve this, based on its own projections.

Foolish takeout

This ASX All Ords stock performed well for fundies that owned it during November after a more-than 50% jump in the month. But each of these players reckons EML has plenty of legs to continue this marathon.

In the last 12 months, EML is up by around 18%.

The post Up 48% in a month, this ASX All Ords stock has 'a long way to go' appeared first on The Motley Fool Australia.

The fewer professional analysts looking at a stock, the higher the chance of that business slipping under the market's radar and being priced too cheaply for its potential.

However, not every small company is destined to become a larger one. Therefore, I think it's essential for investors to be selective about which ASX small-cap shares they buy.

The investment team that manages the listed investment company (LIC) WAM Microcap Ltd (ASX: WMI) has revealed two stocks it considers appealing picks. Let's dive into what those potential opportunities are.

EML Payments Ltd (ASX: EML)

WAM described EML as a global payments company that operates in Australia, the United Kingdom, Europe and the United States.

The EML share price had an exciting November, climbing a hefty 57% during the month, as shown in the chart below.

The fund manager noted that business soared after the company held an investor day with EML Payments new management team, which outlined the ASX small-cap share's growth ambitions.

As WAM highlighted, EML set out an FY28 target for earnings per share (EPS) of 13 cents, and an operating profit (EBITDA) margin target of 35%, which "eased market concerns, contributing to an increase in EML Payments' share price".

The investment team concluded their optimistic view on the EML Payments shares with the following:

We remain positive on EML Payments' medium-term plan and see upside to its underlying EBITDA guidance range of $54 million to $60 million in FY25.

Paragon Care Ltd (ASX: PGC)

Paragon Care is an Australian healthcare company that supplies a wide range of medical equipment, consumables, and services to hospitals, aged care facilities, and healthcare professionals.

The Paragon Care share price climbed 19% in November.

WAM noted that the ASX small-cap healthcare share held its annual general meeting last month. At the meeting, chair Peter Lacaze pointed out that the ASX small-cap share has made significant progress on its merger with CH2, a "leading Australian integrated distributor and wholesaler of pharmaceuticals, medical consumables and healthcare equipment".

WAM suggested that the approved merger between Chemist Warehouse and Sigma Healthcare Ltd (ASX: SIG) could be positive for Paragon Care if independent pharmacies decide to leave Sigma Healthcare after the merger is completed.

In final thoughts on the ASX small-cap share, the fund manager said:            

Paragon Care's first quarter results for FY25 beat market expectations and we see strong momentum for the business going forward.

The post 2 compelling ASX small-cap shares this fundie expects to beat the market appeared first on The Motley Fool Australia.

EML Payments Ltd (ASX: EML), Web Travel Group Ltd (ASX: WEB), and BrainChip Holdings Ltd (ASX: BRN) have each passed this mark today.

At the time of writing, EML Payments is up 11% to 97.5 cents, Web Travel has surged 14% to $4.80, and BrainChip has climbed 11% to 26.8 cents.

Let's dive into what's driving the action behind these movers.

ASX All Ords shares up double digits

EML Payments has been clawing back investor confidence after a turbulent period. The company's latest trading update posted yesterday showed revenue climbing 12% to nearly $49 million, underlined by a 46% jump in pre-tax earnings.

Management also reaffirmed its guidance of $54 million to $60 million in pre-tax earnings for FY25, underpinned by a medium-term plan to drive transaction revenue growth into double digits by FY27.

RBC Capital Markets is bullish on the stock and retained its buy rating in a note to clients today.

The broker values the ASX All Ords share at $1.20 apiece, noting the upsides from EML's trading update and the impact this has on its stock price.

Management also has the audacious goal of earning 13 cents per share at the bottom line by FY28.

What's fueling the Web Travel rally?

Web Travel has also had an exceptional day, with its shares rocketing 14% following the release of its first-half results.

The company reported a 25% increase in total transaction value, tallying $2.6 billion, alongside a 23% surge in bookings.

