Undiscovered Gems in Australia for September 2024

The Australian market has shown robust performance, climbing 1.7% in the last 7 days and up 12% over the past year, with earnings expected to grow by 12% annually in the coming years. In this favorable environment, identifying stocks with strong fundamentals and growth potential can be particularly rewarding for investors seeking 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%	★★★★★★
Sugar Terminals	NA	3.14%	3.53%	★★★★★★
Bisalloy Steel Group	0.95%	10.27%	24.14%	★★★★★★
Lycopodium	NA	17.22%	33.85%	★★★★★★
SKS Technologies Group	NA	34.65%	47.39%	★★★★★★
BSP Financial Group	7.53%	7.31%	4.10%	★★★★★☆
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%	★★★★☆☆

Click here to see the full list of 55 stocks from our ASX Undiscovered Gems With Strong Fundamentals screener.

Here we highlight a subset of our preferred stocks from the screener.

Catalyst Metals (ASX:CYL)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Catalyst Metals Limited explores and evaluates mineral properties in Australia, with a market cap of A$602.84 million.

Operations: Catalyst Metals Limited generates revenue primarily from its operations in Western Australia (A$243.77 million) and Tasmania (A$75.08 million).

Catalyst Metals, a small cap in the Australian mining sector, has shown promising growth with earnings forecasted to rise by 54.48% annually. For FY2024, it reported sales of A$317 million and net income of A$23.56 million, reversing last year's loss of A$15.63 million. The company achieved an annual production of 110koz gold and plans to produce between 105-120koz next year. Despite a slight increase in debt-to-equity ratio from 0% to 1.8% over five years, its interest payments are well covered by EBIT at 6.3x coverage.

• Take a closer look at Catalyst Metals' potential here in our health report.

• Understand Catalyst Metals' track record by examining our Past report.

MFF Capital Investments (ASX:MFF)

Simply Wall St Value Rating: ★★★★★☆

Overview: MFF Capital Investments Limited is an investment firm manager with a market cap of A$2.25 billion.

Operations: MFF Capital Investments generates revenue primarily from its equity investments, amounting to A$659.96 million.

MFF Capital Investments has shown impressive performance, with earnings growth of 38.3% over the past year, outpacing the Capital Markets industry average of 17.7%. The company's net income for the year ended June 30, 2024, was A$447.36 million compared to A$323.58 million a year ago. MFF's debt to equity ratio increased from 2.8% to 7.9% over five years but remains manageable as it holds more cash than total debt, indicating financial stability and robust profitability.

• Click to explore a detailed breakdown of our findings in MFF Capital Investments' health report.

• Assess MFF Capital Investments' past performance with our detailed historical performance reports.

Redox (ASX:RDX)

Simply Wall St Value Rating: ★★★★★★

Overview: Redox Limited supplies and distributes chemicals, ingredients, and raw materials in Australia, New Zealand, the United States, and internationally with a market cap of A$1.69 billion.

Operations: Redox generates revenue primarily from its wholesale drugs segment, amounting to A$1.14 billion. The company's cost structure and profitability metrics are not detailed in the provided data.

Redox has shown impressive financial health, with a notable reduction in its debt to equity ratio from 69.6% to 2.6% over five years and more cash than total debt. Despite earnings growth of 11.8% not matching the industry’s 19.6%, it remains profitable with high-quality earnings and trades at a good value, being 12.6% below fair value estimates. Recent results reported net income of A$90 million on sales of A$1,137 million for FY2024, reflecting stable performance amidst market challenges.

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

• Gain insights into Redox's historical performance by reviewing our past performance report.

Taking Advantage

• Navigate through the entire inventory of 55 ASX Undiscovered Gems With Strong Fundamentals here.
• Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
• Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets.

Seeking Other Investments?

• 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com