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

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

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

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

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

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

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

Fuelling up

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

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

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

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

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

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

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

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

Gliding off the ASX

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

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

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

Cashing in on higher interest rates

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

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

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

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

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

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

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

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

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

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

In Wednesday's trade, the ASX 200 has followed United States markets lower as a host of Wall Street executives warn of tougher times ahead.

Goldman Sachs' CEO David Solomon said a US recession in 2023 is a possibility and that it should be no surprise that job cuts could be on the table.

JPMorgan Chase's Jamie Dimon, in between having yet another dig at cryptocurrencies, likening them to pet rocks, warned of a mild to hard US recession next year.

Bank of America CEO Brian Moynihan said the bank has slowed hiring.

And Morgan Stanley said it will reduce its global workforce by about 2,000.

"We have not yet seen the bottom on equity prices," said Lauren Goodwin, portfolio strategist at New York Life Investments on Bloomberg. "While this phase of equity market volatility is likely to end in the next few months, earnings have not yet adapted to a recessionary environment."

The big US investment banks are about 10,000 miles away from the home of the ASX, but the old saying "when Wall Street sneezes, the ASX catches a cold" usually rings true. 

2) For a change, the stock market moved in response to the upcoming economic slowdown – something that will impact corporate earnings – rather than the move in bond yields, which in turn reflect future interest rate expectations.

Although there are the inevitable outliers, consensus is that central banks will be finished raising interest rates at or before the middle of next year. 

In other words, the heavy lifting on interest rates has already been done. Next up is estimating the impact it will have on corporate profitability.

You could argue/guess that most of the coming economic slowdown is already priced into many stocks. I've repeatedly used the example of high-quality retailer JB Hi-Fi Limited (ASX: JBH), which trades on a valuation that is expecting "bad things" ahead. 

3) The stock market looks forward, with discretionary consumer stocks like JB Hi-Fi likely to move higher before earnings have bottomed for this economic cycle.

As to where they will bottom – and the bottom could still be higher than current levels of profits – is the great unknown.

As to when they will bottom, the pundits are queuing up to take a guess.

Over in the US, quoted on Bloomberg, David Bailin, chief investment officer at Citi Global Wealth, said markets have never bottomed before a recession has begun. "If there is in fact going to be a recession next year, if we are going to see a period of unemployment rising in the country, then we would expect that markets would have to settle down from where they are today over the course of the next several months."

Back in Australia, Bell Potter's Richard Coppleson said on Livewire the bear market is not over yet. The worst is likely still ahead of us.

Coppleson said we could see a lot of market pain at the start of the year, with a low in mid-March 2023. 

"The patterns of the past suggest we're coming close to the end of the current rate rise cycle and the bear market. If March 2023 becomes the final market low, and the start of the bull market run, investors may find opportunities there. They'll need to have a strong stomach though. The evidence for a change will take time to appear. Bear markets don't last forever after all."

Writing in its November 2022 monthly report, the 1851 Emerging Companies Fund believes we will not see a hard landing for the consumer during 2023, and in a contrarian bet, has been progressively increasing its weighting to the retail sector.

"Our expectation is better days lie ahead for the Australian small cap market and we are progressively rotating the portfolio to take advantage as we enter 2023."

They are definitely getting in ahead of the game… which is the game when it comes to stock picking.

4) So what's an investor to do?

I'd suggest four things…

1. Keep a healthy cash balance. These days you get paid for waiting. Plus, it helps you sleep well at night. I'm quite cashed up having recently received funds from a company that was bought out, I have more to come from my Nearmap Ltd (ASX: NEA) shares (also acquired), plus even more to come from my MSL Solutions Ltd (ASX: MSL) shares (in the process of being acquired).
   
2. Don't sell out of any existing positions just because you think markets might tumble further between now and March 2023. Jumping in and out of the market only makes money for your broker. You'll very likely get the timing very wrong.
   
3. Keep adding to existing positions – or take out starter positions in new holdings – if you think are well placed to weather an economic slowdown, and trade on modest valuations. Easier said than done but hey, that's investing.
   
4. There's unlikely to be a time when you should go "all in" on a stock or indeed into the market. But you can certainly look to put more money to work should the market fall another say 10% to 20% from here. The problem is, when it happens, that's hard to stomach, because inevitably, you can't pick the bottom, and new money invested in the market can quickly be in the red. 

The time to commit to such a course of action is now, when things are relatively calm. Something like, if the markets fell by say 20% from here, committing to invest at least 50% of your cash balance into stocks. It'll be scary, but in five years time, it'll very likely look a brilliant move.

The post As 2 experts predict the stock market is yet to bottom, here are 4 things every investor can do now to prepare for the worst appeared first on The Motley Fool Australia.

