Undiscovered Gems in Japan Top Stock Picks for August 2024

In This Article:

Japan's stock markets have experienced significant volatility recently, with the Nikkei 225 Index falling 4.7% and the broader TOPIX Index down 6.0%, partly due to a hawkish turn from the Bank of Japan and disappointing U.S. economic data dampening investor sentiment. Despite these challenges, this environment can present unique opportunities for discerning investors to uncover hidden gems within Japan's market. In such fluctuating conditions, identifying stocks with strong fundamentals, robust growth potential, and resilience against broader market trends becomes crucial for successful investing.

Top 10 Undiscovered Gems With Strong Fundamentals In Japan

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Business Brain Showa-Ota

0.05%

7.50%

59.43%

★★★★★★

Central Forest Group

NA

5.16%

12.45%

★★★★★★

Intelligent Wave

NA

6.39%

15.16%

★★★★★★

KurimotoLtd

20.73%

3.34%

18.64%

★★★★★★

Uoriki

NA

3.90%

6.15%

★★★★★★

Yashima Denki

2.93%

-2.38%

13.99%

★★★★★★

Toho

82.16%

1.83%

47.38%

★★★★★☆

Techno Ryowa

0.25%

0.34%

0.12%

★★★★★☆

Hakuto

56.93%

8.02%

27.72%

★★★★☆☆

GENOVA

6.23%

24.87%

31.14%

★★★★☆☆

Click here to see the full list of 714 stocks from our Japanese Undiscovered Gems With Strong Fundamentals screener.

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

OOTOYA Holdings

Simply Wall St Value Rating: ★★★★★★

Overview: OOTOYA Holdings Co., Ltd., together with its subsidiaries, plans, manages, and operates a chain of restaurants in Japan and internationally with a market cap of ¥37.06 billion.

Operations: OOTOYA Holdings generates revenue primarily from its Domestic Directly Managed Business (¥16.51 billion) and Domestic Franchise Business (¥7.62 billion). The Abroad Directly Managed Business contributes ¥3.04 billion, while the Overseas Franchise Business adds ¥0.27 billion to the revenue stream.

OOTOYA Holdings has demonstrated remarkable earnings growth of 658.5% over the past year, significantly outpacing the Hospitality industry’s 37.7%. The company is profitable and boasts high-quality earnings, with EBIT covering interest payments 109.8 times. Over the past five years, OOTOYA's debt to equity ratio improved from 26% to 20.2%, reflecting prudent financial management. Additionally, it has more cash than total debt, indicating strong liquidity and financial stability moving forward.

TSE:2705 Debt to Equity as at Aug 2024
TSE:2705 Debt to Equity as at Aug 2024

Kurabo Industries

Simply Wall St Value Rating: ★★★★★★

Overview: Kurabo Industries Ltd. engages in textile, chemical, technology, food and service, and real estate businesses in Japan and internationally with a market cap of ¥74.47 billion.