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Germany's DAX Index has seen a significant surge, reflecting optimism driven by China's new stimulus measures and hopes for interest rate cuts in the eurozone. Despite mixed economic indicators, the German market remains a fertile ground for discovering promising small-cap stocks. In this environment, identifying stocks with strong fundamentals and growth potential can be particularly rewarding. Here are three undiscovered gems in Germany that could add value to your portfolio.
Top 10 Undiscovered Gems With Strong Fundamentals In Germany
Name | Debt To Equity | Revenue Growth | Earnings Growth | Health Rating |
---|---|---|---|---|
Mineralbrunnen überkingen-Teinach GmbH KGaA | 19.91% | 0.96% | -5.02% | ★★★★★★ |
Westag | NA | -1.56% | -21.68% | ★★★★★★ |
FRoSTA | 8.18% | 4.36% | 16.00% | ★★★★★★ |
EnviTec Biogas | 37.96% | 19.34% | 51.22% | ★★★★★★ |
Mühlbauer Holding | NA | 10.49% | -12.73% | ★★★★★★ |
Paul Hartmann | 26.29% | 1.12% | -17.65% | ★★★★★☆ |
HOMAG Group | NA | -31.14% | 23.43% | ★★★★★☆ |
Baader Bank | 91.28% | 12.42% | -8.00% | ★★★★★☆ |
DFV Deutsche Familienversicherung | NA | 19.63% | 62.92% | ★★★★★☆ |
Wilson | 64.79% | 30.09% | 68.29% | ★★★★☆☆ |
Here we highlight a subset of our preferred stocks from the screener.
Energiekontor
Simply Wall St Value Rating: ★★★★★☆
Overview: Energiekontor AG is a project developer involved in the planning, construction, and operation of wind and solar parks in Germany, Portugal, and the United States with a market cap of €787.87 million.
Operations: Energiekontor AG generates revenue primarily from Project Development and Sales (€171.48 million) and Power Generation in Group-Owned Wind and Solar Parks (€78.30 million). The company also engages in Business Development, Innovation, and other activities contributing €7.72 million to its revenue.
Energiekontor's earnings grew by 30.2% last year, outpacing the Electrical industry’s 0.7%. Its P/E ratio of 10.6x is attractive compared to the German market's 16.7x. Despite a high net debt to equity ratio of 144.5%, interest payments are well covered by EBIT at 6x coverage, and debt has decreased from 373.6% to 234.6% over five years. Recent earnings showed EUR 78 million in sales and EUR 11 million in net income for H1-2024, though revenue fell from EUR114 million last year.
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Get an in-depth perspective on Energiekontor's performance by reading our health report here.
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Gain insights into Energiekontor's past trends and performance with our Past report.
Eckert & Ziegler
Simply Wall St Value Rating: ★★★★★★
Overview: Eckert & Ziegler SE manufactures and sells isotope technology components worldwide, with a market cap of €933.04 million.