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Undiscovered Gems in Australia to Explore This January 2025

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As the Australian market experiences positive investor sentiment, with the ASX200 reaching record highs amid easing tariff concerns, certain sectors like IT, Materials, and Real Estate are outperforming while others such as Utilities lag behind. In this dynamic environment, identifying undiscovered gems involves finding stocks that can capitalize on sector strengths and navigate broader economic shifts effectively.

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%

★★★★★★

Schaffer

24.98%

2.97%

-6.23%

★★★★★★

Sugar Terminals

NA

3.14%

3.53%

★★★★★★

Bailador Technology Investments

NA

11.17%

10.16%

★★★★★★

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%

★★★★★☆

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 49 stocks from our ASX Undiscovered Gems With Strong Fundamentals screener.

Below we spotlight a couple of our favorites from our exclusive screener.

EQT Holdings

Simply Wall St Value Rating: ★★★★★☆

Overview: EQT Holdings Limited, along with its subsidiaries, offers philanthropic, trustee executor, and investment services in Australia and has a market capitalization of approximately A$901 million.

Operations: EQT Holdings generates revenue primarily from its Corporate & Superannuation Trustee Services, which contributed A$71.51 million, and Trustee & Wealth Services (excluding Superannuation Trustee Services), which added A$99.08 million.

EQT Holdings, a smaller player in the financial sector, presents an intriguing profile. Its debt to equity ratio has risen from 4.6% to 18.3% over five years, yet interest payments are comfortably covered with EBIT at 9.6 times interest repayments. Despite earnings growing at a modest 1.2% annually over the past five years, they lag behind industry growth of 17.7%. However, future prospects look brighter with earnings forecasted to grow by 22.7% per year and positive free cash flow supporting its operations without concern for cash runway issues—an encouraging sign for potential investors eyeing this financial entity's trajectory in A$.

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

Mader Group

Simply Wall St Value Rating: ★★★★★★

Overview: Mader Group Limited is a contracting company that offers specialist technical services in the mining, energy, and industrial sectors both in Australia and internationally, with a market cap of A$1.25 billion.