Stock Analysis
Exploring Hearts and Minds Investments Alongside Two Other Hidden Australian Stocks
Reviewed by Simply Wall St
The Australian market has shown robust performance, climbing 2.1% over the past week and achieving a 10% increase over the last year, with earnings expected to grow by 13% annually. In such a thriving environment, uncovering hidden stocks like Hearts and Minds Investments alongside two other lesser-known entities can offer intriguing opportunities for investors looking to diversify their portfolios.
Top 10 Undiscovered Gems With Strong Fundamentals In Australia
| Name | Debt To Equity | Revenue Growth | Earnings Growth | Health Rating |
|---|---|---|---|---|
| Fiducian Group | NA | 9.94% | 6.00% | ★★★★★★ |
| Lycopodium | NA | 15.62% | 29.55% | ★★★★★★ |
| K&S | 15.24% | -1.53% | 26.68% | ★★★★★★ |
| Sugar Terminals | NA | 2.34% | 2.64% | ★★★★★★ |
| Plato Income Maximiser | NA | 11.43% | 14.26% | ★★★★★★ |
| SKS Technologies Group | NA | 31.29% | 43.27% | ★★★★★★ |
| Hearts and Minds Investments | NA | 18.39% | -3.93% | ★★★★★★ |
| A2B Australia | 15.83% | -7.78% | 25.44% | ★★★★☆☆ |
| Paragon Care | 340.88% | 28.05% | 68.37% | ★★★★☆☆ |
| Boart Longyear Group | 71.20% | 9.71% | 39.19% | ★★★★☆☆ |
We're going to check out a few of the best picks from our screener tool.
Hearts and Minds Investments (ASX:HM1)
Simply Wall St Value Rating: ★★★★★★
Overview: Hearts and Minds Investments (ASX:HM1) is an investment company that focuses on a concentrated portfolio of high-conviction stock picks from leading fund managers, with a market capitalization of A$604.51 million.
Operations: The company generates revenue through investment activities, achieving a consistent gross profit margin of 100%. Operating expenses for the most recent period were A$1.89 million, with non-operating expenses amounting to A$19.09 million.
Hearts and Minds Investments, recently profitable, showcases robust financial health with no debt and positive free cash flow. The company's earnings quality is high, contrasting with the Capital Markets industry's marginal growth of -0.1% last year. Impressively transitioning to profitability this year, it has enhanced its competitive stance in a challenging market environment, indicating potential for sustained growth and investor interest in the evolving Australian investment landscape.
Hearts and Minds Investments (ASX:HM1)
Simply Wall St Value Rating: ★★★★★★
Overview: Hearts and Minds Investments (ASX:HM1) is an investment company that focuses on a concentrated portfolio of high-conviction stock picks from leading fund managers, with a market capitalization of A$604.51 million.
Operations: The company generates revenue through investment activities, achieving a consistent gross profit margin of 100%. Operating expenses for the most recent period were A$1.89 million, with non-operating expenses amounting to A$19.09 million.
Hearts and Minds Investments, recently profitable, showcases robust financial health with no debt and positive free cash flow. The company's earnings quality is high, contrasting with the Capital Markets industry's marginal growth of -0.1% last year. Impressively transitioning to profitability this year, it has enhanced its competitive stance in a challenging market environment, indicating potential for sustained growth and investor interest in the evolving Australian investment landscape.
MyState (ASX:MYS)
Simply Wall St Value Rating: ★★★★☆☆
Overview: MyState Limited operates in Australia, offering banking, trustee, and managed fund services through its subsidiaries, with a market capitalization of A$443.51 million.
Operations: Banking is the primary revenue generator for this entity, significantly overshadowing its wealth management and corporate segments. The company consistently achieves a gross profit margin of 100%, indicating that cost of goods sold is effectively non-existent across the observed periods.
