Discovering FRoSTA And 2 Hidden German Small Caps with Robust Metrics

In This Article:

The German market, like many global indices, has faced recent declines amid concerns over economic growth and fluctuating industrial output. Despite these challenges, the resilience of small-cap stocks with robust financial metrics offers a promising avenue for investors seeking stability and potential growth. In this article, we explore three such hidden gems in Germany's small-cap sector, starting with FRoSTA.

Top 10 Undiscovered Gems With Strong Fundamentals In Germany

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Mineralbrunnen überkingen-Teinach GmbH KGaA

19.44%

-1.40%

-8.94%

★★★★★★

Westag

NA

-1.56%

-21.68%

★★★★★★

EnviTec Biogas

37.96%

19.34%

51.22%

★★★★★★

FRoSTA

8.18%

4.36%

16.00%

★★★★★★

Südwestdeutsche Salzwerke

0.30%

4.57%

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 50 stocks from our German Undiscovered Gems With Strong Fundamentals screener.

Let's review some notable picks from our screened stocks.

FRoSTA

Simply Wall St Value Rating: ★★★★★★

Overview: FRoSTA Aktiengesellschaft, along with its subsidiaries, develops, produces, and markets frozen food products across Germany, Poland, Austria, Italy, and Eastern Europe with a market cap of €412.16 million.

Operations: FRoSTA generates revenue primarily from the sale of frozen food products across multiple European countries. The company has a market cap of €412.16 million.

FRoSTA, a small cap in Germany's food industry, has shown consistent earnings growth of 16% annually over the past five years. The company reported half-year sales of €315.94M and net income of €15.5M for June 2024, both stable compared to last year. With a debt-to-equity ratio reduced from 31.6% to 8.2%, FRoSTA's financial health is solid, and its P/E ratio of 12.2x remains attractive against the German market's average of 16.5x.

DB:NLM Debt to Equity as at Sep 2024

M1 Kliniken

Simply Wall St Value Rating: ★★★★★☆

Overview: M1 Kliniken AG, with a market cap of €302.20 million, provides aesthetic medicine and plastic surgery services across Germany, Austria, the Netherlands, Switzerland, the United Kingdom, Croatia, Hungary, Bulgaria, Romania, and Australia.

Operations: M1 Kliniken AG generates revenue primarily through its Trade segment (€245.49 million) and Beauty segment (€70.83 million). The company has a market cap of €302.20 million.