In a research note to clients this week, RBC said the Australian market had been caught up in the "AI euphoria risk trade, with the market seeing materially lower barriers to entry and disintermediation risks potentially impacting sales/margins over the medium long/term''

This had led to sharp down-ratings for some technology stocks over recent months, with some share prices halving over the past half year, RBC said.

They added:

We believe certain names have higher moats and are better protected, however marrying up an attractive entry point is difficult in the midst of negative macro tech sentiment and the tide running out fast.

The companies singled out as having a decent moat were Pro Medicus Ltd (ASX: PME), Technology One Ltd (ASX: TNE), REA Group Ltd (ASX: REA), and Wisetech Ltd (ASX: WTC).

On the risk front, some companies were facing increasing earnings risks from the higher Australian dollar, including Pro Medicus, Hansen Technologies Ltd (ASX: HSN), and Megaport Ltd (ASX: MP1).

Good value stocks abound

While RBC has flagged plenty of risks in the sector, they also have outperform ratings and solid price targets on eight stocks.

For Technology One, RBC says their UK growth narrative is continuing, and the company "has demonstrated the best AI capabilities we've seen to date amongst our coverage with its new PLUS Ai platform being released in market this year with monetisation into 2027''.

RBC has a price target of $32 on Technology One shares compared with $25.62 currently.

For Wisetech, they have a price target of $100 against $59.01 currently, saying the take-up of the company's new commercial model "should see positive tailwinds in 2H26".

RBC has a price target of $155 for Xero Ltd (ASX: XRO) shares, compared with $94.37 currently, saying the demand environment was "healthy" and that there could be a catalyst for a rerating in February, when the company demonstrates its Melio product offering.

On the data centre front, RBC says NextDC Ltd (ASX: NXT) is benefiting from the AI and cloud computing boom, adding that "hyperscalers continue to materially increase their capex on data centre-related investments, evidence of a healthy demand environment''.

RBC has a price target of $20 on NextDC shares compared with $13.21 currently.

And on much the same theme relating to data centre demand, it has a price target of $90 on Macquarie Technology Group Ltd (ASX: MAQ) compared with $69.60 currently.

For Hansen Technologies, RBC has a price target of $6.25, while on the speculative side, they have a price target for Megaport of $18 compared with $11.81 currently.

And last but not least, for Fineos Corporation Holdings Plc (ASX: FCL), RBC has a price target of $3 versus $2.30 currently.

The post Eight stocks to buy in the bruised tech sector according to RBC appeared first on The Motley Fool Australia.

The index gains are decent, but some ASX All Ords stocks have seen significantly stronger growth in 2025.

Fineos Corporation Holdings PLC (ASX: FCL) shares ended the week 1.4% lower to $2.82 at the close of the ASX on Friday afternoon. But the latest dip has barely touched the huge gains the Irish public software development company has enjoyed this year. For the year-to-date, the company's shares have grown 49.2%.

Now, the team at Macquarie Group Ltd (ASX: MQG) has weighed in on where it expects the company's shares to go next.

The ASX All Ords stock tipped to jump higher

In a note to investors, Macquarie confirmed its outperform rating and $3.48 target price on Fineos shares. These are unchanged from September.

At the time of writing, the target price implies that the ASX All Ords small-cap stock's shares could climb another 23.4% over the next 12 months.

"FCL's medium-term revenue mix targets imply ~25% Subscription fee growth, compared to MRE forecasts +10%. The implied Subscription fee growth is based on FCL's targeted Subscription fees mix of 65% in FY27, assuming 2.5% Services revenue growth estimates," the broker said in its note.

Latest Guidewire Q1 FY26 results are a read-through for FINEOS 

Macquarie has used the first quarter FY26 Guidewire Software Inc (NYSE: GWRE) results as a "read-through" for Fineos. This is where the results or performance of one company are used to predict or explain what might happen with another company in the same industry.

The broker noted that Guidewire posted a 22% increase in annual recurring revenue (ARR), a 27% year-over-year rise in revenue, and a 20% increase in operating cash flow margin. 

The company also raised its guidance for the full year, now expecting around 20% growth in both ARR and revenue, and about 50% growth in operating cash flow.

When comparing valuations, Fineos trades at a much lower enterprise value/sales multiple than Guidewire. Fineos is valued at around 3.9 times sales, which is sharply lower (73%) than Guidewire's valuation at 14.4 times sales. 

Looking at financial metrics, the Guidewire software revenue growth is much higher than that of Fineos. Guidewire's subscription and license revenue grew 23% over the past year, while Fineos' software revenue grew only 5.5%. 

Overall, Fineos is at a material discount to Guidewire. Although Macquarie's analysts note that this could be because Guidewire has a different mix of revenue types, and spent less of its revenue on capitalised R&D compared to Fineos in the first half of FY25.

The post This ASX All Ords stock jumped 50% in 2025, tipped to climb another 23% appeared first on The Motley Fool Australia.

The fast-rising company in question is FINEOS Corp Holdings PLC (ASX: FCL).

Shares in the insurance solutions-focused global software company are down 1.7% in late afternoon trade today, changing hands for $2.92 apiece.

