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Exploring Australia's Undiscovered Gems In January 2025

In This Article:

As the Australian market enjoys a positive upswing with the ASX200 reaching a seven-week high, investors are buoyed by favorable trade outcomes and strategic AI investments. In this environment of optimism, discovering promising small-cap stocks that align with current trends in IT and Industrials can offer intriguing opportunities for those seeking to explore Australia's undiscovered gems.

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%

★★★★★★

Djerriwarrh Investments

1.14%

8.17%

7.54%

★★★★★★

Red Hill Minerals

NA

75.05%

36.74%

★★★★★★

Steamships Trading

33.60%

4.17%

3.90%

★★★★★☆

AMCIL

NA

5.16%

5.31%

★★★★★☆

K&S

16.07%

0.09%

33.40%

★★★★☆☆

Hearts and Minds Investments

1.00%

18.81%

20.95%

★★★★☆☆

Click here to see the full list of 51 stocks from our ASX Undiscovered Gems With Strong Fundamentals screener.

Let's explore several standout options from the results in the screener.

Cuscal

Simply Wall St Value Rating: ★★★★☆☆

Overview: Cuscal Limited, along with its subsidiaries, offers payment and regulated data products and services to financial and consumer-focused institutions in Australia, with a market cap of A$503.81 million.

Operations: Cuscal generates revenue through its payment and regulated data services tailored for financial and consumer-focused institutions in Australia. The company has a market cap of A$503.81 million.

Cuscal, a financial services company in Australia, has recently completed an IPO raising A$336.8 million, offering 134.7 million shares at A$2.5 each with a slight discount per security. The company's earnings have grown by 21% over the past year and are expected to continue growing at 12% annually, which is impressive given its industry context where growth is lagging behind. Despite having high-quality past earnings and a reduced debt-to-equity ratio from 172.5% to 103.5% over five years, Cuscal's interest payments are not well covered by EBIT (1.4x coverage), indicating potential challenges in managing debt obligations effectively.

ASX:CCL Earnings and Revenue Growth as at Jan 2025
ASX:CCL Earnings and Revenue Growth as at Jan 2025

Djerriwarrh Investments

Simply Wall St Value Rating: ★★★★★★

Overview: Djerriwarrh Investments Limited is a publicly owned investment manager with a market capitalization of A$843.89 million.

Operations: Djerriwarrh Investments generates revenue primarily from its portfolio of investments, totaling A$50.84 million.