This came even as revenue growth saw a modest growth of just 1%, as weaker margins offset these gains.

Managing director John Guscic admitted that margins in Europe had been negatively affected by seasonal disruptions, but he expressed confidence in a recovery for FY26.

He forecast pre-tax earnings of $117 million to $122 million for this coming financial year. Guscic also praised the WebBeds segment, saying it is "one of the fastest organically growing travel brands".

Investors seem to have embraced this forward-looking view, driving the ASX All Ords share to its highest mark since October 14.

BrainChip delivers double-digit gains

BrainChip has been a volatile ASX All Ords share in recent months, but investors have bid up the share more than 11% today despite no price-sensitive news.

BrainChip's quarterly update earlier this month offered some positive indicators. The company reported a strengthened cash position of US$25.6 million following a $25 million capital raise.

The artificial intelligence (AI) company also secured partnerships with Frontgrade Gaisler and Airbus Defence and Space, expanding the adoption of its Akida 1.0 technology in the aerospace domain.

These agreements could represent a meaningful revenue opportunity if executed well.

Zooming out, the stock is up more than 16% in the past week of trade, alongside a snapback rally in broad tech.

The S&P/ASX All Technology Index (ASX: XTX) is also up less than 1% today, having climbed more than 2% since last Friday.

ASX All Ords shares takeout

All three of these ASX All Ords shares face unique challenges and opportunities, but investors have bid up their prices today.

Where they go from here depends on many factors. In the last 12 months, Brainchip is up 21%, whereas EML and Web Travel are down 11% and 17%, respectively.

The post 3 ASX All Ords shares rocketing over 10% today appeared first on The Motley Fool Australia.

Analysts have lifted ratings on three stocks in notes to clients this week: EML Payments Ltd (ASX: EML), Webjet Group Ltd (ASX: WJL), and The Lottery Corp Ltd (ASX: TLC).

Why the change of heart on these companies, you might ask? Each has its own strengths and advantages., so let's see what the experts think and what it could mean for your portfolio.

Analysts lift ratings on ASX shares

Anyone following the EML Payments story will know the company has experienced some turbulence in recent years. But its latest trading update has investors foaming at the mouth, with the stock up 27% in the past week alone.

The animal spirits of EML have awakened again, and two points from its quarterly numbers stand out: The 46% jump in pre-tax earnings and management reaffirming full-year guidance of $54 million to $60 million, where it could earn 13 cents per share by FY28.

At the ASX share's closing price of 89 cents on Tuesday, this equals a 14.7% five-year forward earnings yield.

CEO Ron Hynes laid out bold plans to streamline operations and drive "double-digit transaction revenue growth by FY27" alongside the earnings target.

RBC Capital Markets has slapped a buy rating on EML with a $1.20 price target following the announcement, according to The Australian. This suggests a 35% upside potential from Tuesday's closing price.

With management investing in leadership and efficiency gains, there's hope this battered ASX share could claw back some of its former glory.

Webjet takes flight

Webjet Group – which is no longer associated with Web Travel Group Ltd (ASX: WEB) – has been flying under the radar since its listing in September.

Shares are down 9% in the past week, but Jeffries sees some value in the business and has upped its rating to a buy with a $1.10 price target.

Jeffries joins the likes of Goldman Sachs, which already rated the stock a buy at the exact same valuation.

The online travel agency delivered solid half-year results, prompting both brokers to turn more constructive on its outlook.

Goldman was particularly impressed by Webjet's GoSee business, which is showing higher margins, and its improving online travel agency (OTA) run rates.

It says management's guidance for flat earnings growth in FY25 might be a bit "conservative", leaving room for upside surprises. As investors, we like surprises of this kind.

From Webjet Group's closing price of 83.5 cents on Tuesday, the $1.10 price objective implies a tidy 31.7% upside potential. For investors who are bullish on the travel sector, Webjet might just be worth a boarding pass.

