5 ASX Growth tech stocks for 2022 - NOV, ALU, TNE, MP1, CDA

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5 ASX Growth tech stocks for 2022 - NOV, ALU, TNE, MP1, CDA

Growth Stocks
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Highlights

  • Growth stocks grow at a faster pace compared to the market average.
  • These have a high PE ratio as the companies grow faster, which influences their share price.
  • NVX, ALU, TNE, MP1, CDA are a few ASX-listed tech stocks with significant growth in recent times and have a positive outlook.

Growth stocks are stocks of those companies likely to grow sales & earnings faster than the market average. In the last five years, S&P/ASX 200 Information Technology sector has delivered a growth of 21.33%. However, many companies from the same space made significant progress compared to their respective sector performance.

Since the start of the pandemic, digital technology has become important to Australian businesses, workforce and economy. As per media sources Australian government’s spending on Information Technology would increase in 2022, which would somewhat increase by ~20%. Out of the total budget in the tech space, 2/3rd budget would be dedicated to the investment in IT services and software.

On that note, we will explore five growth stocks from the technology space that made significant progress lately and is well positioned for the coming period.

ALSO READ: Three ASX-listed growth shares for this week.

Companies TNE, NOV, ALU, MP1 and CDA surpassed tech sector performance in last 5 years

Image and Data Source: Kalkine Media

Novatti Limited (ASX:NOV)

Novatti is a top fintech that allows companies to pay and be paid from any device. The company was founded in 1996 and got listed on ASX on 18 January 2016. On 07 October 2021, the Company announced that it closed the Series A funding round for its new banking business. The Series A round will provide the Company’s banking subsidiary, Novatti B Holding Company Pty Ltd, with funding to speed up its new business development once its banking licence is taken from the Australian banking regulator.

                 

5 ASX Growth tech stocks for 2022

 

Other than this, the Company announced that its partnership with Ripple expanded to Thailand and is generating revenue. Ripple is a top provider of enterprise blockchain & crypto solutions for cross-border payments.

On 13 October 2021, NOV shares settled at AU$0.440  , up 1.149% from the previous close.

NOV and Ripple entered into a partnership.

Altium Limited (ASX:ALU)

Multinational software corporation Altium Limited focuses on electronics design systems for 3D PCB design and embedded system development. The Company was founded in year 1985 and got listed on 04 August 1999.

Altium is known for settling difficult goals and working hard to achieve them. In order to have market dominance, it aims to reach 100,000 subscribers and US$500 million in revenue by 2025. In FY2021, ALU started reporting annual recurring revenue, which grew 29% during the year. It announced a 15% franked dividend (final) of AU 21 cents.

growth in annual recurring revenue

In FY2022, ALU expects its revenue to be between US$209 million to US$217 million,  EBITDA margin in between 34% to 36% and ARR growth in between 23% to 27%.

In FY2022, ALU expects a return to strong pre-COVID growth. Altium 365 adoption would increase.

As on 13 October 2021, ALU shares settled at AU$33.690, up 0.297% from the previous close.

TechnologyOne (ASX:TNE)

TechnologyOne is amongst the largest enterprise SaaS companies in the world. It was founded in year 1987 and got listed on 08 December 1999. On 03 September 2021, the Company announced that it has entered into an agreement to acquire Scientia Resource Management Limited.

Scientia Resource Management Limited is a UK company that provides services to the higher education sector. The acquisition would expand TNE’s Global SaaS ERP solution for Higher Education.

Source: ASX update

In 1H FY2021, TNE reported 41% growth in SaaS and 48% growth in PAT. Total revenue increased by 5% to AU$144.3 million and dividend by 10% to AU3.82 cents.

As on 13 October 2021, TNE shares settled at AU$11.830, up 0.509% from the previous close.

Megaport Limited (ASX:MP1)

Megaport is a top provider of Network as a Service solution. MP1’s global Software Defined Network helps companies quickly link their network to services by means of an easy-to-use portal or its open API. MP1 was founded in year 2013 and got listed on 17 December 2015

In FY2021, MP1 reported an increase in its revenue by 35% to AU$78.28 million. Monthly recurring revenue increased by 32% to AU$1.8 million YoY. At the end of June 2021, MP1 had net cash of AU$136.3 million. In the coming period, the Company’s mission is to Scale Up, Scale Out. It would focus on the innovation cycle to increase its lead in the NaaS space. Also, Megaport would invest in revenue growth by investing in additional market expansion, product & service innovation as well as its people.

As on 13 October 2021, MP1 shares settled at AU$16.550 , up 1.347% from the previous close.

Growth in Revenue

RELATED READ: Why Megaport Limited (ASX:MP1) is making a splash today?

ALSO READ: Is Megaport Ltd. (ASX: MP1) Ready for A Big Leap?

Codan Limited (ASX:CDA)

Headquartered in South Australia, Codan Limited is an international company that builds rugged and reliable electronics solutions for govt., corporate, NGO and consumer markets worldwide. It was founded in 1959 and got listed on 27 November 2003. Its technologies include metal detection and communication. In FY2021, the Company achieved a record statutory NPAT of AU$90 million, up 41% on pcp. It reached the highest full-year sales of AU$437 million. The full-year sales number is the highest in the Company’s history.

Codan is well-positioned for FY2022. The demand for its metal detection products remains strong. However, it feels ambiguity around Tactical Communications & supply chain as COVID-19 remains.

As on 13 October 2021, CDA shares settled at AU$16.550, up 1.347% from the previous close.

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