Listed below are two small caps that Morgans has just given buy ratings to. Here's what it is recommending this month:

MotorCycle Holdings Ltd (ASX: MTO)

This motorcycle retailer could be a small cap ASX share to buy according to Morgans.

It highlights that MotorCycle Holdings has started FY 2026 strongly, with sales up 19% year to date. And with its margins rising more than expected, this bodes well for its earnings growth in FY 2026. It said:

MTO has commenced FY26 positively, delivering +19% sales growth (+6% organic; +13% inorganic) on better-than-expected gross margins (+85bps on pcp). The Peter Stevens Motorcycles (PSM) turnaround and integration process is taking shape quickly, with MTO driving a return to sales growth in October (+16% on pcp). Organic sales growth of +6% through FY26 (4 mths) was a commendable outcome given weak industry volumes through 3Q CY25 (-6%), leading to further incremental organic market share gains for the group (17.8% vs 15.5% pcp).

Another positive is that Morgans expects the second half of FY 2026 to be even stronger. It adds:

We view a stronger 2H to be driven by a full contribution of PSM (at a normalised run-rate); a seasonally stronger Mojo 4Q; and benefits from the group's broader initiatives (digital transformation; used volume growth; eCommerce) taking effect. Despite industry conditions remaining cyclically low from a volume and margin perspective, MTO has continued to improve the business, acquiring material scale through PSM, diversifying operations via Mojo, stabilising the cost base and driving organic share gains.

In light of this, Morgans has put a buy rating and $4.50 price target on its shares. This implies potential upside of 20% from current levels. It concludes:

We view the valuation undemanding (~11x FY26F PE; ~5% yield), with a material margin expansion opportunity ahead should volumes turn slightly more favourable. BUY maintained.

Tesoro Gold Ltd (ASX: TSO)

Morgans also thinks that this gold developer could be a buy for investors with a high risk tolerance.

In fact, the broker has named it as its top gold pick in the Americas region thanks to its robust production base case. It said:

We update our TSO model, rolling our valuation forward and adjusting cash position. TSO remains our top gold pick in the Americas, supported by a robust production base case and district-scale resource growth potential that offers potential step-change upside.

And even though its shares have rallied strongly this year, Morgans believes there's still potential for huge returns over the next 12 months. It has put a speculative buy rating and 32 cents price target on its shares. This is compares to its current share price of just 7.2 cents.

Morgans highlights that its shares are trading at a deep discount to peers on an EV/Resource basis. It adds:

While the share price has performed well, TSO still appears inexpensive relative to peers on an EV/Resource basis, trading at A$54/oz (vs A$176/oz peer average), and on a P/NAV basis at 0.2x vs the peer benchmark of 0.4x. We maintain our SPECULATIVE BUY rating, with a price target of A$0.32ps (previously A$0.27ps).

The post Broker names 2 small cap ASX shares to buy for big returns appeared first on The Motley Fool Australia.

With the August reporting season done and dusted, scores of companies have ex-dividend dates next week.

If you're keen to buy any of these ASX shares while they are still trading cum dividend, time is running out!

To receive a stock's next dividend, you must buy or already own it before the ex-dividend day.

We provide a sample of the ASX shares going ex-dividend next week below.

35 ASX shares about to go ex-dividend

The post 35 ASX shares with ex-dividend dates next week appeared first on The Motley Fool Australia.

It describes itself as the leading motorcycle dealership and accessories group in Australia. It sells new motorcycles, used motorcycles, accessories and parts, finance, insurance and mechanical protection plans and servicing. The company also has a small presence in New Zealand.

In October 2022, it acquired Mojo Group, one of Australia's largest importers and wholesalers of motorcycles, genuine spare parts and accessories. This helped the business by expanding its existing product offering (including scooters), increasing its warehouse capacity and expanding its distribution network.

There are a few reasons why I think it's an excellent buy today.

Acquisition

The ASX small-cap stock is regularly increasing its market share, partly through acquisitions. The latest one was announced near the end of June, called Peter Stevens and Harley-Heaven, which includes their brands and the online businesses of both. Settlement will occur on a store by store basis, which is to be aligned with motor dealer licensing regulatory approvals in each state, over July.

This acquisition is one of Australia's leading motorcycle retail groups and the cash price is expected to be in the range of $7 million to $9 million.

Motorcycle Holdings described the acquisition as "transformative" as it allows it to enter the markets of Perth and Adelaide where it currently doesn't operate.

The CEO also said the deal provides "exceptional combination of scale, profitability, and strategic positioning", allowing it to accelerate growth, grow its retail digital presence and consolidate market leadership.

Rising profit margins

I like seeing an ASX small-cap stock grow its margins as this allows the company to grow profit faster than revenue.

In the FY25 half-year result, revenue grew 12% to $328 million, underlying operating profit (EBITDA) grew 20% to $26.2 million and net profit after tax (NPAT) jumped 43% to $9.4 million.

If the trend of rising profit margins continue, then the company could see very pleasing profits with improving operating leverage.

Conditions to improve for the ASX small-cap stock?

Motorcycle retailing may not be the most discretionary category in Australia, but I expect that the two RBA rate cuts we've already seen may help the company's sales during FY26.