But don't feel too bad for longer-term shareholders. Despite today's dip, the ASX All Ords stock remains up a whopping 114.7% since this time last year.

What's the latest from FINEOS?

FINEOS reported its September quarter (3Q 2025) results last Friday, 24 October.

"Our performance continues to highlight the strategic importance of the FINEOS Platform with another North American client committing to transitioning to our SaaS-based FINEOS Claims solution," CEO and founder Michael Kelly said on the day.

The ASX All Ords stock's September quarterly cash receipts of €31.5 million were down 10% from the June quarter but up 8.8% year on year.

Kelly noted this reflected the growing contribution of annual recurring revenue (ARR) to the company's overall revenue mix.

Looking ahead, he said, "The North American sales pipeline remained strong in 3Q25, and we are confident that the company will deliver positive free cash flow for fiscal year 2025 and ongoing profitable growth in 2026 and beyond."

The ASX All Ords stock is aiming to grow its footprint in Canada. In the September quarter, the company held a Customer Connect event in Toronto. Attendees participated in live demonstrations of FINEOS AdminSuite and FINEOS AI capabilities.

"Feedback was overwhelmingly positive, underscoring the company's commitment to the Canadian market, deepening client relationships, and providing a valuable forum for prospective customers," Kelly said.

Why Macquarie is bullish on the ASX All Ords stock

In a report released earlier this week, Macquarie Group Ltd (ASX: MQG) sounded a positive note on FINEOS' free cash flow momentum.

The broker noted, "+€4.9m FCF LTM to Sep-25, represents a +€14.6m improvement vs Sep-24, and +€26.1m improvement vs Sep-23."

And Macquarie said the company's cash was "slightly down due to seasonality", with the ASX All Ords stock maintaining an "attractive outlook, as the North American pipeline remains strong".

According to Macquarie:

In 3Q25, an existing North American client was contracted to migrate from FINEOS Claims on-premises to FINEOS Absence (and Claims) on the FINEOS platform. 'Go Live' is expected early 2H26. FCL noted "the North American business pipeline remains strong".

As for FINEOS' full-year 2025 guidance, Macquarie said:

Revenue outlook remains within €138m-143m guidance (cc basis, EUR:USD 1:1.0837). FCL continue to expect positive FCF in FY25 in aggregate and to be self-funded thereafter. FCL is 'cycling' €10.5m negative FCF in 4Q24.

Connecting the dots, Macquarie maintained its outperform rating on FINEOS with a $3.48 price target on the ASX All Ords stock.

That represents a potential upside of more than 19% from current levels.

The post Up 115% in a year, why Macquarie expects this ASX All Ords stock to keep charging higher appeared first on The Motley Fool Australia.

FINEOS describes itself as a global software company that provides software to the employees benefits and life, accident, and health industry. It provides a number of products, including new business, billing, claims, absence, and policy administration. It aims to provide operational efficiencies, increased effectiveness, and excellent customer care.

The company is recovering from its fall in 2022, and it's now delivering very pleasing growth.

The ASX small-cap stock is growing

In the three months to September 2025, the business noted that revenue growth, in combination with platform and operational efficiency gains, continues to support expectations of positive free cash flow in FY25.

Positive free cash flow is a significant milestone for any business, but particularly for a software business, because with its digital business model, it can lead to a ramping up of margins.

In the 2025 year to date, its cash receipts were up 8.8% compared to the same period in FY24.

The business also highlighted that its North American business pipeline remains strong, which I believe is a very positive sign for the company's future growth, as North America is a suitable market for the ASX small-cap stock to continue expanding in.

With that 2025 third-quarter update, the CEO and founder, Michael Kelly, said:

Our performance continues to highlight the strategic importance of the FINEOS Platform with another North American client committing to transitioning to our SaaS-based FINEOS Claims solution. While quarterly cash receipts are lower compared to the pcp, year-to-date receipts have increased by 8.8% compared to FY24, reflecting the growing contribution of Annual Recurring Revenue (ARR) to our overall revenue mix.

Strengthening profit margins

In August, the company reported a number of positives in the 2025 half-year result, including a strengthening of the gross profit margin to 76.6%, up from 73.6%. This helped operating profit (EBITDA) improve by 80.1%, with the EBITDA margin improving to 19.6%, up from 11.3%.

If the company can continue growing its revenue, then I believe the profit margins could rise materially, as we've already seen with the EBTIDA margin from the HY25 result.

It's expecting to hit an EBITDA margin of 25% in FY27 and 40% in FY29. By FY29, the ASX small-cap stock's gross profit margin is predicted to reach 80%, according to the company. Its profit margins are partly expected to rise thanks to keeping a control on cost growth.

This is definitely one business to watch, among others.

The post Why I think this ASX small-cap stock is a bargain appeared first on The Motley Fool Australia.

But over the year, the ASX All Ords company's share price has charged 61.35% higher, driven by a combination of good business performance and market sentiment.

For context, the ASX All Ordinaries Index (ASX: XJO) is 6.04% higher over the year to date.

