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Japan's stock markets have experienced significant volatility recently, driven by a rebounding yen and concerns about global growth. However, reassuring comments from the Bank of Japan have helped stabilize the market, creating an environment where discerning investors might find overlooked opportunities. In such a fluctuating market, identifying stocks with strong fundamentals and growth potential becomes crucial. Here are three undiscovered gems in Japan that warrant attention for August 2024.
Top 10 Undiscovered Gems With Strong Fundamentals In Japan
| Name | Debt To Equity | Revenue Growth | Earnings Growth | Health Rating |
|---|---|---|---|---|
| QuickLtd | 0.73% | 9.61% | 14.56% | ★★★★★★ |
| Soliton Systems K.K | 0.61% | 5.36% | 20.91% | ★★★★★★ |
| ITOCHU-SHOKUHIN | NA | -0.08% | 12.04% | ★★★★★★ |
| NJS | NA | 4.22% | 1.83% | ★★★★★★ |
| NPR-Riken | 13.26% | 6.00% | 32.17% | ★★★★★☆ |
| Denyo | 4.86% | 3.76% | 1.84% | ★★★★★☆ |
| GakkyushaLtd | 22.47% | 5.11% | 19.19% | ★★★★★☆ |
| Marusan Securities | 5.33% | 1.01% | 10.00% | ★★★★★☆ |
| Dear LifeLtd | 93.05% | 20.12% | 18.05% | ★★★★★☆ |
| Nippon Sharyo | 61.34% | -1.68% | -17.07% | ★★★★☆☆ |
Let's review some notable picks from our screened stocks.
Amano
Simply Wall St Value Rating: ★★★★★☆
Overview: Amano Corporation offers time information, parking, environmental, and cleaning systems in Japan and internationally with a market cap of ¥268.70 billion.
Operations: Amano Corporation generates revenue from time information, parking, environmental, and cleaning systems. The company's net profit margin is 8.45%.
Amano's recent performance showcases its potential in the Japanese market. The company repurchased 495,700 shares for ¥1.95 billion under a buyback plan announced in April 2024, reflecting strong confidence in its valuation. Amano's debt-to-equity ratio increased from 0.5 to 0.8 over five years, while earnings grew by 9.1% last year, outpacing the Electronic industry’s growth of 2.6%. Trading at 33% below fair value, it offers an attractive entry point for investors seeking undervalued opportunities with solid fundamentals and growth prospects projected at around 9% annually.
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Navigate through the intricacies of Amano with our comprehensive health report here.
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Review our historical performance report to gain insights into Amano's's past performance.
Sinko Industries
Simply Wall St Value Rating: ★★★★★★
Overview: Sinko Industries Ltd. manufactures, sells, and installs air conditioning equipment in Japan and internationally with a market cap of ¥96.12 billion.
Operations: Revenue for Sinko Industries Ltd. primarily comes from Japan (¥44.43 billion) and Asia (¥7.54 billion).