But let's dive a little deeper into these market gyrations by checking out the ASX 200 shares currently topping the share market's trading volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume this Wednesday

Telstra Group Ltd (ASX: TLS)

First up today is the ASX 200 telco Telstra. So far this Wednesday, a notable 13.18 million Telstra shares have been phoned home. There's been no new developments or announcements out of the company today. Saying that, we have seen a big drop in the value of the telco's shares today thus far.

At present, the Telstra share price is down by a nasty 1.12% at $3.955 a share. Given Telstra's relatively low share price compared to its size, this move is probably enough to elicit the volumes we are seeing.

Nearmap Ltd (ASX: NEA)

Next up today we have ASX 200 aerial mapping company Nearmap. In a rare appearance on this list, Nearmap has watched as a hefty 14.32 million of its shares have chartered their way to new owners this session. Nearmap is in the midst of a takeover offer from Thoma Bravo.

This suitor has offered to acquire Nearmap in full for a price of $2.10 a share. Nearmap shares have now climbed more than 6% over the past week to reach that takeover price today. All of this drama is probably behind the volumes we are seeing.

Pilbara Minerals Ltd (ASX: PLS)

Finally today we have ASX 200 lithium share Pilbara Minerals to discuss. So far this Wednesday a whopping 28.84 million Pilbara shares have changed owners. With this company, we haven't had any fresh news out either. However, this session has seen some rather bouncy share price moves.

Pilbara initially opened in the red this morning, sinking as low as $4.41 a share. But investors seem to have improved their outlook on the lithium leader as the day has progressed. Pilbara shares are now up a healthy 1.45% to $4.56 each. These swings have probably resulted in the high volumes we are witnessing. 

The post Here are the 3 most heavily traded ASX 200 shares on Wednesday appeared first on The Motley Fool Australia.

While the S&P/ASX 200 Index (ASX: XJO) has dumped 11% year to date, the S&P/ASX 200 Information Technology Index (ASX: XIJ) has tumbled 36%.

The broader S&P/ASX 200 All Technology Index (ASX: XTX), meanwhile, has fallen 35% in 2022.

If there was ever a time to remind market watchers of the winners that can be found in the sector, this would be it.

Here's how an ASX investor could have turned $1,000 into nearly $50,000 in just 10 years by investing in ASX tech shares.

3 ASX tech shares that turned $1,000 into $50,000

If an investor split $1,000 between these three ASX tech shares 10 years ago, investing $333 in each, here's how their buy would have turned out.

All in all, an initial $1,000 investment in these ASX tech shares would have returned a total of $49,868 as of yesterday's close. That's certainly nothing to scoff at.

The biggest gain in that time was posted by the only stock not to pay a dividend.

Nearmap shares were trading at just 3 cents this time 10 years ago. They closed Wednesday's session at a whopping $1.99.

Meanwhile, shares in Altium were swapping hands for 79 cents this time last decade. They're now worth $36.61 apiece.

The company has also offered a shareholder who bought $333 worth of its stock in October 2012 a total of $1,044 worth of dividends over the life of their investment. Though, it didn't pay out its first fully franked offering until this year.

Finally, the HUB24 share price lifted from 76 cents this time last decade to trade at $25.40 as of Wednesday's close.

Someone who bought $333 worth of the ASX tech favourite's shares back then would have received around $197.50 in dividends since then, the majority of which were fully franked.

And, of course, if they had chosen to reinvest those dividends, they would have been even better off due to the compounding effect.

The key takeaway

While times are tough in 2022, particularly for tech shares, there will likely always be winners hidden on the ASX. The trick is to know where to look.

The post 3 ASX tech shares that have managed to turn a $1,000 investment into $50,000 appeared first on The Motley Fool Australia.

That's a huge increase. In dollar terms, shares in the aerial survey company that cost investors $1.03 apiece three months ago are now swapping hands for $2.07.

It's even more impressive when considering that the technology sector has been hit by inflation and the impact of rising interest rates. Despite these headwinds, though, the S&P/ASX 200 All Technology Index (ASX: XTX) has also managed to lift 13.17% over the same period.

Investors might wonder if Nearmap's shares are now expensive to buy and what upside return they could gain from owning them.

Let's cover some metrics for Nearmap shares and then hear what the experts have to say.

Are Nearmap shares overvalued or beginning to ripen?

A quick glance at some of the company's metrics might provide hints but not the full story.

Nearmap's price-to-sales (P/S) ratio is around 7.12, while the industry's P/S ratio is roughly 39.06. This means it's significantly less expensive to buy a unit of sales in Nearmap than the aggregate of its peers in the same industry.

Analysts at QVG Capital also believe Nearmap has potential, as shares of Nearmap are part of the company's portfolio.

Analysts note that although its ratios are not the best of the best, it may not be the right benchmark to use in the first place, stating that "we know near term earnings are the wrong lens [to] view these companies".

