Stock Analysis
Undiscovered Gems With Strong Fundamentals For December 2024
Reviewed by Simply Wall St
As global markets navigate a period of mixed economic signals, with major indices experiencing varied performances and expectations rising for further rate cuts by the Federal Reserve, small-cap stocks have faced particular challenges. The Russell 2000 Index has underperformed against larger indices like the S&P 500, highlighting the potential for overlooked opportunities in this segment. In such an environment, identifying stocks with strong fundamentals becomes crucial as these attributes can offer resilience and growth potential amidst broader market volatility.
Top 10 Undiscovered Gems With Strong Fundamentals
| Name | Debt To Equity | Revenue Growth | Earnings Growth | Health Rating |
|---|---|---|---|---|
| Xiangtan Electrochemical ScientificLtd | 44.62% | 13.70% | 36.55% | ★★★★★★ |
| Morris State Bancshares | 17.84% | 4.83% | 6.58% | ★★★★★★ |
| Ovostar Union | 0.01% | 10.19% | 49.85% | ★★★★★★ |
| Wuxi Chemical Equipment | NA | 12.26% | -0.74% | ★★★★★★ |
| All E Technologies | NA | 27.05% | 31.58% | ★★★★★★ |
| Tianyun International Holdings | 10.09% | -5.59% | -9.92% | ★★★★★★ |
| Hunan Investment GroupLtd | 7.09% | 33.04% | 20.37% | ★★★★★☆ |
| Keli Motor Group | 21.66% | 9.99% | -12.19% | ★★★★★☆ |
| A2B Australia | 15.83% | -7.78% | 25.44% | ★★★★☆☆ |
| Practic | NA | 3.63% | 6.85% | ★★★★☆☆ |
Let's uncover some gems from our specialized screener.
Palram Industries (1990) (TASE:PLRM)
Simply Wall St Value Rating: ★★★★★★
Overview: Palram Industries (1990) Ltd is an Israeli company that manufactures and sells thermoplastic sheets, panel systems, and finished products both domestically and internationally, with a market cap of ₪2.21 billion.
Operations: Palram Industries generates revenue primarily from its Polycarbonate Sector, contributing ₪965.66 million, followed by the PVC and Canopia Sectors at ₪436.67 million and ₪265.80 million, respectively. The Pur-U Sector adds another ₪197.89 million to the company's revenue stream.
Palram Industries, a nimble player in the market, has shown robust financial health with earnings growth of 42% over the past year, outpacing the Chemicals industry average of 10%. Trading at 9% below its fair value estimate and boasting high-quality earnings, Palram's debt-free status further enhances its appeal. Recent third-quarter results highlight sales reaching ILS 490 million and net income climbing to ILS 62 million from last year's figures. Additionally, being added to the TA-125 Index underscores its growing market recognition and potential for future investor interest.
Daihatsu Diesel Mfg (TSE:6023)
Simply Wall St Value Rating: ★★★★★★
Overview: Daihatsu Diesel Mfg. Co., Ltd. is a company that manufactures and sells marine engines, land engines, and industrial instruments both in Japan and internationally, with a market cap of ¥52.81 billion.
Operations: Daihatsu Diesel Mfg generates revenue primarily through the sale of marine engines, land engines, and industrial instruments. The company has a market capitalization of ¥52.81 billion.
Daihatsu Diesel, a notable player in the machinery sector, has seen its earnings grow by 32% over the past year, outpacing the industry's modest 0.8%. Trading at nearly 56% below its estimated fair value suggests potential undervaluation. The company boasts strong financial health with interest payments well covered by EBIT at an impressive 338 times and a reduced debt-to-equity ratio from 38.3% to 26.6% over five years. Despite high share price volatility recently, Daihatsu Diesel remains profitable with positive free cash flow and more cash than total debt, though it plans to lower dividends from ¥49 to ¥39 per share this fiscal year-end.
- Click here to discover the nuances of Daihatsu Diesel Mfg with our detailed analytical health report.
Assess Daihatsu Diesel Mfg's past performance with our detailed historical performance reports.
ShinMaywa Industries (TSE:7224)
Simply Wall St Value Rating: ★★★★★★
Overview: ShinMaywa Industries, Ltd. is a company that manufactures and sells transportation equipment across Japan, Asia, North America, and internationally with a market capitalization of approximately ¥88.96 billion.
Operations: ShinMaywa Industries generates revenue primarily from its Specially Equipped Vehicle and Parking System segments, contributing ¥104.25 billion and ¥44.04 billion respectively. The Aircraft segment also plays a significant role with revenues of ¥32.77 billion, while the Industrial Machinery/Environmental System segment adds another ¥40.21 billion to the company's top line.
ShinMaywa Industries, a notable player in the machinery sector, showcases a robust financial profile with earnings growth of 0.9% outpacing the industry’s 0.8%. The company’s net debt to equity ratio stands at a satisfactory 23.5%, having improved from 56.1% over five years, indicating prudent financial management. Trading at an impressive 96.2% below its estimated fair value, it appears undervalued in the market. With high-quality past earnings and EBIT covering interest payments by an astounding 225 times, ShinMaywa seems well-positioned financially despite modest growth figures recently reported during its Q2 earnings call on November 18th.
- Dive into the specifics of ShinMaywa Industries here with our thorough health report.
Evaluate ShinMaywa Industries' historical performance by accessing our past performance report.
Summing It All Up
- Embark on your investment journey to our 4509 Undiscovered Gems With Strong Fundamentals selection 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.
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Searching for a Fresh Perspective?
- 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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About TSE:7224
ShinMaywa Industries
Engages in the manufacture and sale of transportation equipment in Japan, Asia, North America, and internationally.
