Discover These 3 Undiscovered Gems in Japan with Strong Potential

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Japan's stock markets have recently experienced a downturn, with the Nikkei 225 Index down 5.8% and the broader TOPIX Index registering a 4.2% loss, driven by a U.S.-led sell-off in semiconductor stocks and yen strength impacting export-oriented companies. Despite these challenges, Japan continues to offer intriguing opportunities for discerning investors seeking undervalued gems. In such volatile market conditions, identifying stocks with strong fundamentals and growth potential becomes crucial. These undiscovered gems often possess unique attributes that can weather economic shifts and provide substantial long-term value.

Top 10 Undiscovered Gems With Strong Fundamentals In Japan

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Ryoyu Systems

NA

1.08%

8.08%

★★★★★★

Intelligent Wave

NA

6.92%

15.18%

★★★★★★

Poppins

39.80%

8.36%

-7.40%

★★★★★★

Nice

71.69%

-1.98%

36.48%

★★★★★★

Otec

9.81%

2.32%

-1.39%

★★★★★★

Icom

NA

4.68%

14.92%

★★★★★★

Innotech

38.96%

7.08%

6.36%

★★★★★☆

Denyo

3.49%

4.30%

3.66%

★★★★★☆

GENOVA

0.93%

33.82%

30.22%

★★★★☆☆

Hakuto

56.93%

8.02%

27.72%

★★★★☆☆

Click here to see the full list of 753 stocks from our Japanese Undiscovered Gems With Strong Fundamentals screener.

Underneath we present a selection of stocks filtered out by our screen.

Access

Simply Wall St Value Rating: ★★★★★★

Overview: Access Co., Ltd. is a company that provides mobile and network software technologies to various industries worldwide, including telecom carriers, consumer electronics manufacturers, broadcasting and publishing companies, the automotive industry, and energy infrastructure providers; it has a market cap of ¥65.59 billion.

Operations: Access Co., Ltd. generates revenue primarily from its Network Business (¥10.37 billion), IoT Business (¥5.54 billion), and Web Platform Business (¥2.07 billion).

Access Co., Ltd. has shown promising developments, becoming profitable this year and showcasing high-quality earnings. The company is debt-free, which simplifies financial stability concerns. Despite a volatile share price over the past three months, Access's recent performance indicates potential for growth. With no debt five years ago and a positive change in net working capital of ¥2.19 billion as of July 2024, it seems well-positioned for future gains in the software industry.

TSE:4813 Debt to Equity as at Sep 2024
TSE:4813 Debt to Equity as at Sep 2024

Nohmi Bosai

Simply Wall St Value Rating: ★★★★★★

Overview: Nohmi Bosai Ltd. develops, markets, installs, and maintains fire protection systems across Japan, China, the rest of Asia, and the United States with a market cap of ¥152.75 billion.