Lottery Corp: A jackpot for income investors?

Finally, for those investors seeking ASX shares with more stability and dividends, Jeffries upgraded The Lottery Corp to a buy with a $5.80 price target this week.

According to CommSec, it joins the consensus rating of buy on the stock, with analysts turning more constructive after the company's annual results.

According to Morgans, the Lottery Corp's FY24 results were "impressive", with management highlighting plans to refresh 'Saturday Lotto.'

It says the business can deliver a 4.5% free cash flow yield on its forecasts, and it looks to dividends of 19 cents per share over the coming two years.

ASX shares takeout

Brokers have turned more constructive on these ASX shares after recent updates in their investment stories.

Zooming out, markets continue to trend higher, which means finding selective opportunities like these could be of merit.

In the last 12 months, EML has fallen 19%, whereas The Lottery Corp is up 15%. Webjet Group was carved out in September and has climbed 4% since then.

The post 3 ASX shares catching broker upgrades this week appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back today are listed below. Here's why they are rising:

EML Payments Ltd (ASX: EML)

The EML Payments share price is up 24% to 85 cents. This follows the release of a trading update from the payments company at its annual general meeting. During the first quarter of FY 2025, EML Payments achieved a 7% increase in gross debit volume (GDV) to $5,857 million, a 12% lift in revenue to $48.8 million, and a 64% jump in quarterly underlying EBITDA to $11.6 million. Management also reiterated its FY 2025 guidance and spoke positively about the future. The latter includes announcing an earnings per share target of 13 cents by FY 2028.

Gentrack Group Ltd (ASX: GTK)

The Gentrack share price is up almost 18% to $11.06. Investors have been buying this software company's shares following the release of its full year results. Thanks to grow across the business, Gentrack reported a 25.5% increase in revenue to NZ$213.2 million. Management also spoke positively about next year. It said: "We remain confident of our mid-term guidance of growing revenue more than 15% CAGR and an EBITDA margin of 15-20% after expensing all development costs."

Regis Healthcare Ltd (ASX: REG)

The Regis Healthcare share price is up 3% to $6.67. This morning, the aged care operator released its annual general meeting presentation. That presentation included an update on its performance in the first quarter. CEO Dr Linda Mellors said: "Our strong performance in FY24, as highlighted by Graham, has continued into the first quarter of FY25 and we are currently tracking modestly ahead of our internal profit target. Our average occupancy improved from 94.9% in Q4 FY24 to 95.5% in Q1 FY25, with spot occupancy on 31 October 2024 at 96.0% tracking ahead of budget."

Resimac Group Ltd (ASX: RMC)

The Resimac Group share price is up 4% to 87.5 cents. This follows the announcement of an on-market share buyback by the non-bank lender this morning. It said: "The Board considers that the Company's current share price does not accurately reflect the underlying value of the Company's assets and the Share Buy-Back represents an opportunity to add value to the remaining shares on issue."

The post Why EML Payments, Gentrack, Regis, and Resimac shares are racing higher appeared first on The Motley Fool Australia.

In morning trade, the ASX All Ords stock is up 31% to 90 cents.

However, it is worth noting that even after this impressive gain, the payments company's shares remain down 17% since this time last year.

They are also trading significantly lower than the $5.75 they were fetching back in 2021.

Why is this ASX All Ords stock surging today?

The catalyst for today's gain has been the release of a trading update ahead of the company's annual general meeting.

As you might have guessed from the share price reaction, that update revealed that EML Payments' performance has improved materially.

During the first quarter of FY 2025, EML Payments reported a 7% increase in gross debit volume (GDV) to $5,857 million and a 12% lift in revenue to $48.8 million.

Things were even better for its earnings, with the ASX All Ords stock posting a 64% jump in quarterly underlying EBITDA to $11.6 million.

This was in line with management's expectations for the quarter. As a result, the company has reaffirmed its FY 2025 underlying EBITDA guidance in the range of $54 million to $60 million.

