Mader Group And 2 Other Undiscovered Gems With Strong Potential
As the Australian market experiences a downturn, with the ASX 200 dropping 1.25% amid concerns over U.S. tariffs on Chinese goods impacting local commodities, investors are increasingly cautious about small-cap stocks. In this challenging environment, identifying undiscovered gems like Mader Group and others requires focusing on companies with robust fundamentals and resilience to broader economic pressures.
Name
Debt To Equity
Revenue Growth
Earnings Growth
Health Rating
Schaffer
25.47%
6.03%
-5.20%
★★★★★★
Sugar Terminals
NA
3.14%
3.53%
★★★★★★
Fiducian Group
NA
9.97%
7.85%
★★★★★★
Djerriwarrh Investments
1.14%
8.17%
7.54%
★★★★★★
Hearts and Minds Investments
NA
47.09%
49.82%
★★★★★★
Tribune Resources
NA
-21.42%
-41.85%
★★★★★★
Red Hill Minerals
NA
75.05%
36.74%
★★★★★★
Lycopodium
6.89%
16.56%
32.73%
★★★★★☆
Carlton Investments
0.02%
4.45%
3.97%
★★★★★☆
K&S
20.24%
1.58%
25.54%
★★★★☆☆
Click here to see the full list of 49 stocks from our ASX Undiscovered Gems With Strong Fundamentals screener.
Let's dive into some prime choices out of from the screener.
Simply Wall St Value Rating: ★★★★★★
Overview: Mader Group Limited is a contracting company that offers specialist technical services across the mining, energy, and industrial sectors both in Australia and internationally, with a market cap of approximately A$1.25 billion.
Operations: Mader Group derives its revenue primarily from staffing and outsourcing services, generating A$811.54 million. The company has a market cap of approximately A$1.25 billion.
Mader Group, a nimble player in the technical services industry, is making waves with its strategic expansion into energy and transport logistics. This move is expected to drive future growth, supported by a 15.5% earnings increase over the past year, outpacing the industry's 11.4%. The company's debt to equity ratio has impressively decreased from 84% to 23.5% over five years, underscoring financial prudence with interest payments well covered at 20.5x EBIT. Trading at A$6.26 per share and below fair value estimates by about 21%, Mader's focus on high-margin segments could enhance profitability despite potential geopolitical risks in North America impacting revenue streams.
Mader Group is expanding into new industry verticals for revenue growth. Click here to explore the full narrative on Mader Group's strategic initiatives.
Simply Wall St Value Rating: ★★★★★★
Overview: Pacific Current Group Limited operates a multi-boutique asset management business on a global scale, with a market capitalization of A$624.28 million.
Operations: Pacific Current Group generates revenue primarily through its multi-boutique asset management operations. The company's financial performance is reflected in its market capitalization of A$624.28 million.
Pacific Current Group, a player in the asset management sector, stands out with its impressive earnings growth of 3270% over the past year. Despite being debt-free and trading at a favorable price-to-earnings ratio of 3.1x compared to the broader Australian market's 17.8x, its reliance on asset sales for cash flow introduces potential volatility in revenue streams. Recent results highlight this concern as net income surged to A$100 million from A$11.66 million last year, yet future earnings are forecasted to decline by an average of 78% annually over three years, indicating caution for prospective investors.
Pacific Current Group's reliance on non-repeatable asset sales may lead to volatile revenue. Click here to explore the full narrative on Pacific Current Group.
Simply Wall St Value Rating: ★★★★★☆
Overview: Qualitas is a real estate investment firm specializing in direct investments, distressed debt restructuring, third-party capital raisings, and consulting services, with a market cap of A$851.03 million.
Operations: Qualitas generates revenue primarily through its Direct Lending and Funds Management segments, with A$23.03 million and A$21.46 million respectively. The company's net profit margin is a key financial metric to consider when evaluating its profitability within the real estate investment sector.
Qualitas, a real estate investment firm, has demonstrated strong financial performance with its earnings growing by 23.5% over the past year, surpassing industry benchmarks. The company boasts a robust balance sheet with more cash than total debt and has significantly reduced its debt to equity ratio from 1014.3% to 10.7% in five years. However, free cash flow remains negative despite record capital raising of A$2.8 billion and deployment of A$4.2 billion, which could drive future revenue growth through increased fee-earning funds under management. Recent half-year results showed revenue at A$50 million and net income at A$16 million compared to the previous year's figures of A$42 million and A$13 million respectively, reflecting improved profitability amidst market challenges related to interest rate fluctuations and residential sector dependency.
Qualitas' focus on balance sheet efficiency and larger private credit deployments may enhance profit margins significantly. Click here to explore the detailed narrative on Qualitas' strategic initiatives and market positioning.
Click here to access our complete index of 49 ASX Undiscovered Gems With Strong Fundamentals.
Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.
Take control of your financial future using Simply Wall St, offering free, in-depth knowledge of international markets to every investor.
Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
Find companies with promising cash flow potential yet trading below their fair value.
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 ASX:MAD ASX:PAC and ASX:QAL.
Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@simplywallst.com
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
5 minutes ago
- Yahoo
Why Plug Power Stock Keeps Going Up
Plug Power is teaming up with Australian partner Allied Green Ammonia to build a hydrogen plant in Uzbekistan. Plug Power's CFO just bought 650,000 more shares of the company. The CFO now owns 2.6 million Plug shares, which are worth a lot more than they were worth on Friday. 10 stocks we like better than Plug Power › Are investors in Plug Power (NASDAQ: PLUG) stock irrationally exuberant? Yesterday, shares of the hydrogen fuel cell manufacturer surged to close 26% higher after announcing an expanded strategic collaboration with Australian partner Allied Green Ammonia, whereby the two companies will build a $5.5 billion green chemical production facility in Uzbekistan, and there produce electrolyzer to create hydrogen fuel. Today, Plug Power stock is up another 16% through 10:15 a.m. ET. Are any other catalysts fueling Plug Power's rise? Turns out, there are. Yesterday, I was unimpressed by Plug's announcement of the Uzbekistan project, which Plug boasted created a "5 GW partnership now spanning two continents" between itself and Allied Green Ammonia. After all, the companies' Australian project hasn't yet received a "final investment decision," while the Uzbekistan deal is in even earlier stages. It all seems very hypothetical to me. Plug Power's own CFO, Paul Middleton, though, seems to see things differently. In a sterling example of putting money where one's mouth is, Middleton yesterday purchased an additional 650,000 Plug Power shares on the open market, the same day the Uzbekistan deal was announced. Priced at $1.03 per share, that's a $672,000 bet that Plug Power stock is the real deal. And to drive the point home, Middleton added, "This additional investment reflects my strong conviction in Plug's strategy and long-term value creation." Still, there are other ways to view Middleton's investment. Middleton already owned nearly 2 million Plug shares before yesterday's purchase, which are now worth $0.43 per share more than they were worth last week. His net worth just jumped by more than $800,000. If nothing else, yesterday's news just created a lot of value for Plug's CFO. Before you buy stock in Plug Power, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Plug Power wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $660,341!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $874,192!* Now, it's worth noting Stock Advisor's total average return is 999% — a market-crushing outperformance compared to 173% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Plug Power Stock Keeps Going Up was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Fast Company
19 minutes ago
- Fast Company
At London trade talks Trump says ‘China's not easy'
The U.S. and China held a second day of talks Tuesday in London aimed at easing their trade dispute, after President Donald Trump said China is 'not easy' but the U.S. was 'doing well' at the negotiations. A Chinese delegation led by Vice Premier He Lifeng met U.S. Commerce Secretary Howard Lutnick, Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer for several hours on Monday at Lancaster House, an ornate 200-year-old mansion near Buckingham Palace. Wang Wentao, China's commerce minister, and trade negotiator Li Chenggang are also in Beijing's delegation. Lutnick said as he arrived Tuesday morning that the talks were 'going well,' and he expected them to continue all day. Asked late Monday how the negotiations were going, Trump told reporters: 'We are doing well with China. China's not easy.' The two sides are trying to build on negotiations in Geneva last month that agreed to a 90-day suspension of most of the 100%-plus tariffs they had imposed on each other in an escalating trade war that had sparked fears of recession. Since the Geneva talks, the U.S. and China have exchanged angry words over advanced semiconductors that power artificial intelligence, visas for Chinese students at American universities and rare earth minerals that are vital to carmakers and other industries. Trump spoke at length with Chinese leader Xi Jinping by phone last Thursday in an attempt to put relations back on track. Trump announced on social media the following day that the trade talks would resume in London. China, the world's biggest producer of rare earths, has signaled it may ease export restrictions it placed on the elements in April, alarming automakers around the world who rely on them. Beijing, in turn, wants the U.S. to lift restrictions on Chinese access to the technology used to make advanced semiconductors. Trump said that he wants to 'open up China,' the world's dominant manufacturer, to U.S. products. 'If we don't open up China, maybe we won't do anything,' Trump said at the White House. 'But we want to open up China.'
Business Insider
20 minutes ago
- Business Insider
Russia produces as much ammo in 3 months as all of NATO does in a year, says NATO chief
Russia produces as much ammunition in three months as NATO does in a year, NATO Secretary General Mark Rutte has warned. Speaking at the Chatham House think tank in London on Monday, Rutte called on the alliance to urgently ramp up weapons production. "In terms of ammunition, Russia produces in three months what the whole of NATO produces in a year," he said. "Russia is reconstituting its forces with Chinese technology and producing more weapons faster than we thought," Rutte added. He called for a "quantum leap" in how Europe defends itself, and said, "We must have more forces and capabilities to implement our defense plans in full." Rutte said Russia was expected to produce 1,500 tanks, 3,000 armored vehicles, and 200 Iskander missiles in 2025. Russia has massively ramped up its weapons and ammunition production to fuel its war against Ukraine, placing its economy on a war footing. It's received support from allies including China, Iran, and North Korea. Russia spent 13.1 trillion rubles, around $145.9 billion, on its military last year, a report by the International Institute for Strategic Studies said. This is equivalent to 6.7% of the country's gross domestic product and a 41% annual increase in real terms, per the report. European defense spending was $457 billion last year, the report said, a real-terms increase of almost 12% on the year before and a 50% increase in real terms from 2014 spending levels. If purchasing power parity is factored in, then Russia's expenditure is equivalent to around $461.6 billion, the report said. The US is NATO's largest military power, and President Donald Trump has pressured European members to boost their military budgets. Rutte has backed US calls to raise the amount NATO members are required to spend on their military from 2% to 5%. The war in Ukraine has become a gruelling war of attrition, with both sides firing thousands of rounds of ammunition daily. But Ukraine's NATO allies have struggled to increase production to provide arms to Ukraine while rebuilding their stockpiles, amid warnings that Russia could be preparing to attack NATO in a matter of years. "We are all on the eastern flank now. The new generation of Russian missiles travels at the speed of sound. The distance between European capitals is only a matter of minutes. There is no longer east or west. There is just NATO," Rutte added.
