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Japan's stock markets have shown resilience, with the Nikkei 225 Index gaining 0.7% and the broader TOPIX Index up 1.0% by the end of August, recovering from earlier volatility triggered by a Bank of Japan rate hike and U.S. growth concerns. This backdrop presents an opportune moment to explore lesser-known stocks that may offer strong potential in such a dynamic environment. Identifying promising stocks often involves looking at companies that are well-positioned to benefit from prevailing economic conditions, exhibit robust fundamentals, and demonstrate innovative capabilities within their sectors.
Top 10 Undiscovered Gems With Strong Fundamentals In Japan
| Name | Debt To Equity | Revenue Growth | Earnings Growth | Health Rating |
|---|---|---|---|---|
| QuickLtd | 0.73% | 9.61% | 14.56% | ★★★★★★ |
| Kanda HoldingsLtd | 30.47% | 4.35% | 18.02% | ★★★★★★ |
| NPR-Riken | 15.31% | 10.00% | 44.55% | ★★★★★☆ |
| Kondotec | 11.75% | 6.85% | 2.62% | ★★★★★☆ |
| Toho | 82.16% | 1.83% | 47.38% | ★★★★★☆ |
| Marusan Securities | 5.33% | 1.01% | 10.00% | ★★★★★☆ |
| Kappa Create | 74.42% | -0.45% | 3.62% | ★★★★★☆ |
| YagiLtd | 32.86% | -9.57% | -0.12% | ★★★★☆☆ |
| Ogaki Kyoritsu Bank | 139.93% | 2.20% | -0.27% | ★★★★☆☆ |
| Hakuto | 56.93% | 8.02% | 27.72% | ★★★★☆☆ |
Below we spotlight a couple of our favorites from our exclusive screener.
WELLNEO SUGAR
Simply Wall St Value Rating: ★★★★★☆
Overview: WELLNEO SUGAR Co., Ltd. manufactures and sells sugar and other food products primarily in Japan, with a market cap of ¥73.07 billion.
Operations: WELLNEO SUGAR generates revenue primarily from its sugar segment, amounting to ¥87.54 billion. The company also reports a segment adjustment of ¥6.68 billion.
Earnings for WELLNEO SUGAR surged 110% last year, outpacing the food industry’s 27.5%. The company is trading at 52.9% below its fair value estimate and has more cash than total debt, indicating a solid financial position. Notably, the debt-to-equity ratio increased from 2.6 to 11.3 over five years, reflecting strategic leverage use. Upcoming mergers with Nissin Sugar and ITOCHU Sugar will transition it from a holding company to an operating entity by October 2024.
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Click here to discover the nuances of WELLNEO SUGAR with our detailed analytical health report.
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Assess WELLNEO SUGAR's past performance with our detailed historical performance reports.
Toukei Computer
Simply Wall St Value Rating: ★★★★★★
Overview: Toukei Computer Co., Ltd. engages in the system design, development, and operation of solutions for various industries and businesses in Japan, with a market cap of ¥79.19 billion.
Operations: Toukei Computer generates revenue primarily from Information Processing and Software Development (¥17.48 billion) and Equipment Sales Business (¥2.18 billion), with additional income from Leasing operations (¥342.21 million).