In an environment dominated by uncertainty, volatility, and shifting macro narratives, long-term investors must look beyond the noise to find quality businesses with structural tailwinds and undervalued potential. TAMIM Asset Management has long held the view that value can emerge in pockets of the market that are temporarily overlooked, misunderstood, or undergoing transformation. In this two-part series, we regroup companies across TAMIM’s All Cap and Small Cap Income portfolios by strategic themes, rather than fund or size classification. Part One focuses on three businesses operating in essential sectors – healthcare, life insurance, and financial infrastructure that are poised for re-rating as they unlock value, recover earnings power, or become strategic assets in consolidating markets.

Healius (ASX: HLS)

From Turnaround to Takeover Candidate in Healthcare Healius, Australia’s second-largest pathology provider, is undergoing a pivotal transformation that positions it for significant shareholder value creation. With the $965 million Imaging division sale nearing completion, the company will soon hold over $450 million in net cash, clearing the way for a capital return of $300 million+, bolstered by $160 million in franking credits. The sale also unlocks a cleaner story: a pure-play pathology business with ~$1.3 billion in annual revenue. While EBIT margins currently sit around 1%, well below industry norms (7-10%), this margin compression is largely self-inflicted, tied to investments in labour, technology upgrades, and pathologist remuneration. But with those upgrades nearing completion and workforce optimisation underway, the earnings power is likely to rebound. Importantly, the balance sheet strength and return of capital will act as a short-term catalyst. Beyond that, TAMIM believes a strategic acquisition is highly probable. A renewed merger with Australian Clinical Labs (ASX: ACL) would create scale synergies and consolidate the sector. Either way, the sum-of-parts valuation implies at least 40% upside, and the business remains a prime candidate for either a turnaround-led re-rating or a strategic sale.

ClearView Wealth (ASX: CVW)

A Deep Value Play in Life Insurance with Capital Discipline ClearView is a classic TAMIM-style pick: underappreciated, cash-rich, and emerging from short-term volatility stronger and more focused. The company’s Q1 FY25 was impacted by an unexpected claims spike, but a rapid recovery in Q2 saw NPAT jump from $4.2 million to $11.0 million, bringing profitability back in line with historical averages. Management has acted decisively. Instead of paying a dividend, ClearView initiated a 10% share buyback, recognising the deep disconnect between intrinsic value and the market price. Net assets sit at 55.1 cents per share, and embedded value is 94 cents, yet the stock continues to trade around 45-50 cents. This implies a 50%+ discount to fair value. Premium growth remains strong (up 8% to $191.4 million), while the company retains 10.6% market share in new life insurance business. Cost management, repricing, and retention strategies have all been implemented to restore margins. TAMIM views this as a multi-year compounding story, with FY25 group NPAT expected at $32.5 million and FY26 forecasts rising to $46.8 million. If management executes, the stock could re-rate toward 70-80 cents, offering 50-80% upside over the next 12 months. With a forecast P/E of 6.2x FY26 earnings, the margin of safety is substantial.

Tyro Payments (ASX: TYR)

A Fintech Leader Scaling Across Verticals Tyro is one of the few listed Australian fintechs that is both profitable and expanding across multiple high-growth verticals. Its FY25 H1 was its most profitable period since IPO, with EBITDA growing 12x to $33 million, net profit reaching $10.5 million, and gross profit compounding at 18% annually since listing. The standout story is Tyro’s healthcare payments vertical, where it processes $7 billion annually and holds a 7% market share. With a total addressable market of $100 billion, this segment alone presents a large growth runway. Tyro is outpacing industry growth, especially in general practice and allied health, while entering new verticals that could generate $39 million in gross profit over the next three years. Tyro is also building out its banking arm through a partnership with Constantinople. While banking currently makes up 7% of gross profit, the company aims to lift this to 20%, introducing lending and deposit products that further deepen merchant relationships. Finally, Tyro remains a strategic asset with M&A appeal. Past takeover bids in 2022 were priced at $1.50+, and the current valuation 5.3x EBITDA remains compelling. With a strong balance sheet, optional buybacks, and visible growth in both fintech and banking infrastructure, Tyro is not just a recovery play but a platform business poised to scale.

The TAMIM Takeaway

Healius, ClearView, and Tyro may operate in different industries, but they share several traits that align with TAMIM’s strategic approach. All three provide essential services with resilient demand drivers, are currently trading at significant discounts to intrinsic or sum-of-parts valuations, and possess tangible catalysts such as capital returns, margin expansion, or acquisition potential. Backed by cash-rich balance sheets and sound capital discipline, these companies are not speculative punts; they are fundamentally sound businesses where valuation is likely to catch up to operational reality. For investors seeking long-term value in 2025, these three names stand out as high-conviction opportunities. Stay tuned for Part Two, where we explore digital infrastructure, scalable tech platforms, and another set of undervalued TAMIM portfolio companies positioned for re-rating.

Disclaimer: Healius (ASX: HLS), ClearView (ASX: CVW) and Tyro (ASX: TYR) are held in TAMIM individually managed accounts as at date of article publication. Holdings can change substantially at any given time.