Top Undervalued Small Caps In Canada With Insider Action For October 2024

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The Canadian market has been riding a wave of optimism, with the TSX reaching all-time highs driven by positive economic indicators and central bank policies. As we navigate through this period of market enthusiasm, identifying undervalued small-cap stocks with insider action can offer unique opportunities for investors looking to capitalize on these favorable conditions.

Top 10 Undervalued Small Caps With Insider Buying In Canada

Name

PE

PS

Discount to Fair Value

Value Rating

Vermilion Energy

NA

1.1x

46.69%

★★★★★★

Trican Well Service

7.7x

0.9x

13.52%

★★★★★☆

Nexus Industrial REIT

3.7x

3.7x

21.50%

★★★★★☆

AutoCanada

NA

0.1x

48.74%

★★★★★☆

Rogers Sugar

15.5x

0.6x

47.90%

★★★★☆☆

Primaris Real Estate Investment Trust

12.8x

3.4x

45.09%

★★★★☆☆

Sagicor Financial

1.2x

0.3x

-32.06%

★★★★☆☆

Calfrac Well Services

2.4x

0.2x

-54.39%

★★★★☆☆

Hemisphere Energy

6.2x

2.4x

-223.23%

★★★☆☆☆

Metalla Royalty & Streaming

NA

59.0x

-6.18%

★★★☆☆☆

Click here to see the full list of 19 stocks from our Undervalued TSX Small Caps With Insider Buying screener.

We'll examine a selection from our screener results.

Exchange Income

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Exchange Income operates in the manufacturing and aerospace & aviation sectors, with a market cap of approximately CA$2.02 billion.

Operations: Exchange Income generates revenue primarily from its Manufacturing and Aerospace & Aviation segments, with the latter being the larger contributor. The company has seen fluctuations in its net income margin, which reached 0.04895% as of December 31, 2023. Operating expenses and cost of goods sold significantly impact gross profit margins, which stood at 34.72% for the same period.

PE: 21.1x

Exchange Income Corporation (EIC) stands out among undervalued small caps in Canada, with a solid financial position and forecasted earnings growth of 25.94% annually. Despite higher-risk funding sources, EIC maintains stability without shareholder dilution over the past year. Recent insider confidence is evident through share purchases from April to June 2024. The company’s commitment to community initiatives, like the Atik Mason Pilot Pathway for Indigenous students, underscores its strong operational ethos while paying consistent monthly dividends of C$0.22 per share.

TSX:EIF Share price vs Value as at Oct 2024
TSX:EIF Share price vs Value as at Oct 2024

NorthWest Healthcare Properties Real Estate Investment Trust

Simply Wall St Value Rating: ★★★☆☆☆

Overview: NorthWest Healthcare Properties Real Estate Investment Trust specializes in owning and managing healthcare real estate properties with a market cap of approximately CA$2.75 billion.