Stock Analysis

Undiscovered Gems With Promising Potential In November 2024

TWSE:4119
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As global markets react to the recent U.S. election results and economic policy shifts, small-cap stocks have shown significant movement with the Russell 2000 Index leading gains despite not reaching record highs. In this dynamic environment, identifying promising small-cap stocks involves looking for companies that can capitalize on favorable regulatory changes and demonstrate resilience amid fluctuating economic indicators.

Top 10 Undiscovered Gems With Strong Fundamentals

NameDebt To EquityRevenue GrowthEarnings GrowthHealth Rating
Sugar TerminalsNA3.14%3.53%★★★★★★
Parker Drilling46.25%-0.33%53.04%★★★★★★
Morris State Bancshares17.84%4.83%6.58%★★★★★★
Ovostar Union0.01%10.19%49.85%★★★★★★
Impellam Group31.12%-5.43%-6.86%★★★★★★
Standard Bank0.13%27.78%30.36%★★★★★★
Tianyun International Holdings10.09%-5.59%-9.92%★★★★★★
Systex31.69%12.06%-1.88%★★★★☆☆
Wilson64.79%30.09%68.29%★★★★☆☆
A2B Australia15.83%-7.78%25.44%★★★★☆☆

Click here to see the full list of 4666 stocks from our Undiscovered Gems With Strong Fundamentals screener.

We'll examine a selection from our screener results.

Rami Levi Chain Stores Hashikma Marketing 2006 (TASE:RMLI)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Rami Levi Chain Stores Hashikma Marketing 2006 Ltd operates a chain of discount retail stores in Israel and has a market cap of ₪3.15 billion.

Operations: Rami Levi generates revenue primarily from its retail chains, amounting to ₪6.30 billion. The company experiences adjustments to consolidation of -₪30.34 million.

Rami Levi Chain Stores Hashikma Marketing 2006, a notable player in the retail sector, shows a strong financial position with its debt to equity ratio decreasing from 6.5 to 2.1 over five years. Despite earnings growth of 18.8% last year not matching the Consumer Retailing industry's pace, it still achieved a consistent annual earnings increase of 10.4% over five years. The company trades at an attractive valuation, reportedly at 64.6% below estimated fair value and maintains high-quality earnings with EBIT covering interest payments by a factor of 8.3x, underscoring its robust operational efficiency and potential for value appreciation.

TASE:RMLI Debt to Equity as at Nov 2024
TASE:RMLI Debt to Equity as at Nov 2024

Nihon Nohyaku (TSE:4997)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Nihon Nohyaku Co., Ltd. is engaged in the manufacturing and sale of agrochemicals both domestically in Japan and internationally, with a market cap of ¥55.40 billion.

Operations: The company generates revenue from manufacturing and selling agrochemicals in both domestic and international markets. With a market cap of ¥55.40 billion, its financial performance is influenced by the scale of operations across these regions.

Nihon Nohyaku, a player in the chemicals sector, shows promise with an impressive earnings growth of 80% over the past year, outpacing the industry average of 14%. Its net debt to equity ratio stands at a satisfactory 11.9%, reflecting prudent financial management. The company’s interest payments are well covered by EBIT at 6.6 times coverage, indicating solid operational efficiency. Despite not being free cash flow positive recently, its price-to-earnings ratio of 11.8x remains attractive compared to the JP market's average of 13.4x, suggesting potential value for investors seeking growth opportunities in this niche segment.

TSE:4997 Earnings and Revenue Growth as at Nov 2024
TSE:4997 Earnings and Revenue Growth as at Nov 2024

SCI Pharmtech (TWSE:4119)

Simply Wall St Value Rating: ★★★★☆☆

Overview: SCI Pharmtech, Inc. focuses on the research and development, manufacture, and sale of active pharmaceutical ingredients, intermediates, and specialty chemicals with a market cap of NT$11.47 billion.

Operations: SCI Pharmtech generates revenue primarily from the sale of active pharmaceutical ingredients, intermediates, and specialty chemicals. The company's financial performance is reflected in its market capitalization of NT$11.47 billion.

SCI Pharmtech, a dynamic player in the pharmaceuticals sector, has shown impressive growth with a TWD 419.29 million sales figure for Q3 2024, up from TWD 257.85 million a year earlier. Their net income surged to TWD 381.15 million compared to last year's TWD 35.38 million, reflecting strong operational performance and strategic positioning within the industry. The company's earnings per share also climbed significantly to TWD 3.19 from TWD 0.33 previously, indicating robust profitability improvements over the past year despite broader challenges in the market environment and an increased debt-to-equity ratio of around 20% over five years.

TWSE:4119 Debt to Equity as at Nov 2024
TWSE:4119 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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