Catalyst Metals And 2 Other Undiscovered Gems In Australia

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Over the last 7 days, the Australian market has risen 1.2%, and it's up 11% over the last 12 months, with earnings expected to grow by 12% per annum over the next few years. In this thriving environment, identifying stocks with strong growth potential and solid fundamentals can be particularly rewarding; Catalyst Metals and two other undiscovered gems in Australia exemplify such opportunities.

Top 10 Undiscovered Gems With Strong Fundamentals In Australia

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Fiducian Group

NA

9.94%

6.48%

★★★★★★

Sugar Terminals

NA

3.14%

3.53%

★★★★★★

Bisalloy Steel Group

0.95%

10.27%

24.14%

★★★★★★

Lycopodium

NA

17.22%

33.85%

★★★★★★

SKS Technologies Group

NA

34.65%

47.39%

★★★★★★

BSP Financial Group

7.53%

7.31%

4.10%

★★★★★☆

Steamships Trading

33.60%

4.17%

3.90%

★★★★★☆

AMCIL

NA

5.16%

5.31%

★★★★★☆

Hearts and Minds Investments

1.00%

18.81%

20.95%

★★★★☆☆

A2B Australia

15.83%

-7.78%

25.44%

★★★★☆☆

Click here to see the full list of 55 stocks from our ASX Undiscovered Gems With Strong Fundamentals screener.

Here we highlight a subset of our preferred stocks from the screener.

Catalyst Metals

Simply Wall St Value Rating: ★★★★☆☆

Overview: Catalyst Metals Limited explores and evaluates mineral properties in Australia, with a market cap of A$634.45 million.

Operations: Catalyst Metals Limited generates revenue primarily from its operations in Western Australia (A$243.77 million) and Tasmania (A$75.08 million).

Catalyst Metals has significantly turned its fortunes around, reporting A$317.01 million in sales and A$23.56 million in net income for the year ending June 2024, compared to a net loss of A$15.63 million last year. The company’s debt-to-equity ratio is now at 1.8%, up from 0% over five years, while its EBIT covers interest payments by 6.3 times. Catalyst's gold production guidance for FY2025 ranges between 105koz to 120koz, showcasing strong growth prospects ahead.

ASX:CYL Earnings and Revenue Growth as at Sep 2024
ASX:CYL Earnings and Revenue Growth as at Sep 2024

Emerald Resources

Simply Wall St Value Rating: ★★★★★☆

Overview: Emerald Resources NL focuses on the exploration and development of mineral reserves in Cambodia and Australia, with a market cap of A$2.52 billion.

Operations: Emerald Resources NL generates revenue primarily from mine operations, amounting to A$366.04 million.

Emerald Resources has shown impressive growth, with earnings jumping 41.9% over the past year, far outpacing the Metals and Mining industry’s 0.7%. The debt to equity ratio has risen from 0% to 8.5% in five years, indicating increased leverage but still manageable levels. Recent earnings for the year ended June 30, 2024, reported sales of A$371 million and net income of A$84 million, up from A$299 million and A$59 million respectively last year.

ASX:EMR Debt to Equity as at Sep 2024
ASX:EMR Debt to Equity as at Sep 2024

Redox

Simply Wall St Value Rating: ★★★★★★

Overview: Redox Limited supplies and distributes chemicals, ingredients, and raw materials in Australia, New Zealand, the United States, and internationally with a market cap of A$1.66 billion.

Operations: Redox Limited generates revenue primarily from its wholesale drugs segment, which amounts to A$1.14 billion.

Redox has demonstrated a significant reduction in its debt to equity ratio from 69.6% to 2.6% over the past five years, showcasing improved financial health. Despite trading at 14.1% below its estimated fair value, earnings growth of 11.8% over the last year lagged behind the Trade Distributors industry’s 19.6%. However, with net income rising to A$90.24 million for FY2024 and a declared fully franked final dividend of A$0.065 per share, Redox remains an attractive prospect in Australia's market landscape.

ASX:RDX Debt to Equity as at Sep 2024
ASX:RDX Debt to Equity as at Sep 2024

Summing It All Up

Ready For A Different Approach?

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.

Companies discussed in this article include ASX:CYL ASX:EMR and ASX:RDX.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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