Tech companies often have a long runway to build up to significant earnings and profitability and can be the hardest hit by rising interest rates.

Despite this, QVG Capital believes Nearmap holds similar potential to WiseTech Global Ltd (ASX: WTC) and IDP Education Ltd (ASX: IEL), stating in a memo to clients that they offer "high customer value propositions and good unit economics tend to surprise positively along the journey".

So it might not be too late to pick up Nearmap shares, at least from their point of view.

Nearmap share price snapshot

The Nearmap share price is up more than 34% this year to date. That's a significant increase over the S&P/ASX 200 Index (ASX: XJO), which is down by 9.70% for the same period.

The company's market capitalisation is currently $1.04 billion.

The post Up 100% in 3 months, is it too late to buy Nearmap shares? appeared first on The Motley Fool Australia.

At the time of writing, the aerial imagery specialist's shares are down 0.24% or half a cent to $2.075 apiece.

In contrast, the S&P/ASX 200 Index (ASX: XJO) is down 2.44% to 6,838.8 points.

Nearmap announces update on proposed takeover

In today's statement, Nearmap provided an update on the proposed scheme by Thoma Bravo to acquire all of the company's shares.

For the deal to progress onto the next stage, shareholder approval of at least 75% of the votes is required.

This is just one of several conditions within the scheme implementation deed that needs to be satisfied.

The meeting is expected to be held sometime in November this year but will be advised in October.

The Nearmap board has unanimously recommended that shareholders vote in favour of the scheme at the meeting.

However, this is subject to an independent expert concluding that the offer is in the best interest of shareholders, and in the absence of a superior proposal.

Thoma Bravo is offering $2.10 cash per Nearmap share. This represents a 67% premium to the 6-month volume weighted average price of $1.26 to 12 August 2022 (the day before the offer was made).

While you won't need to do anything for now, keep an eye out for the scheme booklet which will be sent out next month. It will contain information regarding the scheme, an independent expert's report and details of the meeting.

Nearmap share price summary

Since this time last year, Nearmap shares are up 6% on the back of the offer from Thoma Bravo.

When looking at year-to-date, the share is further in the green by 34%.

Based on today's price, Nearmap commands a market capitalisation of roughly $1.04 billion and has 501.82 million shares outstanding.

The post What's going on with the Nearmap share price on Wednesday? appeared first on The Motley Fool Australia.

That's because compared to their earnings, the share price is still a high multiple.

It's not a massive surprise though, as the 2022 correction has come after a decade-long bull market for growth stocks. By November last year, there certainly were some ASX shares trading at astronomical price-to-earnings (P/E) ratios.

If a business had a PE multiple of 100 a year ago and now trades at 50, then it's not unreasonable to say it is still expensive.

But just judging a stock by its PE ratio is overly simplistic.

Certainly, the analysts at QVG Capital believe this, as two ASX shares they love fit into this category.

Market leaders will keep surprising us

The QVG team holds both WiseTech Global Ltd (ASX: WTC) and IDP Education Ltd (ASX: IEL) in its Long Short Fund.

"They are both 'highly rated' (expensive) on a one year forward multiple but we know near term earnings are the wrong lens [to] view these companies," read their memo to clients.

"Wisetech and IDP Education both have globally leading products and are early in their long runway of global growth."

Both companies enjoyed a warm reception from investors over last month's reporting season.

Logistics software maker Wisetech saw its shares soar 17.3% over August, while international education provider IDP rose almost 22% over July and August.

It was no surprise for the QVG team, considering they are both leaders in their fields.

"Also, businesses like IDP and Wisetech with dominant products, high customer value propositions and good unit economics tend to surprise positively along the journey," read the memo.

"The earnings beat/raises we saw this reporting season from them are an example of that."

Arrested development

The QVG analysts also loved another ASX share that was on the way to becoming another WiseTech or IDP Education.

"Nearmap Ltd (ASX: NEA) is somewhat analogous — albeit earlier stage and more capital intensive," read the memo.

"But our return from Nearmap was effectively 'front ended' as they agreed to a takeover at a 40% premium."

Indeed, a private capital buyer Thoma Bravo will acquire the mapping technology company at $2.10 per share.

The QVG team regrets that it won't be able to fully realise the investment potential of Nearmap. But there is a bright side.

"Whilst we're disappointed in not reaping return over the journey as Nearmap scales, the ability for us to take our return upfront and redeploy the capital into other opportunities is good compensation."

The post 2 ASX shares that look expensive but have years of growth ahead: QVG Capital appeared first on The Motley Fool Australia.

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

EML Payments Ltd (ASX: EML)

The EML Payments share price is up 9% to $1.16. Investors have been buying this payments company's shares following the release of its full year results. EML delivered a better than expected profit result and announced a small share buyback. This appears to have led to short sellers closing positions in a hurry.

