3 Undervalued Small Caps In Australia With Insider Action To Watch
In This Article:
The Australian market has shown positive momentum, rising 2.2% over the last week and 11% over the past year, with earnings expected to grow by 13% annually in the coming years. In this favorable environment, identifying undervalued small-cap stocks with insider action can present compelling opportunities for investors looking to capitalize on potential growth.
Top 10 Undervalued Small Caps With Insider Buying In Australia
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Healius | NA | 0.6x | 45.29% | ★★★★★☆ |
| Eagers Automotive | 9.7x | 0.3x | 40.00% | ★★★★☆☆ |
| MFF Capital Investments | 4.9x | 3.4x | 45.64% | ★★★★☆☆ |
| Elders | 22.9x | 0.5x | 49.21% | ★★★★☆☆ |
| Codan | 31.1x | 4.6x | 30.56% | ★★★★☆☆ |
| Neuren Pharmaceuticals | 12.5x | 8.4x | -47.87% | ★★★★☆☆ |
| Dicker Data | 22.8x | 0.8x | 7.79% | ★★★☆☆☆ |
| Deterra Royalties | 12.9x | 8.3x | 1.31% | ★★★☆☆☆ |
| Coventry Group | 297.7x | 0.5x | -0.18% | ★★★☆☆☆ |
| RAM Essential Services Property Fund | NA | 6.2x | 42.05% | ★★★☆☆☆ |
We'll examine a selection from our screener results.
Eagers Automotive
Simply Wall St Value Rating: ★★★★☆☆
Overview: Eagers Automotive is a leading car retailing company with operations primarily focused on the sale of new and used vehicles, and it has a market cap of A$3.50 billion.
Operations: Car Retailing generates the bulk of revenue at A$9.85 billion. Gross profit margin has seen fluctuations, with a recent figure of 18.60% as of December 2023. Operating expenses include significant allocations to General & Administrative and D&A Expenses, impacting net income margins which stood at 2.85% in the same period.
PE: 9.7x
Eagers Automotive, a small-cap stock in Australia, has announced a share repurchase program to buy back up to 25.8 million shares, representing 10% of its issued share capital by June 2025. The company is actively seeking acquisitions and investments as part of its Next100 Strategy, aiming for revenue growth despite forecasted earnings declines of 0.7% annually over the next three years. Insider confidence is evident with recent purchases by executives in May and June 2024.
-
Dive into the specifics of Eagers Automotive here with our thorough valuation report.
-
Explore historical data to track Eagers Automotive's performance over time in our Past section.
Codan
Simply Wall St Value Rating: ★★★★☆☆
Overview: Codan is a technology company specializing in communications and metal detection products, with a market cap of A$1.23 billion.
Operations: Codan generates revenue primarily from its Communications and Metal Detection segments, with the former contributing A$291.50 million and the latter A$212.20 million. The company's gross profit margin has shown variability, reaching 60.25% in June 2017 before declining to 54.42% by December 2023. Operating expenses have increased over time, impacting net income margins which were at 14.67% as of December 2023 compared to higher figures in previous years such as 20.67% in June 2021.