Plus, further rate cuts are predicted over the next 12 months, which could boost consumer spending further. This could also increase the valuation of the ASX small-cap stock.

Large dividend

I'm hopeful of capital gains, but the returns delivered by the cash dividend payments could also be very compelling for investors looking for good total returns.

The last two dividends declared by the business came to an annual total of 15 cents per share. At the current Motorcycle Holdings share price, it offers a grossed-up dividend yield of 6.4%, including franking credits.

If the business can return to the same payout as the COVID-19 years, it would be a grossed-up dividend yield of approximately 8.5%.

Overall, I think the business offers everything that investors could want from an ASX small-cap stock.

The post Why I think this ASX small-cap stock is a bargain at $3.36 appeared first on The Motley Fool Australia.

For investors who haven't heard of this business before, it describes itself as the leading motorcycle dealership and accessories group in Australia. It sells new motorcycles, used motorcycles, accessories and parts, finance, insurance and mechanical protection plans and servicing.

After a difficult period, particularly in 2024, the business is reporting strong numbers.

FY25 half-year earnings recap

In the first six months of FY25, the business reported that sales increased 12% to $328 million, underlying operating profit (EBITDA) grew 20% to $26.2 million and net profit after tax (NPAT) rose 43% to $9.4 million.

The company noted that revenue increased across all departments, with new wholesale vehicles up 21% and both new and used retail vehicle sales up 11%. Impressively, e-commerce sales grew 44%.

It also reported a 36% improvement of net bank debt to $24.2 million.

MotorCycle Holdings' board decided on an interim dividend per share of 8 cents, an increase of 167% year over year.

The ASX small-cap stock reported that its new Cassons business systems have driven greater business efficiencies, which I think bodes well for further profit margin improvement.

Pleasing outlook for the ASX small-cap stock

One of the main reasons to be bullish on the business is that the company could continue growing profit. Management said it was "cautiously optimistic" for the second half of FY25. It said it was going to maintain an emphasis on cost management through a "structured expense reduction strategy". It also plans to consolidate business systems and boost digital capabilities to optimise efficiencies.

The company also believes more favourable agricultural conditions will lead to a positive impact on farm utility vehicle sales.

MotorCycle Holdings also said it plans to repay debt further while continuing to pay dividends to shareholders.

The business also wants to increase stock turnover to reduce inventory and provide a better return on capital. It's aiming to grow its used vehicle sales, increasing the ratio of used to new unit sales.

While it's doing all of this, the ASX small-cap stock wants to maintain its margins through further improvements in efficiencies. The business is also looking to grow e-commerce sales significantly.

It'll also evaluate potential acquisition opportunities as they appear.

Overall, I think this company has a very promising future as its profit rises again, particularly if interest rates reduce in Australia. This could lead to more discretionary spending by Australian households, which could be a big tailwind for earnings.

The post Up 100% in 11 months, can this small-cap ASX stock keep flying higher? appeared first on The Motley Fool Australia.

If you are, then check out the two ASX dividend stocks listed below that analysts rate as buys.

Here's why they are bullish on these names:

MotorCycle Holdings Ltd (ASX: MTO)

The first ASX dividend stock that could be a buy is Motorcycle Holdings. It is a leading motorcycle dealership and accessories company.

Morgans is a fan of the company and sees significant value and big dividend yields at current levels. It highlights:

MTO continues to screen too cheap on ~6.5x FY24F PE and a ~9.5% yield [now ~10%].

The broker is expecting the company to pay fully franked dividends per share of 20 cents in both FY 2024 and FY 2025. Based on the current MotorCycle Holdings share price of $2.03, this implies very large yields of 9.9% for investors.

Morgans has an add rating and a $2.60 price target on its shares.

NIB Holdings Limited (ASX: NHF)

Analysts at Goldman Sachs are positive on this private health insurer and believe it could be an ASX dividend stock to buy right now.

Goldman likes NIB for a number of reasons. This includes the positive outlook for both its core and non-core businesses. It explains:

We have a Buy on NHF reflecting 1) Strong growth / recovery in non-ARHI businesses especially in Travel and IIHI. 2) Strong PH growth and market share gains in ARHI. 3) Buffers built across ARHI expenses, investments, write downs and provisioning that can be unwound to support UOP growth over time.

The broker expects this to underpin the payments of fully franked dividends per share of 29 cents in FY 2024 and 33 cents in FY 2025. Based on the current NIB share price of $7.47, this would mean 3.9% and 4.4% yields, respectively.

Goldman currently has a buy rating and $8.40 price target on NIB's shares.

The post Why these ASX dividend stocks could be in the buy zone appeared first on The Motley Fool Australia.

Here's what they are saying about them:

Dexus Industria REIT (ASX: DXI)

The first ASX dividend share that Morgans rates as a buy is Dexus Industria. It is a real estate investment trust with a focus on industrial warehouses.

Morgans currently has an add rating and a $3.18 price target on its shares.

As for income, the broker is forecasting dividends per share of 16.4 cents in FY 2024 and 16.6 cents in FY 2025. Based on the current Dexus Industria share price of $2.81, this will mean dividend yields of 5.8% and 5.9%, respectively.

