Discovering Undiscovered Gems in Global Markets March 2025

As global markets grapple with tariff fears, inflation concerns, and fluctuating growth indicators, small-cap stocks have faced significant pressure, with indices like the Russell 2000 experiencing notable declines. Amidst this backdrop of uncertainty and cautious investor sentiment, identifying potential "undiscovered gems" requires a keen focus on companies that demonstrate resilience through innovative strategies or niche market positions.

Top 10 Undiscovered Gems With Strong Fundamentals Globally

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Lion Rock Group	16.91%	14.33%	10.15%	★★★★★★
Changjiu Holdings	NA	11.84%	2.46%	★★★★★★
Ovostar Union	0.01%	10.19%	49.85%	★★★★★★
National Corporation for Tourism and Hotels	15.77%	-3.48%	-12.95%	★★★★★★
Tai Sin Electric	28.69%	9.56%	4.66%	★★★★★☆
Union Coop	3.73%	-4.15%	-13.19%	★★★★★☆
Amanat Holdings PJSC	12.00%	34.39%	-9.61%	★★★★★☆
Sparta	NA	-5.54%	-15.40%	★★★★★☆
Billion Industrial Holdings	3.63%	18.00%	-11.38%	★★★★★☆
Practic	NA	3.63%	6.85%	★★★★☆☆

Click here to see the full list of 3219 stocks from our Global Undiscovered Gems With Strong Fundamentals screener.

Let's review some notable picks from our screened stocks.

Alpha Group (SZSE:002292)

Simply Wall St Value Rating: ★★★★★★

Overview: Alpha Group is an animation and entertainment company with operations in China and internationally, holding a market cap of approximately CN¥14.03 billion.

Operations: Alpha Group generates revenue primarily from its games and toys segment, amounting to CN¥2.73 billion.

Alpha Group, a company with a volatile share price recently, has made strides in improving its financial health. Over the past five years, its debt to equity ratio decreased from 33.9% to 18.2%, indicating better leverage management. The firm achieved profitability last year and now boasts high-quality earnings, outperforming the Leisure industry's growth rate of -0.7%. Its net debt to equity ratio stands at a satisfactory 2.9%, suggesting sound financial stability. In recent developments, Alpha Group announced a share repurchase program worth up to CNY 130 million aimed at employee incentives and stock ownership plans, reflecting confidence in its future prospects.

• Dive into the specifics of Alpha Group here with our thorough health report.

• Review our historical performance report to gain insights into Alpha Group's's past performance.

Nanjing Hanrui CobaltLtd (SZSE:300618)

Simply Wall St Value Rating: ★★★★★☆

Overview: Nanjing Hanrui Cobalt Co., Ltd. specializes in the extraction of cobalt and copper ores, with a market capitalization of CN¥12.72 billion.

Operations: Hanrui Cobalt generates revenue primarily from the extraction and sale of cobalt and copper ores. The company's net profit margin has experienced fluctuations, with recent figures showing a decline to 3.5%.

In the metals and mining sector, Hanrui Cobalt stands out with a notable earnings growth of 96% over the past year, significantly surpassing the industry's 0.4%. The company has more cash than its total debt, indicating a robust financial position. Over five years, its debt to equity ratio improved from 50.2% to 28.1%, reflecting prudent financial management. Despite not being free cash flow positive recently, Hanrui's interest payments are well covered by EBIT at an impressive 104 times coverage, suggesting strong operational efficiency and resilience in managing financial obligations amidst industry challenges.

• Click here to discover the nuances of Nanjing Hanrui CobaltLtd with our detailed analytical health report.

• Gain insights into Nanjing Hanrui CobaltLtd's past trends and performance with our Past report.

Shenzhen Q&D Circuits (SZSE:301628)

Simply Wall St Value Rating: ★★★★★☆

Overview: Shenzhen Q&D Circuits Co., Ltd. specializes in the manufacturing and distribution of electronic components, with a market capitalization of approximately CN¥7.13 billion.

Operations: Q&D Circuits generates revenue primarily from its electronic components and parts segment, amounting to CN¥767.83 million.

Shenzhen Q&D Circuits, a player in the electronics sector, has demonstrated impressive earnings growth of 14% over the past year, outpacing the industry's 3%. The company's financial health appears robust with cash exceeding total debt and interest payments comfortably covered by EBIT at 342 times. Despite recent share price volatility, its profitability ensures a stable cash runway. Free cash flow stands positive at US$79.92 million as of September 2024, reflecting efficient capital management. A special shareholders meeting is slated for February 27th in Shenzhen to discuss future strategies and potential shareholder interests further.

• Navigate through the intricacies of Shenzhen Q&D Circuits with our comprehensive health report here.

• Evaluate Shenzhen Q&D Circuits' historical performance by accessing our past performance report.

Summing It All Up

• Explore the 3219 names from our Global Undiscovered Gems With Strong Fundamentals screener here.
• Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
• Join a community of smart investors by using Simply Wall St. It's free and delivers expert-level analysis on worldwide markets.

Seeking Other Investments?

• 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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