NZX And 2 Other Small Caps Backed By Strong Fundamentals

As global markets navigate a mixed performance, with the S&P 500 and Nasdaq Composite marking significant gains over the past year despite recent volatility, small-cap stocks continue to capture investor interest amid fluctuating economic indicators such as the Chicago PMI and GDP forecasts. In this dynamic environment, identifying stocks with strong fundamentals becomes crucial for investors seeking stability and potential growth; characteristics include robust financial health, competitive positioning in their respective industries, and resilience in challenging market conditions.

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

SHL Consolidated Bhd

NA

16.14%

19.01%

★★★★★★

Central Forest Group

NA

6.85%

15.11%

★★★★★★

Morris State Bancshares

10.20%

-0.28%

6.97%

★★★★★★

Ovostar Union

0.01%

10.19%

49.85%

★★★★★★

Industrias del Cobre Sociedad Anónima

NA

19.08%

22.33%

★★★★★★

Tianyun International Holdings

10.09%

-5.59%

-9.92%

★★★★★★

Inverfal PerúA

31.20%

10.56%

17.83%

★★★★★☆

Compañía Electro Metalúrgica

71.27%

12.50%

19.90%

★★★★☆☆

Arab Banking Corporation (B.S.C.)

213.15%

18.58%

29.63%

★★★★☆☆

A2B Australia

15.83%

-7.78%

25.44%

★★★★☆☆

Click here to see the full list of 4659 stocks from our Undiscovered Gems With Strong Fundamentals screener.

Here we highlight a subset of our preferred stocks from the screener.

Simply Wall St Value Rating: ★★★★★★

Overview: NZX Limited operates a stock exchange in New Zealand and has a market capitalization of NZ$480.72 million.

Operations: NZX Limited’s primary revenue streams include Funds Services at NZ$40.27 million, Secondary Markets at NZ$24.75 million, and Information Services at NZ$19.57 million. Capital Markets Origination contributes NZ$15.74 million to the revenue, followed by Wealth Tech with NZ$8.01 million and Regulation with NZ$3.89 million, while Corporate Services adds a smaller amount of NZ$0.10 million.

NZX has demonstrated notable financial resilience and growth, with its debt to equity ratio improving from 62.5% to 49.2% over the last five years, and a net debt to equity ratio at a satisfactory 39.2%. The company’s earnings soared by 58.9% in the past year, outpacing the industry average of 17.2%, although this includes a one-off gain of NZ$6 million impacting recent results. Earnings guidance for fiscal year 2024 was raised to NZ$45-49 million due to robust capital raising activities and increased trading volumes, suggesting positive momentum in its operations despite potential market uncertainties ahead.

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