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Undiscovered Gems in Germany for September 2024

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As European inflation nears the central bank’s target, Germany's DAX has reached fresh peaks, signaling robust market conditions. This backdrop provides a fertile ground for uncovering promising small-cap stocks that may have been overlooked by mainstream investors. In this environment, a good stock often exhibits strong fundamentals and resilience in economic downturns—qualities particularly relevant given the current sentiment and market dynamics.

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%

★★★★★★

Westag

NA

-1.56%

-21.68%

★★★★★★

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 50 stocks from our German Undiscovered Gems With Strong Fundamentals screener.

Underneath we present a selection of stocks filtered out by our screen.

Südwestdeutsche Salzwerke

Simply Wall St Value Rating: ★★★★★☆

Overview: Südwestdeutsche Salzwerke AG, with a market cap of €672.48 million, mines, produces, and sells salt in Germany, the European Union, and internationally through its subsidiaries.

Operations: Südwestdeutsche Salzwerke generates revenue primarily from salt production (€283.67 million) and waste management services (€62.46 million). The company also has minor revenue contributions from other segments totaling €17.80 million.

Südwestdeutsche Salzwerke (SSH) has shown impressive performance, with earnings up 4290.9% over the past year, significantly outpacing the Food industry’s 21.1%. For the half year ended June 30, 2024, sales reached €163.06 million from €154.03 million a year ago while net income nearly doubled to €15.4 million from €7.96 million. The price-to-earnings ratio stands at a favorable 16.1x compared to the German market's 16.9x, indicating good value despite recent share price volatility.

DB:SSH Earnings and Revenue Growth as at Sep 2024
DB:SSH Earnings and Revenue Growth as at Sep 2024

M1 Kliniken

Simply Wall St Value Rating: ★★★★★☆

Overview: M1 Kliniken AG, with a market cap of €297.62 million, offers aesthetic medicine and plastic surgery services across Germany, Austria, the Netherlands, Switzerland, the United Kingdom, Croatia, Hungary, Bulgaria, Romania, and Australia.