FINEOS is a global software company which specialises in software solutions across the employee benefits, and life, accident, and health insurance industries. It has a strong focus on employee benefits, claims management, and policy administration. The business was founded in Ireland and now has offices in Australia, New Zealand, North America, and Europe.

In a recent note to investors, Macquarie Group Ltd (ASX: MQG) has weighed in on the stock. Here's what the broker has to say.

Macquarie's outlook on FINEOS shares

Macquarie has confirmed its outperform rating on FINEOS shares and upgraded its 12-month target price to $3.29, up from $2.45 previously.

This represents a potential 12-month upside of 25.1% from the time of writing.

New clients wins and a positive FCF

The broker cites FCF (free cash flow) performance and contract momentum for the upgrade.

FINEOS signed three new contracts in the June quarter. 

"1) Two new North American clients contracted for FINEOS IDAM and FINEOS Claims. 2) An existing top-10 US group insurance client contracted FINEOS to conduct a major migration and consolidation of on-premises systems to FINEOS Absence (incl. integrated short-term disability claims)," Macquarie said in its note. 

All projects are expected to 'Go Live' in the 2026 calendar year.

The ASX All Ords business also revealed robust FCF numbers in its latest update.

FCF, on a LTM basis, was €3 million for the June quarter.

"Positive FCF (LTM basis), despite June qtr cash receipts -3%, due to timing (1Q was +40%), and payments +9%. €17.5m 1H25 FCF, was up €11.4m vs 1H24," the broker said.

"Cash was down -€0.5m during the qtr, including currency -€1.5m. Operating Cashflow was €8.3m, offset by Investing Cashflow -€7.3m."

But the broker adds that "the opportunity, with potential upside risk to Macquarie expectations, continues to look attractive. In 2H25, FCL 'cycle' -€4.0m FCF in 3Q24 and -€10.5m in 4Q24."

The post Macquarie forecasts 25% upside for this ASX All Ords software company appeared first on The Motley Fool Australia.

Then you may wish to run your slide rule over All Ordinaries Index (ASX: XAO) software solutions company, Fineos Corp Holdings PLC (ASX: FCL).

That's according to ECP Asset Management's Damon Callaghan (courtesy of The Australian Financial Review).

Callaghan said he is bullish on the outlook for Fineos. Although at the moment he said the ASX tech stock is still an "unloved, under-followed technology company".

But that may well be set to change.

ASX tech stock at 'an inflection point'

"Fineos is leading in the development of modern core systems software for the life, accident and health insurance industry, in both North America and [Australia and New Zealand]," Callaghan said.

He noted that investors may have been put off by the lacklustre financial performance the ASX tech stock has reported in recent years. However, he believes that performance is about to lift off.

According to Callaghan, "Over the last five years, a slow deal environment … makes its backward-looking [profit and loss statement] uncompelling. The business, however, is approaching an inflection point."

He pointed to Fineos' new AdminSuite product as something the company's competition will find "extraordinarily difficult to replicate".

"It has established a reputation as the software leader among major insurers and has recently developed tier-1 consulting partnerships set to drive new deals," Callaghan added.

What's the latest from Fineos?

The ASX tech stock reported its September quarterly results on 28 October.

Fineos reported a 23% year on year increase in cash receipts from customers to 35.5 million euros. The boost was partly credited to the contribution of revenues from a new name customer.

Cash receipts were down 2% from the prior quarter, which management noted had benefited from significant upsell wins.

And the September quarter saw the launch of Fineos' AdminSuite, which Callaghan mentioned, at both Guardian and NYL.

The ASX tech stock reported a closing cash balance at 30 September of 29.1 million euros.

Commenting on the latest quarterly performance, Fineos CEO Michael Kelly said:

Pleasingly, we secured another new contract win during the quarter and were able to finalise several important contract renewals.

Our pipeline remains healthy and given the significant progress we are making with existing clients moving their business to the Fineos Platform, our growth prospects remain strong.

The Fineos share price has gained 19% in a year.

Much of that lift has come over the last month, with the ASX tech stock up 36% since 11 November.

The post One 'unloved, under-followed' ASX tech stock to buy now 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:

Commonwealth Bank of Australia (ASX: CBA)

The Commonwealth Bank of Australia share price is down 3.5% to $99.95. This has been driven by a combination of weakness in the banking sector and its shares going ex-dividend this morning. Eligible CBA shareholders can now look forward to receiving the bank's fully franked $2.40 per share final dividend next month on 28 September.

FINEOS Corporation Holdings PLC (ASX: FCL)

The Fineos share price is down over 14% to $2.18. This morning, this core systems provider to the insurance industry announced the completion of a $40 million capital raising. The funds were raised at $2.25 per new share, which represents an 11.8% discount to its last close price.

Fletcher Building Ltd (ASX: FBU)

The Fletcher Building share price is down 8% to $4.67. Investors have been selling this building materials company's shares following the release of its FY 2023 results. Fletcher reported a net profit after tax of NZ$235 million for the 12 months. This is down from 45.5% from NZ$432 million in FY 2022.

Temple & Webster Group Ltd (ASX: TPW)

The Temple & Webster share price is down a further 9% to $5.96. This online furniture retailer's shares have come under pressure since the release of its FY 2023 results. Temple & Webster reported a 7.2% decline in revenue to $396 million and a 31% drop in net profit after tax to $8.3 million.

