In This Article:
In the last week, the Australian market has been flat, but over the past 12 months, it has risen by 15%, with earnings forecast to grow by 12% annually. In this dynamic environment, identifying stocks that combine strong fundamentals with growth potential can offer promising opportunities for investors seeking 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% | ★★★★★★ |
| Bisalloy Steel Group | 0.95% | 10.27% | 24.14% | ★★★★★★ |
| Sugar Terminals | NA | 3.14% | 3.53% | ★★★★★★ |
| Lycopodium | NA | 17.22% | 33.85% | ★★★★★★ |
| Red Hill Minerals | NA | 75.05% | 36.74% | ★★★★★★ |
| Steamships Trading | 33.60% | 4.17% | 3.90% | ★★★★★☆ |
| AMCIL | NA | 5.16% | 5.31% | ★★★★★☆ |
| Hearts and Minds Investments | 1.00% | 18.81% | 20.95% | ★★★★☆☆ |
| A2B Australia | 15.83% | -7.78% | 25.44% | ★★★★☆☆ |
| Boart Longyear Group | 71.20% | 9.71% | 39.19% | ★★★★☆☆ |
Let's review some notable picks from our screened stocks.
Emerald Resources
Simply Wall St Value Rating: ★★★★★☆
Overview: Emerald Resources NL focuses on the exploration and development of mineral reserves in Cambodia and Australia, with a market cap of A$2.56 billion.
Operations: Emerald Resources generates revenue primarily from mine operations, amounting to A$366.04 million.
Emerald Resources, a dynamic player in the mining sector, has seen its earnings grow by 41.9% over the past year, outpacing industry growth of 1.6%. The company reported sales of A$371.07 million for the fiscal year ending June 2024, with net income rising to A$84.27 million from A$59.36 million previously. Despite a debt-to-equity increase to 8.5% over five years, its interest payments are well covered by EBIT at an impressive 18.6x coverage ratio, indicating strong financial health and operational efficiency in managing debt obligations effectively.
Redox
Simply Wall St Value Rating: ★★★★★★
Overview: Redox Limited is a company that supplies and distributes chemicals, ingredients, and raw materials across Australia, New Zealand, the United States, and internationally with a market capitalization of A$1.83 billion.
Operations: Redox generates revenue primarily from its wholesale drugs segment, amounting to A$1.14 billion.
Redox, a promising player in Australia, has seen its debt to equity ratio improve significantly from 69.6% to 2.6% over the past five years, indicating strong financial health. Despite a dip in sales from A$1.26 billion to A$1.14 billion this year, net income rose to A$90.24 million from A$80.73 million last year, showcasing resilience and profitability with high-quality earnings and positive free cash flow of A$112 million as of October 2024.