Undiscovered Gems in Germany: Top 3 Stocks to Watch This September 2024

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As European markets rally and Germany's DAX reaches new heights, investors are increasingly looking for opportunities in the small-cap segment. With inflation nearing the European Central Bank’s target, the economic environment appears supportive for growth-oriented investments. In this context, identifying promising small-cap stocks can be particularly rewarding. Here are three undiscovered gems in Germany that merit attention this September 2024.

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 48 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.

Operations: The company generates revenue primarily from its salt segment (€283.67 million) and waste management segment (€62.46 million).

Südwestdeutsche Salzwerke AG, a smaller German player, reported half-year sales of €163.06 million for June 2024, up from €154.03 million the previous year. Net income also rose to €15.4 million from €7.96 million, with basic earnings per share climbing to €1.47 from €0.76. Despite a stable debt-to-equity ratio at 0.3% over five years and high-quality earnings growth of 4290%, the stock has shown significant volatility recently but remains free cash flow positive and profitable overall.

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

All for One Group

Simply Wall St Value Rating: ★★★★★☆

Overview: All for One Group SE, along with its subsidiaries, delivers business software solutions for SAP, Microsoft, and IBM across Germany, Switzerland, Austria, Poland, Luxembourg, and internationally with a market cap of €241.87 million.

Operations: The company's revenue streams include €77.01 million from the LOB segment and €442.47 million from the CORE segment.