Stock Analysis

Undiscovered Gems With Growth Potential For January 2025

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As we enter January 2025, global markets are navigating a mixed landscape with the S&P 500 closing out another strong year despite recent declines, while economic indicators such as the Chicago PMI highlight challenges in manufacturing. Amid this backdrop, discovering stocks with growth potential requires a keen eye for companies that can thrive despite broader market volatility and economic fluctuations.

Top 10 Undiscovered Gems With Strong Fundamentals

NameDebt To EquityRevenue GrowthEarnings GrowthHealth Rating
SALUS Ljubljana d. d13.55%13.11%9.95%★★★★★★
Ovostar Union0.01%10.19%49.85%★★★★★★
Yulie Sekuritas IndonesiaNA18.62%9.58%★★★★★★
Aesler Grup InternasionalNA-17.61%-40.21%★★★★★★
Tianyun International Holdings10.09%-5.59%-9.92%★★★★★★
Flügger group20.98%3.24%-29.82%★★★★★☆
Steamships Trading33.60%4.17%3.90%★★★★★☆
ASA Gold and Precious MetalsNA7.11%-35.88%★★★★★☆
A2B Australia15.83%-7.78%25.44%★★★★☆☆
PracticNA3.63%6.85%★★★★☆☆

Click here to see the full list of 4659 stocks from our Undiscovered Gems With Strong Fundamentals screener.

Here we highlight a subset of our preferred stocks from the screener.

Univanich Palm Oil (SET:UVAN)

Simply Wall St Value Rating: ★★★★★★

Overview: Univanich Palm Oil Public Company Limited operates in Thailand, focusing on oil palm plantations, crushing mills, and oil palm research and seed businesses with a market cap of THB8.88 billion.

Operations: The company's primary revenue streams are derived from oil palm plantations and crushing mills. Its financial performance is influenced by the cost of raw materials and operational efficiencies. The net profit margin has shown variability over recent periods, reflecting changes in production costs and market prices for palm oil products.

Univanich Palm Oil, a nimble player in the palm oil industry, has demonstrated robust financial health with its interest payments comfortably covered by EBIT at 408 times. The company has reduced its debt-to-equity ratio from 2.7 to 1.2 over five years, showcasing prudent financial management. Trading at a significant discount of 53% below estimated fair value, Univanich appears undervalued. Recent earnings reports highlight strong performance with net income for Q3 reaching THB 409 million compared to THB 173 million the previous year and EPS rising from THB 0.18 to THB 0.44, indicating solid growth momentum despite industry challenges.

SET:UVAN Debt to Equity as at Jan 2025

Dimerco Data System (TPEX:5403)

Simply Wall St Value Rating: ★★★★★★

Overview: Dimerco Data System Corporation, along with its subsidiaries, focuses on the design, development, and sale of software products in Taiwan with a market capitalization of approximately NT$9.38 billion.

Operations: Dimerco Data System Corporation generates its revenue primarily from the hardware department, contributing NT$2.07 billion, followed by the software sector at NT$809.87 million.

Dimerco Data System, a small cap player in the tech industry, has shown consistent profitability with no debt on its books over the past five years. Its earnings have grown at a healthy 17% annually, although recent performance saw earnings growth of only 2%, underperforming the broader IT sector's 9.9%. The company offers good value with a price-to-earnings ratio of 17x compared to the market's 21x. Recent reports indicate third-quarter sales of TWD 712 million and net income of TWD 139 million, reflecting slight declines from last year's figures but still highlighting its robust financial health.

TPEX:5403 Debt to Equity as at Jan 2025

Juroku Financial GroupInc (TSE:7380)

Simply Wall St Value Rating: ★★★★★☆

Overview: Juroku Financial Group, Inc. offers banking and leasing products and services in Japan, with a market capitalization of ¥155.04 billion.

Operations: The company generates revenue primarily through its banking and leasing segments in Japan. It has a market capitalization of ¥155.04 billion.

Juroku Financial Group Inc, with total assets of ¥7,568.9 billion and equity of ¥429.5 billion, is a financial entity that relies heavily on customer deposits for funding, making up 90% of its liabilities—a safer bet than external borrowing. Despite a net interest margin of 0.8%, it faces challenges with an insufficient allowance for bad loans at 1.3% of total loans. Over the past five years, earnings have grown at an average rate of 9.2%, indicating steady progress but trailing behind industry growth rates recently at 13.3%. This company trades significantly below its estimated fair value by about 47%.

TSE:7380 Earnings and Revenue Growth as at Jan 2025

Key Takeaways

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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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