Undiscovered Gems These 3 Global Stocks with Strong Foundations

Simply Wall St

As global markets react positively to the recent U.S.-China tariff suspension, with indices like the Nasdaq Composite and S&P 500 witnessing substantial gains, investors are keenly observing how these developments might influence small-cap stocks. Amidst this backdrop of easing trade tensions and cooling inflation rates, identifying stocks with strong foundations becomes crucial; such companies often exhibit resilience and potential for growth even in fluctuating market conditions.

Top 10 Undiscovered Gems With Strong Fundamentals Globally

NameDebt To EquityRevenue GrowthEarnings GrowthHealth Rating
S.A.S. Dragon Holdings77.35%3.64%7.13%★★★★★★
Changjiu HoldingsNA11.55%10.44%★★★★★★
PSC15.34%1.17%10.86%★★★★★★
Kerevitas Gida Sanayi ve Ticaret42.60%43.79%39.15%★★★★★★
Vakif Gayrimenkul Yatirim Ortakligi0.00%46.96%55.76%★★★★★★
Alfa Solar Enerji Sanayi ve Ticaret38.29%5.19%-13.40%★★★★★☆
Gür-Sel Turizm Tasimacilik ve Servis Ticaret8.11%55.10%73.88%★★★★★☆
Arsan Tekstil Ticaret ve Sanayi Anonim Sirketi0.68%12.49%49.63%★★★★★☆
Procimmo Group157.49%0.65%4.94%★★★★☆☆
Practic5.21%4.49%7.23%★★★★☆☆

Click here to see the full list of 3199 stocks from our Global Undiscovered Gems With Strong Fundamentals screener.

Let's uncover some gems from our specialized screener.

GAON CABLE (KOSE:A000500)

Simply Wall St Value Rating: ★★★★☆☆

Overview: GAON CABLE Co., Ltd. is a South Korean company specializing in industrial power cables with a market capitalization of ₩1.09 trillion.

Operations: The primary revenue stream for GAON CABLE comes from its Power Line Division, generating approximately ₩1.73 trillion. The Telecommunications Line Division contributes an additional ₩225.09 billion to the company's revenue.

GAON CABLE, a relatively small player in the market, has shown impressive growth with earnings surging by 41.7% over the past year, outpacing its industry peers. The company's net income for 2024 reached KRW 25.36 billion, up from KRW 17.9 billion in the previous year, reflecting its robust performance. Despite a volatile share price recently, GAON maintains well-covered interest payments at 6.2 times EBIT and holds a satisfactory net debt to equity ratio of 26.2%. With basic earnings per share rising to KRW 3,270 from KRW 2,907 last year, it seems poised for continued expansion in its sector.

KOSE:A000500 Earnings and Revenue Growth as at May 2025

MCLON JEWELLERYLtd (SZSE:300945)

Simply Wall St Value Rating: ★★★★★☆

Overview: MCLON JEWELLERY Co., Ltd. engages in jewelry retail both within China and internationally, with a market cap of CN¥4.40 billion.

Operations: The company generates revenue primarily from its jewelry retail operations in China and international markets. It has a market capitalization of CN¥4.40 billion.

MCLON Jewellery, a small player in the luxury sector, has shown impressive growth with earnings surging 20% over the past year, outpacing its industry. Its sales climbed to CNY 2.36 billion from CNY 1.92 billion last year, while net income increased to CNY 96.13 million from CNY 80.09 million. The company also declared a final cash dividend of CNY 1.40 per ten shares for 2024, indicating robust profitability and shareholder returns. Despite having a volatile share price recently, MCLON's high-quality earnings and strong interest coverage suggest solid financial health moving forward.

SZSE:300945 Debt to Equity as at May 2025

Shinkong Textile (TWSE:1419)

Simply Wall St Value Rating: ★★★★★☆

Overview: Shinkong Textile Co., Ltd. is involved in the production and sale of synthetic fibers, fabrics, and finished fabrics both in Taiwan and internationally, with a market cap of NT$15.68 billion.

Operations: Shinkong Textile generates revenue primarily from the sale of synthetic fibers, fabrics, and finished fabrics. The company's financial performance includes a focus on cost management to optimize profitability. A notable aspect is its gross profit margin, which reflects the efficiency in managing production costs relative to sales.

Shinkong Textile, a modest player in the textile industry, has shown promising financial health. Over the past year, earnings surged by 35.4%, outpacing the luxury industry's growth of 10.2%. This robust performance is complemented by a satisfactory net debt to equity ratio of 12.9% and a reduction in debt from 36.8% to 28.8% over five years, indicating prudent financial management. Recent reports highlight first-quarter sales reaching TWD 1,063 million from TWD 862 million last year and net income climbing to TWD 98.7 million from TWD 89.73 million, showcasing consistent revenue growth and profitability improvements for this small entity.

TWSE:1419 Debt to Equity as at May 2025

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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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