Stock Analysis

Undiscovered Gems With Strong Fundamentals For October 2024

SHSE:688553
Source: Shutterstock

As global markets navigate rising U.S. Treasury yields and a cautious economic outlook, small-cap stocks have faced increased pressure compared to their large-cap counterparts. Despite these challenges, identifying stocks with strong fundamentals can provide opportunities for investors seeking value in an uncertain environment.

Top 10 Undiscovered Gems With Strong Fundamentals

NameDebt To EquityRevenue GrowthEarnings GrowthHealth Rating
Zona Franca de IquiqueNA7.94%12.83%★★★★★★
Eagle Financial Services169.49%12.30%1.92%★★★★★★
Morris State Bancshares17.84%4.83%6.58%★★★★★★
Franklin Financial Services222.36%5.55%-1.86%★★★★★★
Impellam Group31.12%-5.43%-6.86%★★★★★★
Ovostar Union0.01%10.19%49.85%★★★★★★
First Northern Community BancorpNA7.12%10.04%★★★★★★
Tianyun International Holdings10.09%-5.59%-9.92%★★★★★★
Wilson64.79%30.09%68.29%★★★★☆☆
A2B Australia15.83%-7.78%25.44%★★★★☆☆

Click here to see the full list of 4739 stocks from our Undiscovered Gems With Strong Fundamentals screener.

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

Baida GroupLtd (SHSE:600865)

Simply Wall St Value Rating: ★★★★★★

Overview: Baida Group Co., Ltd operates department stores in China and has a market capitalization of approximately CN¥3.94 billion.

Operations: Baida Group Co., Ltd generates revenue through its department store operations in China. The company has a market capitalization of approximately CN¥3.94 billion.

Baida Group Ltd. showcases a strong financial position, being debt-free and boasting a notable earnings growth of 69.3% over the past year, outpacing the Multiline Retail industry at -6.8%. This performance is partly due to a significant one-off gain of CN¥45.2 million in its recent results up to September 2024. Despite sales dropping to CN¥142.49 million from CN¥152.02 million, net income soared to CN¥131.53 million from last year's CN¥20.81 million for the same period, reflecting improved profitability with basic earnings per share climbing from CNY 0.06 to CNY 0.35.

SHSE:600865 Earnings and Revenue Growth as at Oct 2024
SHSE:600865 Earnings and Revenue Growth as at Oct 2024

Sichuan Huiyu Pharmaceutical (SHSE:688553)

Simply Wall St Value Rating: ★★★★★★

Overview: Sichuan Huiyu Pharmaceutical Co., Ltd. is engaged in the research, development, production, and sale of anti-tumor and injection drugs both in China and internationally, with a market capitalization of CN¥6.46 billion.

Operations: Huiyu Pharmaceutical generates revenue primarily from its medicine segment, totaling CN¥1.12 billion.

Huiyu Pharma, a nimble player in the pharmaceutical sector, reported impressive earnings growth of 171% over the past year, outpacing its industry by a wide margin. The company’s net income for the nine months ending September 2024 was CNY 227.35 million, up from CNY 88.94 million a year earlier. Despite this strong performance, Huiyu's earnings have seen an annual decline of nearly 20% over five years due to large one-off gains like CN¥179 million impacting recent results. Its debt-to-equity ratio improved significantly from 24.8 to 17.4 over five years, indicating prudent financial management.

SHSE:688553 Debt to Equity as at Oct 2024
SHSE:688553 Debt to Equity as at Oct 2024

Beingmate (SZSE:002570)

Simply Wall St Value Rating: ★★★★★☆

Overview: Beingmate Co., Ltd. is a company that focuses on the research, development, production, and sale of children's and nutritious food products in China with a market cap of CN¥5.67 billion.

Operations: Beingmate generates revenue primarily from milk powder, contributing CN¥2.42 billion, followed by rice noodles at CN¥58.99 million.

Beingmate, a promising player in the food industry, has recently turned profitable, with its earnings outpacing the sector's -2.4% growth rate. Its net debt to equity ratio stands at a satisfactory 0.9%, reflecting strong financial health. The company reported sales of CNY 2.09 billion for the first nine months of 2024, up from CNY 1.92 billion last year, with net income climbing to CNY 71.79 million from CNY 49.41 million previously. Additionally, Beingmate repurchased approximately 47 million shares for CNY 132.35 million this year under its buyback program announced in January, enhancing shareholder value amidst volatile share price movements recently observed over three months.

SZSE:002570 Earnings and Revenue Growth as at Oct 2024
SZSE:002570 Earnings and Revenue Growth as at Oct 2024

Next Steps

Seeking Other Investments?

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.

New: Manage All Your Stock Portfolios in One Place

We've created the ultimate portfolio companion for stock investors, and it's free.

• Connect an unlimited number of Portfolios and see your total in one currency
• Be alerted to new Warning Signs or Risks via email or mobile
• Track the Fair Value of your stocks

Try a Demo Portfolio for Free

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com