Yahoo Finance Undiscovered German Gems To Watch This August 2024
As the German DAX Index has shown a solid gain of 1.35% amidst a mixed economic backdrop in Europe, investors are increasingly looking towards small-cap stocks for potential growth opportunities. With the broader market sentiment favoring value shares and business investment picking up, now is an opportune time to explore some lesser-known but promising German companies. A good stock in this context typically exhibits strong fundamentals such as robust revenue growth, innovative product offerings, and a clear path to profitability—all crucial traits in navigating the current market conditions effectively.
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% | ★★★★★★ |
EnviTec Biogas | 37.96% | 19.34% | 51.22% | ★★★★★★ |
Eisen- und Hüttenwerke | NA | -14.56% | 7.71% | ★★★★★★ |
FRoSTA | 8.18% | 4.36% | 16.00% | ★★★★★★ |
Südwestdeutsche Salzwerke | 0.66% | 4.03% | 11.36% | ★★★★★☆ |
HOMAG Group | NA | -27.42% | 22.33% | ★★★★★☆ |
BAVARIA Industries Group | 3.19% | 0.18% | 28.18% | ★★★★★☆ |
Wilson | 64.79% | 30.09% | 68.29% | ★★★★☆☆ |
Baader Bank | 45.72% | 12.72% | -6.93% | ★★★★☆☆ |
BAUER | 78.29% | 2.30% | -38.28% | ★★★★☆☆ |
We'll examine a selection from our screener results.
EnviTec Biogas
Simply Wall St Value Rating: ★★★★★★
Overview: EnviTec Biogas AG manufactures and operates biogas and biomethane plants across multiple countries including Germany, Italy, Great Britain, the Czech Republic, France, Denmark, the United States, China, Greece, Estonia, and internationally with a market cap of €438.08 million.
Operations: EnviTec Biogas AG generates revenue primarily from three segments: Service (€48.58 million), Plant Engineering (€132.13 million), and Own Operation including Energy (€236.10 million). The company's net profit margin is noteworthy for its performance over the periods analyzed.
EnviTec Biogas, with a market cap under €1 billion, has shown robust financial health. The company reported annual sales of €441.9 million and net income of €58.46 million for 2023, up from €398.88 million and €45.81 million respectively in 2022. With a price-to-earnings ratio of 7.5x, it trades well below the German market average of 17.9x, highlighting its value potential. Their debt to equity ratio improved from 41% to 38% over five years, indicating prudent financial management.
Get an in-depth perspective on EnviTec Biogas' performance by reading our health report here.
Examine EnviTec Biogas' past performance report to understand how it has performed in the past.
Mensch und Maschine Software
Simply Wall St Value Rating: ★★★★★★
Overview: Mensch und Maschine Software SE offers CAD/CAM/CAE, product data management, and building information modeling/management solutions in Germany and internationally, with a market cap of approximately €1.02 billion.
Operations: Mensch und Maschine Software SE generates revenue primarily from its M+M Software segment (€107.71 million) and M+M Digitization segment (€216.19 million).
Mensch und Maschine Software (MUM) has shown impressive financial health, with its debt to equity ratio dropping from 42.8% to 15.5% over the past five years. Recent earnings reports highlight sales of €75.1 million for Q2 2024, up from €71.32 million a year ago, while net income reached €7.34 million compared to €6.58 million previously. The company trades at a significant discount of 28.5% below estimated fair value and boasts high-quality earnings alongside robust interest coverage at 247x EBIT.
OVB Holding
Simply Wall St Value Rating: ★★★★★★
Overview: OVB Holding AG, with a market cap of €275.05 million, operates through its subsidiaries to offer advisory and brokerage services to private households across Europe.
Operations: The primary revenue stream for OVB Holding AG is derived from its insurance brokerage services, generating €368.28 million. The company's market cap stands at €275.05 million.
OVB Holding, a financial services provider, has shown impressive growth with earnings increasing by 20.5% over the past year. The company is debt-free and boasts high-quality earnings. Trading at 16.6% below its estimated fair value, OVB's performance surpasses the Capital Markets industry average of 10%. Future projections indicate an annual earnings growth of 5.31%, suggesting continued potential for this small cap stock in Germany's market landscape.
Turning Ideas Into Actions
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include XTRA:ETG XTRA:MUM and XTRA:O4B.
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