MotorCycle Holdings Ltd (ASX: MTO)

Morgans also thinks that this leading motorcycle dealership company could be an ASX dividend share to buy.

Its analysts see a lot value in its shares, highlighting that its share price "continues to screen too cheap on ~6.5x FY24F PE." Morgans has an add rating and a $2.60 price target on its shares.

In respect to dividends, the broker is expecting the company to pay fully franked dividends per share of 20 cents in both FY 2024 and FY 2025. Based on the current MotorCycle Holdings share price of $1.88, this implies yields of 10.6%.

Universal Store Holdings Ltd (ASX: UNI)

A final ASX dividend share that Morgans rates highly is youth fashion retailer Universal Store.

The broker believes that "UNI's attractive array of medium-term growth prospects is undervalued at a single digit FY25 P/E." Its analysts have an add rating and a $4.55 price target on its shares.

In addition, it is forecasting fully franked dividends per share of 26 cents in FY 2024 and 29 cents in FY 2025. Based on the current Universal Store of $4.10, this will mean yields of 6.3% and 7.1%, respectively.

The post Morgans says these high-yield ASX dividend shares are buys in 2024 appeared first on The Motley Fool Australia.

That's because listed below are three ASX dividend shares that analysts are recommending as buys ahead of 2024.

Here's what you need to know about them:

ANZ Group Holdings Ltd (ASX: ANZ)

If you don't already have meaningful exposure to the banking sector, then ANZ could be a good ASX dividend share to buy. That's the view of analysts at Goldman Sachs, which like the bank due to its lucrative institutional operations.

Goldman Sachs currently has a buy rating and a $26.66 price target on its shares.

In respect to income, the broker is forecasting fully franked dividends per share of $1.62 in both FY 2024 and FY 2025. Based on the current ANZ share price of $24.61, this will mean dividend yields of 6.6%.

MotorCycle Holdings Ltd (ASX: MTO)

Over at Morgans, its analysts think that this leading motorcycle dealership and accessories company could be an ASX dividend share to buy with a $2.60 price target.

Particularly given that its shares are trading on such low price-to-earnings multiples at present and offer some very large potential dividend yields.

In respect to the latter, the broker is forecasting the company to pay fully franked dividends per share of 20 cents in both FY 2024 and FY 2025. Based on the current MotorCycle Holdings share price of $2.18, this means dividend yields of 9.2%.

Telstra Group Ltd (ASX: TLS)

Another ASX dividend share that ticks a lot of boxes for analysts is telco giant Telstra.

The team at Goldman Sachs continues to rate the company's shares as a buy with a $4.70 price target.

As for income, the broker is forecasting fully franked dividends of 18 cents per share in FY 2024 and then 20 cents per share in FY 2025. Based on the current Telstra share price of $3.83, this equates to fully franked yields of 4.7% and 5.2%, respectively.

The post Here are 3 ASX dividend shares to buy for 2024 appeared first on The Motley Fool Australia.

Here's what they are saying about them:

Dexus Industria REIT (ASX: DXI)

The first ASX dividend stock that could be a buy is Dexus Industria. It is a real estate investment trust with a focus on industrial warehouses.

Morgans is forecasting dividends per share of 16.4 cents in FY 2024 and 16.7 cents in FY 2025. Based on the current Dexus Industria share price of $2.61, this will mean dividend yields of 6.3% and 6.4%, respectively.

Its analysts have an add rating and a $3.17 price target on its shares.

Healthco Healthcare and Wellness REIT (ASX: HCW)

Another ASX dividend stock that Morgans has named as a buy is Healthco Healthcare and Wellness REIT.

It is a leading health and wellness-focused real estate investment trust with a diversified portfolio that is underpinned by attractive megatrends.

As for income, Morgans is forecasting dividends per share of 8 cents in both FY 2024 and FY 2025. Based on the current Healthco Healthcare and Wellness REIT unit price of $1.42, this will mean yields of 5.6% in both years.

Morgans has an add rating and a $1.67 price target on its shares.

MotorCycle Holdings Ltd (ASX: MTO)

The team at Morgans also thinks that this leading motorcycle dealership and accessories company would be a great option for income investors.

Its analysts see significant value at current levels, highlighting that its share price "continues to screen too cheap on ~6.5x FY24F PE."

In addition to being cheap, the broker is expecting very big yields. It is forecasting the company to pay fully franked dividends per share of 20 cents in both FY 2024 and FY 2025. Based on the current MotorCycle Holdings share price of $2.08, this implies yields of 9.6%.

The broker has an add rating and a $2.60 price target on its shares.

The post Morgans rates these ASX dividend stocks as buys appeared first on The Motley Fool Australia.

Three that brokers believe are buys are listed below. Here's what they are saying about them:

Accent Group Ltd (ASX: AX1)

The team at Bell Potter believe footwear-focused retailer Accent could be an ASX dividend share to buy. The broker currently has a buy rating and a $2.50 price target on its shares.

Bell Potter believes the company is well-placed in the current environment thanks to "continuing casual footwear trends and as sports, fitness & wellness related spending remains a priority."

