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Discovering Undiscovered Gems in Australia September 2024

In This Article:

The Australian market has stayed flat over the past week but is up 11% over the past year, with earnings forecast to grow by 12% annually. In this environment, identifying good stocks often means finding companies with strong growth potential that have yet to be widely recognized.

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%

★★★★★★

Bailador Technology Investments

NA

11.17%

10.16%

★★★★★★

Lycopodium

NA

17.22%

33.85%

★★★★★★

Sugar Terminals

NA

2.34%

2.64%

★★★★★★

BSP Financial Group

7.53%

7.31%

4.10%

★★★★★☆

Steamships Trading

33.60%

4.38%

3.90%

★★★★★☆

AMCIL

NA

5.16%

5.31%

★★★★★☆

A2B Australia

15.83%

-7.78%

25.44%

★★★★☆☆

Hearts and Minds Investments

1.00%

18.81%

20.95%

★★★★☆☆

Boart Longyear Group

71.20%

9.71%

39.19%

★★★★☆☆

Click here to see the full list of 53 stocks from our ASX Undiscovered Gems With Strong Fundamentals screener.

We'll examine a selection from our screener results.

DroneShield

Simply Wall St Value Rating: ★★★★★★

Overview: DroneShield Limited develops, commercializes, and sells hardware and software technology for drone detection and security in Australia and the United States, with a market cap of A$1.28 billion.

Operations: DroneShield Limited generates revenue primarily from its Aerospace & Defense segment, amounting to A$67.52 million. The company's market cap stands at approximately A$1.28 billion.

DroneShield, a standout in Australia's tech sector, has seen its earnings surge by 612.7% over the past year, far outpacing the Aerospace & Defense industry's 15.3%. The company remains debt-free today compared to a debt-to-equity ratio of 41.5% five years ago. Despite recent volatility in its share price and shareholder dilution over the past year, DroneShield trades at 45.8% below estimated fair value and forecasts suggest annual earnings growth of 45.19%.

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

RPMGlobal Holdings

Simply Wall St Value Rating: ★★★★★★

Overview: RPMGlobal Holdings Limited develops and provides mining software solutions across Australia, Asia, the Americas, Africa, and Europe with a market cap of A$575.89 million.

Operations: Revenue for RPMGlobal Holdings Limited primarily comes from its software segment (A$72.67 million) and advisory services (A$31.41 million).

RPMGlobal Holdings has shown impressive growth, with earnings surging 134.6% over the past year, far outpacing the Software industry average of 6.7%. The company reported A$104.19 million in revenue for the fiscal year ending June 30, 2024, up from A$91.56 million last year. Net income also rose to A$8.66 million from A$3.69 million previously. Notably, RPMGlobal is debt-free and maintains a price-to-earnings ratio of 66.5x, slightly below the industry average of 67.8x.