30 of the Best Small Cap Stocks for Graham-Style Investors – March 2025 Edition

The Best Small Cap Stocks Are Hiding in Plain Sight—If You Know Where to Look.

You’re not here for hype. You want serious opportunities with asymmetric upside, wrapped in downside protection. That’s the cornerstone of Ben Graham’s “enterprising investor” playbook—and it still works, especially in the small-cap universe where inefficiencies abound.

While most of Wall Street chases the next big thing, you’re content picking up dollar bills trading for 60 cents. The problem is finding them before the crowd catches on. That’s where this list comes in.

Each of these 30 small-cap stocks passes through a Graham-style value filter—emphasizing strong balance sheets, low P/E and P/B ratios, healthy margins, and a growing earnings. This isn’t about storytelling. It’s about math, margin of safety, and a repeatable process.

Whether you’re looking to build new positions, rotate capital, or simply track the best opportunities in March 2025, this list is your starting point.

✅ What Makes a Small Cap Stock Truly “Graham-Worthy”?

Before we dive into the list, let’s revisit what defines a Graham-style stock in 2025.

• Focus on balance sheet strength: low or no long-term debt.
• Strong financial position based on current ratio
• Positive and growing earnings, ideally with a consistent 5 year history.
• Strong free cash flow and low payout ratios.
• Undervalued based on earnings and book value multiples

👉 These filters help eliminate lottery tickets and highlight real businesses mispriced by the market.

Of these stocks, we own ACU and MLR and we have previously written about ANDE and SCVL. Reports on these stocks will be available in our shop area shortly. On the first glance, I will be interested to research GBX and HNNA

💡 How to Use This List in Your Own Portfolio

You’re not just collecting tickers—you’re building a compounding machine. Here’s how to apply this list:

• Don’t buy everything. Pick 3–5 names that fit your risk and investment profile. Do your due diligence first.
• Size your positions based on expected return and correlation (we use Kelly Criterion internally).
• Reassess each quarter based on earnings, balance sheet changes, and price movement.
• Recycle capital when thesis plays out.

👉 A value portfolio works best when it’s dynamic and conviction-weighted—not blindly diversified.

🎯 Final Thoughts: Graham’s Edge Lives On—in Small Caps

Large caps are combed over by armies of analysts. Small caps are still the Wild West—and that’s your edge.

If you’re willing to do the work and take the long view, these companies offer a real shot at outsized returns with manageable risk. The math still works. The opportunity is still here. You just have to act while they’re still cheap.