Undiscovered Gems in Australia for August 2024
In This Article:
The Australian market has climbed 2.1% in the last 7 days and is up 11% over the past 12 months, with earnings forecast to grow by 13% annually. In this favorable environment, identifying stocks with strong growth potential and solid fundamentals can lead to promising investment opportunities.
Top 10 Undiscovered Gems With Strong Fundamentals In Australia
| Name | Debt To Equity | Revenue Growth | Earnings Growth | Health Rating |
|---|---|---|---|---|
| Fiducian Group | NA | 9.94% | 6.48% | ★★★★★★ |
| Schaffer | 24.98% | 2.97% | -6.23% | ★★★★★★ |
| K&S | 15.24% | -1.53% | 26.68% | ★★★★★★ |
| Sugar Terminals | NA | 2.34% | 2.64% | ★★★★★★ |
| SKS Technologies Group | NA | 34.68% | 47.39% | ★★★★★★ |
| Hearts and Minds Investments | NA | 18.39% | -3.93% | ★★★★★★ |
| Lycopodium | 0.23% | 17.36% | 33.85% | ★★★★★☆ |
| AMCIL | NA | 5.16% | 5.31% | ★★★★★☆ |
| A2B Australia | 15.83% | -7.78% | 25.44% | ★★★★☆☆ |
| Boart Longyear Group | 71.20% | 9.71% | 39.19% | ★★★★☆☆ |
Let's dive into some prime choices out of from the screener.
Emerald Resources
Simply Wall St Value Rating: ★★★★★☆
Overview: Emerald Resources NL focuses on the exploration and development of mineral reserves in Cambodia and Australia, with a market cap of A$2.72 billion.
Operations: Emerald Resources NL generates revenue primarily from mine operations, amounting to A$339.32 million.
Emerald Resources, a promising player in the mining industry, has demonstrated impressive earnings growth of 53.4% over the past year, significantly outpacing its sector's -19% performance. Trading at 55.3% below its estimated fair value and with an EBIT interest coverage of 14x, it shows strong financial health. However, shareholders experienced dilution last year as the debt-to-equity ratio rose to 14.5%. Future earnings are forecasted to grow by 20.14% annually, suggesting continued potential for investors.
Macmahon Holdings
Simply Wall St Value Rating: ★★★★★☆
Overview: Macmahon Holdings Limited offers surface and underground mining, mining support, and civil infrastructure services to companies in Australia and Southeast Asia, with a market cap of A$662.05 million.
Operations: Macmahon Holdings Limited generates revenue primarily from its mining segment, including civil services, amounting to A$1.89 billion. The company's net profit margin is a key financial metric to consider.
Macmahon Holdings, a notable player in the mining services sector, has shown impressive growth with earnings up 49.7% over the past year, outpacing the industry's -19%. Trading at 60.4% below estimated fair value and with a debt to equity ratio now at 37.4%, it represents good relative value within its industry. The company's interest payments are well covered by EBIT (5.4x), ensuring financial stability moving forward.