Undiscovered Treasures Including 3 Promising Small Shares

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Undiscovered Treasures Including 3 Promising Small Shares

As global markets navigate mixed territory with the S&P 500 and Nasdaq Composite posting strong annual gains despite recent economic contractions, small-cap stocks continue to attract investors’ attention due to their potential for growth in an improving economic environment. In this context, identifying promising small stocks involves looking for companies with strong fundamentals and resilience amid fluctuating market conditions.

Name	Debt to Equity	Revenue Growth	Income Growth	Health Rating
Alam Indonesia resource	2.66%	30.36%	43.87%	★★★★★★
Mandiri Herindo Adiperkasa	NA	20.72%	11.08%	★★★★★★
Ovostar Union	0.01%	10.19%	49.85%	★★★★★★
Prima Andalan Mandiri	0.94%	20.24%	15.28%	★★★★★★
Bank Ganesha	NA	25.03%	70.72%	★★★★★★
Company rating ASRock Rack Incorporation	NA	45.76%	269.05%	★★★★★★
Tianyun International Holdings share price	10.09%	-5.59%	-9.92%	★★★★★★
Bakrie & Brothers	22.66%	7.78%	13.50%	★★★★★☆
A2B Australia	15.83%	-7.78%	25.44%	★★★★☆☆
Bhakti Multi Artha	45.21%	32.37%	-16.43%	★★★★☆☆

Click here to see the full list of 4666 stocks from our Strong Fundamentals Finder.

Let’s get into some of the main options from the screen.

Simply Wall St Value Estimate: ★★★★☆☆

Overview: Union Properties Public Joint Stock Company is involved in investing, developing, managing, maintaining, and selling real estate mainly in the United Arab Emirates and has a market capitalization of AED1.83 billion.

Activities: Union Properties generates revenue mainly from Goods and Services (AED452.07 million), followed by Real Estate (AED47.46 million) and Contracts (AED33.26 million).

Union Properties, a small player in the real estate sector, is showing mixed financial performance. Its profits rose by an impressive 983% last year, outpacing industry growth of 46.8%. However, interest coverage remains weak at just 0.5 times EBIT compared to debt payments. The total debt to equity ratio stands at a satisfactory 21%, having improved from 61.5% in five years. Despite these gains, free cash flow is negative and earnings are expected to decline by an average of 50.6% annually over the next three years, although revenue is expected to grow by approximately 64% annually.

DFM: UPP Benefits and Revenue Growth from Jan 2025

Simply Wall St Value Estimate: ★★★★☆☆

Overview: iFamilySC Co. Ltd is an interactive marketing company that connects content and products both online and offline in South Korea and abroad, with a market capitalization of ₩365.62 billion.

Activities: iFamilySC generates revenue mainly through the Cosmetics Business Division, which contributes ₩193.88 billion, while the Wedding Business Sector adds ₩4.61 billion.

iFamilySC has shown impressive growth with profits up 110% over the past year, outpacing Specialty Retail which is up 48%. The company’s total debt to equity ratio stands at a satisfactory 1.6%, which ensures financial stability. Despite its volatile share price in recent months, iFamilySC’s high level of non-cash profit suggests strong fundamental performance. Recently, it completed a repurchase of 117,000 shares at KRW 2.99 billion, which shows confidence in its valuation and future prospects. Looking ahead, earnings are forecast to grow by around 25% annually, suggesting that the upward momentum is likely to continue.

KOSDAQ:A114840 Debt to Equity as of Jan 2025

Simply Wall St Value Estimate: ★★★★★★

Overview: Cathay Consolidated, Inc. operates as a contract manufacturer of technical textiles and finished goods in Taiwan with a market capitalization of approximately NT$8.36 billion.

Activities: Cathay Consolidated generates revenue primarily from its Plastics & Rubber division, which amounts to NT$2.49 billion.

Cathay Consolidated, a smaller player in its industry, has shown mixed financial performance recently. Its debt to equity ratio has improved from 36.6% to 27.2% over the past five years, reflecting better management. Despite being profitable and having satisfactory net debt levels at 1.2%, the company experienced negative earnings growth of -5.9%, compared to the industry average of 13.9%. The latest third quarter results revealed sales of TWD 600 million and net income of TWD 114 million, both below last year’s figures, highlighting the challenges of maintaining momentum amid industry volatility and internal changes such as the creation of a Sustainable Development Committee led by new board members George Liu. and Julia Cheng.

TWSE:1342 Profit and Revenue Growth as of Jan 2025

This Simply Wall St article is generic in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased approach and our articles are not intended to be financial advice. It doesn’t mean to recommend buying or selling any stock, and it doesn’t take into account your goals, or your financial situation. We aim to bring you focused long-term analysis driven by fundamental data. Note that our analysis may not include recent company announcements that are sensitive to price or quality equipment. Simply Wall St has no position in any of the stocks mentioned.

Companies discussed in this article include DFM:UPP KOSDAQ:A114840 and TWSE:1342.

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