Three Hidden Small Caps To Enhance Your Portfolio

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As global markets show resilience with smaller-cap indexes outperforming large-caps, investors are increasingly seeking opportunities in less prominent sectors to diversify their portfolios. In this environment of broad-based gains and positive economic indicators, identifying small-cap stocks that offer potential for growth can be a strategic move, as these often-overlooked gems may provide unique value propositions aligned with current market dynamics.

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%

★★★★★★

Impellam Group

31.12%

-5.43%

-6.86%

★★★★★★

Ovostar Union

0.01%

10.19%

49.85%

★★★★★★

Segar Kumala Indonesia

NA

21.81%

18.21%

★★★★★★

Tianyun International Holdings

10.09%

-5.59%

-9.92%

★★★★★★

Watt's

73.27%

7.85%

-1.33%

★★★★★☆

A2B Australia

15.83%

-7.78%

25.44%

★★★★☆☆

Wilson

64.79%

30.09%

68.29%

★★★★☆☆

Bhakti Multi Artha

45.21%

32.37%

-16.43%

★★★★☆☆

Krom Bank Indonesia

NA

40.04%

35.44%

★★★★☆☆

Click here to see the full list of 4634 stocks from our Undiscovered Gems With Strong Fundamentals screener.

We'll examine a selection from our screener results.

Harvia Oyj

Simply Wall St Value Rating: ★★★★☆☆

Overview: Harvia Oyj specializes in the manufacturing and distribution of traditional, steam, and infrared saunas, with a market capitalization of €811.15 million.

Operations: Harvia generates revenue primarily from its Building Materials - HVAC Equipment segment, amounting to €163.66 million.

Harvia, a notable player in the sauna and spa sector, has demonstrated robust financial performance with sales reaching €38.72 million for Q3 2024, up from €33.98 million the previous year. The company's net income also rose to €5.46 million compared to last year's €4.47 million, reflecting high-quality earnings and an impressive EBIT coverage of interest payments at 14.6 times. Despite a rise in its debt-to-equity ratio from 55% to 83% over five years, Harvia's net debt remains manageable at 47%. However, recent insider selling may raise eyebrows among investors considering its promising forecasted earnings growth of 17% annually.

HLSE:HARVIA Debt to Equity as at Nov 2024
HLSE:HARVIA Debt to Equity as at Nov 2024

Dogu Aras Enerji Yatirimlari

Simply Wall St Value Rating: ★★★★☆☆

Overview: Dogu Aras Enerji Yatirimlari AS, with a market cap of TRY12.67 billion, operates in Turkey focusing on the retail sale and distribution of electricity through its subsidiaries.

Operations: Dogu Aras Enerji Yatirimlari generates revenue primarily from retail electricity sales, accounting for TRY23.31 billion, and electricity distribution, contributing TRY9.39 billion. The company's financial performance is influenced by these core segments without detailing specific cost breakdowns or profit margins in the provided data.