As for dividends, the broker is forecasting fully franked dividends per share of 12 cents in FY 2024 and then 14.1 cents in FY 2025. Based on the latest Accent share price of $2.04, this represents dividend yields of 5.9% and 6.9%, respectively.

HomeCo Daily Needs REIT (ASX: HDN)

Another ASX dividend share that brokers rate as a buy is HomeCo Daily Needs. It is a property company with a focus on neighbourhood retail, large format retail, and health and services.

Morgans is positive on the company and has an add rating and a $1.50 price target on its shares.

As for income, the broker is expecting some big dividend yields in the near term. It is forecasting dividends per share of 8.3 cents in FY 2024 and then 8.5 cents in FY 2025. Based on the current HomeCo Daily Needs share price of $1.11, this will mean yields of 7.5% and 7.7%, respectively.

MotorCycle Holdings Ltd (ASX: MTO)

Another ASX dividend share that brokers rate as a buy is this motorcycle dealership and accessories company. Morgans is also positive on it and has an add rating and a $2.60 price target on its shares.

The broker believes that MotorCycle Holdings "continues to screen too cheap on ~6.5x FY24F PE."

And with such as cheap valuation, Morgans expects some big dividend yields for this one as well. It is forecasting fully franked dividends per share of 20 cents in both FY 2024 and FY 2025. Based on the current MotorCycle Holdings share price of $2.14, this implies yields of 9.3%.

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

This makes it a great place to generate passive income.

But which ASX dividend shares might be good options today? Three that analysts rate as buys are named below:

MotorCycle Holdings Ltd (ASX: MTO)

Morgans thinks that this leading motorcycle dealership and accessories company would be a great option for income investors right now. Its analysts note that MotorCycle Holdings "continues to screen too cheap on ~6.5x FY24F PE."

The broker has an add rating and $2.60 price target on its shares.

As for dividends, Morgans is expecting fully franked dividends per share of 20 cents in both FY 2024 and FY 2025. Based on the current MotorCycle Holdings share price of $2.04, this implies yields of 9.8%.

Super Retail Group Ltd (ASX: SUL)

Goldman Sachs thinks that Super Retail could be an ASX dividend share to buy. This week the broker responded to the retailer's quarterly update by retaining its buy rating and $14.40 price target on its shares.

It continues to believe "that the auto and sports categories remain more resilient amongst discretionary consumers."

As for income, the broker is expecting fully franked dividends per share of 62 cents in FY 2024 and then 64 cents in FY 2025. Based on the current Super Retail share price of $12.76, this will mean yields of 4.9% and 5%, respectively.

Transurban Group (ASX: TCL)

A final ASX dividend share that has been named as a buy is Transurban. It is a one of the world's leading toll road operators with 22 roads across Australia and North America, as well as four projects under development or delivery.

Citi currently has a buy rating and $15.90 price target on its shares. Its analysts "see upside given the strong EBITDA growth outlook (c.12% CAGR between Fy24-FY26)."

In respect to dividends, its analysts are forecasting dividends per share of 63 cents in FY 2024 and then 65 cents in FY 2025. Based on the current Transurban share price of $11.81, this will mean yields of 5.3% and 5.5%, respectively.

The post Analysts are bullish on these ASX dividend shares appeared first on The Motley Fool Australia.

That's because they are forecast to offer some very generous yields in the near term. Here's what income investors can expect from these shares:

Charter Hall Retail REIT (ASX: CQR)

Citi thinks that this ASX income share could offer very big dividend yields in the near term, particularly given its "defensive underlying portfolio."

The Charter Hall Retail REIT is a property company with a focus on retail assets. These are predominantly supermarket-anchored neighbourhood and sub-regional shopping centres.

In respect to income, Citi is expecting the company to pay dividends per share of 25.8 cents in FY 2024 and 26.5 cents in FY 2025. Based on the current Charter Hall Retail share price of $3.17, this will mean 8.1% and 8.35%, respectively, for investors.

Citi has a buy rating and a $4.10 price target on its shares. This is 29% higher than where its shares currently trade.

MotorCycle Holdings Ltd (ASX: MTO)

Over at Morgans, its analysts think that this leading motorcycle dealership and accessories company would be a great option for income investors right now.

The broker currently sees significant value at current levels, highlighting that MotorCycle Holdings "continues to screen too cheap on ~6.5x FY24F PE."

In addition, its analysts continue to forecast juicy dividend yields from this ASX income share. They have pencilled in fully franked dividends per share of 20 cents in both FY 2024 and FY 2025. Based on the current MotorCycle Holdings share price of $2.21, this implies yields of 9%.

Morgans currently has an add rating and a $2.60 price target on its shares, which suggests almost 18% upside for investors.

The post Massive dividend yields: Analysts name the ASX income shares to buy appeared first on The Motley Fool Australia.

Both of these shares have been tipped as buys and are forecast to provide investors with significantly bigger-than-average yields in the near term. Here's what you need to know:

MotorCycle Holdings Ltd (ASX: MTO)

Analysts at Morgans think that this leading motorcycle dealership and accessories company's shares are cheap at current levels.

The broker highlights that the company's share price "continues to screen too cheap on ~6.5x FY24F PE."

As a result, Morgans has put an add rating and a $2.60 price target on its shares. This implies a potential upside of over 24% for investors from current levels.

