Uncovering Eckert & Ziegler And 2 Other Hidden German Small Cap Gems

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The German market has shown resilience, with the DAX index achieving modest gains amidst a cautious European outlook following the U.S. Federal Reserve's recent rate cut. In this context, small-cap stocks have garnered attention for their potential to outperform during periods of economic adjustment. Identifying promising small-cap stocks often involves looking for companies with robust fundamentals and unique market positions. In this article, we will explore three hidden gems in Germany's small-cap sector, starting with Eckert & Ziegler.

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%

★★★★★★

Westag

NA

-1.56%

-21.68%

★★★★★★

FRoSTA

8.18%

4.36%

16.00%

★★★★★★

EnviTec Biogas

37.96%

19.34%

51.22%

★★★★★★

Mühlbauer Holding

NA

10.49%

-12.73%

★★★★★★

Südwestdeutsche Salzwerke

0.30%

4.57%

25.01%

★★★★★☆

HOMAG Group

NA

-31.14%

23.43%

★★★★★☆

Baader Bank

91.28%

12.42%

-8.00%

★★★★★☆

Wilson

64.79%

30.09%

68.29%

★★★★☆☆

BAUER

78.29%

2.30%

-38.28%

★★★★☆☆

Click here to see the full list of 57 stocks from our German Undiscovered Gems With Strong Fundamentals screener.

We'll examine a selection from our screener results.

Eckert & Ziegler

Simply Wall St Value Rating: ★★★★★★

Overview: Eckert & Ziegler SE manufactures and sells isotope technology components worldwide and has a market cap of €901.36 million.

Operations: The company's revenue streams include €132.80 million from Medical and €150.97 million from Isotope Products, with a segment adjustment of €0.07 million and an elimination of -€10.32 million.

Eckert & Ziegler, a small cap in the medical equipment sector, reported Q2 2024 sales of €77.76M and net income of €9.54M, up from €60.03M and €6.17M respectively last year. The company’s EBIT covers interest payments 20 times over, indicating strong financial health. Over the past year, earnings grew by 31.6%, outpacing the industry average of 16.2%. Additionally, EUZ's debt-to-equity ratio improved from 14.7% to 9.5% over five years.

XTRA:EUZ Earnings and Revenue Growth as at Sep 2024
XTRA:EUZ Earnings and Revenue Growth as at Sep 2024

ProCredit Holding

Simply Wall St Value Rating: ★★★★★☆

Overview: ProCredit Holding AG, together with its subsidiaries, provides commercial banking services for small and medium enterprises and private customers in Europe, South America, and Germany, with a market cap of €500.64 million.

Operations: ProCredit Holding generates revenue primarily from its banking segment, which reported €422.15 million. The company's market cap stands at €500.64 million.