Undiscovered Gems Highlight These 3 Top Small Caps with Strong Fundamentals

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As global markets grapple with economic slowdown concerns and a volatile labor market, small-cap stocks have faced their share of challenges. Despite the broader market turbulence, certain small caps with strong fundamentals continue to stand out as potential opportunities for investors. In this landscape, identifying stocks with robust financial health and growth potential can be particularly rewarding. Here are three top small-cap companies that exhibit these qualities and could be considered undiscovered gems in today's market.

Top 10 Undiscovered Gems With Strong Fundamentals

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Impellam Group

31.12%

-5.43%

-6.86%

★★★★★★

Ovostar Union

0.01%

10.19%

49.85%

★★★★★★

First Northern Community Bancorp

NA

7.12%

10.04%

★★★★★★

Tianyun International Holdings

10.09%

-5.59%

-9.92%

★★★★★★

Kaycee Industries

17.35%

19.50%

34.62%

★★★★★☆

Societe de Limonaderies et de Boissons Rafraichissantes d'Afrique

39.37%

8.04%

-3.72%

★★★★★☆

Wilson

64.79%

30.09%

68.29%

★★★★☆☆

A2B Australia

15.83%

-7.78%

25.44%

★★★★☆☆

Practic

NA

3.63%

6.85%

★★★★☆☆

FRMO

0.17%

12.99%

23.62%

★★★★☆☆

Click here to see the full list of 4838 stocks from our Undiscovered Gems With Strong Fundamentals screener.

Let's review some notable picks from our screened stocks.

Multipolar Technology

Simply Wall St Value Rating: ★★★★★☆

Overview: PT Multipolar Technology Tbk provides IT services and solutions in Indonesia with a market cap of IDR43.31 billion.

Operations: Revenue for PT Multipolar Technology Tbk primarily comes from Consultation, Integration, and Information Technology Management services, amounting to IDR3.36 billion.

Multipolar Technology's price-to-earnings ratio of 11.2x is below the ID market average of 15.6x, indicating potential undervaluation. Over the past five years, earnings have grown at an impressive rate of 22.1% annually, although recent earnings growth (13.9%) lagged behind the IT industry (16.5%). The company’s debt-to-equity ratio has risen from 14% to 59%, but interest payments are well covered by EBIT (25x). Recent half-year results reported net income at IDR 239,661 million compared to IDR 77,134 million a year ago and basic EPS rose from IDR 41 to IDR 128.

IDX:MLPT Debt to Equity as at Sep 2024
IDX:MLPT Debt to Equity as at Sep 2024

Bangkok Life Assurance

Simply Wall St Value Rating: ★★★★★☆

Overview: Bangkok Life Assurance Public Company Limited, along with its subsidiaries, offers life insurance services to individuals and corporates in Thailand and has a market cap of THB33.98 billion.