The post Why CBA, Fineos, Fletcher Buildings, and Temple & Webster shares are dropping today appeared first on The Motley Fool Australia.

The Australian share market is following the US lead today. The Dow Jones Index (INDEXDJX: .DJI) dropped by 348 points or 0.98% overnight in its worst session since May, according to CNBC.

This follows stronger-than-expected jobs data and Fitch's credit rating downgrade for the US economy from AAA to AA++ due to high debt and "the expected fiscal deterioration over the next three years".

However, these three ASX All Ords shares are going their own way today.

And cracking 52-week highs while they're at it.

Let's review today's high flyers.

Which ASX All Ords shares are peaking today?

Temple & Webster Group Ltd (ASX: TPW)

ASX All Ords retail share Temple and Webster reached a new 52-week high of $6.85 today. It's up by 46% in the year to date, which is pretty impressive given the obvious headwinds of inflation and interest rates for retail.

It appears the pro traders don't think the current share price level can be maintained, though. Temple and Webster shares are among the top 10 most shorted stocks with 7% of the capital shorted.

News Corporation Class B Voting CDI (ASX: NWS)

This ASX All Ords communications share has smashed a new 52-week high of $30.75 today. There's been no price-sensitive news out of News Corp since 15 May.

News Corp is the publisher of The Australian and The Daily Telegraph newspapers in Australia. We recently reported that News Corp CEO Robert Thomson was among the highest-paid ASX 200 CEOS of FY22, with a staggering annual income of $35.13 million.

FINEOS Corporation Holdings PLC (ASX: FCL)

Software solutions company Fineos hit a 52-week high of $2.73 today. The ASX All Ords tech share is up 67.5% in the year to date.

Fineos released its June quarter update on 28 July, revealing an 11.2% decline in cash receipts compared to June FY22, and a cash balance of 25.5 million euros with no debt.

The post 3 ASX All Ords shares defying today's slump with new 52-week highs 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:

Capricorn Metals Ltd (ASX: CMM)

The Capricorn Metals share price is down 8.5% to $4.41. This follows a pullback in the gold price and the release of this gold miner's quarterly update. Capricorn's quarterly performance means it achieved the mid-point of its production guidance in FY 2023. However, investors may be disappointed with management's outlook for the new financial year. It is guiding to flat production and higher costs.

FINEOS Corporation Holdings PLC (ASX: FCL)

The Fineos share price is down almost 7% to $2.23. This morning, this insurance software platform provider released its quarterly update and revealed that cash receipts were down 11.2% over the prior corresponding period.

Fortescue Metals Group Ltd (ASX: FMG)

The Fortescue share price is down 6% to $21.55. Investors have been selling this iron ore miner's shares since the release of its quarterly update. One broker that would be supportive of this selling is Goldman Sachs. This morning, its analysts reiterated their sell rating with a trimmed price target of $14.50.

Regis Resources Ltd (ASX: RRL)

The Regis Resources share price is down 8% to $1.71. This appears to have been driven partly by broad weakness in the gold industry today. This has seen the S&P/ASX All Ordinaries Gold index fall 3.3% this afternoon. In addition, UBS retained its neutral rating on its shares with a reduced price target of $1.90. It notes that Regis Resources' fourth-quarter costs and FY 2024 outlook missed expectations.

The post Why Capricorn Metals, Fineos, Fortescue, and Regis Resources shares are sinking appeared first on The Motley Fool Australia.

That's because those folks should only care whether the business possesses long-term tailwinds.

The latest ECP Growth Companies Fund memo to clients showed a great example of this.

The analysts there described how one ASX share tumbled and another shot up during June, but how they are bullish on both.

Product validated by a major customer signing

The FINEOS Corporation Holdings PLC (ASX: FCL) share price climbed a spectacular 28.3% last month after it added a major client for its enterprise software.

"Fineos Corporation outperformed during June following a landmark deal signed with Guardian Life — a major US life insurer — to adopt the full-suite of Fineos software modules across a portion of its group business."

The deal is not just a financial boost but does wonders for product promotion.

"It validates [tha] Fineos' end-to-end platform solutions [are] ready for market," read the memo.

"We expect a successful implementation will increase its chances of winning similar major deals across the North American life insurance market, as enterprise peers traditionally follow 'safe bets' when making major systems changes."

A number of other professionals agree that Fineos is a decent long-term add.

According to CMC Markets, five out of seven analysts currently believe the tech stock is a buy.

Sticking to a winning strategy

Corporate Travel Management Ltd (ASX: CTD) shares saw much different fortunes over June, tumbling 13.7%.

The ECP analysts blamed this on "concerns around global corporate travel volumes". 

"On a positive note, the company recently announced they had been successful in winning a large UK government contract," read the memo.

"They also retained the Whole of Australian Government (WoAG), a contract that came to them with the HLO Corporate acquisition."

The company has deliberately focused on small and medium clients in North America while consolidating the existing Australian and European businesses.

The ECP team feels like this strategy is "working well". 

