Discovering Three Hidden Gems with Strong Financial Foundations

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As global markets experience a rebound, driven by easing inflation and strong bank earnings in the U.S., small-cap stocks are gaining attention amid this positive momentum. In this climate, identifying stocks with robust financial foundations becomes crucial for investors seeking stability and growth potential.

Top 10 Undiscovered Gems With Strong Fundamentals

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Marítima de Inversiones

NA

82.67%

21.14%

★★★★★★

SALUS Ljubljana d. d

13.55%

13.11%

9.95%

★★★★★★

Wilson Bank Holding

NA

7.87%

8.22%

★★★★★★

Ovostar Union

0.01%

10.19%

49.85%

★★★★★★

Industrias del Cobre Sociedad Anónima

NA

19.08%

22.33%

★★★★★★

MAPFRE Middlesea

NA

14.56%

1.77%

★★★★★☆

Compañía Electro Metalúrgica

71.27%

12.50%

19.90%

★★★★☆☆

Arab Banking Corporation (B.S.C.)

213.15%

18.58%

29.63%

★★★★☆☆

Practic

NA

3.63%

6.85%

★★★★☆☆

BOSQAR d.d

94.35%

39.11%

23.56%

★★★★☆☆

Click here to see the full list of 4654 stocks from our Undiscovered Gems With Strong Fundamentals screener.

We're going to check out a few of the best picks from our screener tool.

Jinshang Bank

Simply Wall St Value Rating: ★★★★★★

Overview: Jinshang Bank Co., Ltd. offers a range of banking products and services in China, with a market capitalization of HK$8.76 billion.

Operations: Jinshang Bank generates revenue primarily from corporate banking (CN¥2.66 billion) and retail banking (CN¥1.10 billion), with additional contributions from its treasury business (CN¥593.83 million).

Jinshang Bank, a smaller player in the financial sector, stands out with total assets of CN¥370.9 billion and equity at CN¥25.3 billion. Its deposits amount to CN¥290.3 billion, while loans are at CN¥194.6 billion, reflecting a solid balance sheet structure supported by primarily low-risk funding sources like customer deposits. The bank's net interest margin is 1.4%, and it has an allowance for bad loans at 1.9% of total loans, indicating prudent risk management practices with sufficient coverage (197%). Recent board changes suggest strategic shifts that could influence future governance and operational focus.

SEHK:2558 Debt to Equity as at Jan 2025
SEHK:2558 Debt to Equity as at Jan 2025

Chengdu Yunda Technology

Simply Wall St Value Rating: ★★★★★☆

Overview: Chengdu Yunda Technology Co., Ltd. focuses on the research, development, production, and sale of rail transit intelligent systems and solutions in China with a market capitalization of CN¥3.25 billion.

Operations: Chengdu Yunda Technology's primary revenue stream is from its Software and Information Technical Service segment, generating CN¥1.10 billion. The company's gross profit margin shows a specific trend that can be analyzed for insights into its profitability over time.