When I asked on socials what you wanted to hear more about, you responded that you wanted to hear more about high performing companies.
So this analysis will look at what we’ll call “Mopoke’s Compounders,” a high performing group of small-to-mid cap technology companies on the ASX.
These are technology-based companies in the Mopoke Index for 2024 with positive revenue growth, positive profits (EBITDA), positive free cash flow and positive assets (positive Net Debt).
To set the bar just that little higher, we will only accept companies with 10%+ compound annual growth in revenue to, not so scientifically, match overall historical growth in the broad market.
This filter reduced the 45 companies in the index down to 5.
Keep in mind, the filters also mean these companies weather COVID reasonably well and somewhat turbulent market conditions over 2022/2023.
Let’s briefly look at what each company does in this post with a view to doing deeper analysis into each one over the coming weeks.
#1 The Market Limited
The Market Limited own and operate a portfolio of online marketplace platforms spanning various sectors:
Retail: Marketplace for homewares, fashion, and lifestyle products.
Real Estate: Platform for searching and buying/selling properties.
Vehicles: Marketplace for buying and selling new and used cars.
Insurance: Comparison platform for various insurance products.
Capital Markets: Platform for facilitating investments in unlisted and pre-IPO companies.
Their focus is on building and scaling these marketplaces to generate revenue through transaction fees, subscriptions, and advertising.
#2 COSOL
COSOL is a global leader in digital transformation and data exploitation for asset-intensive industries. They help companies that rely heavily on physical assets, like machinery or infrastructure, get the most out of those assets through technology and data analysis.
They work with asset-intensive organisations in industries like natural resources, utilities, infrastructure, government, and defense.
#3 ReadyTech
ReadyTech provides software for education, workforce and workflow management for government and community services.
They build and acquire software, with solutions in
Education: Helping institutions manage learning experiences and student data.
Workforce Management: Optimizing workforce scheduling, payroll, and compliance.
Government & Justice: Streamlining processes in local government, courts, and other public services.
Community Services: Supporting organizations that deliver social services and programs.
They offer managed services and support beyond the software, which is usually important for the customers they work with.
#4 Energy One
Energy One provides software and services for energy trading: Their flagship offerings include:
ETRM (Energy Trading and Risk Management) systems: Software to manage physical and financial energy portfolios, optimize bids and nominations, and assess risk.
Outsourced operations: Managing trading systems and processes for clients.
Wind and solar solutions: Tools and expertise for integrating renewable energy into the grid.
Market data and analytics: Providing insights into energy market trends and opportunities.
Process automation and integration: Streamlining workflows and connecting disparate systems.
Energy market consulting: Advising clients on market dynamics, trading strategies, and regulatory compliance.
Their clients are energy retailers, generators and producers, large energy users as well as traders and shippers.
#5 CAR Group
CAR Group, formerly Carsales.com Ltd., is a leading digital marketplace company focused on the automotive industry across Oceania, Asia, and the Americas, connecting buyers and sellers of vehicles through various online platforms.
Their network of digital marketplaces has dedicated offerings for a specific region or market, including:
Carsales (Australia): The leading online marketplace for buying and selling used cars in Australia.
Encar (South Korea): A major player in the Korean used car market, offering both online and physical auction services.
Trader Interactive (United States): A network of online automotive marketplaces in the US, including Autotrader, Kelley Blue Book, and Cars.com.
chileautos (Chile): The leading online marketplace for buying and selling cars in Chile.
webmotors (Brazil): A majority-owned online marketplace for cars, motorcycles, and commercial vehicles in Brazil.
CAR Group usually offers a range of services beyond connecting buyers and sellers, they provide various tools and services like:
Financing and insurance solutions: Facilitate car financing and insurance for buyers.
Data and analytics: Provide insights to car dealerships and manufacturers.
Marketing and advertising solutions: Help dealerships and manufacturers reach potential buyers.
Valuation tools: Assist in determining the fair market value of vehicles.
Who they serve:
Car buyers and sellers: Individuals and businesses looking to buy or sell new and used cars, motorcycles, and commercial vehicles.
Car dealerships and manufacturers: Providing them with platforms to reach customers, manage inventory, and gain market insights.
Financial institutions: Partnering with lenders and insurers to offer financing and insurance solutions.