Three Undiscovered German Gems with Promising Potential

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As the German economy faces a forecasted contraction for the second consecutive year, small-cap companies in Germany are navigating a challenging landscape marked by declining factory orders and cautious consumer sentiment. Despite these headwinds, opportunities exist for discerning investors who can identify stocks with strong fundamentals and growth potential that may not yet be reflected in their current valuations.

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%

★★★★★★

FRoSTA

8.18%

4.36%

16.00%

★★★★★★

Mühlbauer Holding

NA

10.49%

-12.73%

★★★★★★

Paul Hartmann

26.29%

1.12%

-17.65%

★★★★★☆

Südwestdeutsche Salzwerke

0.30%

4.57%

25.01%

★★★★★☆

HOMAG Group

NA

-31.14%

23.43%

★★★★★☆

EnviTec Biogas

48.48%

20.85%

46.34%

★★★★★☆

Baader Bank

91.28%

12.42%

-8.00%

★★★★★☆

DFV Deutsche Familienversicherung

NA

19.63%

62.92%

★★★★★☆

Wilson

64.79%

30.09%

68.29%

★★★★☆☆

Click here to see the full list of 54 stocks from our German Undiscovered Gems With Strong Fundamentals screener.

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

Paul Hartmann

Simply Wall St Value Rating: ★★★★★☆

Overview: Paul Hartmann AG is a company that manufactures and sells medical and care products across various regions, including Germany, the rest of Europe, the Middle East, Africa, Asia and Pacific region, and the Americas with a market cap of approximately €717.45 million.

Operations: Paul Hartmann AG generates revenue through four primary segments: Wound Care (€597.39 million), Infection Management (€516.66 million), Incontinence Management (€769.70 million), and Complementary Divisions (€499.70 million).

Paul Hartmann, a smaller player in the medical equipment sector, has shown impressive financial resilience. Its earnings surged by 156% over the past year, outpacing the industry's 16% growth. The company reported sales of €1.20 billion for H1 2024, up from €1.17 billion last year, with net income jumping to €42.8 million from €11.69 million. Interest payments are well covered at 6x EBIT, and it trades at a significant discount to its estimated fair value.

DB:PHH2 Debt to Equity as at Oct 2024
DB:PHH2 Debt to Equity as at Oct 2024

KSB SE KGaA

Simply Wall St Value Rating: ★★★★★★

Overview: KSB SE & Co. KGaA, along with its subsidiaries, specializes in the global production and supply of pumps, valves, and associated services with a market capitalization of approximately €1.12 billion.