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As Japanese stock markets rise, buoyed by the yen's weakening and the Bank of Japan's steady interest rates, investors are increasingly looking at small-cap stocks for untapped potential. With this backdrop, identifying promising companies that show resilience and growth prospects becomes crucial for capitalizing on market conditions.
Top 10 Undiscovered Gems With Strong Fundamentals In Japan
| Name | Debt To Equity | Revenue Growth | Earnings Growth | Health Rating |
|---|---|---|---|---|
| Toho | 69.52% | 2.84% | 55.65% | ★★★★★★ |
| Tokyo Tekko | 10.81% | 7.30% | 7.30% | ★★★★★★ |
| KurimotoLtd | 20.73% | 3.34% | 18.64% | ★★★★★★ |
| Kanda HoldingsLtd | 30.47% | 4.35% | 18.02% | ★★★★★★ |
| AOKI Holdings | 28.27% | 0.91% | 37.15% | ★★★★★★ |
| ITOCHU-SHOKUHIN | NA | -0.08% | 12.04% | ★★★★★★ |
| Nippon Denko | 18.00% | 4.31% | 48.41% | ★★★★★★ |
| Icom | NA | 4.68% | 14.92% | ★★★★★★ |
| Kondotec | 11.75% | 6.85% | 2.62% | ★★★★★☆ |
| FDK | 89.57% | -0.88% | 25.34% | ★★★★☆☆ |
Below we spotlight a couple of our favorites from our exclusive screener.
Asahi
Simply Wall St Value Rating: ★★★★★★
Overview: Asahi Co., Ltd. operates in Japan and China, selling bicycles, parts, accessories, and other related products with a market capitalization of ¥43.14 billion.
Operations: Asahi's revenue primarily comes from the sale of bicycles, parts, and accessories in Japan and China. The company has a market capitalization of ¥43.14 billion.
Asahi, a lesser-known Japanese company, is currently trading at 68.3% below its estimated fair value, presenting an intriguing opportunity. Over the past five years, earnings have grown by 1% annually despite not outperforming the Specialty Retail industry’s 6.1% growth last year. Notably debt-free now compared to a debt-to-equity ratio of 1.1 five years ago, Asahi also forecasts an annual earnings growth rate of 8.47%, indicating potential for future expansion and stability in its financials.
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Click here and access our complete health analysis report to understand the dynamics of Asahi.
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Explore historical data to track Asahi's performance over time in our Past section.
MODEC
Simply Wall St Value Rating: ★★★★☆☆
Overview: MODEC, Inc. is a general contractor specializing in the engineering, procurement, construction, and installation of floating production systems globally, with a market cap of ¥224.05 billion.
Operations: MODEC, Inc. generates revenue primarily from the engineering, procurement, construction, and installation of floating production systems. The company has a market cap of ¥224.05 billion.
MODEC's earnings surged 375.8% last year, outpacing the Energy Services industry growth of 24.8%. The company has a favorable price-to-earnings ratio of 7.4x compared to Japan's market average of 13.4x, and it holds more cash than its total debt. Recent developments include a dividend increase to ¥30 per share and revised earnings guidance projecting revenue at US$4.3 million with an operating profit of US$290,000 for FY2024, indicating strong financial health and potential for future growth.