Nearmap Ltd (ASX: NEA)

The Nearmap share price is up over 5% to $2.07. This morning this aerial imagery company announced that it has accepted a takeover approach. The Nearmap board is unanimously recommending that shareholders vote in favour of Thoma Bravo's $2.10 cash per share offer. This is in the absence of a superior proposal and subject to the independent expert's report.

NIB Holdings Limited (ASX: NHF)

The NIB share price is up over 7% to $7.81. The catalyst for this has been the release of the private health insurer's full year results for FY 2022. NIB reported a 7.2% increase in revenue to $2.8 billion but a 16.6% decline in net profit to $133.8 million. The latter, which was driven by investment losses, was slightly ahead of consensus estimates.

Nick Scali Limited (ASX: NCK)

The Nick Scali share price is up 3% to $10.32. Investors have been buying this furniture retailer's shares after its full year results impressed the market. Despite the cost of living crisis, the retailer delivered an 18.2% increase in revenue to $441 million. And while margin pressures led to its underlying profit falling 4.9% to $80.2 million, this didn't stop the company from increasing its dividend in FY 2022.

The post Why EML, Nearmap, NIB, and Nick Scali shares are charging higher appeared first on The Motley Fool Australia.

The board's decision comes after the bidder undertook its seven-day due diligence where both parties entered into a scheme implementation deed.

Shares in the aerial mapping ASX tech company jumped 4.8% to $2.06 in early trade. But the Nearmap share price stayed under the $2.10 offer price as hopes of a competing bid faded.

Why Nearmap's board is backing the takeover

Nearmap's board agreed to the scheme of arrangement after it engaged in a "robust" review process with its financial and legal advisors.

It has urged shareholders to vote in favour of the scheme in the absence of a better offer. The Nearmap board believes this is an attractive offer as it is at a premium to where the Nearmap share price was trading recently.

The board also pointed out that the all-cash takeover gave certainty of value to shareholders. The limited set of conditions attached to the deal was also a deciding factor.

Takeover conditions

The scheme contains several standard conditions. This includes an independent expert issuing a report that finds the takeover to be in the best interests of shareholders.

The transaction must also be approved by Australia's Foreign Investment Review Board and has to be cleared in the United States.

There are also certain circumstances whereby either the bidder or target has to pay the other a break fee of up to $10.5 million.

Naturally, Nearmap's shareholders will have to vote in favour of the scheme, and the local court give its blessing, for the deal to go ahead.

What did the directors say?

Nearmap chairman Peter James commented on the takeover bid, saying:

Nearmap has achieved considerable success to date in Australia and North America and while, in the long-term, there remains potential future growth trajectory, this has to be balanced with the business and market risks that Nearmap shareholders face remaining as a publicly listed independent company.

In considering the merits of the Thoma Bravo proposal, the Directors have at all times been guided by our overarching responsibility to consider the interests of Nearmap and all of its shareholders. It is our view that the Thoma Bravo Scheme will realise attractive and certain value for shareholders in current markets.

Next steps

A scheme booklet containing details of Nearmap's takeover and an independent expert's report will be sent to shareholders in October 2022.

The shareholder meeting to vote on the scheme is expected to be held the month after.

If everything goes to plan, the scheme is expected to be implemented by late November.

The post Nearmap share price jumps 5% on takeover update appeared first on The Motley Fool Australia.

With a flurry of news and ASX announcements, it can be hard keeping up.

So, here's the lowdown on some of the biggest movers from ASX reporting season this week. 

You'll find links to our relevant Foolish earnings coverage for further reading.

The ASX winners

The Nearmap Ltd (ASX: NEA) share price soared above the clouds this week, propelling 30%. While the aerial imaging company lifted the lid on its FY22 results, it was a takeover bid that had the market excited. 

The Temple & Webster Group Ltd (ASX: TPW) share price was also on fire, lighting up 30% on Tuesday before eventually running out of steam to post a 7% gain across the week. Investors cheered as the online furniture retailer delivered 31% revenue growth in FY22 while its earnings margin came in at the high range of guidance.

The IPH Ltd (ASX: IPH) share price also hit a home run, finishing the week 17% higher. The market appears pleased with the company's global ambitions. Alongside its FY22 results, IPH announced a $387 million acquisition of Smart & Biggar, a leading Canadian intellectual property firm. This marks IPH's first expansion beyond the Asia Pacific region.

The Brambles Limited (ASX: BXB) share price also ended the week in the winners' column, pumping out a 12% gain. The logistics group shook off global supply chain challenges to deliver 9% sales growth in FY22, ahead of guidance, and boosted its final dividend.

Last but certainly not least, the BHP Group Ltd (ASX: BHP) share price punched in a 7% weekly rise, fortifying its crown as the ASX's largest company. The Big Australian beat expectations in FY22 as strong cash flow performance led to a juicy final dividend of US$1.75 per share.

