Pushpay and Soul Patts could be two ASX shares worth thinking about.
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Share prices are always changing. Sometimes businesses look good value and sometimes they don’t. There are a few great ASX shares that may be worth considering.
Businesses that have effective management, a healthy balance sheet and long-term growth plans might be worth of attention.
Whilst these companies have already seen their share prices rise over the last few years, these two ASX shares could worth looking at:
Pushpay Holdings Ltd (ASX: PPH)
Pushpay is an ASX tech share that provides two main services. It processes billions of dollars of electronic donations for churches around the US. Pushpay also has church management software.
Management of the business deliberately chose software that was the best for clients and was also scalable for Pushpay. This is leading to higher profit margins for Pushpay as it gets bigger and bigger.
In FY21, operating revenue increased by 40% to US$179.1 million. But net profit went up 95% to US$31.2 million and operating cashflow jumped 95% to US$31.2 million.
The ASX share is always on the lookout to find ways to grow organically and also with acquisitions. The effort to expand in the Catholic sector is one area of growth.
But the latest news is that Pushpay has acquired Resi Media. This business is described as a US-based, market-leading streaming provider which services more than 70% of the Outreach 100 largest churches in the US.
Management say that Resi Media will broaden Pushpay’s core product offering, enhance the value proposition, maintain its position at the forefront of innovation in the faith sector, accelerate growth and add high margin software as a service (SaaS) revenue.
Resi Media supposedly has a large addressable market across all church segments, non-profit organisations and other verticals. Pushpay believes that there are material synergy opportunities through product cross-selling and integration with Pushpay’s sales and marketing engine.
According to CommSec, the Pushpay share price is valued at 26x FY23’s estimated earnings.
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
Soul Patts is one of the oldest ASX shares around. It has been listed for around 120 years.
But it isn’t just a pharmacy business any more, even if it still has Soul Pattinson in the name.
Soul Patts is a diversified investment conglomerate with a number of different investments including TPG Telecom Ltd (ASX: TPG), Brickworks Limited (ASX: BKW), Australian Pharmaceutical Industries Ltd (ASX: API), Pengana International Equities Ltd (ASX: PIA), Bki Investment Co Ltd (ASX: BKI), Pengana Capital Group Ltd (ASX: PCG) and Tuas Ltd (ASX: TUA).
It is steadily investing and diversifying its portfolio. Recent investments include agriculture, swimming schools and a failed takeover attempt for Regis Healthcare Ltd (ASX: REG).
Soul Patts recently announced it was going to acquire Milton Corporation Limited (ASX: MLT), one of the oldest and largest listed investment companies (LICs) on the ASX by issuing new Soul Patts shares.
Management say that the merger will provide greater portfolio diversification, extra cash for investing and access to new investment classes including private markets, ‘real’ assets, credit and international shares.
Soul Patts currently has a grossed-up dividend yield of 2.5%.
Should you invest $1,000 in Pushpay right now?
Before you consider Pushpay, you’ll want to hear this.
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*Returns as of August 16th 2021
Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended PUSHPAY FPO NZX. The Motley Fool Australia owns shares of and has recommended Brickworks, PUSHPAY FPO NZX, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended TPG Telecom Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.