"With guidance for FY23 reaffirmed and FY24 still achievable, we think Corporate Travel Management offers a good medium to longer-term growth story," read its memo.

"The focus now is all about execution and driving overall margins as more business moves online."

A commanding 10 out of 16 analysts currently rate Corporate Travel share as a buy on the CMC Markets broking platform.

The post 2 'longer-term growth story' ASX shares that ECP loves right now appeared first on The Motley Fool Australia.

But which small cap ASX shares should you buy? Listed below are two that brokers rates very highly. Here's why they are bullish on them:

FINEOS Corporation Holdings PLC (ASX: FCL)

The first small cap ASX share to look at is Fineos. It is a provider of core systems for life, accident, and health insurance carriers globally.

The company currently has a sizeable 7 of the 10 largest group life and health carriers in the US, as well as a 70% market share of group insurance in Australia. It clearly means business!

Goldman Sachs is a big fan of the company and is very positive on its outlook. It recently commented:

Recent industry data points and commentary suggest that demand conditions are normalizing into 2023, with easing wage pressures increasing confidence in FCL's cash break-even trajectory (we now see upside to consensus earnings across FY23-25E). Separately, FCL's closest US comp Duck Creek was taken out for ~2-3x FCL's trading multiple, providing valuation support for the sector.

Goldman has a buy rating and $1.95 price target on its shares.

Volpara Health Technologies Ltd (ASX: VHT)

Another small cap ASX share to watch is Volpara. It is a provider of software that uses artificial intelligence imaging algorithms to assist with the early detection of breast and lung cancer.

Volpara has been growing its top line at a rapid rate in recent years thanks to market share gains and its expanding average revenue per user (ARPU) metric.

Morgans appears to believe that this can continue, particularly given favourably regulatory developments. It said:

After a long wait, the FDA finalised federal legislation for mammography centers to report breast density to patients. This is positive for VHT's FDA cleared AI volumetric density software. VHT also announced a further contract win with Sutter Health for their Risk Pathways product, with an additional TCV of US$900k over 3 years. This expands their existing relationship with Sutter. […] We view both of these announcements as incrementally positive for the company. We see VHT at a critical turning point in the company's trajectory to profitability with improving investor sentiment.

Morgans recently reiterated its add rating and $1.21 price target on its shares.

The post Brokers say these small cap ASX shares are buys appeared first on The Motley Fool Australia.

Four ASX shares that are climbing more than most today are listed below. Here's why they are racing higher:

Aeris Resources Ltd (ASX: AIS)

The Aeris Resources share price is up 11% to 59 cents. This morning, analysts at Bell Potter retained their buy rating on this copper miner's shares with an improved price target of 95 cents. This was in response to news that it has discovered a new massive sulphide lens at the Bentley deposit at its 100%-owned Jaguar Operations.

Block Inc (ASX: SQ2)

The Block share price is up over 2% to $91.01. Investors have been buying this payments company's shares today after they crashed deep into the red on Friday following a short seller attack from Hindenburg Research. Investors may believe this was an overreaction.

Fineos Corporation Holdings PLC (ASX: FCL)

The Fineos share price is up 4.5% to $1.17. This morning, this core systems provider to the life, accident and health, and employee benefits insurance industries revealed a cost cutting plan. It has identified operating cost reduction opportunities totalling 10 million euros. Pleasingly, management doesn't expect this to impact its growth.

Tyro Payments Ltd (ASX: TYR)

The Tyro share price is up 3.5% to $1.46. The catalyst for this has been speculation that Potentia is planning to make a $1.70 per share takeover offer. Tyro responded to the speculation by advising that no offer has been received. However, it confirmed that takeover talks between the two parties are continuing.

The post Why Aeris, Block, Fineos, and Tyro shares are racing higher appeared first on The Motley Fool Australia.

For investors, there can be a danger in trying to 'catch a falling knife'. That's the concept of investing in a business where the share price is falling, the investor buys in, and the share price keeps falling. A share price that falls from $100 to $20 can still halve again to $10.

However, finding businesses that are down heavily but are still expected to grow over the long term could be a good opportunistic strategy.

Here's why the ASX All Ords shares in this article could be bargain buys after hitting 52-week lows.

Adore Beauty Group Ltd (ASX: ABY)

Adore Beauty claims to be the leading online retailer of beauty products in Australia.

But, the Adore Beauty share price hasn't seen a beautiful performance over the last 12 months. It's down by around 60%.

It's understandable that the ASX All Ords share has gone backwards a bit, considering interest rates have shot higher. That logic applies to most All Ords ASX shares that don't actually benefit from higher interest rates, because higher interest rates act like gravity on valuations, pulling down asset prices.

But, the company is also suffering from the impact of reduced online shopping now that lockdowns are in the past and COVID impacts are fading.

For example, in the FY23 half-year result, the company reported that revenue dropped 17% to $93.6 million and active customers declined 9% to 801,000. The earnings before interest, tax, depreciation and amortisation (EBITDA) margin was just 0.4%, reflecting "lower operating leverage, inflationary pressures and phased investments in key initiatives".

But, February 2023 sales were up 3.7%. I think the future is positive, with cost optimisation and margin improvement which could help profit in future years. The EBITDA margin is expected to improve, and I think more shoppers will buy online in the coming years.

