4 fast-growing ASX small cap shares that you may have overlooked

Success might be a series of small wins, but what about small companies?

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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…

growth charts with small cap written on a sticky note

Image source: Getty Images

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.

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.

More on Small Cap Shares

Two kids in superhero capes.
Small Cap Shares

2 small-cap ASX shares ready for 'new all-time highs': expert

Stocks for smaller businesses really struggled last year. Here's a pair to buy if you think that will turn around…

Read more »

A little boy surrounded by green grass and trees looks up at the sky, waiting for rain or sunshine.
Small Cap Shares

Top ASX small-cap shares to buy in March 2023

Mighty oaks from little acorns can grow!

Read more »

three young children weariing business suits, helmets and old fashioned aviator goggles wear aeroplane wings on their backs and jump with one arm outstretched into the air in an arid, sandy landscape.
Small Cap Shares

3 small-cap ASX shares flying high after reporting season: Elvest

Here's a trio of stocks going places, so you better hop on for the ride!

Read more »

A young bearded man wearing a white t-shirt with a yellow backdrop holds up his arms to his chest and points to the camera in celebration of ASX shares rising today
Small Cap Shares

2 exciting small cap ASX shares to buy: analysts

At the small end of town, analysts are expecting big things from these shares...

Read more »

Kid on a skateboard with cardboard wings soars along the road.
Broker Notes

The obscure ASX share with 45% upside one small-caps expert is backing right now

Here's a stock you've never heard of, but is headed to the top.

Read more »

A recreational fisherman holds a fishing rod with his hands apart indicating it was this big with a smile on his face.
Small Cap Shares

Top ASX small-cap shares to buy in 2023

Sometimes you have to go deep to catch the next big fish.

Read more »

A man sees some good news on his phone and gives a little cheer.
Small Cap Shares

Goldman Sachs says these ASX small cap shares are buy with major upside potential

These could be top options for investors with a higher tolerance for risk...

Read more »

three children wearing superhero costumes, complete with masks, pose with hands on hips wearing capes and sneakers on a running track.
Small Cap Shares

3 small-cap ASX shares Celeste is riding off into the sunset on

Are smaller companies set to go gangbusters in 2023? Here's a trio of stocks to test that hypothesis.

Read more »