In This Article:
As European inflation nears the central bank's target and Germany's DAX reaches new heights, the market sentiment is cautiously optimistic. This backdrop provides a fertile ground for identifying small-cap stocks with strong financial foundations that can thrive in such an environment. In this article, we will explore three undiscovered German gems that exhibit robust financial health and potential for growth amidst these favorable economic conditions.
Top 10 Undiscovered Gems With Strong Fundamentals In Germany
| Name | Debt To Equity | Revenue Growth | Earnings Growth | Health Rating |
|---|---|---|---|---|
| EnviTec Biogas | 37.96% | 19.34% | 51.22% | ★★★★★★ |
| FRoSTA | 8.18% | 4.36% | 16.00% | ★★★★★★ |
| Mühlbauer Holding | NA | 10.49% | -12.73% | ★★★★★★ |
| Paul Hartmann | 26.29% | 1.12% | -17.65% | ★★★★★☆ |
| Südwestdeutsche Salzwerke | 0.30% | 4.57% | 25.01% | ★★★★★☆ |
| HOMAG Group | NA | -31.14% | 23.43% | ★★★★★☆ |
| Baader Bank | 91.28% | 12.42% | -8.00% | ★★★★★☆ |
| BAVARIA Industries Group | 3.19% | 0.18% | 28.18% | ★★★★★☆ |
| Wilson | 64.79% | 30.09% | 68.29% | ★★★★☆☆ |
| BAUER | 78.29% | 2.30% | -38.28% | ★★★★☆☆ |
Below we spotlight a couple of our favorites from our exclusive screener.
SIMONA
Simply Wall St Value Rating: ★★★★★☆
Overview: SIMONA Aktiengesellschaft develops, manufactures, and markets a range of semi-finished thermoplastics, pipes, fittings, and profiles worldwide with a market cap of €414.00 million.
Operations: Revenue for SIMONA Aktiengesellschaft is derived from semi-finished plastics, pipes, fittings, and finished parts totaling €578.85 million. The company has a market cap of €414.00 million.
With a debt to equity ratio that has increased from 9.6% to 17.9% over the last five years, SIMONA shows a satisfactory net debt to equity ratio of 0.8%. The company reported earnings growth of 9.6%, outpacing the Chemicals industry’s 5%. For the half year ending June 30, sales were EUR298.25 million compared to EUR319.8 million last year, while net income rose slightly to EUR13.24 million from EUR12.69 million previously. Trading at nearly 69% below its fair value estimate suggests potential upside for investors.
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Click to explore a detailed breakdown of our findings in SIMONA's health report.
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Explore historical data to track SIMONA's performance over time in our Past section.
Südwestdeutsche Salzwerke
Simply Wall St Value Rating: ★★★★★☆
Overview: Südwestdeutsche Salzwerke AG, with a market cap of €672.48 million, mines, produces, and sells salt in Germany, the European Union, and internationally through its subsidiaries.
Operations: Südwestdeutsche Salzwerke AG generates revenue primarily from its salt segment (€283.67 million) and waste management segment (€62.46 million). The company also has minor contributions from other segments totaling €17.80 million, with reconciliations amounting to -€17.18 million.