FINEOS Corporation Holdings PLC (ASX: FCL)

FINEOS describes itself as a leading provider of core systems for life, accident and health insurance carriers globally. It works with seven of the 10 largest group life and health carriers in the United States as well as six of the 10 largest life and health carriers in Australia.

Over the past year, the FINEOS share price has dropped around 50%.

The ASX All Ord share's FY23 half-year results also saw some financial numbers go backwards.

While subscription revenue went up 18.4% to €29.9 million, total revenue dropped 6% to €61.5 million, with North America representing 78.3% of total revenue. It made an EBITDA loss of €2.6 million, down from a profit of €6.5 million in the FY22 first half.

The statutory net loss was €14.6 million.

While the company advised that sales deal closing had been "slower" than it would like, it did say the pipeline is "very strong". The business is investing in automation to achieve further efficiencies across the business.

Management believes that customers will invest in extending their use of the FINEOS platform to enhance their business operations by replacing legacy core systems. It expects to achieve positive free cash flow in the second half of FY24.

Bubs Australia Ltd (ASX: BUB)

The Bubs share price has dropped by more than 50% in the past six months, despite the infant formula business making progress on its global growth plans.

In the first half of FY23, gross revenue dropped 1%, though infant formula revenue jumped 44%.

Bubs said that its inventory provision balance was driven by "volatile trading conditions and slower-than-expected consumer offtake in key markets."

The ASX All Ords share recorded an EBITDA statutory loss of $44.4 million.

Bubs claims to be the number one goat formula brand in both Australia and the US.

US and 'other international' sales increased 63% year over year, with the US contributing 31% of first-half group revenue.

China sales were reflected by lockdowns and channel disruption.

Bubs expects the growth rate in China to improve thanks to the easing of restrictions and borders reopening, with "momentum building in the fourth quarter." It also sees the US as a key export market for the long term.

Management is confident it has sufficient capital to realise its growth ambitions. It had cash of $51.4 million on its balance sheet as at 31 December 2022.

The post Bargain buys? 3 ASX All Ords shares trading at 52-week lows right now appeared first on The Motley Fool Australia.

Three results that are in the latter category are summarised below. Here's why investors are selling these ASX All Ords shares:

CogState Limited (ASX: CGS)

The CogState share price is down 20% to $1.30. This morning, this ASX All Ords neuroscience technology company revealed that it expects to report a 12% decline in first-half clinical trials revenue to $17.1 million and breakeven profit before tax.

Management advised that its revenue and profit were impacted by a slower than expected enrolment of patients by pharmaceutical companies in a small number of their large Alzheimer's trials. More of the same is expected in the second-half, with management guiding to a full-year revenue decline of 6% to 9%.

Fineos Corporation Holdings PLC (ASX: FCL)

The Fineos share price has crashed 16% to $1.65. Investors have been selling the shares of this leading provider of core systems for employee benefits and life, accident and health insurance after its first-half loss widened.

Fineos posted an 18.4% increase in subscription revenue to 29.9 million euros and a 14.7% lift in annual recurring revenue (ARR). However, overall revenue was down 6% on the prior corresponding period.

On the bottom line, the ASX All Ords company posted a loss after tax of 14.6 million euros, up from a loss of 4.6 million euros a year earlier.

Resimac Group Ltd (ASX: RMC)

The Resimac share price is down 9% to $1.06. This morning, this residential mortgage lender released its half-year results and reported a 30% decline in normalised net profit after tax to $37.5 million.

This was driven by a sharp reduction in home loan settlements compared to the prior corresponding period due to the impact of inflation and rising interest rates on household cost-of-living.

Management warned that there are no signs of relief in rising interest rates and inflationary pressures this year, which is likely to mean a tough second half. However, it remains positive on the medium term outlook.

The post 3 ASX All Ord shares being hammered on earnings today appeared first on The Motley Fool Australia.

That's because of the potentially strong returns that are on offer with small cap ASX shares.

But which ones could be buys? Two that Goldman Sachs rates as buys are listed below. Here's what it is saying about them:

FINEOS Corporation Holdings PLC (ASX: FCL)

The first small cap ASX share to look at is Fineos, which is a provider of core systems for life, accident, and health insurance carriers globally. It has 7 of the 10 largest group life and health carriers in the US, as well as a 70% market share of group insurance in Australia.

Goldman is very positive on the company and has a buy rating and $2.40 price target on its shares. It commented:

Recent industry data points and commentary suggest that demand conditions are normalizing into 2023, with easing wage pressures increasing confidence in FCL's cash break-even trajectory (we now see upside to consensus earnings across FY23-25E). Separately, FCL's closest US comp Duck Creek was taken out for ~2-3x FCL's trading multiple, providing valuation support for the sector.

Maas Group Holdings Ltd (ASX: MGH)

Another small cap ASX share to consider buying is Maas. It is a construction material, equipment and service provider.

