Want to add more growth to your portfolio but not sure where to look? Companies such as rhipe and Volpara Health Technologies are deemed high-growth by the market, with a positive outlook in all areas – returns, profitability and cash flows. I would suggest taking a look at my list of companies that compare favourably in all criteria, and consider whether they would add value to your current portfolio.
rhipe Limited (ASX:RHP)
rhipe Limited, through its subsidiaries, provides cloud licensing, subscription management tools, and value-added services to IT service providers across the Asia Pacific. Formed in 2003, and now led by CEO Dominic O’Hanlon, the company currently employs 136 people and has a market cap of AUD A$139.15M, putting it in the small-cap stocks category.
RHP is expected to deliver a buoyant earnings growth over the next couple of years of 38.05%, driven by a positive double-digit revenue growth of 30.52% and cost-cutting initiatives. An affirming signal is when net income increase is supported by top-line growth. Since net income isn’t artificially inflated by one-off initiatives such as cost-cutting, we know this profit growth is more likely to be sustainable. We see this bottom-line expansion directly benefiting shareholders, with expected positive return on equity of 15.82%. RHP’s bullish prospects on both the top and bottom lines make it an interesting stock to invest more time to understand how it can add value to your portfolio. Considering RHP as a potential investment? I recommend researching its fundamentals here.
Volpara Health Technologies Limited (ASX:VHT)
Volpara Health Technologies Limited provides breast imaging analytics and analysis products for the early detection of breast cancer in the medical device software industry. Formed in 2009, and currently run by Ralph Highnam, the company provides employment to 39 people and with the company’s market cap sitting at AUD A$120.21M, it falls under the small-cap category.
Extreme optimism for VHT, as market analysts projected an outstanding earnings growth rate of 76.87% for the stock, supported by an equally strong sales. Profit growth, coupled with top-line expansion, is a positive indication. This is because net income isn’t artificially inflated by unsustainable activities such as one-off cost-reductions expected in the future. VHT ticks the boxes for high-growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. A potential addition to your portfolio? Have a browse through its key fundamentals here.