MyState, an often overlooked Australian financial entity, trades 21.1% below its estimated fair value, suggesting potential for appreciation. With assets totaling A$9.3B and a robust net interest margin of 1.6%, its financial health appears stable despite a low bad loan allowance of only 0.6%. The company's earnings have grown by 1.3% over the past year and are projected to increase by 7.33% annually, outpacing the industry's decline of 0.8%. This performance is underpinned by high-quality earnings and predominantly low-risk funding sources, making MyState a compelling consideration for investors seeking growth in lesser-known markets.
- Navigate through the intricacies of MyState with our comprehensive health report here.
Assess MyState's past performance with our detailed historical performance reports.
MyState (ASX:MYS)
Simply Wall St Value Rating: ★★★★☆☆
Overview: MyState Limited operates in Australia, offering banking, trustee, and managed fund services through its subsidiaries, with a market capitalization of A$443.51 million.
Operations: Banking is the primary revenue generator for this entity, significantly overshadowing its wealth management and corporate segments. The company consistently achieves a gross profit margin of 100%, indicating that cost of goods sold is effectively non-existent across the observed periods.
MyState, an often overlooked Australian financial entity, trades 21.1% below its estimated fair value, suggesting potential for appreciation. With assets totaling A$9.3B and a robust net interest margin of 1.6%, its financial health appears stable despite a low bad loan allowance of only 0.6%. The company's earnings have grown by 1.3% over the past year and are projected to increase by 7.33% annually, outpacing the industry's decline of 0.8%. This performance is underpinned by high-quality earnings and predominantly low-risk funding sources, making MyState a compelling consideration for investors seeking growth in lesser-known markets.
- Navigate through the intricacies of MyState with our comprehensive health report here.
Assess MyState's past performance with our detailed historical performance reports.
Plato Income Maximiser (ASX:PL8)
Simply Wall St Value Rating: ★★★★★★
Overview: Plato Income Maximiser Limited operates as a privately owned investment manager with a market capitalization of approximately A$928.31 million.
Operations: PL8 generates revenue through investment activities, consistently achieving a gross profit margin of 100%. The company's operations are marked by a net income margin that has shown significant fluctuations, ranging from -2.49% to 8.65% over the observed periods.
Plato Income Maximiser, an emerging standout in the Australian market, has demonstrated robust financial health with a 255% earnings growth surpassing the industry's -0.1%. This growth is supported by a debt-free status and significant non-cash earnings, reflecting high-quality past performance. Despite shareholder dilution last year, its price-to-earnings ratio stands attractively at 17.3x, below the market average of 19.3x. The company has committed to maintaining its dividend payout with three upcoming payments scheduled for the next quarter.
- Click to explore a detailed breakdown of our findings in Plato Income Maximiser's health report.
Explore historical data to track Plato Income Maximiser's performance over time in our Past section.
Plato Income Maximiser (ASX:PL8)
Simply Wall St Value Rating: ★★★★★★
Overview: Plato Income Maximiser Limited operates as a privately owned investment manager with a market capitalization of approximately A$928.31 million.
Operations: PL8 generates revenue through investment activities, consistently achieving a gross profit margin of 100%. The company's operations are marked by a net income margin that has shown significant fluctuations, ranging from -2.49% to 8.65% over the observed periods.
Plato Income Maximiser, an emerging standout in the Australian market, has demonstrated robust financial health with a 255% earnings growth surpassing the industry's -0.1%. This growth is supported by a debt-free status and significant non-cash earnings, reflecting high-quality past performance. Despite shareholder dilution last year, its price-to-earnings ratio stands attractively at 17.3x, below the market average of 19.3x. The company has committed to maintaining its dividend payout with three upcoming payments scheduled for the next quarter.
- Click to explore a detailed breakdown of our findings in Plato Income Maximiser's health report.
Explore historical data to track Plato Income Maximiser's performance over time in our Past section.
Key Takeaways
- Unlock our comprehensive list of 52 ASX Undiscovered Gems With Strong Fundamentals by clicking here.
- 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.
- Maximize your investment potential with Simply Wall St, the comprehensive app that offers global market insights for free.
Searching for a Fresh Perspective?
- 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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About ASX:MYS
MyState
Through its subsidiaries, provides banking, trustee, and managed fund products and services in Australia.