Goldman believes that it could be a small cap to buy and has a buy rating and $4.20 price target on its shares. The broker is positive thanks to Maas' ongoing transition, which it believes this will underpin higher quality earnings. It explained:

We believe MGH is in a transition phase and will see higher quality real estate income become the largest source of earnings in the next 3-5 years. We believe the market is mispricing how MGH's civil and construction capabilities support the property development business to deliver best-in-class margins and asset turnover. In our view the value created through the development of quality annuity revenue from Build-to-Rent (BTR), Land Lease (potentially generating a 4.5x ROIC annuity income stream) and commercial real estate projects could re-rate the stock.

The post Goldman Sachs says these ASX small cap shares are buy with major upside potential appeared first on The Motley Fool Australia.

Shares in the ASX tech company are trading down 6.14% at $1.53 apiece at the time of writing. They previously touched a high of $1.68 shortly after the market opened this morning.

Let's go over what the company announced.

What did Fineos report?

• Total revenue up 17.5% year-over-year (YoY) to €$127.2 million (A$183.38 million)
• Gross profit up 15.3% YoY to €$83 million (A$119.62 million)
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) up 28.8% YoY to €$6.7 million (A$9.66 million)
• Annual recurring revenue (ARR) up 23.4% YoY to €$56.4 million (A$81.27 million)
• Statutory net loss after tax of €$26 million (A$37.47 million)

Fineos advised that it outperformed previous guidance for its subscription revenues, which grew by 34.3% to A$77.52 million and contributed significantly to its top and bottom lines. The organic growth of its services was stated to be 33.5%.

Fineos integrated several acquisitions into the business in FY22, including Spraoi's suite of machine learning and artificial intelligence products. These integrations helped to expand revenues through cross-selling opportunities and inflated the company's sales pipeline for FY23.

What else happened in FY22?

The company's balance sheet strengthened through an influx of cash totalling A$63.84 million, before costs, from its share placement and purchase plans.

Fineos also said that its dominant North American operating segment grew to contribute more to the company's top line, with total contribution growing from 73% to 79% of revenue.

Its headcount remained more or less the same, with 1,075 staff members and contractors. This is expected to stay the same in FY23.

What did management say?

Fineos founder and CEO Michael Kelly said:

FY22 has seen yet another year of strong growth across the key metrics we benchmark our business against, underpinned by our delivery on strategy.

Importantly, we achieved or exceeded the guidance we provided to the market even with the incredibly challenging operating environment faced by most businesses.

I would like to thank all our team for their continued dedication and support that enabled FINEOS to achieve several significant strategic milestones over the past year.

What's next?

Fineos expects revenue for FY23 to fall within the guidance range of A$194.59 million and A$201.80 million, supported by a pipeline it built in FY22 through integrating its acquisitions into its operations.

More broadly, the company notes that it has a positive cash balance with no debt and that its trajectory means it is likely to achieve positive free cash flow in FY24.

Fineos share price snapshot

The Fineos share price is down 66.8% year to date. This is severely underperforming the S&P/ASX 200 Index (ASX: XJO), which is 7.67% lower over the same period.

The company's market capitalisation is $488 million from today's recent price action.

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This comes after the insurance software company announced its fourth quarter results to the market.

At the time of writing, Fineos shares are swapping hands at $1.715, up 6.52%.

What did Fineos report for Q4 FY22?

Here's a brief recap of how the company performed for the 3 months that ended 30 June 2022.

• Cash receipts from customers up 45% year-on-year to €32.9 million ($A48.04 million)
• Headcount up 1% to 1,075 since 30 June 2021
• High product consulting employee utilisation rate of 89% for FY22
• Cash payments from operating activities of €32.4 million (A$47.32 million), up 12% quarter on quarter
• Closing cash balance of €44.3 million ($A64.70 million) and no debt

What happened during the quarter?

For the final quarter of FY22, Fineos recorded customer cash receipts of €32.9 million ($A48.04 million). This reflected a 45% increase over the prior corresponding period, underpinned by strong revenue growth and the ongoing transition of customers to subscription agreements.

Subsequently, this reaffirms the company's FY22 revenue guidance of between €125 million to €130 million (A$182.56 million to A$189.87 million) and subscription revenue growth of at least 30%.

Furthermore, headcount decreased by 0.5% to 1,075 for the quarter but lifted by 1% during FY22. This is expected to remain stable at the current level in FY23.

Capitalised R&D costs for the quarter were down 2% to €6.8 million (A$9.93 million) and up 3% to €25.8 million ($37.67 million) for FY22.

Uncapitalised R&D costs continued to increase in line with Fineos' growth strategy and focus on product development.

What did management say?

Fineos founder & CEO, Michael Kelly commented on the company's performance:

The fourth quarter saw the company continue to deliver on our growth strategy, with strong growth in customer cash receipts and subscription revenue underpinning the reaffirmation of previous guidance provided for FY22.

We finished the quarter with over €44 million in cash and no debt, providing a strong capital position that supports our organic growth plans. With the business continuing its growth trajectory and cash flows building, we are on track to achieve a positive free cash flow position in FY24.

Fineos share price review

Since the start of 2022, the Fineos share price has declined by more than 60%.

Strong volatility on the ASX and a gloomy economic outlook appears to have weighed down the company's shares this year.

