Undiscovered Gems in Australia to Explore This October 2024

In the last week, the Australian market has been flat, but over the past 12 months, it has risen by 15%, with earnings forecast to grow by 12% annually. In this dynamic environment, identifying stocks that combine strong fundamentals with growth potential can offer promising opportunities 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%	★★★★★★
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 review some notable picks from our screened stocks.

Emerald Resources (ASX:EMR)

Simply Wall St Value Rating: ★★★★★☆

Overview: Emerald Resources NL focuses on the exploration and development of mineral reserves in Cambodia and Australia, with a market cap of A$2.56 billion.

Operations: Emerald Resources generates revenue primarily from mine operations, amounting to A$366.04 million.

Emerald Resources, a dynamic player in the mining sector, has seen its earnings grow by 41.9% over the past year, outpacing industry growth of 1.6%. The company reported sales of A$371.07 million for the fiscal year ending June 2024, with net income rising to A$84.27 million from A$59.36 million previously. Despite a debt-to-equity increase to 8.5% over five years, its interest payments are well covered by EBIT at an impressive 18.6x coverage ratio, indicating strong financial health and operational efficiency in managing debt obligations effectively.

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

• Review our historical performance report to gain insights into Emerald Resources''s past performance.

Redox (ASX:RDX)

Simply Wall St Value Rating: ★★★★★★

Overview: Redox Limited is a company that supplies and distributes chemicals, ingredients, and raw materials across Australia, New Zealand, the United States, and internationally with a market capitalization of A$1.83 billion.

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

Redox, a promising player in Australia, has seen its debt to equity ratio improve significantly from 69.6% to 2.6% over the past five years, indicating strong financial health. Despite a dip in sales from A$1.26 billion to A$1.14 billion this year, net income rose to A$90.24 million from A$80.73 million last year, showcasing resilience and profitability with high-quality earnings and positive free cash flow of A$112 million as of October 2024.

• Navigate through the intricacies of Redox with our comprehensive health report here.

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

Supply Network (ASX:SNL)

Simply Wall St Value Rating: ★★★★★★

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

Operations: Supply Network Limited generates revenue of A$302.72 million from supplying aftermarket parts for the commercial vehicle market in Australia and New Zealand.

Supply Network, a smaller player in the Australian market, has shown impressive financial health. Over the past year, earnings surged by 20.5%, outpacing industry growth of just 0.2%. The company reported A$302.6 million in sales for the year ending June 2024, with net income reaching A$33.03 million compared to A$27.41 million previously. Moreover, its debt-to-equity ratio improved significantly from 24.6% to 9.3% over five years, indicating prudent financial management and potential for continued growth at an expected rate of 13.53% annually going forward.

• Delve into the full analysis health report here for a deeper understanding of Supply Network.

• Understand Supply Network's track record by examining our Past report.

Seize The Opportunity

• Unlock more gems! Our ASX Undiscovered Gems With Strong Fundamentals screener has unearthed 54 more companies for you to explore.Click here to unveil our expertly curated list of 57 ASX Undiscovered Gems With Strong Fundamentals.
• Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.
• Take control of your financial future using Simply Wall St, offering free, in-depth knowledge of international markets to every investor.

Interested In Other Possibilities?

• 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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