I'd buy this exciting ASX small-cap stock which plans to double in size by 2030

This growth stock has major plans.

| More on:
One girl leapfrogs over her friend's back.

Image source: Getty Images

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

ASX small-cap stocks can be thrilling investments to own for the long term if they grow in scale.

I'd say it's much easier for a business to double in size from $200 million to $400 million than it is to go from $2 billion to $4 billion.

I'm bullish about the business Webjet Group Ltd (ASX: WJL) because of its plans to grow significantly in the coming years.

Webjet recently undertook a three-month strategic review of its business, extensively using data and objective analysis to examine various aspects, including its current situation, momentum, outlook, competitive dynamics, and the future of travel and technology. The opportunity identified by that review is exciting, in my view.

The ASX small-cap stock plans to double by FY30

The business aims to deliver significant growth in the coming years, with a goal of doubling total transaction value (TTV) between FY24 and FY30 to reach at least $3.2 billion. It plans to achieve this through greater investment. There are five areas of focus for the business.

First, it plans to revitalise its Webjet brand.

Second, it's going to expand its total addressable market through adjacencies identified in its deep dive.

Third, it plans to capture more of the customer travel wallet through a new loyalty program and enhanced member offers.

Fourth, the ASX small-cap stock is going to "optimise" its core business of domestic flights, motorhomes, and cars.

Finally, it wants to maintain its "operational excellence".  

A key part of the company's above plans is to expand its international flights market share. Around 20% of its bookings are outbound international flights, and it wants to grow this to 25% to 30% with "enhanced content and technology, and expanded enhancement and reach".

It plans to achieve this international travel growth through expanded content and pricing options, new tech and user interface enhancements, deepened customer engagement, and optimising customer conversion.

It also wants to provide a distinct standalone offering for business travel to address demand for a seamless digital experience.

The company also wants to provide an expanded hotels and packages offering for customers. According to Webjet, 74% of people would like to book all of their travel in one place.

However, the ASX small-cap stock expects to invest up to $15 million in FY26 to drive some of the growth mentioned above, which could lead to a "temporary compression during the investment phase" of profit margins. The FY30 operating profit (EBITDA) margin is expected to exceed the current levels, driven by revenue growth, scale efficiencies, and operating leverage.

Should you invest $1,000 in Ampol Limited right now?

Before you buy Ampol Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Ampol Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Opinions

Cropped shot of an attractive young female scientist working on her computer in the laboratory.
Opinions

2 great ASX growth shares that are much cheaper after the market sell-off

These stocks are growing earnings and have much better valuations.

Read more »

Woman thinking in a supermarket.
Opinions

The pros and cons of buying Woolworths shares right now

Should investors put Woolworths shares in their stock basket?

Read more »

Two excited woman pointing out a bargain opportunity on a laptop.
Opinions

Why I think this ASX small-cap stock is a bargain at $3.85

I’m excited about the potential of this rapidly-growing business.

Read more »

A female executive smiles as she carries out business on her mobile phone.
Opinions

Recession ASX stocks are back: Consider buying the dip this April

I think this is a great time to buy stocks.

Read more »

Group of successful real estate agents standing in building and looking at tablet.
Opinions

Here are Macquarie's top 3 stock picks in the ASX financial share sector in April

Macquarie is bullish about these three financial stocks.

Read more »

Man sitting in a plane looking through a window and working on a laptop.
Opinions

Is the Qantas share price a buy in the tariff ASX stock market volatility?

Is this stock now a bargain after the market volatility?

Read more »

Two excited woman pointing out a bargain opportunity on a laptop.
Opinions

Are these cheap ASX shares too good to ignore?

These businesses could make smart buying today.

Read more »

Rising real estate share price.
Opinions

3 ASX shares that could benefit from proposals to help first home buyers

These stocks could be beneficiaries from the latest announcements to help first home buyers.

Read more »