Success might be a series of small wins, but what about small companies?
The post 4 fast-growing ASX small cap shares that you may have overlooked appeared first on The Motley Fool Australia. –
We all know the ASX as a place to trade shares in some of Australia’s largest companies, but what about small-cap stocks?
The truth is that there are many small-cap shares you may not have even heard of before on the ASX. While these companies come with more risk to invest in than larger companies, often there’s greater opportunity for high growth.
These four ASX-listed small caps might not be as well known as their larger counterparts. However, their rapid sales growth in recent years is worth pointing out. Here they are…
4 ASX small-cap shares with high growth
Alicidion Group Ltd (ASX: ALC)
Alcidion is a small-cap company that offers a range of software products for use in the healthcare sector. Now boasting a market capitalisation of $440 million, the Melbourne-based company has undergone a period of significant growth over the past few years.
Over the past five years, Alcidion’s sales have grown an impressive 435% as it acquired complementary companies and expanded its product suite. More recently, contracted revenue to be recognised in FY21 was $24.7 million — exceeding the previous year by 33%.
This ASX small cap share is currently up 118% year-to-date (YTD).
Family Zone Cyber Safety Ltd (ASX: FZO)
Next on the list is Family Zone Cyber Safety. This small-cap company offers a range of products and services catering to the cybersecurity needs of families as well as schools — including cyberbullying protection for kids, parental monitoring software, as well as internet filtering solutions.
During the past five years, Family Zone’s revenue has increased from around $5,000 to more than $7 million. The company hopes to keep its high-growth engine running in the United States following the $5.8 million acquisition of Net Ref.
Family Zone is currently up 23.5% YTD with a market capitalisation value of $239 million at present time.
Calix Ltd (ASX: CXL)
Shifting gears, Calix has been developing patented solutions to address global sustainability challenges. These solutions range from wastewater treatment, CO2 mitigation, and renewable technologies.
In terms of its five-year growth trajectory, Calix’s revenue has increased 468% to $19.6 million during the 2020 calendar year. The underlying mission of the company is well-positioned if the environmental, social, and governance (ESG) trend continues.
For example, Adbri Ltd (ASX: ABC) entered into an agreement with Calix in March to co-develop a calciner for lime production with CO2 capture. A potential crackdown on emissions in the future would necessitate the kind of technology Calix works to develop.
This ASX small cap share is up 151% YTD with a market cap of $409 million.
Bigtincan Holdings Ltd (ASX: BTH)
That brings us to the last company on the list… Bigtincan. This small Australian company is a provider of sale enablement software. Its platform gives sales teams the toolset to increase performance and improve customer interactions.
In the last 5 years, Bigtincan’s revenue has grown roughly 409% to $35.7 million during the 2020 calendar year. This has been achieved via numerous acquisitions, each expanding the company’s product offering and client base.
Earlier this month Bigtincan announced the acquisition of augmented and virtual reality systems company, Vidinoti. At the same time, the software provider announced it had hit $53 million in annual recurring revenue (ARR).
Despite ARR growing 48% year-over-year, this ASX small cap share has only gained 5.5% YTD. At the time of writing, Bigtincan’s market cap is $462 million.
The post 4 fast-growing ASX small cap shares that you may have overlooked appeared first on The Motley Fool Australia.
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Motley Fool contributor Mitchell Lawler 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 Alcidion Group Ltd and BIGTINCAN FPO. The Motley Fool Australia owns shares of and has recommended BIGTINCAN FPO. The Motley Fool Australia has recommended Alcidion Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.