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EnviTec Biogas And Two Other Hidden German Gems For Your Portfolio

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As the German DAX index climbs and hopes for interest rate cuts grow, investors are increasingly looking to small-cap stocks for hidden opportunities. In this favorable market environment, identifying stocks with strong fundamentals and growth potential is key.

Top 10 Undiscovered Gems With Strong Fundamentals In Germany

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

EnviTec Biogas

37.96%

19.34%

51.22%

★★★★★★

Mühlbauer Holding

NA

10.49%

-12.73%

★★★★★★

FRoSTA

8.18%

4.36%

16.00%

★★★★★★

Paul Hartmann

26.29%

1.12%

-17.65%

★★★★★☆

Südwestdeutsche Salzwerke

0.30%

4.57%

25.01%

★★★★★☆

HOMAG Group

NA

-31.14%

23.43%

★★★★★☆

Baader Bank

91.28%

12.42%

-8.00%

★★★★★☆

BAVARIA Industries Group

3.19%

0.18%

28.18%

★★★★★☆

Wilson

64.79%

30.09%

68.29%

★★★★☆☆

BAUER

78.29%

2.30%

-38.28%

★★★★☆☆

Click here to see the full list of 46 stocks from our German Undiscovered Gems With Strong Fundamentals screener.

Underneath we present a selection of stocks filtered out by our screen.

EnviTec Biogas

Simply Wall St Value Rating: ★★★★★★

Overview: EnviTec Biogas AG manufactures and operates biogas and biomethane plants in multiple countries, including Germany, Italy, Great Britain, the United States, and China, with a market cap of €498.96 million.

Operations: EnviTec Biogas AG generates revenue through three primary segments: Service (€48.58 million), Plant Engineering (€132.13 million), and Own Operation (Including Energy) (€236.10 million).

EnviTec Biogas, a small cap player in Germany's renewable energy sector, offers compelling figures for potential investors. The company’s debt to equity ratio has decreased from 41.7% to 38% over the past five years, reflecting improved financial health. With a price-to-earnings ratio of 8.5x compared to the German market's 16.9x, it appears undervalued. Additionally, EnviTec reported earnings growth of 27.6% last year and maintains high-quality earnings with EBIT covering interest payments by an impressive 419 times.

XTRA:ETG Earnings and Revenue Growth as at Aug 2024
XTRA:ETG Earnings and Revenue Growth as at Aug 2024

KSB SE KGaA

Simply Wall St Value Rating: ★★★★★★

Overview: KSB SE & Co. KGaA, with a market cap of €1.12 billion, manufactures and supplies pumps, valves, and related services globally through its subsidiaries.

Operations: KSB SE & Co. KGaA generates revenue primarily from three segments: Pumps (€1.52 billion), Fittings (€370.94 million), and KSB Supremeserv (€978.20 million).

KSB SE KGaA, a small cap in the machinery industry, has shown notable financial resilience. Over the past five years, its debt-to-equity ratio improved from 9.2% to 2.1%. Despite a one-off loss of €102.5M impacting recent results, earnings grew by 16.8% last year, outperforming the industry's 3.2%. Trading at 77% below fair value estimates and with more cash than total debt, KSB's future growth looks promising with a forecasted annual earnings increase of 10.74%.