In This Article:
As the Australian market experiences a modest uplift with the ASX200 closing up 0.36% at 7,997 points, sectors like Energy and IT are leading the charge while Materials lag behind. In this dynamic environment, identifying undiscovered gems such as Australian Ethical Investment can be key to navigating opportunities within small-cap stocks that show potential for growth amid shifting economic indicators and sector performance.
Top 10 Undiscovered Gems With Strong Fundamentals In Australia
| Name | Debt To Equity | Revenue Growth | Earnings Growth | Health Rating |
|---|---|---|---|---|
| Sugar Terminals | NA | 3.78% | 4.30% | ★★★★★★ |
| Schaffer | 25.47% | 6.03% | -5.20% | ★★★★★★ |
| Fiducian Group | NA | 9.97% | 7.85% | ★★★★★★ |
| Hearts and Minds Investments | NA | 47.09% | 49.82% | ★★★★★★ |
| Tribune Resources | NA | -10.33% | -48.18% | ★★★★★★ |
| Djerriwarrh Investments | 1.14% | 8.17% | 7.54% | ★★★★★★ |
| Red Hill Minerals | NA | 95.16% | 40.06% | ★★★★★★ |
| MFF Capital Investments | 0.69% | 28.52% | 31.31% | ★★★★★☆ |
| Lycopodium | 6.89% | 16.56% | 32.73% | ★★★★★☆ |
| K&S | 20.24% | 1.58% | 25.54% | ★★★★☆☆ |
Here's a peek at a few of the choices from the screener.
Australian Ethical Investment
Simply Wall St Value Rating: ★★★★★★
Overview: Australian Ethical Investment Ltd is a publicly owned investment manager with a market cap of A$581.84 million, focusing on ethical and sustainable investment solutions.
Operations: The company generates revenue primarily through its funds management segment, which reported A$110.80 million.
Australian Ethical Investment, a nimble player in the ethical investing space, has shown robust growth with earnings rising 24.6% over the past year, outpacing its industry peers. The company is debt-free and boasts an impressive free cash flow of A$26.78M as of December 2024. Despite a one-off loss of A$8.4M impacting recent results, revenue for the half-year ending December 2024 was A$58.8M compared to A$48.49M previously, reflecting strong operational performance post-Altius integration. However, potential challenges include managing increased operating expenses and navigating integration hurdles from new service offerings while maintaining profitability growth projections of nearly 24%.
Carlton Investments
Simply Wall St Value Rating: ★★★★★☆
Overview: Carlton Investments Limited is a publicly owned asset management holding company with a market capitalization of A$826.56 million.
Operations: Carlton Investments generates revenue primarily through the acquisition and long-term holding of shares and units, amounting to A$42.01 million.