Undiscovered Gems In Australia To Watch This September 2024

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The Australian market has shown resilience, with the Real Estate sector gaining 3.3% while the overall market remained flat over the last week, and a notable 11% increase over the past year. In light of these promising conditions and expected annual earnings growth of 12%, identifying stocks with strong fundamentals and growth potential becomes crucial for investors seeking to capitalize on this momentum.

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%

★★★★★★

Lycopodium

NA

17.22%

33.85%

★★★★★★

Sugar Terminals

NA

2.34%

2.64%

★★★★★★

BSP Financial Group

7.53%

7.31%

4.10%

★★★★★☆

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%

★★★★☆☆

Click here to see the full list of 53 stocks from our ASX Undiscovered Gems With Strong Fundamentals screener.

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

Catalyst Metals

Simply Wall St Value Rating: ★★★★☆☆

Overview: Catalyst Metals Limited explores and evaluates mineral properties in Australia, with a market cap of A$562.20 million.

Operations: Catalyst Metals Limited generates revenue primarily from its operations in Western Australia (A$243.77 million) and Tasmania (A$75.08 million). The company also incurs corporate expenses amounting to A$0.54 million.

Catalyst Metals has shown impressive growth, reporting A$317.01 million in sales for the fiscal year ending June 30, 2024, up from A$63.94 million the previous year. The company also turned a net income of A$23.56 million compared to a net loss of A$15.63 million previously, with basic earnings per share at A$0.1069 from a loss of A$0.1266 last year. Additionally, Catalyst's production saw significant gains with Plutonic producing 85koz and Henty at nearly 25koz this fiscal year.

ASX:CYL Debt to Equity as at Sep 2024
ASX:CYL Debt to Equity as at Sep 2024

Redox

Simply Wall St Value Rating: ★★★★★★

Overview: Redox Limited supplies and distributes chemicals, ingredients, and raw materials in Australia, New Zealand, the United States, and internationally with a market cap of A$1.71 billion.

Operations: Redox generates revenue primarily from its wholesale drugs segment, amounting to A$1.14 billion.

Redox has shown remarkable financial resilience, with earnings growing 18.3% annually over the past five years and a debt to equity ratio dropping from 69.6% to 2.6%. Despite trading at 11.9% below its estimated fair value, it reported annual sales of A$1.14 billion for FY2024, down from A$1.26 billion last year but net income increased to A$90 million from A$81 million previously. The company declared a fully franked final dividend of 6.5 cents per share for FY2024, totaling 12.5 cents per share for the year.