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As Japan's stock markets continue to rise, bolstered by a weakening yen and stable interest rates from the Bank of Japan, investors are increasingly turning their attention to small-cap stocks with strong potential. In this favorable environment, discovering undervalued companies like SWCC and two other hidden Japanese small caps can offer significant opportunities for growth.
Top 10 Undiscovered Gems With Strong Fundamentals In Japan
| Name | Debt To Equity | Revenue Growth | Earnings Growth | Health Rating |
|---|---|---|---|---|
| Toho | 69.52% | 2.84% | 55.65% | ★★★★★★ |
| Nihon Parkerizing | 0.31% | 0.86% | 4.40% | ★★★★★★ |
| KurimotoLtd | 20.73% | 3.34% | 18.64% | ★★★★★★ |
| Central Forest Group | NA | 7.05% | 14.29% | ★★★★★★ |
| Kanda HoldingsLtd | 30.47% | 4.35% | 18.02% | ★★★★★★ |
| ITOCHU-SHOKUHIN | NA | -0.08% | 12.04% | ★★★★★★ |
| NPR-Riken | 15.31% | 10.00% | 44.55% | ★★★★★☆ |
| Innotech | 38.96% | 7.08% | 6.36% | ★★★★★☆ |
| Imuraya Group | 26.21% | 2.37% | 32.09% | ★★★★★☆ |
| Ogaki Kyoritsu Bank | 139.93% | 2.20% | -0.27% | ★★★★☆☆ |
Underneath we present a selection of stocks filtered out by our screen.
SWCC
Simply Wall St Value Rating: ★★★★★★
Overview: SWCC Corporation, with a market cap of ¥176.09 billion, operates in the energy systems, communication systems, and device businesses both in Japan and internationally.
Operations: SWCC Corporation generates revenue from three primary segments: Energy Infrastructure Business (¥130.50 billion), Electrical Equipment/Components Business (¥100.78 billion), and Communication/Industrial Device Business (¥32.14 billion).
SWCC's earnings growth of 18.3% over the past year outpaced the Electrical industry’s 17%, reflecting robust performance. The company’s debt to equity ratio impressively reduced from 125.1% to 44.5% in five years, and its net debt to equity ratio stands at a satisfactory 33.6%. With EBIT covering interest payments by a substantial margin of 167.6x, SWCC shows strong financial health and is trading at an attractive valuation, currently 8.1% below fair value estimates.
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Delve into the full analysis health report here for a deeper understanding of SWCC.
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Assess SWCC's past performance with our detailed historical performance reports.
MODEC
Simply Wall St Value Rating: ★★★★☆☆
Overview: MODEC, Inc. is a global general contractor specializing in the engineering, procurement, construction, and installation of floating production systems with a market cap of ¥238.05 billion.
Operations: Revenue streams for MODEC, Inc. primarily come from engineering, procurement, construction, and installation services for floating production systems. The company has a market cap of ¥238.05 billion.