The ASX losers

While Temple & Webster soared, the pain continued for fellow ASX e-commerce share Redbubble Ltd (ASX: RBL). The Redbubble share price suffered a steep 40% intraday fall on Wednesday after marketplace revenue dropped 13% and earnings reversed in FY22.

The Pact Group Holdings Ltd (ASX: PGH) share price also found itself under pressure, packaging up a weekly loss of 19%. COVID and supply chain challenges contributed to a 25% fall in the company's FY22 underlying profit. Pact Group also slashed its final dividend by 75%.

The week wasn't kind to the TPG Telecom Ltd (ASX: TPG) share price either, descending 13%. The ASX telco reported soft first-half results, impacted by restructuring and rising cost pressures.

The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price also had a week to forget, stumbling 11% as investors were unimpressed by the company's FY22 results. The ASX bank's commentary around its net interest margin may have spooked the market.

Finally, the Beach Energy Ltd (ASX: BPT) share price failed to fire, slipping 8% across the week. The company's FY22 profits fell short of expectations and the ASX oil share warned investors that unit field operating costs would likely head north in FY23. 

Which ASX 200 shares are reporting next?

Gear up for another jam-packed week of ASX reporting season as a swarm of ASX 200 shares prepare to release their results.

According to our Foolish ASX reporting season calendar, some of the ASX blue-chip shares reporting next week include Wesfarmers Ltd (ASX: WES), Woolworths Group Ltd (ASX: WOW), Coles Group Ltd (ASX: COL) and Qantas Airways Limited (ASX: QAN).

The post ASX reporting season weekly wrap: Winners and losers 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 rising:

Brambles Limited (ASX: BXB)

The Brambles share price is up 5% to $12.38. Investors have been buying this logistic solutions company's shares following the release of a strong full year result. For the 12 months ended 30 June, Brambles reported a profit after tax of US$593.3 million. This was an 18% year over year increase.

Challenger Ltd (ASX: CGF)

The Challenger share price is up 6% to $6.79. This morning the teams at Citi and Ord Minnett upgraded this annuities company's shares to neutral/hold ratings. Elsewhere, analysts at Morgans retained their add rating but trimmed their price target on the company's shares to $7.40.

Nearmap Ltd (ASX: NEA)

The Nearmap share price is up 4% to $2.00. This has been driven by the release of a solid full year result from the arial imagery company. Nearmap reported annual contract value (ACV) of $167.6 million, which is up 31% year over year. And while it posted another large loss after tax, management revealed that the company remains on track to generate positive free cash flow by FY 2024.

Super Retail Group Ltd (ASX: SUL)

The Super Retail share price is up over 5% to $10.79. This follows the release of a full year result that materially outperformed consensus estimates. Super Retail reported a 19.9% decline in net profit after tax to $301 million, whereas the market was expecting a net profit after tax of $224 million.

The post Why Brambles, Challenger, Nearmap, and Super Retail shares are rising today appeared first on The Motley Fool Australia.

Shares in the aerial imaging company finished 2.1% higher yesterday, lifting the share price to $1.925.

Nearmap share price primed amid strong growth

• Statutory revenue up 29% year on year to $145.9 million
• Annual contract value (ACV) up 31% to $167.6 million
• Subscription revenue incorporating premium content increased to 73% of the portfolio
• Gross profit up 37% to $111 million
• Net loss widened from $18.8 million to $30.8 million
• Cash balance of $93.7 million at the end of June 2022

Nearmap's North American operations contributed the lion's share of ACV portfolio growth during the period. According to the earnings results, North American ACV experienced a significant 45% growth, reaching US$64.3 million.

The company also delivered growth in the Australian and New Zealand (ANZ) region. For the full year, ACV climbed a more modest 8% to $74.3 million. However, Nearmap's ANZ division touted wider gross margins than North America at 91% compared to 56%.

What else happened in FY22?

The most notable news event for the Nearmap share price during FY22 is probably the most recent. Only two days ago, shareholders were treated to a takeover bid from Thoma Bravo L.P.

Most excitingly, the offer price of $2.10 represents a substantial premium to what Nearmap shares have been trading for. At this stage, the company believes the offer to be credible enough the grant non-exclusive due diligence to Thoma Bravo.

What did management say?

Nearmap CEO and managing director Dr Rob Newman commented on the results, stating:

Nearmap has produced another strong set of results, validating the razor-sharp focus we have on our strategy. Our team continues to successfully execute to this strategy, delivering consistently strong growth from our core industry verticals.

We have now clearly established our market leadership position in the North American market and continue to extend our market leadership position in Australia & New Zealand.

