Stock Analysis

Discovering Three Hidden Treasures With Strong Potential

SET:IMPACT
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As global markets navigate mixed performances, with the S&P 500 marking its best two-year stretch in a quarter-century and small-cap indices like the Russell 2000 showing resilience, investors are keenly observing economic indicators such as the Chicago PMI and GDP forecasts that signal potential shifts in market dynamics. Amidst this backdrop of cautious optimism and strategic positioning, identifying stocks with strong fundamentals and growth potential becomes crucial for those looking to capitalize on emerging opportunities.

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.

We're going to check out a few of the best picks from our screener tool.

MREIT (PSE:MREIT)

Simply Wall St Value Rating: ★★★★☆☆

Overview: MREIT, Inc. is a real estate investment trust with a market capitalization of approximately ₱50.17 billion, focusing on leasing its building properties.

Operations: MREIT generates revenue primarily from leasing its building properties, amounting to approximately ₱3.21 billion.

MREIT, a dynamic player in its sector, witnessed an impressive earnings growth of 2274% over the past year, outpacing the Office REITs industry. Despite a significant one-off loss of ₱2.7 billion impacting recent financial results, MREIT remains free cash flow positive and profitable. The company's net debt to equity ratio stands at a satisfactory 11.5%, with interest payments well covered by EBIT at 13 times coverage. Recent reports show stable net income figures for the third quarter and nine months ending September 2024, maintaining basic earnings per share at ₱0.26 and ₱0.78 respectively from continuing operations compared to last year.

PSE:MREIT Debt to Equity as at Jan 2025
PSE:MREIT Debt to Equity as at Jan 2025

IMPACT Growth Real Estate Investment Trust (SET:IMPACT)

Simply Wall St Value Rating: ★★★★★☆

Overview: Impact Growth Real Estate Investment Trust is a real estate investment trust established under the Trust for Transaction in Capital Market Act, focusing on property investments with a market cap of THB16.31 billion.

Operations: The Trust generates revenue primarily from providing services on its invested properties, amounting to THB1.99 billion.

IMPACT Growth Real Estate Investment Trust, a smaller player in the market, shows promising growth with its earnings rising by 11.2% over the past year, outpacing the Specialized REITs industry average of 7.7%. The trust is trading at 51% below its estimated fair value, suggesting potential undervaluation. Its net debt to equity ratio stands at a satisfactory 17.6%, and interest payments are well-covered with EBIT coverage of 8.1 times. Recent financial results highlight revenue of THB 413 million for Q2 and net income reaching THB 181 million, indicating robust performance compared to last year’s figures.

SET:IMPACT Earnings and Revenue Growth as at Jan 2025
SET:IMPACT Earnings and Revenue Growth as at Jan 2025

FP Partner (TSE:7388)

Simply Wall St Value Rating: ★★★★★☆

Overview: FP Partner Inc. is a company that offers insurance services to both individuals and corporations in Japan, with a market capitalization of ¥48.21 billion.

Operations: FP Partner derives its revenue primarily from its Insurance Agency Business, which generated ¥34.63 billion. The company's financial performance is highlighted by a net profit margin of 12.5%, reflecting its profitability within the sector.

FP Partner, a nimble player in the insurance sector, has shown an impressive earnings growth of 36.8% annually over the last five years. Despite recent volatility in its share price, it trades significantly below fair value by 68.6%. The company is free cash flow positive and holds more cash than total debt, indicating financial stability. However, its earnings growth of 10% last year lagged behind the broader industry’s 45.2%. Recent guidance revisions reflect challenges from shifting product demand and external economic factors impacting profit margins. With high-quality past earnings and strong interest coverage, FP Partner remains intriguing for potential investors.

TSE:7388 Earnings and Revenue Growth as at Jan 2025
TSE:7388 Earnings and Revenue Growth as at Jan 2025

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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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About SET:IMPACT

IMPACT Growth Real Estate Investment Trust

Impact Growth Real Estate Investment Trust (“the Trust”) is a real estate investment trust established under the Trust for Transaction in Capital Market Act, B.E.2550 (“the Act”) in accordance with the Trust Deed signed on 22 September 2014 between RMI Company Limited as the Trust Settlor and Kasikorn Asset Management Company Limited as the Trustee.

Excellent balance sheet with proven track record.