Discovering Three Hidden Gems with Strong Financial Foundations

As global markets experience a rebound, driven by easing inflation and strong bank earnings in the U.S., small-cap stocks are gaining attention amid this positive momentum. In this climate, identifying stocks with robust financial foundations becomes crucial for investors seeking stability and growth potential.

Top 10 Undiscovered Gems With Strong Fundamentals

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Marítima de Inversiones	NA	82.67%	21.14%	★★★★★★
SALUS Ljubljana d. d	13.55%	13.11%	9.95%	★★★★★★
Wilson Bank Holding	NA	7.87%	8.22%	★★★★★★
Ovostar Union	0.01%	10.19%	49.85%	★★★★★★
Industrias del Cobre Sociedad Anónima	NA	19.08%	22.33%	★★★★★★
MAPFRE Middlesea	NA	14.56%	1.77%	★★★★★☆
Compañía Electro Metalúrgica	71.27%	12.50%	19.90%	★★★★☆☆
Arab Banking Corporation (B.S.C.)	213.15%	18.58%	29.63%	★★★★☆☆
Practic	NA	3.63%	6.85%	★★★★☆☆
BOSQAR d.d	94.35%	39.11%	23.56%	★★★★☆☆

Click here to see the full list of 4654 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.

Jinshang Bank (SEHK:2558)

Simply Wall St Value Rating: ★★★★★★

Overview: Jinshang Bank Co., Ltd. offers a range of banking products and services in China, with a market capitalization of HK$8.76 billion.

Operations: Jinshang Bank generates revenue primarily from corporate banking (CN¥2.66 billion) and retail banking (CN¥1.10 billion), with additional contributions from its treasury business (CN¥593.83 million).

Jinshang Bank, a smaller player in the financial sector, stands out with total assets of CN¥370.9 billion and equity at CN¥25.3 billion. Its deposits amount to CN¥290.3 billion, while loans are at CN¥194.6 billion, reflecting a solid balance sheet structure supported by primarily low-risk funding sources like customer deposits. The bank's net interest margin is 1.4%, and it has an allowance for bad loans at 1.9% of total loans, indicating prudent risk management practices with sufficient coverage (197%). Recent board changes suggest strategic shifts that could influence future governance and operational focus.

• Dive into the specifics of Jinshang Bank here with our thorough health report.

• Explore historical data to track Jinshang Bank's performance over time in our Past section.

Chengdu Yunda Technology (SZSE:300440)

Simply Wall St Value Rating: ★★★★★☆

Overview: Chengdu Yunda Technology Co., Ltd. focuses on the research, development, production, and sale of rail transit intelligent systems and solutions in China with a market capitalization of CN¥3.25 billion.

Operations: Chengdu Yunda Technology's primary revenue stream is from its Software and Information Technical Service segment, generating CN¥1.10 billion. The company's gross profit margin shows a specific trend that can be analyzed for insights into its profitability over time.

Chengdu Yunda Technology, a smaller player in the electronics sector, has seen its earnings skyrocket by 808% over the past year, significantly outpacing industry growth. Despite this surge, revenue for the nine months ending September 2024 was CN¥453.27 million, down from CN¥536.44 million the previous year. The net income improved to CN¥39.54 million from CN¥34.09 million a year earlier, partly due to a one-off gain of CN¥39.2M influencing results up to September 2024. With a price-to-earnings ratio of 31.7x below the market average and positive free cash flow, it offers an intriguing profile despite some volatility in sales figures.

• Unlock comprehensive insights into our analysis of Chengdu Yunda Technology stock in this health report.

• Examine Chengdu Yunda Technology's past performance report to understand how it has performed in the past.

Allis ElectricLtd (TWSE:1514)

Simply Wall St Value Rating: ★★★★★★

Overview: Allis Electric Co., Ltd. engages in the development, production, and sale of transformers, switching devices, and electronic products globally, with a market capitalization of NT$26.08 billion.

Operations: Allis Electric's primary revenue streams include the Switchboard Department generating NT$2.93 billion and The Electronics Sector contributing NT$2.44 billion, with additional income from the Construction Division and Motor Devices Division. The company faces a write-off of intersegment transactions amounting to NT$803.72 million, impacting overall financial results.

Allis Electric, a small player in the electrical sector, has shown impressive earnings growth of 51.9% over the past year, outpacing the industry average of 6.1%. The company's debt to equity ratio has improved from 36.6% to 33.4% over five years, reflecting prudent financial management with a satisfactory net debt to equity ratio at 14.2%. Recent quarterly results indicate sales of TWD 1,947.84 million and net income of TWD 151.3 million for Q3, slightly down from last year but with nine-month figures showing increased sales and net income compared to the previous period, suggesting strong underlying performance despite short-term fluctuations.

• Click here to discover the nuances of Allis ElectricLtd with our detailed analytical health report.

• Assess Allis ElectricLtd's past performance with our detailed historical performance reports.

Turning Ideas Into Actions

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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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