Furthermore, Newman reiterated that the ongoing legal matters in the US have no operational impact, saying:

We've delivered these results with a disciplined approach to cash management, ending FY22 in a strong position with $94 million of cash on the balance sheet and no debt. Excluding the impact of the litigation expense related to the US District Court, which I would reiterate continues to have no operational impact on our business, we consumed less than $20m of cash in FY22, lower than initial guidance of $30m.

What's next?

Management refrained from providing any specific guidance for the next financial year. Although, Newman did note that the Nearmap remains on track to generate positive free cash flow by FY24.

Operationally, the company plans to produce and deliver five HyperCamera3 systems during the first half of FY23.

Nearmap share price snapshot

The Nearmap share price had been in the red for much of this calendar year. However, thanks to the recent takeover bid, shares in the aerial imaging company are now up 25% year-to-date.

For comparison, the S&P/ASX 200 Index (ASX: XJO) is down 6.4% over the same window of time.

The post Nearmap share price on watch as revenue leaps 29% 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:

BlueScope Steel Limited (ASX: BSL)

The BlueScope share price is up 5.5% to $17.82. Investors have been buying this steel producer's shares after the release of its FY 2022 results. For the 12 months ended 30 June, BlueScope reported a 135% increase in net profit after tax to a record of $2.81 billion. This was driven by favourable steel spreads.

Carsales.Com Ltd (ASX: CAR)

The Carsales share price is up 5.5% to $22.87 after the auto listings company's full year results impressed. Carsales reported a 27% increase in adjusted net profit after tax to $195 million for FY 2022. This was at the upper end of the company's guidance range.

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price is up 10% to $1.62. This morning this lithium developer released an update on its exploration activities. Core revealed that its 40,000m reverse circulation drilling program is now underway and a pipeline of existing and new targets at the Finniss Project are to be tested. Management also revealed that high grade lithium rock chip results were received from Anningie-Barrow Creek Project.

Nearmap Ltd (ASX: NEA)

The Nearmap share price has jumped 23% to $1.87. This morning the aerial imagery company announced that it has received a non-binding takeover offer from Thoma Bravo. The private equity firm has tabled a $2.10 per share offer, which values Nearmap at approximately $1 billion. Due diligence has been granted so Thoma Bravo can explore whether a definitive transaction can be agreed.

The post Why BlueScope, Carsales, Core Lithium, and Nearmap shares are racing higher appeared first on The Motley Fool Australia.

The aerial imagery technology company this morning announced it has received a non-binding indication from Thoma Bravo L.P. to acquire its shares for $2.10 a pop.

The offer represents a 39% premium on Nearmap's last closing price of $1.51 on Friday. Moreover, the offer is 67% above its six-month volume weighted average price.

What the takeover values the Nearmap share price at

The Nearmap share price rallied 33% to $2.01 in early trade on Monday, but remains below the bid price. This probably reflects the risk that the deal could fall through and the market's view that Nearmap won't get a second bidder.

Not that management hasn't tried. It said it received other proposals but they weren't good enough to be pursued further.

The indication of interest by Thoma Bravo was received on 6 July and both parties have been in advanced talks. This proposal was credible enough for Nearmap to grant the bidder non-exclusive due diligence that led to the $2.10 a share offer.

The takeover proposal values the Nearmap share price at around $1,055 million on a fully diluted basis.

Bittersweet news for the Nearmap share price

While the takeover news has excited the market, longer-term shareholders might still be disappointed. The shares were trading at over $4 in June 2019 and Nearmap undertook a share placement in 2020 at $2.77 a share.

Shareholders that came in on the share purchase plan paid a more attractive $2.30 a share. But that's still below Thoma Bravo's offer price.

At least the takeover (if successful) will remove the litigation risk to shareholders. Nearmap is being sued by its rival in the United States for technology infringement.

Details of the takeover

Thoma Bravo is one of the largest private equity firms in the world. It has more than US$114 billion in assets under management.

The proposal is subject to the usual conditions, such as regulatory approvals. Nearmap has to pay a break fee of up to US$3 million.

Nearmap's trading update

Separately, Nearmap said that the group's annual contract value (ACV) for FY22 will come in at the top end of its guidance.

Management expects ACV to hit $159.9 million at constant currency. This compares to its forecast of $150 million to $160 million.

It also said it was holding $93.7 million in cash as it only used around $20 million to support growth of the business (ex litigation costs). That's around $10 million less than it originally thought.

The Nearmap share price fell 28% over the past year before today's rally. In comparison, the S&P/ASX 200 Index (ASX: XJO) shed around 7% of its value.

The post Nearmap share price jumps 30% on takeover news appeared first on The Motley Fool Australia.

