Stock Analysis

Discovering 3 Undiscovered Gems with Promising Potential

TSE:8381
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In a week marked by busy earnings reports and economic data, global markets saw mixed performances with small-cap stocks showing resilience compared to their larger counterparts. As the S&P 600 for small-cap stocks navigates this complex landscape, investors are increasingly on the lookout for undiscovered gems that exhibit strong fundamentals and potential for growth amidst current market volatility.

Top 10 Undiscovered Gems With Strong Fundamentals

NameDebt To EquityRevenue GrowthEarnings GrowthHealth Rating
Central Forest GroupNA7.05%14.29%★★★★★★
Cita Mineral InvestindoNA-3.08%16.56%★★★★★★
Ovostar Union0.01%10.19%49.85%★★★★★★
Impellam Group31.12%-5.43%-6.86%★★★★★★
Prima Andalan Mandiri0.94%20.24%15.28%★★★★★★
Tianyun International Holdings10.09%-5.59%-9.92%★★★★★★
Wilson64.79%30.09%68.29%★★★★☆☆
A2B Australia15.83%-7.78%25.44%★★★★☆☆
Al Wathba National Insurance Company PJSC14.56%13.48%31.31%★★★★☆☆
Krom Bank IndonesiaNA40.07%35.44%★★★★☆☆

Click here to see the full list of 4718 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, primarily operating in Turkey with a market capitalization of TRY42.57 billion.

Operations: The company generates revenue primarily from Airport Ground Services, accounting for TRY9.82 billion, followed by Cargo and Warehouse Services at TRY5.18 billion.

Çelebi Hava Servisi has made notable strides, with earnings surging 70.5% over the past year, far outpacing the Infrastructure industry’s 7.5% growth. The company's debt management appears robust, as evidenced by a net debt to equity ratio of 8.9%, down from 208.3% five years ago, and interest payments are comfortably covered by EBIT at a multiple of 27.8x. Recent inclusion in major indices like S&P Global BMI and FTSE All-World Index highlights its growing prominence. For the second quarter of 2024, sales reached TRY 4,632 million and net income was TRY 609 million with basic earnings per share at TRY 25.1.

IBSE:CLEBI Earnings and Revenue Growth as at Nov 2024
IBSE:CLEBI Earnings and Revenue Growth as at Nov 2024

Yamashin-Filter (TSE:6240)

Simply Wall St Value Rating: ★★★★★☆

Overview: Yamashin-Filter Corp. is a filter manufacturer with a market capitalization of ¥41.44 billion.

Operations: Yamashin-Filter generates revenue primarily from its Construction Machine Filter Business, contributing ¥15.99 billion, and its Air Filter Business, adding ¥2.55 billion.

Yamashin-Filter, a nimble player in the machinery sector, has revised its earnings guidance significantly upward for fiscal year 2025. The company now anticipates net sales of JPY 19.3 billion and an operating profit of JPY 2.22 billion, reflecting robust performance compared to earlier projections. Their earnings growth last year soared by 76.8%, outpacing industry peers at just 8.3%. Despite a volatile share price recently, Yamashin boasts high-quality past earnings and strong debt coverage with EBIT covering interest payments by over 90 times. Additionally, they plan to increase dividends to JPY 7 per share this fiscal year.

TSE:6240 Debt to Equity as at Nov 2024
TSE:6240 Debt to Equity as at Nov 2024

San-in Godo BankLtd (TSE:8381)

Simply Wall St Value Rating: ★★★★☆☆

Overview: The San-in Godo Bank, Ltd., along with its subsidiaries, offers a range of banking products and services to both individual and corporate clients in Japan, with a market capitalization of approximately ¥197.68 billion.

Operations: San-in Godo Bank generates revenue primarily through its banking products and services for individual and corporate clients in Japan. The bank's financial performance is reflected in its market capitalization of approximately ¥197.68 billion.

San-in Godo Bank, with assets totaling ¥7.90 billion and equity of ¥315.90 billion, is an intriguing player in the financial landscape. The bank's deposits stand at ¥6.62 billion, while loans reach ¥4.78 billion, coupled with a net interest margin of 1%. Despite having a bad loan ratio of 1.5%, it maintains high-quality earnings and benefits from low-risk funding sources like customer deposits covering 87% of liabilities. Its recent share buyback program saw the repurchase of 1,456,200 shares for ¥2 billion by August 2024, hinting at strategic capital management efforts to enhance shareholder value amidst trading below estimated fair value by over 20%.

TSE:8381 Debt to Equity as at Nov 2024
TSE:8381 Debt to Equity as at Nov 2024

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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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