Airtasker is one of the great ASX shares to consider for the long-term.
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The two ASX shares in this article could be great to consider as long-term options.
They are businesses that are leading their industries and are producing a lot of growth.
If they are able to continue this high level of revenue growth for a number years then they could be great ASX shares to consider:
Airtasker Ltd (ASX: ART)
Airtasker describes itself as Australia’s leading online marketplace for local services, connecting people and businesses who need work done with people who want to work.
In FY21 the ASX share processed gross marketplace volume (GMV) of $153.1 million, which was growth of 35% year on year. This beat the prospectus forecast of $143.7 million. This led to revenue of $26.6 million, an increase of 38%. This also beat the prospectus forecast of $24.5 million.
Airtasker noted that during FY21, it was able to demonstrate its ‘light touch’ operating model which saw the company generate a gross profit margin of 93%. This also helped the business generate positive operating cash flow of $5.5 million for the year. Its prospectus said it was only expecting $0.1 million of operating cashflow.
The company is growing quickly in the northern hemisphere. In the UK it saw GMV increase 232% year on year and 93% quarter on quarter. In the US, Airtasker’s acquisition and integration of Zaarly is “progressing well” with planned launches in Kansas City, Dallas and Miami in the first half of FY22.
With its cash balance of $46 million, it plans to invest in international expansion with local service industries across Australia, the US and the UK.
The ASX share is rated as a buy by Morgans with a price target of $1.30.
Australian Ethical Investment Limited (ASX: AEF)
Australian Ethical is a fund manager that specialises in providing investment services to people looking for investments that are ‘ethical’ and aligns with their thinking about the (business) world.
There are a number of sectors that Australian Ethical doesn’t invest in, such as tobacco, coal mining, nuclear weapons and high-emission companies.
The business is experiencing a high level of growth. Over FY21, group funds under management (FUM) increased by 50% to $6.07 billion. Net inflows were $1.03 billion, an increase of 56%. The number of funded customers increased by 23%.
This growth in FUM helped the ASX share increase revenue and profit. FY21 operating revenue increased by 18% to $58.7 million, whilst underlying net profit after tax grew 19% to $11.1 million. Excluding the impact of the $2.9 million performance fee, operating revenue was up 21% and underlying net profit rose 30%.
After delivering the FY21 result, the Australian Ethical CEO John McMurdo said:
Despite the ongoing challenges posed by the pandemic, it has been a pivotal year for ethical investing, climate pledges and sustainable commitments around the world. As the coronavirus continues to reshape economies and global markets, a near-universal desire for a more sustainable future is emerging.
Looking out to the medium and long-term, we expect to see higher levels of profitability and operating leverage from achieving greater scale as we realise the anticipated benefits of investing in our business.
Should you invest $1,000 in Airtasker right now?
Before you consider Airtasker, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Airtasker wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of August 16th 2021
The Australian Ethical Investment (ASX:AEF) share price is up 124% this year!
The Australian Ethical (ASX:AEF) share price is sliding 4%. What’s next?
2 ASX growth shares that could be buys in September 2021
Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Australian Ethical Investment Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker Limited. The Motley Fool Australia has recommended Australian Ethical Investment Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.