ASX Small Caps with High ROI

Great investments come from investing in businesses that consistently earn high returns on investment and are identified early by investors at reasonable valuations. The following three ASX small-cap stocks stand out as compelling candidates worthy of closer attention.

IVE Group Limited (ASX: IGL)

IVE Group Limited (ASX: IGL) delivered record earnings in FY25 and maintained strong margins as underlying NPAT increased 21.1% to $52.1 million and EPS rose 20.3% to 33.7 cents.

Return on funds employed improved to 28.3% and return on equity reached 25.6% which highlights efficient use of capital and strong profitability relative to shareholder equity.

Although revenue declined 1.6% to $954.8 million due to softer economic conditions, EBITDA increased 7.0% to $136.7 million which is due to solid pricing discipline and cost control.

IGL has distributed fully franked dividends on a semi-annual basis for the past five years and currently offers an annual dividend yield of 5.75% while market capitalisation is $481.26 million.

The company recently signed a binding agreement to acquire 100% of Daily Press Pty Ltd which is an Australian creative agency focused on digital, social media and performance marketing, for total consideration of up to $35 million which supports its Creative and Content segment under the “Now to 2030” strategy.

IGL plans to release its 1H26 financial results on 25 February 2026 which should provide further clarity on its growth outlook.

Qoria Limited (ASX: QOR)

Qoria Limited (ASX: QOR) on 2 February 2026 announced that it has signed a binding merger agreement with Aura Consolidated Group which will form a scaled global digital safety platform across families, schools and workplaces.

The merger is expected to deliver cost synergies through lower overheads and reduced marketing spend which should also speed up the move towards positive free cash flow from CY26.

Aura will acquire 100% of Qoria through a scheme of arrangement which will leave Qoria shareholders with about 35% ownership of the merged group on a fully diluted basis.

The combined entity is likely to build a strong moat and earn high returns on capital which is expected to trade under the ASX ticker AXQ and list on the Australian Securities Exchange in late June 2026 subject to shareholder and regulatory approvals.

The current market capitalisation stands at about $402.88 million and a US$75 million equity placement has been secured from existing Aura shareholders.

Qoria achieved positive EBITDA in 2025 and now supports more than 32,000 schools and 30 million children globally which provides the merged group with meaningful scale in the K-12 digital safety market.

Praemium Limited (ASX: PPS)

Praemium Limited (ASX: PPS) is a strong candidate as it expands funds under administration and improves efficiency through better use of technology and automation.

In its Q2 FY26, total FUA rose 14% year-on-year to $70.5 billion while platform FUA increased 8% to $32.5 billion with quarterly net inflows of $462 million.

Powerwrap recorded its highest quarterly net inflows since Q1 FY22 at $302 million and SMA FUA climbed 18% year-on-year to $14.6 billion which reflects stronger client activity.

Scope+ non-custodial portfolio administration expanded 19% year-on-year to $37.9 billion in FUA which supports Praemium’s leadership position in this segment.

The company has also identified automation and AI initiatives that show strong return on investment through early pilot programs along with the acquisition of Technotia Labs which strengthens system design and business automation capabilities.

Praemium Limited will release its Half Year Results for FY26 on 23 February 2026 which should provide more clarity on earnings direction and the impact of AI.

(Source: Company Reports)