Exploring 3 Undiscovered Gems In Australia For Potential Portfolio Growth

Simply Wall St

The Australian market experienced a modest rebound, closing slightly up by 0.04% this Thursday, with notable sector gains in Communication and Real Estate despite some losses in Energy and Utilities. In this environment of cautious optimism and selective sector strength, discovering lesser-known stocks that demonstrate resilience and potential for growth can be an effective strategy for investors looking to diversify their portfolios.

Top 10 Undiscovered Gems With Strong Fundamentals In Australia

NameDebt To EquityRevenue GrowthEarnings GrowthHealth Rating
Fiducian GroupNA10.00%9.57%★★★★★★
JoyceNA9.93%17.54%★★★★★★
Hearts and Minds InvestmentsNA56.27%59.19%★★★★★★
Euroz Hartleys GroupNA1.82%-25.32%★★★★★★
Argosy MineralsNA-12.81%-19.89%★★★★★★
Focus MineralsNA75.35%51.34%★★★★★★
Investigator SilverNA54.36%52.03%★★★★★★
Energy WorldNA-47.50%-44.86%★★★★★☆
Zimplats Holdings5.44%-9.79%-42.03%★★★★★☆
Australian United Investment1.90%5.23%4.56%★★★★☆☆

Click here to see the full list of 58 stocks from our ASX Undiscovered Gems With Strong Fundamentals screener.

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

Cobram Estate Olives (ASX:CBO)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Cobram Estate Olives Limited is involved in the production and marketing of olive oil across Australia, the United States, and internationally, with a market capitalization of approximately A$1.36 billion.

Operations: Cobram Estate Olives generates revenue primarily from its Australian olive oil operations, contributing A$183.82 million, and its US operations with A$64.97 million. The company experiences a financial impact from eliminations and corporate expenses totaling -A$7.13 million.

Cobram Estate Olives, a notable player in the Australian market, has shown impressive growth with earnings surging by 168% over the past year, outpacing its industry peers. Despite a high net debt to equity ratio of 72%, the company has managed to reduce it from 119.5% over five years, indicating improved financial management. Recent activities include follow-on equity offerings totaling A$11.97 million and a dividend increase to A$0.045 per share, reflecting confidence in future prospects. With EBIT covering interest payments 8 times over and revenue forecasted to grow annually by nearly 14%, Cobram seems poised for continued expansion.

ASX:CBO Earnings and Revenue Growth as at Dec 2025

EQT Holdings (ASX:EQT)

Simply Wall St Value Rating: ★★★★★☆

Overview: EQT Holdings Limited, with a market cap of A$656.27 million, operates in Australia offering philanthropic, trustee, and investment services through its subsidiaries.

Operations: EQT Holdings generates revenue primarily from Trustee & Wealth Services, excluding Superannuation Trustee Services, amounting to A$102.18 million, and Corporate & Superannuation Trustee Services contributing A$79.99 million.

EQT Holdings stands out with its compelling financial profile, boasting high-quality earnings and a forecasted annual growth of 12.01%. The company’s recent earnings surge of 19.7% surpasses the Capital Markets industry's 12.7%, indicating robust performance in a competitive landscape. With a price-to-earnings ratio of 19.2x, it offers better value compared to the broader Australian market at 21.2x, suggesting potential for value-conscious investors. Despite an increase in debt to equity from 10.8% to 20.5% over five years, EQT's interest coverage is strong at 10.8 times EBIT, reflecting sound financial management and stability moving forward.

ASX:EQT Debt to Equity as at Dec 2025

MFF Capital Investments (ASX:MFF)

Simply Wall St Value Rating: ★★★★★★

Overview: MFF Capital Investments Limited is an investment firm manager with a market capitalization of A$2.93 billion.

Operations: The primary revenue stream for MFF Capital Investments comes from its equity investments, generating A$631.43 million. The company's financial performance is reflected in its market capitalization of A$2.93 billion.

MFF Capital Investments, a nimble player in the investment space, is debt-free with no interest coverage concerns. The company trades at 66% below its estimated fair value, suggesting potential undervaluation. Despite a recent dip in earnings growth by 3%, MFF boasts high-quality past earnings and positive free cash flow of A$336.60 million as of June 2025. Recent executive changes see Gerald Stack stepping up as CEO from January 2026, bringing over three decades of financial expertise to the table. This leadership shift could enhance MFF's strategic direction and investment capabilities moving forward.

ASX:MFF Debt to Equity as at Dec 2025

Where To Now?

Interested In Other Possibilities?

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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