3 Undervalued Small Caps In Australia With Insider Activity
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Over the last 7 days, the Australian market has remained flat, but it has risen 6.6% over the past 12 months with earnings expected to grow by 13% per annum over the next few years. In this context, identifying stocks that are undervalued and exhibit insider activity can offer promising opportunities for investors seeking to capitalize on potential growth within a stable market environment.
Top 10 Undervalued Small Caps With Insider Buying In Australia
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Peter Warren Automotive Holdings | 6.8x | 0.1x | 40.72% | ★★★★★☆ |
| Healius | NA | 0.6x | 40.61% | ★★★★★☆ |
| Acrow | 13.6x | 2.0x | -11.45% | ★★★★☆☆ |
| Elders | 23.7x | 0.5x | 41.53% | ★★★★☆☆ |
| Eagers Automotive | 9.8x | 0.3x | 33.35% | ★★★★☆☆ |
| Codan | 31.8x | 4.7x | 20.70% | ★★★★☆☆ |
| Dicker Data | 22.4x | 0.8x | -1.35% | ★★★☆☆☆ |
| Smartgroup | 18.3x | 4.5x | 46.81% | ★★★☆☆☆ |
| Coventry Group | 286.2x | 0.4x | -8.60% | ★★★☆☆☆ |
| RAM Essential Services Property Fund | NA | 6.0x | 36.62% | ★★★☆☆☆ |
Let's dive into some prime choices out of from the screener.
Codan
Simply Wall St Value Rating: ★★★★☆☆
Overview: Codan is a technology company specializing in communications and metal detection solutions, with a market cap of approximately A$1.67 billion.
Operations: Communications and Metal Detection segments contribute significantly to the company's revenue, with the Communications segment generating A$291.50 million and Metal Detection A$212.20 million. The company has seen a gross profit margin of 54.42% in the most recent period ending December 31, 2023. Operating expenses are primarily driven by Sales & Marketing (A$97.79 million) and R&D (A$33.31 million).
PE: 31.8x
Codan, a small cap in Australia, has recently attracted attention due to insider confidence. Over the past six months, insiders have been actively purchasing shares, signaling their belief in the company's potential. Codan's earnings are forecast to grow 16.2% annually, indicating strong future prospects. Despite relying on higher-risk external borrowing for funding, it continues to show promise with its innovative technology solutions and expanding market presence. The company repurchased A$20 million worth of shares this quarter.
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Take a closer look at Codan's potential here in our valuation report.
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Gain insights into Codan's historical performance by reviewing our past performance report.
Elders
Simply Wall St Value Rating: ★★★★☆☆
Overview: Elders is an agribusiness company that operates through a branch network, wholesale products, and feed and processing services, with a market cap of approximately A$1.90 billion.