Undiscovered Gems in Japan to Explore This October 2024

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Japan's stock markets have recently experienced volatility due to political changes and evolving monetary policy stances, with the Nikkei 225 and TOPIX indices showing notable declines. Despite these fluctuations, opportunities may arise for investors seeking undiscovered gems in Japan's market, particularly among small-cap stocks that can offer unique growth potential amidst current economic conditions.

Top 10 Undiscovered Gems With Strong Fundamentals In Japan

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Tokyo Tekko

10.81%

7.30%

7.30%

★★★★★★

Ryoyu Systems

NA

1.08%

8.08%

★★★★★★

Nihon Parkerizing

0.31%

0.86%

4.40%

★★★★★★

NJS

NA

4.97%

5.30%

★★★★★★

Toukei Computer

NA

5.46%

12.14%

★★★★★★

Innotech

38.96%

7.08%

6.36%

★★★★★☆

Pharma Foods International

145.80%

30.07%

22.61%

★★★★★☆

Ogaki Kyoritsu Bank

139.93%

2.20%

-0.27%

★★★★☆☆

GENOVA

0.93%

33.82%

30.22%

★★★★☆☆

Nippon Sharyo

61.34%

-1.68%

-17.07%

★★★★☆☆

Click here to see the full list of 730 stocks from our Japanese Undiscovered Gems With Strong Fundamentals screener.

Below we spotlight a couple of our favorites from our exclusive screener.

SAN-ALTD

Simply Wall St Value Rating: ★★★★★★

Overview: SAN-A CO., LTD. operates a chain of supermarkets in Okinawa and has a market cap of ¥179.23 billion.

Operations: SAN-A CO., LTD. generates revenue primarily from its supermarket operations in Okinawa. The company has a market capitalization of approximately ¥179.23 billion, reflecting its position within the retail sector.

SAN-ALTD, a promising name in Japan's market landscape, showcases solid financial health with earnings growing at 8.7% annually over the past five years. It's trading at a compelling 40.9% below its estimated fair value, suggesting potential upside for investors. The company operates debt-free, eliminating concerns about interest payments and enhancing its financial stability. Despite not outpacing the industry’s recent growth rate of 22%, SAN-ALTD remains on track with high-quality earnings and positive free cash flow.

TSE:2659 Debt to Equity as at Oct 2024
TSE:2659 Debt to Equity as at Oct 2024

Lifenet Insurance

Simply Wall St Value Rating: ★★★★★☆

Overview: Lifenet Insurance Company offers life insurance products and services in Japan, North America, and internationally, with a market cap of approximately ¥140.48 billion.

Operations: Lifenet Insurance generates revenue primarily through its life insurance products and services. The company's cost structure includes expenses related to policyholder benefits, which significantly impact its financial performance. Net profit margin trends can provide insights into the company's profitability over time.