Another positive is that the broker is expecting the company to pay fully franked dividends per share of 20 cents in both FY 2024 and FY 2025. Based on the current MotorCycle Holdings share price of $2.09, this implies yields of 9.5%.

Universal Store Holdings Ltd (ASX: UNI)

Another ASX share that could be cheap right now is youth fashion retailer Universal Store.

Morgans is also positive on Universal Store and highlights that its "attractive array of medium-term growth prospects is undervalued at a single digit FY25 P/E."

The broker has an add rating and a $4.25 price target on its shares, which implies a potential upside of more than 35% over the next 12 months.

Morgans is also forecasting some very big dividend yields in the near term. It expects the retailer to pay fully franked dividends per share of 26 cents in FY 2024 and 29 cents in FY 2025. Based on the current Universal Store of $3.10, this will mean yields of 8.4% and 9.35%, respectively.

The post 2 dirt cheap ASX shares with big dividend yields appeared first on The Motley Fool Australia.

That's because analysts at Morgans have named them as buys and tipped them to offer above-average yields.

Here's what you need to know:

Dexus Industria REIT (ASX: DXI)

The first ASX dividend stock that Morgans thinks is a buy is Dexus Industria. It is a real estate investment trust with a focus on industrial warehouses. Its analysts have an add rating and a $3.19 price target on its shares.

In respect to income, Morgans is forecasting dividends per share of 16.4 cents in FY 2024 and 17 cents in FY 2025. Based on the current Dexus Industria share price of $2.74, this will mean dividend yields of 6% and 6.2%, respectively.

MotorCycle Holdings Ltd (ASX: MTO)

Morgans also thinks that this motorcycle dealership and accessories company could be an ASX dividend stock to buy this month. Its analysts highlight that it "continues to screen too cheap on ~6.5x FY24F PE." The broker currently has an add rating and a $2.60 price target on its shares.

As for dividends, Morgans is forecasting fully franked dividends per share of 20 cents in both FY 2024 and FY 2025. Based on the current MotorCycle Holdings share price of $2.14, this implies big yields of 9.3%.

Universal Store Holdings Ltd (ASX: UNI)

A final ASX dividend stock that Morgans is tipping as a buy is Universal Store. It is the youth fashion retailer behind the eponymous Universal Store brand. In addition, it owns the Perfect Stranger, Thrills, and Worship brands. Morgans has an add rating and a $4.25 price target on its shares.

In addition, the broker is forecasting fully franked dividends per share of 26 cents in FY 2024 and 29 cents in FY 2025. Based on the current Universal Store of $3.57, this will mean yields of 7.3% and 8.1%, respectively.

The post Morgans says these high-yield ASX dividend stocks are buys appeared first on The Motley Fool Australia.

There has been plenty of volatility since the start of 2022 as investors weigh up the impact of elevated inflation, high interest rates, and general economic uncertainty.

Sometimes investors can become too pessimistic about ASX shares in the short term, particularly if they don't take into account a possible recovery of earnings and improvement of the economic picture in, say, three years' time.

With that in mind, I like the look of these two ASX shares.

GQG Partners Inc (ASX: GQG)

The GQG share price has fallen 14% since 28 July 2023, making the already-cheap fund manager look even more cheap in my opinion.

When it comes to fund managers, there are a few things I like to see – a very capable investment team, long-term investment outperformance, and funds under management (FUM) inflows.

Everything I've seen of founder Rajiv Jain and the rest of the GQG investment team has been impressive. Each of the main investment strategies the company offers has achieved long-term outperformance of their respective benchmarks.

GQG recently gave its FUM update for August 2023 which showed that it had experienced net inflows of US$7.3 billion for 2023 to date, up from the $6 billion it had reported in its update for July 2023.

The ASX share has guided that it aims to pay out 90% of its distributable earnings as a dividend. Commsec suggests the company could pay a dividend per share of 15.3 cents in FY24. That implies a possible dividend yield of 10.7%.  

Those projections also imply GQG could be trading at around eight times its FY24 distributable earnings, which would be a very cheap price/earnings (P/E) ratio for a business that is growing its FUM and earnings.

MotorCycle Holdings Ltd (ASX: MTO)

This company is relatively unknown yet it claims to be the biggest player in its sector in Australia. It is a leading motorcycle dealership and accessories provider with more than 40 locations across Australia in Queensland, New South Wales, Victoria, and the ACT.

The business sells new motorbikes (all top-10 selling brands), used motorbikes, parts, and insurance. It also provides servicing and repairs.

Thanks to acquisitions, the ASX share was able to report in FY23 that its underlying earnings before interest, tax, depreciation and amortisation (EBITDA) increased 13% and net profit after tax (NPAT) was flat at $23 million.

Motorcycle Holdings said that it will continue to consider acquisition opportunities, which is a good sign that it could increase its market share during these lean times. The ASX share is also looking to manage costs "closely" and drive "productivity improvements".

The projections on Commsec suggest it looks very cheap after its 35% fall from January 2022. It could make earnings per share (EPS) of 32.3 cents in FY24 with a possible annual dividend per share of 20 cents. That would put the forward P/E ratio at under seven and the forward grossed-up dividend yield at 13.1%.

