None And 2 Other Undiscovered Gems To Enhance Your Portfolio

As global markets continue to navigate a landscape marked by rising inflation and fluctuating interest rates, small-cap stocks have lagged behind their larger counterparts, with the Russell 2000 trailing the S&P 500 Index. Amidst this backdrop of economic uncertainty and shifting trade policies, investors may find value in identifying lesser-known stocks that possess strong fundamentals and growth potential.

Top 10 Undiscovered Gems With Strong Fundamentals

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Sugar Terminals	NA	3.14%	3.53%	★★★★★★
Lemtech Holdings	45.76%	-1.32%	-3.14%	★★★★★★
Sesoda	71.33%	11.54%	15.53%	★★★★★★
Wilson Bank Holding	NA	7.87%	8.22%	★★★★★★
Oakworth Capital	31.49%	14.78%	4.46%	★★★★★★
Ovostar Union	0.01%	10.19%	49.85%	★★★★★★
Saison Technology	NA	0.96%	-11.65%	★★★★★★
Great China Metal Ind	0.32%	2.69%	-3.41%	★★★★★★
Steamships Trading	33.60%	4.17%	3.90%	★★★★★☆
Daewon Cable	24.09%	8.60%	57.94%	★★★★★☆

Click here to see the full list of 4711 stocks from our Undiscovered Gems With Strong Fundamentals screener.

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

Al Hassan Ghazi Ibrahim Shaker (SASE:1214)

Simply Wall St Value Rating: ★★★★★☆

Overview: Al Hassan Ghazi Ibrahim Shaker Company operates in Saudi Arabia and Jordan, focusing on the trading, wholesale, and maintenance of spare parts, electronic equipment, household equipment, and air-conditioners with a market capitalization of SAR1.72 billion.

Operations: The company's primary revenue streams are derived from Heating, Ventilation and Air-Conditioning Solutions (HVAC), generating SAR984.79 million, and Home Appliances, contributing SAR388.45 million.

Shaker, a notable player in the Trade Distributors sector, has shown impressive growth with earnings up by 31.5% over the past year, outpacing the industry average of -10.8%. Its net debt to equity ratio stands at a satisfactory 30.8%, reflecting prudent financial management as it reduced from 63% to 43.8% over five years. However, interest payments on its debt are not well covered by EBIT at just 2.4x coverage, indicating potential challenges in meeting obligations without additional income growth or cost reduction strategies. With earnings forecasted to grow annually by nearly 20%, Shaker seems poised for continued expansion despite these hurdles.

• Unlock comprehensive insights into our analysis of Al Hassan Ghazi Ibrahim Shaker stock in this health report.

• Explore historical data to track Al Hassan Ghazi Ibrahim Shaker's performance over time in our Past section.

Burkhalter Holding (SWX:BRKN)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Burkhalter Holding AG operates through its subsidiaries to offer electrical engineering services to the construction industry, primarily in Switzerland, with a market cap of CHF1.09 billion.

Operations: The company generates revenue primarily from electrical engineering services, amounting to CHF1.18 billion.

Earnings for Burkhalter Holding have grown at an impressive 26% annually over the past five years, showcasing its potential despite a high net debt to equity ratio of 52.9%. The company's interest payments are comfortably covered by EBIT, with a coverage ratio of 46 times, indicating strong financial health in this regard. Although its earnings growth of 10.3% last year was slightly below the construction industry average of 11.7%, Burkhalter remains profitable with positive free cash flow and a price-to-earnings ratio of 20x, which is attractive compared to the Swiss market's average.

• Delve into the full analysis health report here for a deeper understanding of Burkhalter Holding.

• Understand Burkhalter Holding's track record by examining our Past report.

Supreme Electronics (TWSE:8112)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Supreme Electronics Co., Ltd. operates as an import and export dealer of electronic products and components across Taiwan, Hong Kong, China, the United States, and other international markets with a market cap of NT$35.03 billion.

Operations: The company generates revenue primarily from its Computer Peripherals and Electronic Components segment, amounting to NT$235.52 billion.

Supreme Electronics, a nimble player in the electronics sector, has shown impressive earnings growth of 70.7% over the past year, outpacing the industry average of 7.8%. Despite this growth, its net debt to equity ratio remains high at 157.6%, though it has improved from 204.1% five years ago. The company's interest payments are well covered with an EBIT coverage of three times, indicating sound financial management in that regard. Trading just below its estimated fair value by 0.2%, Supreme seems positioned for potential value appreciation despite challenges with free cash flow and operating cash flow coverage for debt obligations.

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

• Learn about Supreme Electronics' historical performance.

Taking Advantage

• Investigate our full lineup of 4711 Undiscovered Gems With Strong Fundamentals right 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.
• Streamline your investment strategy with Simply Wall St's app for free and benefit from extensive research on stocks across all corners of the world.

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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