ASX share market volatility has been dealing a rough time on investor portfolios lately. But it's throwing up some exciting opportunities in the All Ordinaries Index (ASX: XAO) for investors to potentially jump on.
Fundamentally, even as share prices are lower for some companies and their short-term outlook darkened, many are still operating at similar levels to before. A company's intrinsic value does not necessarily fall as much as its share price declines would have you believe.
However, inflation and rising interest rates can undoubtedly have an impact.
With that in mind, I think some quality businesses are now trading at irresistible prices when we look at their long-term prospects.
As Warren Buffett once said:
Be fearful when others are greedy and greedy when others are fearful.
Here's why I think investors can be greedy about these two All Ords ASX shares.
Image source: Getty Images
Reece Ltd (ASX: REH)
The Reece share price has halved in 2022, which I think creates much better investment value.
Despite the impacts of COVID-19 and "significant" supply chain disruption, the plumbing and bathroom products supplier saw ongoing growth in the FY22 first half result.
HY22 revenue increased 17% to $3.6 billion and net profit after tax (NPAT) rose 28% to $157 million. Revenue in Australia and New Zealand (ANZ) went up 11% to $1.7 billion while United States revenue increased 24% to $1.9 billion.
The All Ords ASX share has a 2030 vision to be the trade's most valuable partner and help the industry "succeed in a digital world".
Reece is investing for growth.
In ANZ, it's working on digital upgrades with an enhanced customer experience. It also has a store refurbishment program.
In the US, it has a store rollout and upgrade program in progress. The company has relaunched it online offer and started the Reece corporate brand rollout.
CMC Markets has an estimate for earnings per share (EPS) of 63.4 cents in FY23. That puts the Reece share price at 22x FY23's estimated earnings.
Beacon Lighting Group Ltd (ASX: BLX)
Beacon Lighting is another All Ords ASX share that has seen a sell-off in 2022. The Beacon Lighting share price is down 27% in 2022.
There are a few different parts to the company, including retail, trade, e-commerce and new business, which includes international.
While Beacon Lighting didn't generate as much growth as Reece in the first half of FY22, it still managed to grow profit. Sales were flat, but net profit rose by 1.8% to $22.6 million.
In terms of growth, improving service to its trade customers continues to be the number one growth focus for the business. Trade Club customers increased to 48,000 in HY22 compared to 39,800 in HY21. In HY22, trade sales rose by 20.4%, and online Trade Club sales jumped 70.3%. The company is adding trade service counters to more stores and trade-specific products to stores.
E-commerce is delivering a lot of growth for the business. In HY22, online sales rose 41% to $20.3 million, accounting for 15.4% of total retail sales. I think that it's essential to be able to connect with customers in multiple ways. Beacon Lighting offers three-hour customer delivery in major metro markets. It has launched its customer website in the US to increase its market presence.
The rest of the world is obviously a bigger market than Australia. I think there is attractive growth potential here. International sales increased by 65% to $8.1 million in HY22.
The ASX All Ords share continues to add to its store network, which can help grow its presence and profit further.
In FY23, the profit estimate on CMC Markets is EPS of 13.8 cents. That translates into the Beacon Lighting share price being valued at 15x FY23's estimated earnings.
