As the U.S. markets navigate a landscape marked by tech-driven gains and fluctuating treasury yields, small-cap stocks are drawing attention amid softening job data and potential Federal Reserve rate cuts. In this environment, identifying promising opportunities requires a keen eye for companies with strong fundamentals and resilience to economic shifts, making them potential hidden gems in the market.
Name
Debt To Equity
Revenue Growth
Earnings Growth
Health Rating
Southern Michigan Bancorp
117.38%
8.87%
4.89%
★★★★★★
Morris State Bancshares
NA
3.34%
3.70%
★★★★★★
Oakworth Capital
87.50%
15.82%
9.79%
★★★★★★
First Northern Community Bancorp
NA
8.05%
12.27%
★★★★★★
Metalpha Technology Holding
NA
75.66%
28.60%
★★★★★★
Pure Cycle
5.02%
4.35%
-2.25%
★★★★★☆
Linkhome Holdings
7.03%
215.05%
239.56%
★★★★★☆
Gulf Island Fabrication
20.48%
3.25%
43.31%
★★★★★☆
Elron Ventures
5.70%
13.72%
25.56%
★★★★☆☆
Greenfire Resources
35.48%
-1.31%
-25.79%
★★★★☆☆
Click here to see the full list of 286 stocks from our US Undiscovered Gems With Strong Fundamentals screener.
Below we spotlight a couple of our favorites from our exclusive screener.
Simply Wall St Value Rating: ★★★★☆☆
Overview: World Acceptance Corporation operates in the consumer finance sector within the United States and has a market capitalization of $883.52 million.
Operations: World Acceptance generates revenue primarily through its consumer finance segment, which contributed $567.71 million. The company’s financial performance is reflected in its net profit margin, which stands at 14.5%.
World Acceptance, a player in consumer finance, has been navigating a complex landscape marked by regulatory pressures and competition from fintech firms. The company’s net debt to equity ratio stands at 108.4%, reflecting high leverage, while its earnings have grown at an annual rate of 6.8% over the past five years. Despite this growth, recent earnings reports show a decline with net income dropping to US$1.34 million from US$9.95 million year-over-year for the quarter ending June 2025. The firm repurchased shares worth US$25 million recently and holds a price-to-earnings ratio of 11.1x, below the market average of 19.1x.
WRLD Debt to Equity as at Sep 2025
Simply Wall St Value Rating: ★★★★★★
Overview: Build-A-Bear Workshop, Inc. is a multi-channel retailer specializing in plush animals and related products with operations in the United States, Canada, the United Kingdom, Ireland, and internationally; it has a market cap of $776.92 million.
Story Continues
Operations: Build-A-Bear Workshop generates revenue primarily from its Direct-To-Consumer segment, contributing $483.23 million, followed by Commercial at $34.36 million and International Franchising at $4.93 million.
Build-A-Bear Workshop, known for its experiential retail model, is making strides with international expansion and digital transformation efforts. The company reported a revenue increase to US$124.25 million in the recent quarter from US$111.8 million last year, alongside net income rising to US$12.37 million from US$8.78 million over the same period. Their earnings per share also improved to US$0.94 compared to US$0.64 previously, indicating solid financial health despite inflationary pressures and potential e-commerce slowdowns that could impact profit margins slightly in the future. Additionally, Build-A-Bear repurchased 89,668 shares recently for about $4.7 million as part of ongoing buyback initiatives aimed at enhancing shareholder value while trading 16% below estimated fair value suggests potential upside for investors considering this small-cap stock’s growth trajectory amidst industry challenges and opportunities alike.
BBW Debt to Equity as at Sep 2025
Simply Wall St Value Rating: ★★★★★★
Overview: Equity Bancshares, Inc. is the bank holding company for Equity Bank, offering a variety of banking and financial services to individual and corporate clients, with a market cap of approximately $773.53 million.
Operations: Equity Bancshares generates revenue primarily through its banking operations, with Equity Bank contributing $233.88 million. The company also has a segment labeled as Unallocated Holding Company, which adds $59.75 million to the total revenue.
Equity Bancshares, with assets of $5.4 billion and equity of $635.6 million, is making strategic moves to bolster its presence in mid-sized markets through a merger with NBC Bank. This expansion into Oklahoma City aims to leverage community-focused banking demand, potentially boosting loan growth and revenue. The bank has a solid risk management foundation with 89% low-risk funding sources like customer deposits and maintains an appropriate bad loans ratio at 1.2%. Despite these strengths, it faces challenges from digital competition and regulatory costs that could impact long-term profitability; however, earnings grew by 583% last year, outpacing the industry average of 12.8%.
EQBK Debt to Equity as at Sep 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 WRLD BBW and EQBK.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
