As the Australian market experiences a soft upswing, buoyed by optimistic trade talks and rising commodity prices, investors are keenly watching small-cap stocks for potential opportunities. In such an environment, undiscovered gems often possess strong fundamentals and resilience to broader market fluctuations, making them appealing candidates for growth-oriented portfolios.
Name
Debt To Equity
Revenue Growth
Earnings Growth
Health Rating
Fiducian Group
NA
10.00%
9.57%
★★★★★★
Rand Mining
NA
10.19%
2.74%
★★★★★★
Euroz Hartleys Group
NA
1.82%
-25.32%
★★★★★★
Hearts and Minds Investments
NA
56.27%
59.19%
★★★★★★
Spheria Emerging Companies
NA
-1.31%
0.28%
★★★★★★
Focus Minerals
NA
75.35%
51.34%
★★★★★★
Djerriwarrh Investments
2.39%
8.18%
7.91%
★★★★★★
Energy World
NA
-47.50%
-44.86%
★★★★★☆
Zimplats Holdings
5.44%
-9.79%
-42.03%
★★★★★☆
Australian United Investment
1.90%
5.23%
4.56%
★★★★☆☆
Click here to see the full list of 60 stocks from our ASX Undiscovered Gems With Strong Fundamentals screener.
Here we highlight a subset of our preferred stocks from the screener.
Simply Wall St Value Rating: ★★★★★☆
Overview: Diversified United Investment Limited is a publicly owned investment manager with a market cap of A$1.15 billion.
Operations: The company generates revenue primarily from its investment activities, amounting to A$46.71 million.
Diversified United Investment (DUI) has shown resilience with a net income of A$37.99 million for the year ending June 2025, up from A$36.03 million the previous year, reflecting steady growth in earnings per share from A$0.166 to A$0.176. Over five years, earnings have grown at an annual rate of 5%, although recent growth of 5.4% lagged behind the broader Capital Markets industry at 19.3%. The company is debt-free, contrasting with its past debt-to-equity ratio of 9%, which highlights prudent financial management despite significant insider selling recently observed over three months.
ASX:DUI Debt to Equity as at Oct 2025
Simply Wall St Value Rating: ★★★★☆☆
Overview: Peet Limited is an Australian company that focuses on acquiring, developing, and marketing residential land, with a market capitalization of A$894.18 million.
Operations: Peet generates revenue primarily through its Company Owned Projects, contributing A$313.24 million, followed by Funds Management at A$56.39 million and Joint Arrangements at A$51.88 million.
Peet, a notable player in the Australian property scene, has shown resilience with its debt to equity ratio improving from 57.1% to 53.5% over five years. Despite a high net debt to equity ratio of 45.8%, its interest payments are well covered by EBIT at 10.7 times, reflecting robust financial health. The company reported earnings growth of 60% last year, outpacing the real estate industry average of 40.9%. With sales jumping from A$292 million to A$415 million and net income rising from A$36 million to A$58 million, Peet’s strategic review led by Goldman Sachs aims to leverage these strong market conditions further.
ASX:PPC Earnings and Revenue Growth as at Oct 2025
Simply Wall St Value Rating: ★★★★★☆
Overview: Wagners Holding Company Limited is involved in the production and sale of construction and building materials across several countries, including Australia, the United States, New Zealand, the United Kingdom, Papua New Guinea, and Malaysia, with a market capitalization of approximately A$565.22 million.
Operations: Wagners Holding generates revenue primarily from Construction Materials (A$257.69 million), Project Services (A$105.71 million), and Composite Fibre Technology (A$68.45 million). The company also earns a small amount from Earth Friendly Concrete, contributing A$0.16 million to its revenue streams.
Wagners Holding, a nimble player in Australia’s construction materials sector, has seen its earnings surge by 120.9% over the past year, outpacing industry growth. The company recently expanded its concrete and quarry operations to capitalize on infrastructure demand in Southeast Queensland. Despite sales dipping to A$431 million from A$481 million last year, net income climbed to A$22.72 million from A$10.28 million, highlighting improved operational efficiency with high-quality earnings and satisfactory debt management at a 12.6% net debt-to-equity ratio. Wagners’ inclusion in the S&P/ASX Emerging Companies Index underscores its growing market presence amidst strategic expansions and sustainability-focused ventures like Composite Fiber Technologies (CFT).
ASX:WGN Debt to Equity as at Oct 2025
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:DUI ASX:PPC and ASX:WGN.
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