Codan Leads Three Undervalued Small Caps With Insider Actions In Australia
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In recent trading sessions, the Australian market has shown mixed signals with the ASX200 marginally up by 0.1%. Notably, the IT sector outperformed, gaining 0.9%, while materials faced a downturn, nearly losing 1%. In such a fluctuating environment, identifying undervalued small-cap stocks like Codan that show potential for growth becomes crucial for investors looking for opportunities amidst broader market movements.
Top 10 Undervalued Small Caps With Insider Buying In Australia
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Corporate Travel Management | 17.3x | 2.6x | 41.40% | ★★★★★★ |
| Nick Scali | 14.1x | 2.6x | 42.26% | ★★★★★☆ |
| Healius | NA | 0.6x | 45.22% | ★★★★★☆ |
| Codan | 29.1x | 4.3x | 20.83% | ★★★★☆☆ |
| Eagers Automotive | 9.7x | 0.3x | 29.51% | ★★★★☆☆ |
| Elders | 20.2x | 0.4x | 47.39% | ★★★★☆☆ |
| Tabcorp Holdings | NA | 0.7x | 19.50% | ★★★★☆☆ |
| RAM Essential Services Property Fund | NA | 5.8x | 39.21% | ★★★★☆☆ |
| Dicker Data | 21.2x | 0.8x | -0.10% | ★★★☆☆☆ |
| Coventry Group | 295.6x | 0.4x | -32.12% | ★★★☆☆☆ |
Let's explore several standout options from the results in the screener.
Codan
Simply Wall St Value Rating: ★★★★☆☆
Overview: Codan is a diversified technology company specializing in communications equipment and metal detection, with a market capitalization of approximately A$1.07 billion.
Operations: The company generates revenue primarily from Communications and Metal Detection, contributing A$291.50 million and A$212.20 million respectively. Gross profit margin has shown a notable increase, rising from 59.60% in September 2013 to 54.42% by December 2024, reflecting changes in cost of goods sold and operational efficiencies over time.
PE: 29.1x
Recently, insider confidence in Codan has been underscored by their share purchases, signaling strong belief in the company's prospects. With earnings expected to grow by 16% annually, this highlights its potential despite reliance on higher-risk funding sources. This Australian firm, often overlooked due to its smaller market presence, offers intriguing growth possibilities rooted in solid insider buying activities and financial forecasts. Such dynamics suggest that Codan might be poised for noteworthy advancements in its sector.
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Dive into the specifics of Codan here with our thorough valuation report.
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Gain insights into Codan's past trends and performance with our Past report.
Clarity Pharmaceuticals
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Clarity Pharmaceuticals is a company focused on the development of radiopharmaceuticals.
Operations: Radiopharmaceutical Development generates A$9.49 million in revenue, consistently achieving a gross profit margin of 100%. The company experiences substantial operating losses, with net income margins worsening over time to -3.22% by the end of 2024 due to escalating R&D expenses, which reached A$36.37 million.