The post I think these 2 ASX shares are big bargains appeared first on The Motley Fool Australia.

Here's what you need to know about them:

MotorCycle Holdings Ltd (ASX: MTO)

The team at Morgans thinks that this leading motorcycle dealership and accessories company would be a great option for income investors right now.

Its analysts see significant value at current levels and highlight that MotorCycle Holdings "continues to screen too cheap on ~6.5x FY24F PE." The broker has an add rating and a $2.60 price target on its shares.

What about dividends? Well, Morgans is expecting the company to pay fully franked dividends per share of 20 cents in both FY 2024 and FY 2025. Based on the current MotorCycle Holdings share price of $2.20, this implies juicy yields of 9.1%.

Universal Store Holdings Ltd (ASX: UNI)

Another ASX dividend share that has been tipped to provide investors with big dividend yields is Universal Store. It is the youth fashion retailer behind the Universal Store, Perfect Stranger, Thrills, and Worship brands.

Analysts at Morgans are also very positive on Universal Store. They see a combination of big gains and big yields on offer with its shares. And much like Motorcycle Holdings, the broker feels "UNI's attractive array of medium-term growth prospects is undervalued at a single digit FY25 P/E."

Morgans currently has an add rating and a $4.25 price target on its shares.

As for dividends, it is expecting the retailer to pay fully franked dividends per share of 26 cents in FY 2024 and 29 cents in FY 2025. Based on the current Universal Store of $3.80, this will mean yields of 6.8% and 7.6%, respectively.

The post Boost your income with these ASX dividend shares with ~7%+ yields appeared first on The Motley Fool Australia.

Two that have been given the thumbs up by the broker are listed below. Here's what it is saying:

Flight Centre Travel Group Ltd (ASX: FLT)

The first ASX share that could be a buy in September according to Morgans is travel agent giant Flight Centre.

Morgans has an add rating and a $26 price target on Flight Centre's shares. This implies a potential upside of 32% over the next 12 months.

The broker was pleased with the company's performance in FY 2023 and feels that the coming years could be even better thanks to its transformed business model. It said:

Given we forecast a strong recovery over coming years, we have made only minor changes to our forecasts. However we note that there is substantial upside to consensus estimates if FLT achieves its 2% margin target in FY25. With confidence that the travel recovery has much further to go and the benefits of FLT's transformed business model emerging, we think the company is well placed over coming years. We maintain an Add recommendation.

MotorCycle Holdings Ltd (ASX: MTO)

Another ASX share that has been named as a buy by Morgans is MotorCycle Holdings. It is one of Australia's leading motorcycle dealerships and accessories companies.

Morgans has an add rating and a $2.60 price target on its shares. This suggests a potential upside of 19% for investors from current levels.

The broker notes that the company outperformed expectations in FY 2023. Despite this, its shares still trade on dirt-cheap multiples and offer a very big dividend yield. It explains:

MTO delivered A$23m NPAT (flat pcp), exceeding our expectations and delivering a 6% beat on consensus NPAT (+15% on MorgansF). […] Importantly, MTO pointed to improved trade conditions in the underlying business in 4Q23, which have continued into 1H24. While we assume some further deterioration in the ex-Mojo business in FY24, we expect the rate of this to slow. Additionally, the combined business will benefit from a full 12-month Mojo contribution. MTO continues to screen too cheap on ~6.5x FY24F PE and a ~9.5% yield. Add.

The post Morgans names 2 ASX shares to buy in September appeared first on The Motley Fool Australia.

It's worth noting here that just because something has fallen doesn't mean it will go back to its former price, or even rise at all.

With the three ASX shares that I'm going to talk about, I believe that in two or three years we'll look back at the current prices and think they were great prices to buy at.

Universal Store Holdings Ltd (ASX: UNI)

Universal Store owns a few premium youth fashion brands aimed at 16 to 35-year-olds. It has the Universal Store network, THRILLS, and Worship brands, and it's currently trialling the Perfect Stranger brand as a standalone retail concept.

If we look at how far Universal Store has fallen, it's down more than 40% since January 2023. The company gave a trading update in May that said some customers are reducing their spending, which is expected to continue into FY24.

In the first quarter of FY24, the company is expecting to have a total of around 99 stores. Management said the business is driving productivity both in-store and online, and optimising cost efficiencies thanks to its new distribution centre in Eagle Farm, Brisbane.

The company said it will "continue to make the right long-term decisions despite the challenges of near-term sales volatility and a difficult macro environment". I think this is the right strategy to be taking.

I also think the ASX share's profit will bounce back when economic conditions start improving.

According to Commsec, the Universal Store share price is valued at less than 9x FY25's estimated earnings with a possible grossed-up dividend yield of 10.4% for that financial year.

Frontier Digital Ventures Ltd (ASX: FDV)

This second unloved ASX share is a company that owns stakes in various leading online marketplaces in regions like South America and Asia. Many of its marketplaces are for categories like property and vehicles.

'Emerging' markets typically have a lower current e-commerce adoption rate than developed Western countries, so there is plenty of room for revenue to grow simply through more users transacting on the internet in those countries.