What about the future?

The good news is that management appears confident in the direction the company is taking and is investing to fuel its growth. The ASX All Ords stock's CEO, Ron Hynes, said:

As you have heard we are going to make some necessary investments in leadership, talent, and our global operating model of circa $2-3m over the next 18 months. We will also invest a similar amount in our go-to-market teams and supporting activities, an area that has essentially been absent in the recent past. I expect that a good portion of these OPEX investments will be offset by similar sized efficiency gains from the streamlining of redundant work around the company, beginning in FY26.

Hynes expects this to underpin a meaningful improvement in key financial metrics. He adds:

Most importantly, over the period of FY25-FY28, our medium-term plan, we see positive financial metric improvement.

Double digit transaction revenue growth by FY27, and this becoming the norm. Costs held flat delivering a cost to revenue ratio <40% – material efficiencies will cover inflation and investments in leadership and GTM teams. Underlying EBITDA margin reaching ~35%. Material EPS improvement with a target of ~13cps by FY28.

To put the latter in context, with a share price of 90 cents, EML's shares are trading at 7x targeted FY 2028 earnings. That would be dirt cheap for a company growing at a rate it is targeting. Though, it does of course have to deliver on this, which isn't guaranteed.

The post Why this beaten-up ASX All Ords stock just rocketed 31% appeared first on The Motley Fool Australia.

The surge follows the company's announcement that chair and independent non-executive director Anthony Hynes has bought more than half a million dollars worth of shares.

Let's look into the details.

ASX All Ords stock soars on director's mega buy-up

EML is a financial technology company that provides payment platforms for businesses.

It's been a rough year for the EML share price. The ASX All Ords stock has plunged 37% over the past six months and 17% in the year to date.

Hynes was appointed to the EML board on 30 June.

He is chairing EML's new growth and operational performance subcommittee, which is tasked with driving a renewed commercial strategy and creating a high-performance operational culture within the business.

Hynes was previously the founder and managing director of the global payments business, eNett International. He sold that business, along with an associated entity, for $940 million in 2020.

Hynes purchased 867,569 EML shares in on-market transactions on Tuesday and Wednesday for a total consideration of $518,278.58. He bought the ASX All Ords stock in two parcels.

Hynes snapped up the first parcel of 500,000 shares for an average price of 59.3 cents per share. He bought the second parcel of 367,569 shares for an average price of 59.5 cents per share.

He made both purchases via an investment trust.

What makes this buy-up more significant is that it has raised Hynes' stake in this ASX All Ords stock by 1,735%.

Previously, he owned just 50,000 shares through his superannuation portfolio.

What else is happening with EML?

The last lot of price-sensitive news from EML came last month.

The company announced the completion of the sale of its European open banking and account-to-account payments business, Sentenial, to payments processing company GoCardless.

This news was well received by EML investors, with the ASX All Ords stock rising 2.82% on the day.

EML said it would use the proceeds to pay off debt. The move would improve the balance sheet from a net debt position of $48 million to a net cash position of $5 million.

The post This ASX All Ords stock is down 37%, and one insider just bought up over $500,000 worth appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back today are listed below. Here's why they are rising:

Bellevue Gold Ltd (ASX: BGL)

The Bellevue Gold share price is up 3% to $1.18. This may have been driven by a bullish broker note out of Goldman Sachs this morning. According to the note, the broker has retained its buy rating on the gold stock with a trimmed price target of $1.70. It said: "Relative to peers, BGL remains relatively underappreciated in our view, trading at of ~0.85x NAV and pricing ~US$1,600/oz LT gold (peer average ~1.15x NAV and ~US$1,940/oz)."

EML Payments Ltd (ASX: EML)

The EML Payments share price is up 5% to 74 cents. This morning, this struggling payments company revealed that it has completed the sale of its European open banking and account-to-account payments business, Sentenial, to payments processing company GoCardless for 32.75 million euros. EML plans to use the proceeds to retire some debt. This will shift its balance sheet from a net debt position of $48 million to a net cash position of $5 million. Management also advised that it has secured a new $70 million debt facility, which gives it access to further liquidity to fund its growth.

