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Undiscovered Gems Three Small Caps with Strong Financial Foundations

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As global markets grapple with economic slowdown concerns and fluctuating indices, small-cap stocks have faced their share of volatility. Despite these challenges, companies with strong financial foundations can offer promising opportunities for investors looking to navigate uncertain times. In this environment, identifying small-cap stocks with robust balance sheets and sustainable growth prospects becomes crucial for long-term success.

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%

★★★★★★

Tianyun International Holdings

10.09%

-5.59%

-9.92%

★★★★★★

Watt's

72.09%

7.89%

-1.99%

★★★★★☆

Societe de Limonaderies et de Boissons Rafraichissantes d'Afrique

39.37%

8.04%

-3.72%

★★★★★☆

Compañía Electro Metalúrgica

72.83%

12.17%

19.18%

★★★★☆☆

Hermes Transportes Blindados

58.80%

4.29%

2.04%

★★★★☆☆

Wilson

64.79%

30.09%

68.29%

★★★★☆☆

A2B Australia

15.83%

-7.78%

25.44%

★★★★☆☆

TopGum Industries

30.51%

15.69%

33.91%

★★★★☆☆

Click here to see the full list of 4850 stocks from our Undiscovered Gems With Strong Fundamentals screener.

We're going to check out a few of the best picks from our screener tool.

Triputra Agro Persada

Simply Wall St Value Rating: ★★★★★☆

Overview: PT Triputra Agro Persada Tbk operates oil palm plantations and palm oil processing businesses in Indonesia, with a market cap of IDR15.88 billion.

Operations: PT Triputra Agro Persada Tbk generates revenue primarily from palm oil products and their derivatives (IDR8.60 billion), with a smaller contribution from rubber products and their derivatives (IDR28.47 million). The company operates within the oil palm plantations and palm oil processing sectors in Indonesia.

Triputra Agro Persada, trading at 47.3% below its fair value estimate, has seen its debt to equity ratio drop from 100.9% to 12.6% over five years. Earnings grew by 26% last year, outpacing the food industry's -6.7%. With EBIT covering interest payments 28 times over and a satisfactory net debt to equity ratio of 7.6%, the company shows strong financial health. Recent half-year results revealed sales of IDR4 trillion (US$260 million) and net income of IDR966 billion (US$62 million), doubling from the previous year.

IDX:TAPG Earnings and Revenue Growth as at Sep 2024
IDX:TAPG Earnings and Revenue Growth as at Sep 2024

China Banking

Simply Wall St Value Rating: ★★★★☆☆

Overview: China Banking Corporation offers a range of banking and financial services to individuals and businesses in the Philippines, with a market cap of ₱110.34 billion.