The Frontier Digital Ventures share price is down by more than 60% in the past year, despite the company being the most profitable it has ever been.

The ASX share reported in the first three months of FY23, it made an operating cash flow of $0.6 million. Portfolio earnings before interest, tax, depreciation and amortisation (EBITDA) grew 190% to $2 million.

Digital classified businesses can achieve impressive operating profit margins once they scale to a sufficient level.

If the ASX share, and underlying businesses, can keep delivering operating profits (and growth), it may rekindle investor excitement. Over three to five years, I think this could be one of the top performers because of how far it has fallen.

MotorCycle Holdings Ltd (ASX: MTO)

This business claims to be the leading Australian motorcycle dealership and accessories provider. It also provides repairs and servicing. The company has over 40 locations in Victoria, NSW, the ACT, and Queensland and sells all of the top 10 selling brands in Australia.

This ASX share has fallen more than 40% from January 2022, making it much cheaper, even though its operations are now the largest they have ever been.

As the leading motorcycle business in Australia, it has a strong market position and I believe is well-placed to benefit when macroeconomic conditions don't seem so gloomy to the market.

There are a number of positives as to why its earnings could do well in the shorter term. It's working on its costs, acquisitions can contribute a full year of earnings, and its growing number of locations can help offset any same-dealership sales declines in FY24.

If the company is able to achieve the projected earnings per share (EPS) on Commsec, then the price/earnings (P/E) ratio could seem very cheap.

According to Commsec, the MotorCycle share price is valued at 7x FY25's estimated earnings, with a possible grossed-up dividend yield of 9.2%.

The post 3 unloved ASX shares I think have been mispriced by the market appeared first on The Motley Fool Australia.

For readers who haven't heard of the business before, it describes itself as Australia's leading motorcycle dealership and accessories provider. It has more than 40 locations across Queensland, NSW, Victoria, and the ACT.

The company is involved with selling new motorcycles, used motorcycles, accessories and parts, insurance, and mechanical protection plans, as well as providing servicing and repairs.

Motorcycle Holdings represents a "diverse portfolio of brands, selling all of the top 10 selling motorcycle brands in Australia".

Dividend expectations

While forecasts can change, at the moment, the motorcycle company is projected to pay an annual dividend per share of 12 cents per share in FY24 and FY25, according to Commsec numbers.

At the current Motorcycle Holdings share price, this estimated dividend means the company could pay a grossed-up dividend yield of almost 10% over the next two financial years.

While that sounds like a big yield, it doesn't represent a large dividend payout ratio. In both FY24 and FY25, MotorCycle Holdings is projected to pay just under half of its earnings in FY24 and FY25 as a dividend.

Earnings could remain resilient

The ASX small-cap share has acknowledged there could be challenging macroeconomic conditions because of rising interest rates and cost of living pressures which could impact demand.

In light of that, it's focusing on cost control, including reducing store costs across the network, while "maximising cost of goods efficiencies". Despite that, the cost of doing business was expected to rise in the second half of FY23 because of inflation.

But there are some positives. The businesses of Forbes and Davies and Wide Bay Motorcycles will contribute their first full year of earnings in FY23. The acquisitions of Mojo Group and TeamMoto Townsville will provide increased contributions in the second half.

Management believes the company's growth strategy will help insulate it from any further deterioration of the economy. This strategy includes growing its geographic footprint and greater product diversification.

In FY24, MotorCycle Holdings shares are predicted to generate 26.1 cents of earnings per share (EPS) and 26.6 cents of EPS in FY25.

If it's successful at generating the FY24 profit figure — which it may not — it'd be priced at under 7x FY24's estimated earnings. That's an incredibly low price/earnings (p/e) ratio for a business that claims to be the market leader in Australia and continues to make bolt-on acquisitions.

Foolish takeaway

While this isn't exactly a well-known business, I think the ASX small-cap share could be a contender for a very strong dividend yield over the next two years, and its earnings may be undervalued by the market.

The post This ASX small-cap share could pay a dividend yield of 10% in FY24 appeared first on The Motley Fool Australia.

The $125 million company tends to fly under investors' radars despite being behind more than 40 motorcycle dealerships and accessories retail franchises across Australia.

And one of its newly instated insiders appears to have made the most of recent weakness in the stock.

The MotorCycle Holdings share price has tumbled more than 41% over the last 12 months to trade at $1.72 at the time of writing.

Let's take a closer look at the insider buying going down at the ASX share this week.

Insider forks out $1m on embattled ASX share

MotorCycle Holdings director and executive Michael Poynton has topped up his stake in the ASX share – forking out more than $1.1 million to do so.

The insider snapped up 750,000 of the company's shares for $1.53 apiece last Friday, leaving him with a 9% stake. And what a buy it's proven to be – the parcel has already provided $150,000 of capital returns.

Interestingly, however, just a few months back Poynton didn't have any position in the ASX share.

The now-insider was the co-founder of motorcycle wholesale business Mojo Motorcycles – which was snapped up by MotorCycle Holdings for $60 million last year.

Of the purchase price, $20 million was paid in cash, up to $10 million was deferred, and the rest provided as scrip with each share valued at $2.60. That left Poynton with a notable stake in the ASX-listed company.

