In This Article:
Japan's stock markets have shown modest gains recently, with the Nikkei 225 Index rising by 0.8% and the broader TOPIX Index up by 0.2%. Amid a backdrop of economic stability and cautious optimism, small-cap stocks in Japan present intriguing opportunities for investors looking to diversify their portfolios. In this article, we explore three lesser-known but promising stocks: Takamatsu Construction Group and two other hidden gems that could offer significant potential given the current market conditions.
Top 10 Undiscovered Gems With Strong Fundamentals In Japan
| Name | Debt To Equity | Revenue Growth | Earnings Growth | Health Rating |
|---|---|---|---|---|
| NCD | 11.89% | 8.95% | 25.43% | ★★★★★★ |
| Nihon Parkerizing | 0.31% | 0.86% | 4.40% | ★★★★★★ |
| QuickLtd | 0.73% | 9.61% | 14.56% | ★★★★★★ |
| NJS | NA | 4.97% | 5.30% | ★★★★★★ |
| Ad-Sol Nissin | NA | 4.02% | 7.90% | ★★★★★★ |
| Otec | 9.81% | 2.32% | -1.39% | ★★★★★★ |
| Techno Smart | NA | 6.07% | -0.57% | ★★★★★★ |
| Kondotec | 11.75% | 6.85% | 2.62% | ★★★★★☆ |
| AJIS | 0.69% | 0.07% | -12.44% | ★★★★★☆ |
| Nippon Ski Resort DevelopmentLtd | 39.31% | 2.95% | 19.16% | ★★★★★☆ |
Let's uncover some gems from our specialized screener.
Takamatsu Construction Group
Simply Wall St Value Rating: ★★★★☆☆
Overview: Takamatsu Construction Group Co., Ltd. operates in the construction industry in Japan with a market capitalization of ¥101.70 billion.
Operations: Takamatsu Construction Group generates revenue primarily from three segments: Real Estate (¥68.47 billion), Civil Engineering (¥101 billion), and Construction Business (¥157.64 billion).
Takamatsu Construction Group, a small but promising player in Japan's construction industry, has seen its earnings grow by 29.7% over the past year, outpacing the industry's 21.2% growth. Trading at a P/E ratio of 11x, it offers good value compared to the JP market's 13.4x. The company’s debt-to-equity ratio increased from 0% to 11.3% over five years but remains manageable with interest payments well covered by EBIT (125.8x).
Kawada Technologies
Simply Wall St Value Rating: ★★★★★☆
Overview: Kawada Technologies, Inc. operates in the steel, civil engineering, architecture, and IT service sectors in Japan with a market cap of ¥45.72 billion.
Operations: Kawada Technologies generates revenue from its steel, civil engineering, architecture, and IT service sectors in Japan. The company has a market cap of ¥45.72 billion.