Discovering Hidden Gems on None Exchange This December 2024

As global markets continue to exhibit mixed performances, with major indices like the S&P 500 and Nasdaq Composite reaching record highs while the Russell 2000 Index sees a decline, investors are increasingly focused on small-cap stocks that might be overlooked in such a dynamic environment. In this context of diverging market trends and economic indicators, discovering hidden gems involves identifying companies that demonstrate strong fundamentals and potential for growth despite broader market volatility.

Top 10 Undiscovered Gems With Strong Fundamentals

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Ovostar Union	0.01%	10.19%	49.85%	★★★★★★
Ingersoll-Rand (India)	NA	15.75%	28.28%	★★★★★★
Tianyun International Holdings	10.09%	-5.59%	-9.92%	★★★★★★
MAPFRE Middlesea	NA	14.56%	1.77%	★★★★★☆
Arab Insurance Group (B.S.C.)	NA	-59.20%	20.33%	★★★★★☆
Master Trust	33.35%	28.01%	41.50%	★★★★★☆
Abans Holdings	94.08%	16.32%	18.24%	★★★★★☆
Arab Banking Corporation (B.S.C.)	213.15%	18.58%	29.63%	★★★★☆☆
A2B Australia	15.83%	-7.78%	25.44%	★★★★☆☆
BOSQAR d.d	94.35%	39.99%	23.94%	★★★★☆☆

Click here to see the full list of 4629 stocks from our Undiscovered Gems With Strong Fundamentals screener.

Underneath we present a selection of stocks filtered out by our screen.

Runner (Xiamen) (SHSE:603408)

Simply Wall St Value Rating: ★★★★★★

Overview: Runner (Xiamen) Corp. specializes in the R&D, design, production, and sale of kitchen and bathroom products as well as water purification solutions both domestically and internationally, with a market cap of CN¥5.69 billion.

Operations: Runner generates revenue primarily from kitchen and bathroom products and water purification solutions. The company's net profit margin is noted at 7.5%, reflecting its profitability in these sectors.

Runner (Xiamen) showcases a promising profile with its debt to equity ratio decreasing from 13.5% to 5.6% over five years, reflecting prudent financial management. The company trades at a price-to-earnings ratio of 11.2x, considerably below the CN market average of 37.6x, suggesting it may be undervalued relative to peers and industry standards. Earnings grew by an impressive 35.9% in the past year, outpacing the building industry’s -8%. Recent results for nine months ending September reveal sales climbing to ¥3.78 billion from ¥3.09 billion last year, while net income rose to ¥396 million from ¥290 million, highlighting robust growth potential amidst strategic positioning in its sector.

• Click here and access our complete health analysis report to understand the dynamics of Runner (Xiamen).

• Evaluate Runner (Xiamen)'s historical performance by accessing our past performance report.

Shanghai Hi-Road Food Technology (SZSE:300915)

Simply Wall St Value Rating: ★★★★★★

Overview: Shanghai Hi-Road Food Technology Co., Ltd. operates in the food technology sector with a market capitalization of CN¥3.25 billion.

Operations: Hi-Road Food Technology's revenue streams are not detailed in the provided text, and specific cost breakdowns are not available. The company's market capitalization stands at CN¥3.25 billion. Further financial details would be necessary to provide a comprehensive analysis of its revenue model or profit margins.

Shanghai Hi-Road Food Technology, a relatively small player in the food industry, has shown impressive earnings growth of 37.2% over the past year, outpacing the industry's -5.8%. The company's price-to-earnings ratio stands at 32x, which is below the CN market average of 37.6x, suggesting it might be undervalued relative to its peers. Over five years, its debt-to-equity ratio improved from 1.1 to 0.7, indicating better financial health and more cash than total debt suggests solid footing despite negative free cash flow trends recently seen with significant capital expenditures impacting performance. Recent share buybacks totaling CNY 35.37 million reflect confidence in future prospects amidst executive changes and strategic meetings aimed at strengthening governance and oversight structures within this dynamic sector landscape.

• Click to explore a detailed breakdown of our findings in Shanghai Hi-Road Food Technology's health report.

• Gain insights into Shanghai Hi-Road Food Technology's historical performance by reviewing our past performance report.

Trusco Nakayama (TSE:9830)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Trusco Nakayama Corporation is involved in the wholesale distribution of machine tools, distribution equipment, and environmental safety equipment both in Japan and internationally, with a market cap of ¥147.18 billion.

Operations: The company generates revenue primarily through the wholesale of machine tools, distribution equipment, and environmental safety equipment. It operates both domestically in Japan and internationally.

Trusco Nakayama, a notable player in the trade distributors sector, showcases strong financial health with a price-to-earnings ratio of 10.1x, which is favorable compared to the JP market average of 13.5x. The company's earnings surged by 16.9% last year, outpacing industry growth of just 0.2%. Its net debt to equity stands at a satisfactory 7.9%, indicating prudent financial management despite an increase from 31.3% to 33.4% over five years. With EBIT covering interest payments by an impressive factor of 153x and high-quality past earnings, Trusco Nakayama seems well-positioned for continued success in its market niche.

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

• Understand Trusco Nakayama's track record by examining our Past report.

Make It Happen

• Delve into our full catalog of 4629 Undiscovered Gems With Strong Fundamentals here.
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Looking For Alternative Opportunities?

• 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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