EnviTec Biogas And 2 Other Undiscovered Gems In Germany

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The German market has shown resilience, with the DAX climbing 3.38% recently amid growing hopes for interest rate cuts. This optimistic sentiment provides a fertile ground for small-cap companies to thrive, making it an opportune time to explore lesser-known stocks. In this environment, a good stock often combines strong fundamentals with growth potential in niche markets. Here are three undiscovered gems in Germany, starting with EnviTec Biogas.

Top 10 Undiscovered Gems With Strong Fundamentals In Germany

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

EnviTec Biogas

37.96%

19.34%

51.22%

★★★★★★

Mühlbauer Holding

NA

10.49%

-12.73%

★★★★★★

FRoSTA

8.18%

4.36%

16.00%

★★★★★★

Paul Hartmann

26.29%

1.12%

-17.65%

★★★★★☆

Südwestdeutsche Salzwerke

1.59%

4.58%

25.01%

★★★★★☆

HOMAG Group

NA

-31.14%

23.43%

★★★★★☆

Baader Bank

91.28%

12.42%

-8.00%

★★★★★☆

BAVARIA Industries Group

3.19%

0.18%

28.18%

★★★★★☆

Wilson

64.79%

30.09%

68.29%

★★★★☆☆

BAUER

78.29%

2.30%

-38.28%

★★★★☆☆

Click here to see the full list of 46 stocks from our German Undiscovered Gems With Strong Fundamentals screener.

We're going to check out a few of the best picks from our screener tool.

EnviTec Biogas

Simply Wall St Value Rating: ★★★★★★

Overview: EnviTec Biogas AG manufactures and operates biogas and biomethane plants across various countries including Germany, Italy, Great Britain, and the United States, with a market cap of €493.02 million.

Operations: EnviTec Biogas AG generates revenue primarily from three segments: Service (€48.58 million), Plant Engineering (€132.13 million), and Own Operation including Energy (€236.10 million).

EnviTec Biogas, a small player in the renewable energy sector, has shown impressive earnings growth of 27.6% over the past year, outpacing the broader Oil and Gas industry. The company's debt to equity ratio has improved from 41.7% to 38% over five years, indicating better financial health. With an EBIT coverage of interest payments at 419.7x and a price-to-earnings ratio of 8.4x compared to the German market's 17.2x, EnviTec appears undervalued relative to its peers.

XTRA:ETG Debt to Equity as at Aug 2024
XTRA:ETG Debt to Equity as at Aug 2024

KSB SE KGaA

Simply Wall St Value Rating: ★★★★★★

Overview: KSB SE & Co. KGaA, with a market cap of €1.13 billion, manufactures and supplies pumps, valves, and related services worldwide through its subsidiaries.

Operations: KSB SE & Co. KGaA generates revenue primarily from three segments: Pumps (€1.52 billion), Fittings (€370.94 million), and KSB Supremeserv (€978.20 million). The company's market cap stands at €1.13 billion.