Uncovering November 2024's Undiscovered Gems on None Exchange

As global markets navigate the implications of the Trump administration's policy shifts, small-cap stocks have experienced notable volatility, with indices like the Russell 2000 reflecting a broader sentiment of uncertainty. Amid these fluctuations, investors are keenly observing economic indicators such as inflation rates and interest rate expectations that could impact small-cap companies' performance. In this dynamic environment, identifying promising stocks often involves looking for those with solid fundamentals and potential resilience to policy changes.

Top 10 Undiscovered Gems With Strong Fundamentals

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Brillian Network & Automation Integrated System	8.39%	20.15%	19.93%	★★★★★★
Gallant Precision Machining	29.51%	-2.07%	4.51%	★★★★★★
Impellam Group	31.12%	-5.43%	-6.86%	★★★★★★
Ovostar Union	0.01%	10.19%	49.85%	★★★★★★
Yulie Sekuritas Indonesia	NA	18.62%	9.58%	★★★★★★
Tianyun International Holdings	10.09%	-5.59%	-9.92%	★★★★★★
Arab Insurance Group (B.S.C.)	NA	-59.20%	20.33%	★★★★★☆
A2B Australia	15.83%	-7.78%	25.44%	★★★★☆☆
Wilson	64.79%	30.09%	68.29%	★★★★☆☆
Al-Deera Holding Company K.P.S.C	6.11%	51.44%	59.77%	★★★★☆☆

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

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

Scholar Education Group (SEHK:1769)

Simply Wall St Value Rating: ★★★★★★

Overview: Scholar Education Group is an investment holding company that offers K-12 after-school education services in the People’s Republic of China, with a market capitalization of HK$2.86 billion.

Operations: The company's primary revenue stream comes from its private education services, generating CN¥718.40 million.

Scholar Education Group, a nimble player in the education sector, recently joined the S&P Global BMI Index. Despite its profitability and a forecasted revenue growth of 36% annually, it faces challenges with declining profit margins now at 17.5%, down from last year's 28%. The company has been active in share buybacks this year, repurchasing over a million shares for HKD 2.6 million. With debt levels reduced to a debt-to-equity ratio of 5.6% from 9% over five years and trading significantly below estimated fair value, Scholar Education seems positioned for potential value realization amidst industry headwinds.

• Click to explore a detailed breakdown of our findings in Scholar Education Group's health report.

• Gain insights into Scholar Education Group's historical performance by reviewing our past performance report.

Jiangxi Sanxin MedtecLtd (SZSE:300453)

Simply Wall St Value Rating: ★★★★★★

Overview: Jiangxi Sanxin Medtec Co., Ltd. specializes in the research, development, manufacture, sale, and service of medical devices with a market cap of CN¥4.33 billion.

Operations: Sanxin Medtec generates revenue primarily from the sale of medical devices. The company's cost structure includes expenses related to research, development, and manufacturing. Its financial performance is reflected in its net profit margin, which shows variation over different periods without a consistent trend.

Jiangxi Sanxin Medtec, a nimble player in the medical equipment sector, has been making waves with its robust financial performance. Over the past year, earnings surged by 27%, outpacing the industry's negative trend of -8.8%. The company reported net income of CNY 167.91 million for the first nine months of 2024, an increase from CNY 141.41 million last year. With a price-to-earnings ratio at 18.6x, it offers better value compared to the broader CN market's 35.9x. Its debt-to-equity ratio improved from 26% to nearly 21% over five years, indicating prudent financial management and potential for continued growth in its niche market space.

• Get an in-depth perspective on Jiangxi Sanxin MedtecLtd's performance by reading our health report here.

• Learn about Jiangxi Sanxin MedtecLtd's historical performance.

Eternal Materials (TWSE:1717)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Eternal Materials Co., Ltd. is engaged in the manufacturing and sale of resin and electronic materials, with a market cap of NT$34.94 billion.

Operations: Eternal Materials generates revenue primarily from synthetic resin, special material, and electronic materials, with synthetic resin contributing NT$23.49 billion and electronic materials adding NT$13.93 billion. The company's net profit margin reflects its profitability after accounting for all expenses and taxes.

Eternal Materials, a notable player in the chemicals sector, has shown promising growth with earnings increasing by 21.6% over the past year, outpacing the industry average of 13.7%. However, its net income for Q3 dropped to TWD 456.64 million from TWD 600.19 million last year, reflecting some challenges. The company's debt-to-equity ratio improved from 101.9% to 77.2% over five years, indicating better financial health despite a high net debt-to-equity ratio of 50.1%. With a price-to-earnings ratio of 19.9x undercutting the TW market's average of 20.9x and high-quality earnings reported, Eternal Materials presents an intriguing investment case amidst mixed performance indicators.

• Unlock comprehensive insights into our analysis of Eternal Materials stock in this health report.

• Explore historical data to track Eternal Materials' performance over time in our Past section.

Key Takeaways

• Unlock our comprehensive list of 4629 Undiscovered Gems With Strong Fundamentals by clicking here.
• Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments.
• Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.

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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