As global markets navigate a complex landscape marked by record highs in major indexes like the S&P 500 and Nasdaq Composite, small-cap stocks have experienced a mixed performance, with the Russell 2000 Index seeing declines after recent outperformance. In this environment of economic shifts and sector dispersion, identifying promising small-cap stocks requires a keen focus on companies that exhibit resilience and growth potential amid evolving market dynamics.
Name
Debt To Equity
Revenue Growth
Earnings Growth
Health Rating
Société Multinationale de Bitumes Société Anonyme
54.45%
24.68%
23.10%
★★★★★★
Ovostar Union
0.01%
10.19%
49.85%
★★★★★★
IFE Elevators
NA
12.67%
17.10%
★★★★★★
CHT Security
NA
11.75%
35.75%
★★★★★★
Tianyun International Holdings
10.09%
-5.59%
-9.92%
★★★★★★
Kenturn Nano. Tec
45.38%
9.73%
28.94%
★★★★★☆
Kinpo Electronics
126.70%
5.77%
32.85%
★★★★☆☆
A2B Australia
15.83%
-7.78%
25.44%
★★★★☆☆
Wilson
64.79%
30.09%
68.29%
★★★★☆☆
Arsan Tekstil Ticaret ve Sanayi Anonim Sirketi
0.75%
19.36%
52.36%
★★★★☆☆
Click here to see the full list of 4631 stocks from our Undiscovered Gems With Strong Fundamentals screener.
Let’s review some notable picks from our screened stocks.
Simply Wall St Value Rating: ★★★★★☆
Overview: LT Group, Inc. operates in the banking, distilled spirits, beverages, tobacco, property development, and other sectors both in the Philippines and internationally with a market capitalization of ₱111.63 billion.
Operations: LT Group, Inc. generates revenue primarily from its banking sector, contributing ₱73.11 billion, followed by distilled spirits at ₱33.12 billion and beverages at ₱18.38 billion. The company’s net profit margin shows a notable trend of 24%, reflecting its profitability across these diverse sectors.
LT Group, a notable player in its sector, showcases robust financial health with a debt-to-equity ratio reduced to 7.7% over five years and interest payments well-covered by EBIT at 70.7 times. Despite earnings growth of 8.5% last year not surpassing the Industrials industry average of 10.7%, LTG remains profitable with positive free cash flow and more cash than total debt. Trading at a price-to-earnings ratio of 4.3x, significantly below the Philippine market’s average of 9.4x, it offers good relative value compared to peers, supported by high-quality past earnings and recent revenue growth to PHP 34 billion in Q3 from PHP 30 billion last year.
PSE:LTG Debt to Equity as at Dec 2024
Simply Wall St Value Rating: ★★★★★★
Overview: Shanghai Guangdian Electric Group Co., Ltd. operates in the electrical equipment manufacturing sector, focusing on transmission and distribution control equipment, with a market capitalization of CN¥3.47 billion.
Operations: Shanghai Guangdian Electric Group generates revenue primarily from its transmission and distribution control equipment manufacturing segment, amounting to CN¥935.54 million.
Shanghai Guangdian Electric Group is making waves with impressive earnings growth of 1568% over the past year, outpacing the electrical industry’s 1.6%. This small cap is debt-free, eliminating concerns about interest coverage. Recent results show a net income of CNY 47.95 million for nine months ending September 2024, up from CNY 16.11 million a year earlier, with sales climbing to CNY 736.19 million from CNY 557.48 million in the same period last year. Despite a notable one-off gain of CN¥15.6M impacting recent financials, it remains profitable and free cash flow positive at CN¥153.66M as of September 2024.
SHSE:601616 Earnings and Revenue Growth as at Dec 2024
Simply Wall St Value Rating: ★★★★★★
Overview: Taiwan Speciality Chemicals Corporation focuses on the production and distribution of specialty electronic-graded gases and chemicals in Taiwan, with a market capitalization of NT$24.52 billion.
Operations: Taiwan Speciality Chemicals generates revenue primarily from the research, development, and sales of precision chemical materials, amounting to NT$808.72 million.
Taiwan Speciality Chemicals, a nimble player in its field, has shown impressive financial strides recently. Sales for the third quarter reached TWD 213.97 million, up from TWD 156.93 million last year, while net income soared to TWD 99.56 million from TWD 43.63 million. Basic earnings per share increased to TWD 0.71 compared to TWD 0.32 previously reported, showcasing strong profitability with high-quality earnings and no debt burden over the past five years. Despite some shareholder dilution this year and recent volatility in share price, the company remains debt-free and boasts a robust cash flow position with levered free cash flow of US$429.89 by September’s end in 2024.
TPEX:4772 Earnings and Revenue Growth as at Dec 2024
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include PSE:LTG SHSE:601616 and TPEX:4772.
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