Discovering None's Undiscovered Gems This December 2024

As global markets navigate a landscape marked by rate cuts from the ECB and SNB, and anticipation of further easing by the Federal Reserve, small-cap stocks have faced challenges with the Russell 2000 Index underperforming against larger counterparts. In this environment where inflationary pressures persist and labor markets show signs of cooling, identifying undiscovered gems among smaller companies requires a keen eye for potential growth drivers that can thrive despite broader market volatility.

Top 10 Undiscovered Gems With Strong Fundamentals

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
NCD	11.98%	9.72%	30.78%	★★★★★★
VICOM	NA	3.60%	-2.15%	★★★★★★
Ovostar Union	0.01%	10.19%	49.85%	★★★★★★
Bank Ganesha	NA	25.03%	70.72%	★★★★★★
Tianyun International Holdings	10.09%	-5.59%	-9.92%	★★★★★★
Komori	9.77%	7.35%	59.64%	★★★★★☆
S J Logistics (India)	34.96%	59.89%	51.25%	★★★★★☆
Arab Banking Corporation (B.S.C.)	213.15%	18.58%	29.63%	★★★★☆☆
A2B Australia	15.83%	-7.78%	25.44%	★★★★☆☆
Bank MNC Internasional	18.72%	4.80%	43.63%	★★★★☆☆

Click here to see the full list of 4625 stocks from our Undiscovered Gems With Strong Fundamentals screener.

Let's explore several standout options from the results in the screener.

Creative & Innovative System (KOSDAQ:A222080)

Simply Wall St Value Rating: ★★★★★☆

Overview: Creative & Innovative System Corporation manufactures and sells equipment for lithium-ion batteries used in IT instruments, EV lithium-ion batteries, fuel cells, solar cells, and displays with a market cap of ₩560.92 billion.

Operations: The company's primary revenue stream is from its Machinery & Industrial Equipment segment, which generated approximately ₩599.36 billion.

Creative & Innovative System, a smaller player in the market, has shown impressive financial metrics recently. Earnings have surged by 641% over the past year, significantly outpacing the broader machinery industry which saw a -3% change. The company's debt management is notable with a reduction in its debt-to-equity ratio from 42.9% to just 2.9% over five years, highlighting effective financial strategies. Despite these positives, share price volatility remains high and shareholders experienced dilution last year. Trading at 82% below fair value estimates suggests potential undervaluation amidst strong earnings growth forecasts of 25.8% annually.

• Navigate through the intricacies of Creative & Innovative System with our comprehensive health report here.

• Gain insights into Creative & Innovative System's past trends and performance with our Past report.

Xiamen International AirportLtd (SHSE:600897)

Simply Wall St Value Rating: ★★★★★★

Overview: Xiamen International Airport Co., Ltd operates airport facilities in China and has a market capitalization of CN¥6.28 billion.

Operations: Xiamen International Airport Co., Ltd generates revenue primarily from aviation and non-aviation services. The company focuses on optimizing its cost structure to enhance profitability, as evidenced by a net profit margin of 14.5%.

Xiamen International Airport seems to be a compelling prospect, with earnings growth of 68% over the past year, far outpacing the Infrastructure industry's 3%. The company reported net income of CNY 371.17 million for the nine months ending September 2024, up from CNY 268.14 million in the previous year. With no debt on its books and trading at about 66% below estimated fair value, it appears well-positioned financially. Additionally, basic earnings per share rose to CNY 0.89 from CNY 0.64 last year, highlighting its potential as an attractive investment opportunity in this sector.

• Dive into the specifics of Xiamen International AirportLtd here with our thorough health report.

• Gain insights into Xiamen International AirportLtd's historical performance by reviewing our past performance report.

Zhejiang Double Arrow Rubber (SZSE:002381)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Zhejiang Double Arrow Rubber Co., Ltd. specializes in the manufacture and sale of rubber conveyor belt products both domestically in China and internationally, with a market cap of CN¥2.94 billion.

Operations: Double Arrow Rubber generates revenue primarily from the sale of rubber conveyor belt products in both domestic and international markets. The company's net profit margin is a key financial metric to consider when evaluating its profitability.

Double Arrow Rubber, a small player in the rubber industry, has shown resilience with earnings growing 15.1% over the past year, outpacing the industry's -4.7%. Despite a rise in debt to equity from 0.01% to 30.5% over five years, its net debt to equity remains satisfactory at 6.2%. The company's price-to-earnings ratio of 14.8x suggests it's trading at good value compared to the broader market's 37.3x average. While recent earnings dipped slightly with net income at CNY139 million versus CNY162 million last year, future growth is promising with forecasts of a 24% annual increase in earnings.

• Click here and access our complete health analysis report to understand the dynamics of Zhejiang Double Arrow Rubber.

• Assess Zhejiang Double Arrow Rubber's past performance with our detailed historical performance reports.

Summing It All Up

• Delve into our full catalog of 4625 Undiscovered Gems With Strong Fundamentals here.
• Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools.
• Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets.

Ready For A Different Approach?

• 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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