Uncovering November 2024's Undiscovered Gems on None Exchange

As global markets experience broad-based gains with smaller-cap indexes outperforming large-caps, investors are increasingly optimistic about the potential for undiscovered opportunities within the small-cap sector. In this climate of positive sentiment driven by strong labor market data and stabilizing mortgage rates, identifying stocks that demonstrate resilience and growth potential becomes crucial for those looking to capitalize on emerging trends.

Top 10 Undiscovered Gems With Strong Fundamentals

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
SHL Consolidated Bhd	NA	15.25%	15.00%	★★★★★★
Hubei Three Gorges Tourism Group	11.32%	-9.98%	7.95%	★★★★★★
Göltas Göller Bölgesi Cimento Sanayi ve Ticaret	18.55%	49.61%	71.72%	★★★★★★
Ovostar Union	0.01%	10.19%	49.85%	★★★★★★
Power HF	2.91%	-6.25%	-22.13%	★★★★★★
Impellam Group	31.12%	-5.43%	-6.86%	★★★★★★
Tianyun International Holdings	10.09%	-5.59%	-9.92%	★★★★★★
Ellaktor	73.80%	-24.52%	51.72%	★★★★★☆
A2B Australia	15.83%	-7.78%	25.44%	★★★★☆☆
Wilson	64.79%	30.09%	68.29%	★★★★☆☆

Click here to see the full list of 4631 stocks from our Undiscovered Gems With Strong Fundamentals screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Al-Babtain Power and Telecommunications (SASE:2320)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Al-Babtain Power and Telecommunications Company, along with its subsidiaries, manufactures lighting poles and power transmission towers in the United Arab Emirates, Saudi Arabia, and the Egyptian Arabic Republic, with a market capitalization of SAR 2.36 billion.

Operations: The company generates revenue from four main segments: Towers and Metal Structures (SAR 1.04 billion), Poles and Lighting (SAR 603.33 million), Solar Energy (SAR 545.27 million), and Design, Supply, and Installation (SAR 494.02 million).

Al-Babtain Power and Telecommunications, a smaller player in its field, showcases a compelling mix of financial metrics. Its earnings surged by 99% over the past year, outpacing the construction industry's 12% growth. Despite this impressive performance, the company carries a high net debt to equity ratio of 93%, which has increased from 92.5% to 106.1% over five years. A notable one-off gain of SAR52 million influenced recent results, while EBIT covers interest payments comfortably at 3.8 times. With a price-to-earnings ratio of 10x below the SA market's average, it trades at an attractive valuation relative to peers and industry standards.

• Click here and access our complete health analysis report to understand the dynamics of Al-Babtain Power and Telecommunications.

• Explore historical data to track Al-Babtain Power and Telecommunications' performance over time in our Past section.

PCA (TSE:9629)

Simply Wall St Value Rating: ★★★★★★

Overview: PCA Corporation is a Japanese company that specializes in developing and selling computer software, with a market capitalization of approximately ¥40.69 billion.

Operations: PCA Corporation generates revenue primarily from its Information Service Business, which recorded ¥15.84 billion in revenue.

PCA, a nimble player in its field, showcases impressive growth with earnings surging 77.7% over the past year, outpacing the Software industry's 14.7% rise. Despite a 6.4% annual earnings drop over five years, PCA's high-quality past earnings and debt-free status for half a decade highlight financial resilience. Trading at nearly half its estimated fair value suggests potential upside for investors seeking undervalued opportunities. The company's announcement to release Q2 results on October 28 adds anticipation to its performance narrative as it continues navigating industry dynamics with robust free cash flow generation and no interest payment concerns due to zero debt obligations.

• Get an in-depth perspective on PCA's performance by reading our health report here.

• Evaluate PCA's historical performance by accessing our past performance report.

Kung Long Batteries IndustrialLtd (TWSE:1537)

Simply Wall St Value Rating: ★★★★★★

Overview: Kung Long Batteries Industrial Co., Ltd specializes in the production and distribution of lead-acid batteries both within Taiwan and globally, with a market capitalization of NT$12.51 billion.

Operations: Kung Long Batteries Industrial Co., Ltd generates revenue primarily through the manufacture and sale of lead-acid batteries. The company's financial performance reflects its focus on this product line, with specific attention to cost management and profitability metrics.

Kung Long Batteries Industrial Co., Ltd. has shown impressive performance, with earnings growth of 55% over the past year, outpacing the Electrical industry average of 6.1%. The company's debt-to-equity ratio has significantly improved from 16.4% to 1.2% over five years, indicating better financial health and management's focus on reducing leverage. Its price-to-earnings ratio stands at a modest 14x, which is attractive compared to the Taiwan market average of 21.2x, suggesting potential undervaluation. Recent earnings reports highlight robust sales growth; third-quarter sales reached TWD 2,203 million and net income was TWD 278 million compared to last year's figures of TWD 1,625 million and TWD 181 million respectively.

• Unlock comprehensive insights into our analysis of Kung Long Batteries IndustrialLtd stock in this health report.

• Learn about Kung Long Batteries IndustrialLtd's historical performance.

Make It Happen

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Curious About Other Options?

• 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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