As the Australian market shows signs of resilience, with the ASX 200 futures indicating a potential recovery from recent sell-offs, investors are keeping a close eye on small-cap opportunities amidst broader market stability. In this environment, identifying promising stocks involves looking for companies with strong fundamentals and growth potential that can thrive even when macroeconomic factors fluctuate.

Top 10 Undiscovered Gems With Strong Fundamentals In Australia

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Fiducian Group	NA	10.00%	9.57%	★★★★★★
Spheria Emerging Companies	NA	-1.31%	0.28%	★★★★★★
Euroz Hartleys Group	NA	1.82%	-25.32%	★★★★★★
Joyce	NA	9.93%	17.54%	★★★★★★
Hearts and Minds Investments	NA	56.27%	59.19%	★★★★★★
Focus Minerals	NA	75.35%	51.34%	★★★★★★
Energy World	NA	-47.50%	-44.86%	★★★★★☆
AMCIL	NA	2.99%	1.18%	★★★★★☆
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 64 stocks from our ASX Undiscovered Gems With Strong Fundamentals screener.

Let’s review some notable picks from our screened stocks.

BKI Investment

Simply Wall St Value Rating: ★★★★★☆

Overview: BKI Investment Company Limited is a publicly owned investment manager with a market cap of A$1.40 billion.

Operations: BKI Investment generates revenue primarily from the securities industry, totaling A$70.33 million.

BKI Investment, a debt-free player in the capital markets, has consistently shown high-quality earnings with a 2% annual growth over the past five years. Despite its modest earnings growth of 6.3% last year, which didn’t match the industry average of 14.4%, BKI’s profitability remains robust. Recently, they reported half-year net income of A$34.33 million, up from A$31.17 million previously, and declared an interim dividend of A$0.0395 per share for December 2025 end period. This financial stability and consistent performance make BKI an intriguing prospect within Australia’s investment landscape.

• Dive into the specifics of BKI Investment here with our thorough health report.

• Review our historical performance report to gain insights into BKI Investment’s’s past performance.

ASX:BKI Debt to Equity as at Feb 2026Cogstate

Simply Wall St Value Rating: ★★★★★★

Overview: Cogstate Limited is a neuroscience solutions company focused on developing and commercializing digital brain health assessments globally, with a market cap of A$368.84 million.

Operations: Cogstate derives its revenue primarily from two segments: Healthcare, including Sport, contributing $2.51 million, and Clinical Trials, which includes Precision Recruitment Tool & Research, generating $50.58 million.

Cogstate, a neuroscience tech firm, is capitalizing on strategic partnerships and AI advancements to boost its market reach. The recent Medidata collaboration enhances its presence in CNS indications, potentially driving revenue. With the global focus on cognitive decline detection, demand for Cogstate’s scalable assessments is rising. However, reliance on pharmaceutical partners introduces risks linked to drug development timelines and R&D budgets. Operational investments might squeeze net margins if expected revenues fall short. Analysts foresee a 7.6% annual revenue growth with profit margins climbing from 19.1% to 21.5%, projecting earnings of $14 million by September 2028 with an A$2.19 price target per share against the current A$1.69 price point.

• Cogstate’s strategic partnership with Medidata is expected to significantly expand its market presence. Click here to explore the full narrative on Cogstate’s growth potential and strategic initiatives.

ASX:CGS Debt to Equity as at Feb 2026Omni Bridgeway

Simply Wall St Value Rating: ★★★★★☆

Overview: Omni Bridgeway Limited offers dispute and litigation finance services across multiple regions including Australia, the United States, and Europe, with a market cap of A$445.42 million.

Operations: Omni Bridgeway generates revenue primarily from funding and providing services related to legal dispute resolution, amounting to A$87.77 million.

Omni Bridgeway, a notable player in the litigation finance sector, has recently turned profitable, distinguishing itself from peers in the diversified financial industry that saw a 6% earnings drop. With a price-to-earnings ratio of 1.3x compared to the Australian market’s 21.5x, it seems undervalued. Over five years, its debt-to-equity ratio improved significantly from 18.7% to 2.3%, indicating prudent financial management. Despite being profitable and having more cash than total debt, future earnings are forecasted to decrease by an average of 148% annually over three years, which might concern potential investors seeking long-term growth prospects.

• Unlock comprehensive insights into our analysis of Omni Bridgeway stock in this health report.

• Explore historical data to track Omni Bridgeway’s performance over time in our Past section.

ASX:OBL Debt to Equity as at Feb 2026Turning Ideas Into Actions

• Take a closer look at our ASX Undiscovered Gems With Strong Fundamentals list of 64 companies by clicking here.

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Searching for a Fresh Perspective?

• 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:BKI ASX:CGS and ASX:OBL.

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