Undiscovered Gems In Australia To Watch This September 2024

The Australian market has shown resilience, with the Real Estate sector gaining 3.3% while the overall market remained flat over the last week, and a notable 11% increase over the past year. In light of these promising conditions and expected annual earnings growth of 12%, identifying stocks with strong fundamentals and growth potential becomes crucial for investors seeking to capitalize on this momentum.

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%	★★★★★★
Lycopodium	NA	17.22%	33.85%	★★★★★★
Sugar Terminals	NA	2.34%	2.64%	★★★★★★
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%	★★★★☆☆
Boart Longyear Group	71.20%	9.71%	39.19%	★★★★☆☆

Click here to see the full list of 53 stocks from our ASX Undiscovered Gems With Strong Fundamentals screener.

Below we spotlight a couple of our favorites from our exclusive 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$562.20 million.

Operations: Catalyst Metals Limited generates revenue primarily from its operations in Western Australia (A$243.77 million) and Tasmania (A$75.08 million). The company also incurs corporate expenses amounting to A$0.54 million.

Catalyst Metals has shown impressive growth, reporting A$317.01 million in sales for the fiscal year ending June 30, 2024, up from A$63.94 million the previous year. The company also turned a net income of A$23.56 million compared to a net loss of A$15.63 million previously, with basic earnings per share at A$0.1069 from a loss of A$0.1266 last year. Additionally, Catalyst's production saw significant gains with Plutonic producing 85koz and Henty at nearly 25koz this fiscal year.

• Click to explore a detailed breakdown of our findings in Catalyst Metals' health report.

• Review our historical performance report to gain insights into Catalyst Metals''s past performance.

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$1.71 billion.

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

Redox has shown remarkable financial resilience, with earnings growing 18.3% annually over the past five years and a debt to equity ratio dropping from 69.6% to 2.6%. Despite trading at 11.9% below its estimated fair value, it reported annual sales of A$1.14 billion for FY2024, down from A$1.26 billion last year but net income increased to A$90 million from A$81 million previously. The company declared a fully franked final dividend of 6.5 cents per share for FY2024, totaling 12.5 cents per share for the year.

• Click here to discover the nuances of Redox with our detailed analytical health report.

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

Supply Network (ASX:SNL)

Simply Wall St Value Rating: ★★★★★★

Overview: Supply Network Limited supplies aftermarket parts to the commercial vehicle industry in Australia and New Zealand, with a market cap of A$1.27 billion.

Operations: Supply Network Limited generated A$302.72 million in revenue from providing aftermarket parts for the commercial vehicle market in Australia and New Zealand. The company has a market cap of A$1.27 billion.

Supply Network Limited (SNL) reported impressive financials for the year ended June 30, 2024, with sales reaching A$302.6 million and net income at A$33.03 million. Earnings per share from continuing operations rose to A$0.7861 from A$0.6651 last year. The company declared a final fully franked dividend of 33 cents per share, up by 5 cents from the previous year’s final dividend. SNL's debt-to-equity ratio has improved significantly over five years, dropping from 24.6% to 9.3%.

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

• Evaluate Supply Network's historical performance by accessing our past performance report.

Turning Ideas Into Actions

• Embark on your investment journey to our 53 ASX Undiscovered Gems With Strong Fundamentals selection here.
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Contemplating Other Strategies?

• 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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