Ora Banda Mining Ltd (ASX: OBM)

The Ora Banda Mining share price is up 4% to 58.2 cents. Investors have been buying this gold miner's shares after it released an update on its Drive to 150 Project. This project is aiming to take the company's annual production to between 140,000 ounces and 160,000 ounces in FY 2026. Management advised: "As mining and drilling progresses at Riverina, our confidence is growing that we are only at the very early stages in unlocking what is presenting as a large and high-grade system."

Peninsula Energy Ltd (ASX: PEN)

The Peninsula Energy share price is up 2.5% to 8 cents. This morning, this uranium developer released an update on plant construction and wellfield development activities at the company's flagship Lance Project in Wyoming USA. According to the release, site construction and preparation activities are continuing, with solid progress made throughout August. As a result, it is on track with its planned operational restart in late fourth quarter of 2024.

The post Why Bellevue Gold, EML Payments, Ora Banda, and Peninsula Energy shares are charging higher appeared first on The Motley Fool Australia.

Investors are buying EML shares today after the company announced the sale of its Sentenial business.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is less than 1% in the red today.

Let's see what the company posted.

ASX All Ords stock rallies on asset sale

The ASX All Ords stock advised today it has sold its European open banking and account-to-account payments business, Sentenial, to payments processing company GoCardless Ltd for 32.75 million Euros.

The acquisition was first completed three years ago now, in September 2021, when EML paid 70 million Euros.

So it paid 70 million Euros for Sentenial and is selling the business for less than half that amount.

Taking the current Euro to Aussie dollar exchange rate, this equates to paying $114 million and selling for $53 million, a more than 53% loss on investment.

The reason for the sale? Sentenial simply hasn't performed well under EML's stewardship.

On 15 March 2024, EML announced it had entered into an agreement to sell Sentenial to GoCardless. The Sentenial business was deemed to be non-core to the EML Group's operations, being unprofitable under EML ownership and without material synergies with other EML customers and business lines.

Completion of the Sentenial sale is another significant milestone in the delivery of the EML's strategic review.

EML will use the proceeds to retire some debt, shifting its balance sheet from a net debt position of $48 million to a net cash position of $5 million.

It has also secured a new $70 million debt facility, which gives it access to further liquidity to fund its growth if necessary.

Peter Lang, the ASX All Ords stock's executive director, expressed satisfaction with the Sentenial sale, calling it another strategic win for EML in FY24.

We are pleased to have completed the Sentenial sale to GoCardless. The sale proceeds significantly strengthen EML's balance sheet and completes another strategic objective of the Board's FY24 plan to simplify our operating structure and solve for loss making businesses within the EML Group.

We thank Barrenjoey and Barclays for their advisory support and wish the Sentenial and GoCardless teams every success over the coming years.

What's next for EML?

The ASX All Ords stock also stands to benefit from an earnout payment that is linked to contracts signed by Sentenial between February and October 2024.

The payment will be the "first year's revenue derived from those contracts, multiplied by 4.1".

EML considers the sale as essential so that it can focus on higher-margin areas of the business.

It follows EML's earlier exit from its unprofitable PCSIL business in Ireland in FY24.

Excluding results from this entity, sales were up 18% last financial year, with 54% growth in pre-tax earnings on an improved net loss.

Management had also laid out ambitions to hit $54–$60 million in profits before tax in FY25. It looks to these on the back of a number of cost savings already implemented.

Time will tell to see what long-term impacts these may have on the stock price.

ASX All Ords stock takeaway

EML shares have been heavily sold over the past 12 months, during which time the ASX All Ords stock has been down more than 27%.

This is a more than 49% disadvantage to the broader market.

The post Why is this ASX All Ords stock surging 4% today? appeared first on The Motley Fool Australia.

