Asa International (LON:ASAI) looks like a potentially very interesting business for exposure to fast growing frontier markets and has carved out an excellent niche. It is also doing some good for under-privileged people in the world, while generating reasonable profits, which is more to be said for most companies. I immediately like this company.
PEG is excellent, PE very low, EPS growth good, healthy dividend, 35% ROE and 52% Operating Margin. F-Score isn't great, but I am not sure 100% accurate. Free Cash Flow is poor, which is concerning. Stockreport rates it only mediocre quality, but I am guessing this is probably because of its low F-Score and rising level of debt - however, this is how it finances its microloans, so basically more demand = more debt = more business = more profit. Or am I missing something here? Covid-19 has bound to have impacted the business, but in the long-run there is a lot of demand for micro-loans in developing countries and this company seems to do a good job with satisfaction rates etc.
Share price performance has been dismal though, and can't see how this will turn around, even if the company continues to perform well.
I would be very interested to hear the views of those who better understand this sector.