And he isn't the only insider buying up the stock this month.

MotorCycle Holdings founder, managing director, and CEO David Ahmet bought 50,000 shares for $1.72 each in an ASX market trade on 14 March. The following day, director Peter Henley snapped up 8,900 shares for $1.69 apiece.

What's been dragging on MotorCycle Holdings shares?

So, what might be weighing the MotorCycle Holdings share price down lately? Well, the company operates in a cyclical environment.

When the cost-of-living rises – perhaps spurred by interest rate hikes – people tend to put a pause on non-essential purchases. Indeed, the company noted demand for motorcycles has tumbled in last month's half-year earnings release.

Meanwhile, the cost of doing business is increasing, driven by higher wages, transport, and logistics costs.

MotorCycle Holdings posted $277.5 million of income last half – a 17% year-on-year improvement. Though, its net profit after tax (NPAT) slumped 17% to $10.5 million.

But management is confident it can turn things around – and recent buying suggests insiders might be too. Ahmet commented:

Despite the current economic challenges, the group has continued to invest for future growth including our people and digital capability, our dealer network, and our warehouse and supply chain management systems.

We are confident that the business improvements and capabilities we are investing in will strengthen our competitive position and generate long-term value for shareholders.

The post This little-known ASX share is down 40% in a year, and one insider just bought $1m worth appeared first on The Motley Fool Australia.

One such company that I believe could be flying under the radar is Motorcycle Holdings Ltd (ASX: MTO).

Sitting at a market capitalisation of roughly $115 million, the motorcycle dealership operator rarely features in headlines. However, I'd rather invest based on performance metrics than attention metrics. After all, it's the profits that will determine long-term returns, not the number of mentions.

The company's shares have experienced a landslide over the past year, falling 46% amid crimped spending due to higher interest rates.

Now at $1.59 apiece, touting a tantalising dividend yield of more than 10%, and a solid history of top-line growth, could Motorcycle Holdings be one the best-kept secrets among ASX dividend shares?

Understanding the business

Motorcycle Holdings started its life as a single dealership in 1989. Today, the company owns and operates more than 40 locations across Australia and New Zealand — capturing nearly 14% of the national market.

The company is taking a roll-up approach to a heavily fragmented industry. According to its 2022 annual report, Motorcycle Holdings estimates there to be around 700 dealerships across Australia. Aside from itself, there are only three operators that own more than four locations.

A prime example of this approach to growth is the most recent acquisition of Mojo Motorcycles, completed in October last year. The deal brings several new brands under the Motorcycle Holdings umbrella, increasing its exposure to agriculture and scooter markets.

On 27 February, the company posted revenue of $277.5 million for the first half of FY23 — up 17% on a statutory basis. Growth was aided by a $27.7 million contribution from the Mojo acquisition with only two months of being on the company's books.

However, net profit after tax (NPAT) sank 17% to $10.5 million and shareholders raised concerns as national unit sales declined.

Could it be a cheap ASX dividend share?

I like to look at an investment from several different angles when assessing whether or not a company is 'cheap'. Firstly, how does it compare to its peers on trailing fundamental metrics?

While there may not be other listed motorcycle dealers, car dealership operators are a close match.

As noted below, Motorcycle Holdings currently commands the highest gross margins, lowest earnings multiple, and highest dividend yield.

Secondly, I want to explore the future potential of this ASX dividend share. This due diligence can help avoid stumbling into a dividend trap.

Ultimately, I want to gain an understanding of the company's potential future earnings profile. If earnings suddenly fall away, there is a greater risk of dividends getting slashed — turning that generous yield into a piddly payout.

Based on my assumptions, I think Motorcycle Holdings will be able to grow its NPAT to approximately $27 million by FY28 and generate more than $680 million in revenue (shown above).

I personally believe these estimates are conservative. Though, as a base case, it gives me confidence in future dividends.

Furthermore, if the company can achieve this and trade on a P/E ratio of roughly eight times, its future valuation could be 75% higher.

Where there could be flaws

No sound investment is made without considering how it could come apart at the seams. While my above projections may look rosy, there are risks that could turn those numbers into mush.

The most obvious risk to Motorcycle Holdings and its ASX dividend share status is a weak economic environment. The Harley-Davidson quickly moves down the priority list if Aussies need to hunker down for some tough financial times — hurting the company's sales in the process.

Another risk factor is the razor-thin margins associated with the dealership industry.

The projections above assume 4.5% profit margins in FY23 and 4% for each year after. Even a small variation of 1% can drastically change earnings, leaving the company susceptible to dividend cuts.

Would I buy this ASX share for the dividends?

I must admit, the tight margins are not akin to what I would normally look for in a long-term, marketing-beating investment. It tends to indicate a lack of pricing power and/or a highly competitive industry.

In saying that, Motorcycle Holdings' management holds a lengthy track record of successful growth through consolidation. The co-founder and CEO, David Ahmet, has substantial skin in the game with a 16% stake and comes across as an extremely passionate and intelligent operator.

Personally, I do like the prospects of this ASX dividend share given the headroom for growth.

The post Could this high-yielding dividend share be the best-kept secret on the ASX? appeared first on The Motley Fool Australia.