EML shares are currently fetching 73 cents apiece, 5.8% lower on the day, as investors consider the company's year-end results.

Let's see what the company posted.

ASX finance stock tumbles on FY24 results

Key highlights from EML's earnings results include:

• Revenue increased by 18% year over year to $217.3 million (excluding Irish entity PCSIL).
• Earnings before interest, tax, depreciation and amortisation (EBITDA) reached $57.1 million, up 54% year over year.
• Net loss was $9.6 million, an improvement from the $260.3 million loss in FY23.
• Exited Irish business PCSIL and sold its interests in Sentenial to GoCardless for $54 million.

What else happened in FY24?

The ASX finance stock made several moves during FY24 to stabilise the business. In particular, EML exited its "loss-making" PCSIL business in Ireland and sold Sentenial for $54 million.

These exits were part of EML's broader restructuring efforts and a larger move to reduce ongoing costs.

In total, EML's cost base reduced by 8% over the year in H2, translating to $5 million. Management expects further cost reductions over the coming 1–2 years.

As such, it was a period of growth for EML, with sales up 18% (excluding PSIL), 54% EBITDA growth, and an improved net loss.

EML's UK subsidiary, Prepaid Financial Services Limited (PFSL), also completed its "regulatory remediation program". This is a critical point that has been plaguing EML shares for some time.

It also established a new syndicated loan facility to "support the business over the coming years". This came into effect yesterday.

What did management say?

EML's newly appointed CEO, Ron Hynes, expressed cautious optimism about the company's future:

FY24 was an inflection point for the reinvigoration of EML, with excellent progress made on the operational priorities as set by the Board in April 2023 and improved financial performance. This lays the foundations for EML 2.0 being a stronger, more efficient and growth orientated organisation delivering high quality performance for our customers and shareholders over the coming years.

While I only joined EML in June, I have followed its journey closely over the course of my career in the global prepaid card industry. EML is a business of strong foundations and with the work done in FY24 to successfully address the challenges that impaired recent periods, we are now well placed to turn our full attention to building for growth with green shoots emerging.

What's next?

Looking forward, EML plans to continue implementing cost reductions. Management forecasts $54 million – $60 million in EBITDA for FY25.

This is part of the company's 'EML 2.0' initiative, which includes new leadership and a focus on "3-year underlying metrics" such as EBITDA margins and recurring revenues.

Management will outline the full strategy at the AGM in November.

ASX finance stock snapshot

EML shares have been under pressure in the last 12 months, having slipped more than 27% in that time. The ASX finance stock has lagged the broad market by 38% in that time.

The post ASX finance stock dives 6% as FY24 disappoints appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

Adairs Ltd (ASX: ADH)

The Adairs share price is down 12% to $1.81. Investors have been selling this homewares retailer's shares following the release of its full year results. Adairs reported a 6.6% decline in total sales to $594.4 million. Things were much worse for its net profit after tax, which was down 17.8% to $31.1 million. Management also revealed that for the first eight weeks of FY 2025, sales are down 0.4% compared to the prior corresponding period. Despite this poor performance, the Adairs board elected to increase its dividend by 50% to 12 cents per share.

EML Payments Ltd (ASX: EML)

The EML Payments share price is down 7% to 72 cents. This has been driven by the release of the payments company's FY 2024 results on Wednesday. EML Payments reported an 18% increase in revenue (from continuing operations) to $217.3 million and a 34% lift in underlying EBITDA to $49 million. This excludes the liquidation of the PFS Card Services Ireland business. It seems that investors were expecting an even stronger performance from its continuing operations.

Nextdc Ltd (ASX: NXT)

The NextDC share price is down 5% to $16.91. Investors have been selling the data centre operator's shares after its guidance for FY 2025 overshadowed a strong FY 2024 result. NextDC's underlying EBITDA is expected to be in the range of $210 million to $220 million. This will be up a modest 2.8% to 7.7% year on year. Goldman Sachs notes that this is 4% lower than its estimates. It believes this is due to "a slower ramp in NXT order-book (vs. 1H24 commentary)." Though, the broker points out that "NXT is historically conservative on guidance (5Y average EBITDA beat of +2.8%)."

