Undiscovered Gems These 3 Top Small Caps with Solid Financial Foundations

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In the wake of recent market volatility and economic shifts, small-cap stocks have shown resilience, with indices like the S&P 600 rebounding from earlier declines. Amidst this backdrop, identifying stocks with solid financial foundations becomes crucial for investors looking to navigate these uncertain times. A good stock in today's market is characterized by strong fundamentals, including robust earnings growth, manageable debt levels, and a clear path to profitability. With these criteria in mind, we explore three top small-cap companies that stand out as undiscovered gems.

Top 10 Undiscovered Gems With Strong Fundamentals

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Marico Bangladesh

NA

10.29%

13.66%

★★★★★★

Mobile Telecommunications

NA

3.85%

-0.40%

★★★★★★

Ovostar Union

0.01%

10.19%

49.85%

★★★★★★

Impellam Group

31.12%

-5.43%

-6.86%

★★★★★★

Tianyun International Holdings

10.09%

-5.59%

-9.92%

★★★★★★

Berger Paints Bangladesh

3.44%

10.41%

7.89%

★★★★★☆

Saudi Azm for Communication and Information Technology

8.57%

6.93%

21.97%

★★★★★☆

Jamuna Bank

137.71%

6.11%

-4.98%

★★★★☆☆

Wilson

64.79%

30.09%

68.29%

★★★★☆☆

A2B Australia

15.83%

-7.78%

25.44%

★★★★☆☆

Click here to see the full list of 4838 stocks from our Undiscovered Gems With Strong Fundamentals screener.

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

Cosumar

Simply Wall St Value Rating: ★★★★★☆

Overview: Cosumar SA, along with its subsidiaries, produces, packages, and markets sugar products in Morocco and has a market cap of MAD18.14 billion.

Operations: Cosumar SA generates revenue primarily from its food processing segment, which amounted to MAD13.87 billion. The company's net profit margin is %.

Cosumar, a player in the food industry, boasts high-quality earnings and a satisfactory net debt to equity ratio of 26%. The company's interest payments are well covered by EBIT at 22.2x. Despite its earnings growth of 22.2% over the past year not outpacing the industry's 56.7%, Cosumar's price-to-earnings ratio stands at an attractive 18x, below the market average of 24.6x. Over five years, their debt to equity ratio has increased from 33.1% to 38.9%.

CBSE:CSR Earnings and Revenue Growth as at Sep 2024
CBSE:CSR Earnings and Revenue Growth as at Sep 2024

Lippo Karawaci

Simply Wall St Value Rating: ★★★★★★

Overview: PT Lippo Karawaci Tbk, with a market cap of IDR7.58 billion, operates in Indonesia offering property development services through its subsidiaries.

Operations: Lippo Karawaci generates revenue primarily from property development services in Indonesia. The company reported a market cap of IDR7.58 billion.