Undiscovered Gems That Are Promising Stocks For January 2025

As global markets end the year with muted gains, attention is focused on shifts in consumer confidence and economic indicators that have created a mixed environment for investors. Amid this dynamic, small-cap stocks offer intriguing opportunities, especially those that demonstrate resilience and growth potential despite broader market uncertainties.

Name	Debt versus equity	Sales growth	Profit growth	Health assessment
Cresco	6.62%	8.15%	9.94%	★★★★★★
Ovostar Union	0.01%	10.19%	49.85%	★★★★★★
Tianyun International Holdings	10.09%	-5.59%	-9.92%	★★★★★★
AOKI companies	30.67%	2.30%	45.17%	★★★★★☆
MAPFR Middensea	AFTER	14.56%	1.77%	★★★★★☆
Sparta	AFTER	-5.54%	-15.40%	★★★★★☆
GENOVA	0.65%	29.95%	29.18%	★★★★☆☆
A2B Australia	15.83%	-7.78%	25.44%	★★★★☆☆
Loadstar Capital KK	259.54%	16.85%	21.57%	★★★★☆☆
Nippon Sharyo	60.16%	-1.87%	-14.86%	★★★★☆☆

Click here to see the full list of 4,645 stocks from our Undiscovered Gems With Strong Fundamentals screener.

Let's explore some notable options based on the results in the screener.

Simply Wall St value rating: ★★★★★☆

Overview: MLP Saglik Hizmetleri AS operates healthcare services in Turkey, Azerbaijan and Hungary with a market capitalization of TRY68.67 billion.

Operations: MPARK's main revenue stream comes from its healthcare facilities and services, which generate TRY28.14 billion.

MLP Saglik Hizmetleri, a healthcare player with a modest market capitalization, is showing promising signs. A recent earnings report shows that sales in the third quarter of 2024 amounted to TRY 9.78 billion, compared to TRY 7.71 billion the year before, while net profit rose from TRY 1.18 billion to TRY 2.09 billion. The company's debt management appears robust, with interest payments more than covered by EBIT at a ratio of 58 times and the net debt to equity ratio now at just 2%, significantly lower than five years ago when it was more than was six times as high. Despite last year's negative earnings growth, future prospects are supported by an expected annual earnings growth of almost 28%.

IBSE:MPARK Debt to Equity as of January 2025

Simply Wall St value rating: ★★★★★☆

Overview: Taihan Cable & Solution Co., Ltd. is a global manufacturer and marketer of electrical wires, cables and related products with a market capitalization of ₩2.17 trillion.

Operations: The primary revenue stream for Taihan Cable & Solution comes from the wire segment, which generated ₩3.62 billion. The company has a market capitalization of approximately ₩2.17 trillion.

Taihan Cable & Solution has seen its profits rise 134% in the past year, more than the 14% growth in the electrical sector. This company, with a debt-to-equity ratio now at 21.5%, has improved significantly from five years ago, when it was 202%. Despite the recent shareholder dilution, Taihan's interest payments are well covered, with EBIT covering them 7.7 times. Recent private placements have raised KRW110 billion in convertible bonds, indicating strategic financial maneuvers to strengthen future growth prospects. The company's net profit for the third quarter was KRW 24 billion, compared to last year's KRW 11 billion, reflecting robust profitability improvement.

KOSE:A001440 Debt to equity as of January 2025

Simply Wall St value rating: ★★★★★★

Overview: BRC Asia Limited, with a market capitalization of approximately SGD 699.59 million, is involved in the prefabrication of steel reinforcement for concrete in various international markets including Singapore, Australia and several other countries in Asia.

Operations: The company's revenue comes mainly from two segments: Trade, which contributes SGD217.69 million, and Manufacturing and Production, which generates SGD1.26 billion.

BRC Asia seems an attractive prospect, with a listing 53% below estimated fair value. The company's profits rose 23.5% last year, surpassing the construction sector's -2.7%, indicating robust performance in a challenging sector. Net profit for the year ended September 2024 was SGD 93.54 million, compared to SGD 75.75 million previously, with basic earnings per share increasing from SGD 0.2761 to SGD 0.341. Despite a decline in revenue to SGD 1,481 million, compared to SGD 1,627 million last year, BRC Asia's debt reduction strategy has significantly improved its debt-to-equity ratio in five years, from 125% to just under half that figure , namely approximately 47%.

SGX:BEC Debt vs. Equity as of January 2025

This article from Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only an unbiased methodology and our articles are not intended as financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. We aim to provide you with targeted, long-term analysis based on fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or quality material. Simply Wall St has no positions in the stocks mentioned.

Companies discussed in this article include IBSE:MPARK KOSE:A001440 and SGX:BEC.

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Undiscovered gems that are promising stocks for January 2025