Based on today's share price, Fineos presides a market capitalisation of around $530.18 million.

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The insurance industry software provider's shares rose 15% to $1.61.

This means the Fineos share price is now up 24% since this time last week.

Why is the Fineos share price charging higher?

Investors have been bidding the Fineos share price higher following a rebound in the tech sector and some positive broker notes.

In respect to the former, the S&P/ASX All Technology Index rose over 2% on Tuesday after investor sentiment improved in the sector.

As for the latter, both Goldman Sachs and Macquarie have been talking positively about Fineos over the last week.

While Goldman Sachs only initiated coverage on the company's shares with a neutral rating, its price target of $1.65 is still higher than where its shares are trading even after these strong recent gains.

Goldman's analysts "see Fineos as well positioned to benefit from the long-term structural tailwinds of insurance industry digitisation and shift to cloud software."

Over at Macquarie, its team are even more positive. Last week the broker put an outperform rating and $2.89 price target on the company's shares. This implies over 80% upside for the Fineos share price from current levels over the next 12 months.

Macquarie believes that Fineos will outperform its peers in respect to software revenue growth. Yet, despite this, it notes that the company's shares still trade at a large discount to them.

The post Why did the Fineos share price roar 15% higher today? appeared first on The Motley Fool Australia.

The All Ords Index climbed 1.94% today to 6,893.6 points. For perspective, the S&P/ASX 200 Index (ASX: XJO) also finished 1.94% in the green.

So let's take a look at which technology companies surged today.

Fineos Corporation Holdings (ASX: FCL)

The Fineos Corporation Holdings share price climbed 14.56% today. Fineos provides software for the life, health, and accident insurance industry. The company's shares appeared to be soaring amid a positive day for ASX technology shares. The S&P/ASX All Technology Index (ASX: XTX) closed 2.62% higher today.

ASX technology shares followed in the footsteps of their US counterparts. The NASDAQ-100 Technology Sector index surged 4.63% on US markets on Friday. On Sunday, US President Joe Biden unveiled a $600 billion infrastructure program. It's aimed at building health systems, energy technology, and information and communication technology networks, CNBC reported.

Fineos reported a 24.4% boost in revenue in the first half of the financial year while gross profit soared 25.6%.

Pointerra Ltd (ASX: 3DP)

Pointerra shares closed 6.38% higher on Monday. The company also appeared to benefit from positive market sentiment for ASX tech shares. In recent news to the market, Pointerra announced two new contracts based in the United States.

Florida Power and Light will deploy the Pointerra3D Answers storm response product. Secondly, NextEra Energy will use Pointerra3D Analytics to support greenfield development and solar energy project sites in the USA. Pointerra reported "continued growth" across the US energy utilities sector.

The post 2 ASX tech shares in the All Ords that soared today appeared first on The Motley Fool Australia.

The Fineos Corporation Holdings PLC (ASX: FCL) share price is finishing the week lower than where it started.

However, shares in the insurance software provider climbed 3.1% today after falling 3% yesterday. This follows the release of Fineos' results for the first half of FY22 on Thursday.

ASX All Ordinaries tech share slips despite productive half

• Revenue up 24.4% to 65.4 million euros (A$102.04 million)
• Annual recurring revenue reached 51.8 million euros, increasing 35.2% year on year
• Gross profit of 42.5 million euros, representing an increase of 25.6% year on year
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) up 103.1% to 6.5 million euros
• Net loss after tax narrowed to 4.6 million euros from 5.1 million euros
• Cash balance as at 31 December 2021 of 48.6 million euros

What else happened during the half?

Investors have lacked an attraction to this ASX All Ordinaries share this week. However, Fineos showed improvement across all of its key metrics in the first half.

According to the release, top-line growth of 24.4% was driven primarily by cross-selling and up-selling to its existing client base. In addition, the company notched up another client win, helping diversify its customer base.

Notably, the largest organic growth was witnessed in Fineos' subscription revenue — increasing 39.5% year on year. Meanwhile, services revenue experienced a 16.4% improvement on the prior corresponding period.

Furthermore, the company highlighted its improvements in de-risking its client concentration during the period. In August 2021, 74% of Fineos' revenue was tied to its top 10 clients. However, that number has been reduced further to less than 61%.

During the half, Fineos raised around $74 million to feed future growth across its operations and expand into new markets.

What's next?

Investors might have been displeased to see Fineos guide towards the lower end of its previously stated revenue range for FY22. For reference, the range provided is between 125 million euros and 130 million euros.

Although, on a positive note, the company reaffirmed expectations for subscription revenue to grow at an annualised rate of around 30%. This was followed up with a disclaimer, noting the guidance is subject to prevailing influences from COVID-19 and the global economy.

How has this ASX All Ordinaries tech share performed?

The Fineos share price has been unable to attract a higher value so far in 2022. In fact, shares in the insurance tech provider have slumped 27% since the year kicked off.

To be fair, this is relatively in line with the broader performance across the tech sector. For example, the S&P/ASX All Technology Index (ASX: XTX) is down 23% year to date.

The post This ASX All Ordinaries tech share just delivered 24% revenue growth appeared first on The Motley Fool Australia.