Discovering Australia's Undiscovered Gems In October 2024

Over the last 7 days, the Australian market has remained flat, yet it boasts a robust 16% increase over the past year with expectations of earnings growth by 12% per annum in the coming years. In this thriving environment, identifying stocks with strong fundamentals and growth potential can be key to uncovering Australia's undiscovered gems.

Top 10 Undiscovered Gems With Strong Fundamentals In Australia

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Fiducian Group	NA	9.94%	6.48%	★★★★★★
Bisalloy Steel Group	0.95%	10.27%	24.14%	★★★★★★
Sugar Terminals	NA	3.14%	3.53%	★★★★★★
Lycopodium	NA	17.22%	33.85%	★★★★★★
Red Hill Minerals	NA	75.05%	36.74%	★★★★★★
Steamships Trading	33.60%	4.17%	3.90%	★★★★★☆
AMCIL	NA	5.16%	5.31%	★★★★★☆
Hearts and Minds Investments	1.00%	18.81%	20.95%	★★★★☆☆
A2B Australia	15.83%	-7.78%	25.44%	★★★★☆☆
Boart Longyear Group	71.20%	9.71%	39.19%	★★★★☆☆

Click here to see the full list of 57 stocks from our ASX Undiscovered Gems With Strong Fundamentals screener.

Let's explore several standout options from the results in the screener.

GenusPlus Group (ASX:GNP)

Simply Wall St Value Rating: ★★★★★★

Overview: GenusPlus Group Ltd specializes in the installation, construction, and maintenance of power and communication systems across Australia, with a market capitalization of A$481.63 million.

Operations: GenusPlus Group generates revenue primarily from its Infrastructure, Industrial, and Communication segments, with Infrastructure contributing A$336.04 million and Industrial adding A$152.62 million.

GenusPlus Group, a nimble player in the infrastructure sector, has been making waves with its impressive financial performance and strategic moves. The company's earnings soared by 43.7% last year, outpacing the construction industry's 16.2% growth rate. With interest payments well-covered at 40.1 times EBIT and a debt-to-equity ratio reduced to 3.5%, financial health appears robust. Recent proposals for acquiring CommTel Network Solutions aim to bolster its national footprint, signaling potential future expansion opportunities in communications and utilities sectors.

• Click to explore a detailed breakdown of our findings in GenusPlus Group's health report.

• Gain insights into GenusPlus Group's past trends and performance with our Past report.

Redox (ASX:RDX)

Simply Wall St Value Rating: ★★★★★★

Overview: Redox Limited is a supplier and distributor of chemicals, ingredients, and raw materials operating in Australia, New Zealand, the United States, and internationally with a market cap of A$1.84 billion.

Operations: Redox generates revenue primarily from its wholesale drugs segment, amounting to A$1.14 billion.

Redox, a nimble player in the Australian market, has seen its debt to equity ratio plummet from 69.6% to 2.6% over five years, reflecting prudent financial management. Despite a dip in sales to A$1.14 billion from A$1.26 billion, net income rose to A$90.24 million from A$80.73 million, indicating robust profitability with high-quality earnings and sufficient interest coverage. Trading slightly below fair value and forecasting steady growth at 7.63%, Redox seems poised for continued stability and potential upside.

• Dive into the specifics of Redox here with our thorough health report.

• Learn about Redox's historical performance.

Supply Network (ASX:SNL)

Simply Wall St Value Rating: ★★★★★★

Overview: Supply Network Limited operates in the aftermarket parts sector for the commercial vehicle industry across Australia and New Zealand, with a market capitalization of A$1.35 billion.

Operations: Supply Network Limited generates revenue primarily through the provision of aftermarket parts for the commercial vehicle market, amounting to A$302.72 million. The company's financial data highlights a gross profit margin trend worth noting.

Supply Network Limited, a small but promising player in the retail distribution sector, has shown significant growth with earnings increasing by 20.5% over the past year, outpacing its industry peers. The company's net debt to equity ratio is a satisfactory 3.6%, reflecting prudent financial management. Recent financials reveal sales of A$302.6 million and net income of A$33.03 million for the year ending June 2024, alongside a dividend increase to 33 cents per share, highlighting robust shareholder returns and confidence in future growth prospects at an anticipated rate of 14% annually.

• Unlock comprehensive insights into our analysis of Supply Network stock in this health report.

• Examine Supply Network's past performance report to understand how it has performed in the past.

Next Steps

• Click through to start exploring the rest of the 54 ASX Undiscovered Gems With Strong Fundamentals now.
• Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools.
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Curious About Other Options?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
• Find companies with promising cash flow potential yet trading below their fair value.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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