Exploring Undiscovered Gems on Exchange None in December 2024

As global markets navigate the final days of 2024, small-cap stocks have faced mixed conditions with consumer confidence and manufacturing indicators showing signs of weakness, while major indices like the S&P 500 and Nasdaq Composite have seen moderate gains. In this environment, identifying promising opportunities requires a keen eye for companies that demonstrate resilience and potential for growth despite broader economic challenges.

Top 10 Undiscovered Gems With Strong Fundamentals

Click here to see the full list of 4630 stocks from our Undiscovered Gems With Strong Fundamentals screener.

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

Çelebi Hava Servisi (IBSE:CLEBI)

Simply Wall St Value Rating: ★★★★★★

Overview: Çelebi Hava Servisi A.S. offers ground handling, cargo, and warehouse services to both domestic and international airlines as well as private air cargo companies mainly in Turkey, with a market capitalization of TRY46.51 billion.

Operations: Çelebi Hava Servisi A.S. generates revenue primarily from airport ground services, which account for TRY11.33 billion, and cargo and warehouse services, contributing TRY5.90 billion. The company's financial performance is significantly influenced by its net profit margin trends over time.

Çelebi Hava Servisi, an intriguing player in the infrastructure sector, has seen its earnings soar by 105% over the past year, outpacing industry growth of 4.8%. The company reported a significant increase in sales for Q3 2024 at TRY 5.81 billion compared to TRY 3.59 billion a year earlier, with net income rising to TRY 1.40 billion from TRY 673 million. Its debt-to-equity ratio improved dramatically from 157.6% to just under half that figure over five years, suggesting prudent financial management and strong cash flow generation with free cash flow reaching TRY 2.98 billion recently.

• Click here and access our complete health analysis report to understand the dynamics of Çelebi Hava Servisi.

• Gain insights into Çelebi Hava Servisi's past trends and performance with our Past report.

Haw Par (SGX:H02)

Simply Wall St Value Rating: ★★★★★☆

Overview: Haw Par Corporation Limited, with a market cap of SGD2.46 billion, is engaged in the manufacturing, marketing, and trading of healthcare products across Singapore, ASEAN countries, other Asian regions, and globally.

Operations: Haw Par generates revenue primarily from healthcare products, contributing SGD220.30 million. The company exhibits a notable gross profit margin of 70%.

With a price-to-earnings ratio of 10.5x, Haw Par appears undervalued compared to the SG market average of 11.6x, suggesting potential value for investors. The company has demonstrated robust earnings growth of 33.8% over the past year, outpacing the broader Pharmaceuticals industry growth rate of 7.1%. Despite an increase in its debt-to-equity ratio from 0.8% to 1% over five years, Haw Par maintains a strong financial position with more cash than total debt and high-quality earnings that cover interest payments comfortably. This financial stability positions it well within its industry context for continued performance potential.

• Take a closer look at Haw Par's potential here in our health report.

• Review our historical performance report to gain insights into Haw Par's's past performance.

Ogaki Kyoritsu Bank (TSE:8361)

Simply Wall St Value Rating: ★★★★☆☆

Overview: The Ogaki Kyoritsu Bank, Ltd. is a regional financial institution offering a range of banking products and services in Japan and internationally, with a market capitalization of ¥79.35 billion.

Operations: Ogaki Kyoritsu Bank generates revenue primarily from its banking segment, totaling ¥78.20 billion, and leasing activities, contributing ¥45.32 billion. The credit guarantee segment adds an additional ¥2.89 billion to the revenue stream.

Ogaki Kyoritsu Bank, a smaller player in the banking sector, stands out with its earnings growth of 330.6% over the past year, significantly surpassing the industry average of 22.6%. Despite trading at nearly half its estimated fair value, it faces challenges with a low allowance for bad loans at 43%, while non-performing loans are at an appropriate level of 1.4%. With total assets valued at ¥6.67 trillion and deposits reaching ¥5.77 trillion, this bank primarily relies on customer deposits for funding (91%), which is generally considered less risky than external borrowing sources.

• Navigate through the intricacies of Ogaki Kyoritsu Bank with our comprehensive health report here.

• Gain insights into Ogaki Kyoritsu Bank's historical performance by reviewing our past performance report.

Where To Now?

• Get an in-depth perspective on all 4630 Undiscovered Gems With Strong Fundamentals by using our screener here.
• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
• Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.

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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