Tabcorp Holdings Ltd (ASX: TAH)

The Tabcorp share price is down over 12% to 49.5 cents. This morning, the gambling company released its FY 2024 results and reported declines across the board. Tabcorp's revenue was down 3.9% year on year to $2.34 billion and its EBITDA fell 18.7% to $317.7 million. It also recorded a statutory net loss of $1.36 billion for the year. This was driven by non-cash impairment charges totalling $1.38 billion after tax. In light of this poor financial performance, the company slashed its dividend by 43.5%.

The post Why Adairs, EML, NextDC, and Tabcorp shares are sinking like stones today appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back are listed below. Here's why they are rising:

Coronado Global Resources Inc (ASX: CRN)

The Coronado Global Resources share price is up over 10% to $1.31. Investors have been buying this coal miner's shares in response to news of a fire burning underground in a major coal mine owned by Anglo American in Queensland. The Grosvenor mine is expected to produce 2.3 million tonnes of metallurgical coal this year. And while it is unclear at this stage how long the mine will be out of action, investors appear to believe there could be a meaningful impact to global supply.

EML Payments Ltd (ASX: EML)

The EML Payments share price is up 1.5% to 94.3 cents. This morning, this struggling payments company announced the appointment of its new managing director and CEO. Ron Hynes will join EML Payments on 30 June. He is a United States based global payments executive with more than 25 years of experience in the prepaid cards sector. His experience includes leadership roles in multi-national organisations across a range of key functional areas directly relevant to delivering high-performance in a payments business.

Immutep Ltd (ASX: IMM)

The Immutep share price is up 9% to 32.25 cents. This may have been driven by a broker note out of Bell Potter. In response to recent trial results, the broker has reaffirmed its speculative buy rating with a trimmed price target of 75 cents. This suggests that its shares could more than double in value from current levels. It said: "The topline ORR data in two of three sub-cohorts is favourable and supportive of confirmatory trials. Data in the low PD-L1 low subgroup showed minimal difference vs the control, although this may be due to relatively small patient numbers."

Lendlease Group (ASX: LLC)

The Lendlease share price is up 3% to $5.56. Investors have been buying this property developer's shares after it announced the sale of its US Military Housing business. Lendlease is selling the business to Omaha Beach Investment, an entity managed by Guggenheim Partners Investment Management, for A$480 million (US$320 million). Management notes that the sale represents a significant premium to book value. CEO Tony Lombardo said: "With $1.9 billion of transactions already announced, including the sale of US Military Housing, we have made significant progress towards our target of recycling $2.8 billion of capital in the next 12 months."

The post Why Coronado Global, EML, Immutep, and Lendlease shares are storming higher appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling:

Burgundy Diamond Mines Ltd (ASX: BDM)

The Burgundy Diamond Mines share price is down 7% to 20 cents. This morning, this diamond miner released its end of year report. It reported $257.5 million revenue from a total of 2.6M carats sold and EBITDA of $69.1 million.

Clarity Pharmaceuticals Ltd (ASX: CU6)

The Clarity Pharmaceuticals share price is down 3.5% to $2.75. This follows the completion of the pharmaceuticals company's institutional placement and entitlement offer. Clarity was able to raise a total of $110 million at a 10.5% discount of $2.55 per new share. Management notes that this provides funding to continue developing its best-in-class portfolio of radiopharmaceuticals and progressing towards a number of significant milestones in its therapeutic and diagnostic product pipeline.

EML Payments Ltd (ASX: EML)

The EML Payments share price is down 3% to $1.23. This may have been driven by profit taking from some investors following a very strong gain recently. For example, even after today's weakness, the payments company's shares are still up 33% since this time last month.

