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Undiscovered Gems in Germany for August 2024

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Germany's DAX has recently climbed 3.38%, reflecting a broader optimism in European markets driven by hopes for interest rate cuts and resilient economic indicators. This positive sentiment creates an opportune environment to explore lesser-known small-cap stocks that may offer unique growth potential. In the current market, a good stock often exhibits strong fundamentals, innovative business models, and resilience to economic fluctuations—qualities that are particularly relevant when considering undiscovered gems in Germany.

Top 10 Undiscovered Gems With Strong Fundamentals In Germany

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

EnviTec Biogas

37.96%

19.34%

51.22%

★★★★★★

FRoSTA

8.18%

4.36%

16.00%

★★★★★★

Mühlbauer Holding

NA

10.49%

-12.73%

★★★★★★

Paul Hartmann

26.29%

1.12%

-17.65%

★★★★★☆

Südwestdeutsche Salzwerke

0.30%

4.57%

25.01%

★★★★★☆

HOMAG Group

NA

-31.14%

23.43%

★★★★★☆

Baader Bank

91.28%

12.42%

-8.00%

★★★★★☆

BAVARIA Industries Group

3.19%

0.18%

28.18%

★★★★★☆

Wilson

64.79%

30.09%

68.29%

★★★★☆☆

BAUER

78.29%

2.30%

-38.28%

★★★★☆☆

Click here to see the full list of 46 stocks from our German Undiscovered Gems With Strong Fundamentals screener.

Let's uncover some gems from our specialized screener.

EnviTec Biogas

Simply Wall St Value Rating: ★★★★★★

Overview: EnviTec Biogas AG manufactures and operates biogas and biomethane plants across multiple countries including Germany, Italy, the United States, and China, with a market cap of €501.93 million.

Operations: EnviTec Biogas AG generates revenue from three primary segments: Service (€48.58 million), Plant Engineering (€132.13 million), and Own Operation (Including Energy) (€236.10 million).

EnviTec Biogas, a small German company in the renewable energy sector, has seen its earnings grow by 27.6% over the past year. The price-to-earnings ratio of 8.6x is notably lower than the German market average of 16.7x, suggesting potential undervaluation. The company's debt to equity ratio has improved from 41.7% to 38% over five years, and it holds more cash than total debt, indicating strong financial health and stability for future growth prospects in renewable energy markets.

XTRA:ETG Earnings and Revenue Growth as at Aug 2024
XTRA:ETG Earnings and Revenue Growth as at Aug 2024

KSB SE KGaA

Simply Wall St Value Rating: ★★★★★★

Overview: KSB SE & Co. KGaA, with a market cap of approximately €1.10 billion, manufactures and supplies pumps, valves, and related services globally through its subsidiaries.

Operations: KSB SE & Co. KGaA generates revenue primarily from three segments: Pumps (€1.52 billion), Fittings (€370.94 million), and KSB Supremeserv (€978.20 million). The company's market cap stands at approximately €1.10 billion.