Three top ASX shares leading brokers have named as buys this week are listed below. Here's why they are bullish on them:

Block Inc (ASX: SQ2)

According to a note out of Credit Suisse, its analysts have retained their outperform rating and US$125 (A$180) price target on this payments company's shares. This follows the release of Block's quarterly update last week. Credit Suisse was pleased with what it saw and believes that if the Cash App business continues its strong growth it could underpin a rerating of the company's shares. The Block share price is trading at $126.67 today.

Nearmap Ltd (ASX: NEA)

A note out of Citi reveals that its analysts have retained their buy rating and $1.90 price target on this aerial imagery company's shares. Citi has been looking at Nearmap's new Hypercamera 3 platform. The broker expects it to help the company extend its leadership in the aerial imagery market as a vertically integrated player. It highlights that the platform has the ability to drive higher revenue growth through new premium products and reduce capture costs via higher altitude operations. The Nearmap share price is fetching $1.47 on Monday.

Santos Ltd (ASX: STO)

Analysts at Macquarie have retained their outperform rating and $10.00 price target on this energy producer's shares. The broker is expecting a strong result from Santos later this month. In addition, it suspects the company could reward shareholders with a greater than expected interim dividend thanks to its strong cash flow. The Santos share price is trading at $7.04 this afternoon.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

At the time of writing, the share is trading more than 9% higher at $1.26 apiece on no news.

In broad market moves, the S&P/ASX All Technology index (ASX: XTX) is also lifting around 4% into the green on Wednesday.

What's up with the Nearmap share price?

ASX tech shares have caught a bid today as yields on long-dated US Treasuries nudge back underneath 3%.

The yield on the US 10-year Treasury note is at 2.90% at the time of writing, 20 basis points down from the previous high of 3.1% on 8 July.

The pricing of the ASX tech basket is inversely related to these yields. An increase in the US 10yr yield will cause tech shares to de-rate, and vice versa.

This relationship can be seen on the chart below, noting the cross between growth and yields in March/April.

This backdrop is important to understand when analysing the Nearmap share price and its pathway to date.

Nearmap is highly correlated to the tech sector, as seen below. It therefore displays the same inverse characteristics to the US 10-year yield as the ASX tech benchmark.

Moreover, portfolio managers often talk in terms of 'beta' regarding a stock's returns.

In this case, the term beta refers to the tightness between the price returns of a share and a benchmark (eg. the XTX) move together.

Nearmap has a 2-year equity beta of 1.89 to the tech index according to Refinitiv Eikon data. A score above 1 is considered high.

In fact, this relationship is observed on the chart above, with both instruments tracking each other in striking similarity.

With that in mind, it's unsurprising to see Nearmap rallying to 9% higher on no news today. This tends to be the case in high beta stocks, they benefit – and suffer – greatly from movements in the wider sector.

In the last 12 months, the Nearmap share price has slipped 40% into the red, whereas the ASX tech sector is down 29%.

The post Why is the Nearmap share price gliding 9% higher today? appeared first on The Motley Fool Australia.

Nearmap shares finished May trading at $1.24 per share and had slid to $1.03 by 30 June.

The decline was significantly more than the 9.5% losses posted by the All Ordinaries Index (ASX: XAO) in June and the 10.4% loss on the S&P/ASX All Technology Index (ASX: XTX).

Why was the aerial mapping company sold off in June?

Though the Nearmap share price fell harder than many tech shares, it's worth noting that the NASDAQ also slipped 8.7% in June.

Nearmap certainly will have felt the same pressures that saw the broader technology sector sell off last month, namely soaring inflation figures and fast-rising interest rates. With the markets pricing in a series of sharp rate hikes ahead yet.

That's put particular pressure on companies like Nearmap, which are priced with future growth in mind. As the present cost of money goes up, awaiting those future earnings gets pricier.

The Nearmap share price also looks to have gotten some continuing headwinds from a lawsuit in the United States. Eagle View Technologies and Pictometry International Corp allege the Aussie company has infringed on their patents. While Nearmap is defending its position, analysts have taken note.

Speaking to The Motley Fool's Tony Yoo in June, U Ethical chief investment officer Jon Fernie cited the lawsuit along with increased competition as likely to drag on Nearmap:

We think the company's small, but also I think it's facing increased competition in that aerial mapping space. It continues to be a loss-making business. It's going to require a lot of ongoing investment, and they're also facing some legal action from a competitor.

Nearmap share price snapshot

The Nearmap share price is down 21% year to date, compared to a loss of 14% posted by the All Ordinaries.

Longer-term, Nearmap shares remain up 82% over five years and up 1,639% since the beginning of 2013.

The post Why did the Nearmap share price tumble 17% in June? appeared first on The Motley Fool Australia.

The company – which boasts a market capitalisation of around $574 million according to the ASX – had approximately $110 million in its coffers at the end of the first half.

Let's take a closer look at the latest on Nearmap's cash position.

How much cash does Nearmap hold?