Zip Co Ltd (ASX: ZIP)

The Zip share price is down 5% to $1.42. This also appears to have been driven by profit taking. After all, this buy now pay later provider's shares have been on fire in recent weeks. So much so, they remain up over 120% since the start of 2024. A strong performance in FY 2024 and some bullish broker notes have been the keys to its outperformance.

The post Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back are listed below. Here's why they are rising:

Beach Energy Ltd (ASX: BPT)

The Beach Energy share price is up 2.5% to $1.70. This appears to have been driven by another rise in oil prices overnight. Traders have been bidding oil prices higher this week in response to news of attacks on Russian oil refineries. It isn't just Beach Energy shares that are rising on Friday. The S&P/ASX 200 Energy index is defying the market weakness and is up 1.3% at the time of writing.

Clinuvel Pharmaceuticals Limited (ASX: CUV)

The Clinuvel share price is up a further 2% to $14.92. Investors have been buying this biopharmaceuticals company's shares this week after it announced an on-market share buyback. Clinuvel is aiming to buy back up to 1.5 million shares over the next 12 months. This equates to approximately 3% of its outstanding share capital. Management advised that its decision reflects its view that the recent decline of market valuation is no longer commensurate with the performance and expected outlook for the company.

Deep Yellow Limited (ASX: DYL)

The Deep Yellow share price is up over 3% to $1.20. This morning, this uranium developer announced the completion of the first tranche of its placement. This has seen the company issue approximately 114.7 million shares to qualified, institutional, sophisticated, and professional investors at a price of $1.225 per new share. This represents a premium to where its shares were last trading. The proceeds will be used to advance the development of the Tumas Project. This includes the commencement of construction post final investment decision and securing debt financing.

EML Payments Ltd (ASX: EML)

The EML Payments share price is up 7% to $1.21. This follows news that the payments company has agreed to sell its loss-making Sentenial business. Investors appear pleased to see the back of the business, even though the selling price is half what EML paid for it in 2021. GoCardless is buying Sentenial for an enterprise value of 32.75 million euros (A$54.1 million). EML expects the sale to be earnings and cashflow accretive in the first year.

The post Why Beach, Clinuvel, Deep Yellow, and EML shares are charging higher today appeared first on The Motley Fool Australia.

In morning trade, the ASX All Ords stock is up over 10% to $1.25.

Why is this All Ords stock crushing the ASX?

The catalyst for this strong gain has been news that the payments company has signed an agreement to sell its Sentenial business. This includes its Nuapay services business.

According to the release, the company is selling the business to GoCardless for an enterprise value of 32.75 million euros (A$54.1 million). Though, this remains subject to adjustments.

This is approximately half the 70 million euros (A$112.7 million) that EML paid for the business in 2021.

The sale also includes a potential downward price adjustment linked to ongoing key contract performance, capped at 7.5 million euros, in the period up to completion. In addition, it has an earn out based on recurring revenue from new contracts signed by the Sentenial business between 1 February 2024 and 30 days after completion.

Pleasingly for shareholders, as the Sentenial business is unprofitable, management expects the deal to be earnings and cashflow accretive to the ASX All Ords stock in the first year.

It also highlights that it further simplifies EML's organisational structure and improves its ability to focus on its profitable core businesses.

Management advised that the proceeds from the sale will be used to reduce debt and strengthen the company's balance sheet.

Why is it selling the business?

As well as being unprofitable and projected to lose $2 million in FY 2024, the Sentenial business was determined to be non-core to the EML Group's operations. It does not have any material product or customer overlap with other business lines and is separable from the EML Group wider business.

Management believes that the agreement to sell Sentenial is a "significant milestone in the delivery of the EML Group's strategic review." This helps explain why this All Ords stock is crushing the ASX on Friday.

EML shares are now up approximately 150% over the last 12 months.

The post 1 All Ords stock quietly crushing the ASX today appeared first on The Motley Fool Australia.