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Undiscovered Gems With Strong Fundamentals In January 2025

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As global markets reach new highs, driven by optimism around potential trade deals and advancements in artificial intelligence, small-cap stocks have lagged behind their larger counterparts. This divergence presents an intriguing opportunity to explore companies with robust fundamentals that may be overlooked amidst the broader market enthusiasm. Identifying such stocks involves focusing on solid financial health and growth potential, which can offer resilience amid economic shifts and policy changes.

Top 10 Undiscovered Gems With Strong Fundamentals

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Resource Alam Indonesia

2.66%

30.36%

43.87%

★★★★★★

Miwon Chemicals

0.22%

11.24%

14.59%

★★★★★★

Cita Mineral Investindo

NA

-3.08%

16.56%

★★★★★★

Wilson Bank Holding

NA

7.87%

8.22%

★★★★★★

Ovostar Union

0.01%

10.19%

49.85%

★★★★★★

Citra Tubindo

NA

11.06%

31.01%

★★★★★★

Oriental Precision & EngineeringLtd

45.47%

3.47%

-1.67%

★★★★★☆

iMarketKorea

29.86%

5.28%

1.62%

★★★★★☆

Bakrie & Brothers

22.66%

7.78%

13.50%

★★★★★☆

TBS Energi Utama

77.67%

4.11%

-2.54%

★★★★☆☆

Click here to see the full list of 4670 stocks from our Undiscovered Gems With Strong Fundamentals screener.

Let's dive into some prime choices out of from the screener.

Fiera Milano

Simply Wall St Value Rating: ★★★★☆☆

Overview: Fiera Milano SpA, along with its subsidiaries, specializes in organizing and hosting international events and fairs both in Italy and abroad, with a market capitalization of €329.39 million.

Operations: Fiera Milano generates revenue primarily from its Italian Exhibitions Business, contributing €245.29 million, and Congresses, adding €49.15 million. The Foreign Exhibitions Business adds a smaller portion with €5.13 million in revenue.

Fiera Milano, a smaller player in the market, has shown impressive earnings growth of 4699.7% over the past year, significantly outpacing the Media industry's 15.6%. Its price-to-earnings ratio stands at 9x, which is attractive compared to Italy's market average of 14.1x. The company's debt management appears solid with a reduced debt-to-equity ratio from 36.1% to 24.6% over five years and interest payments well covered by EBIT at 4.9x coverage. However, recent reports highlighted challenges with a net loss of €7 million for Q3 and declining earnings projected at an average rate of 3% annually over the next three years.

BIT:FM Debt to Equity as at Jan 2025
BIT:FM Debt to Equity as at Jan 2025

JAC Recruitment

Simply Wall St Value Rating: ★★★★★★

Overview: JAC Recruitment Co., Ltd. is a company that offers recruitment consultancy services in Japan with a market capitalization of ¥110.38 billion.