Nearmap rejoiced in its growth through the first half of financial year 2022, bolstering its cash position. The company's CEO and managing director Rob Newman commented on its "very strong balance sheet" back in February.

As of 31 December 2021, Nearmap held $109.8 million cash and no debt.

That's despite spending $13.6 million over the course of the first half – $4.5 million of which went towards litigation costs.

The legal action was brought by US companies Eagle View Technologies and Pictometry International Corp. They have taken Nearmap to court in the US, alleging patent infringement. Nearmap has vowed to "vigorously defend" against the claims.

The other $9 million went towards research and development initiatives, the company said.

Nearmap has also recently celebrated a number of annual contract value (ACV) milestones.

In March, it announced it had achieved $150 million of ACV across its group portfolio.

Additionally, after announcing its North American business' ACV had surpassed US$50 million in December, the company announced its North American government sector generated US$2 million in ACV over the third quarter alone.

Nearmap share price snapshot

At the time of writing, the Nearmap share price is $1.075, 6.52% lower than its previous close.

For context, the broader market is also in the red today following Wall Street's poor performance overnight.

The S&P/ASX 200 Index (ASX: XJO) is currently down 1.29% and the All Ordinaries Index (ASX: XAO) is slumping 1.4%.

The company's shares have also slipped 31% since the start of 2022 and 41% since this time last year.

The post Own Nearmap shares? Here's how much cash the company has up its sleeves appeared first on The Motley Fool Australia.

The Motley Fool chats with the best in the industry so that you can get an insight into how the professionals think. In this edition, U Ethical chief investment officer Jon Fernie explains what he'd do with three ASX shares that have been ravaged this year.

Cut or keep?

The Motley Fool: Let's take a look at three fallen stars — ASX shares that have taken a beating this year. 

First one is Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), which has crashed more than 40% since September. What would you do with it?

Jon Fernie: This one's probably a reasonably straightforward one for us. As an ethical investor, we exclude companies with material fossil fuel exposure. Soul Patts has a major stake in New Hope Corporation Limited (ASX: NHC) and so it's not a stock that we would consider. 

I think investors also need to be cautious on investing in companies that have big exposure to potentially stranded assets.

MF: How about Fisher & Paykel Healthcare Corp Ltd (ASX: FPH), which has almost halved this year?

JF: We are currently invested in Resmed CDI (ASX: RMD), which is a competitor of FPH, so that would be our preference. 

We think that Fisher and Paykel face some near-term headwinds and Resmed looks better in terms of its earnings outlook and valuation. 

However, both companies will benefit from [a] product recall that we've seen from another competitor, Koninklijke Philips NV (AMS: PHIA). And I think, if you have a longer-term horizon, you may be willing to hold Fisher & Paykel and still expect that there's a good, longer-term earnings growth opportunity for the company.

MF: Fair enough. And the last one is the mapping company Nearmap Ltd (ASX: NEA), which has lost a painful 55% since November.

JF: Nearmap's one that we wouldn't hold. We think the company's small, but also I think it's facing increased competition in that aerial mapping space. It continues to be a loss-making business. It's going to require a lot of ongoing investment and they're also facing some legal action from a competitor, so overall, not a stock that meets our investment criteria.

The post This is what I'd do with these 3 battered ASX shares: fund manager appeared first on The Motley Fool Australia.

At the time of writing, the aerial imagery specialist's shares are up 5% to $1.05 apiece.

With no news out of the company, we take a closer look at what could be pushing its company's shares higher.

What's driving Nearmap shares higher?

Following heavy losses on the ASX this week, a sharp rebound has ensued, sending the Nearmap share price higher.

In particular, the S&P/ASX All Technology Index (ASX: XTX) is climbing 0.26% to 1,829.6 points.

It's worth noting that the index was up as much as 2.8% during mid day trade.

Furthermore, with Nearmap shares tanking 10% in a week, investors looking for a bargain may be providing support. This comes after its shares dipped under the psychological $1 barrier on Tuesday.

The last time this was seen was during the COVID-19 crash in March 2020.

Nonetheless, the company has been making tailwinds in recent times with the launch of its aerial camera system, HyperCamera3.

This is expected to be rolled out in both Australia and New Zealand before entering the North American market.

Nearmap's content is regularly relying upon government customers from 42 out of 50 states in America. To put that into perspective, the average revenue per subscription is around US$22,350 in the North American market.

Nearmap share price summary

Since November 2021, the Nearmap share price has struggled to hold its ground, falling 55% over the 7-month time frame.

This comes regardless of the company announcing that it's expecting to achieve the upper-end of its FY22 guidance.

It's worth noting that Nearmap shares touched a 52-week low of 98 cents on Tuesday.

Based on today's price, the company commands a market capitalisation of roughly $551.47 million.

The post Why is the Nearmap share price soaring 5% on Thursday? appeared first on The Motley Fool Australia.