3 Undervalued Small Caps In Australia With Insider Buying
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Over the last 7 days, the Australian market has dropped 1.3%, driven by a loss of 4.4% in one sector, yet it remains up 10% over the past year with earnings forecasted to grow by 12% annually. In this fluctuating environment, identifying undervalued small-cap stocks with insider buying can present unique 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 |
|---|---|---|---|---|
| Corporate Travel Management | 19.4x | 2.3x | 9.62% | ★★★★★☆ |
| GWA Group | 15.4x | 1.4x | 45.24% | ★★★★★☆ |
| Eagers Automotive | 9.9x | 0.2x | 42.16% | ★★★★★☆ |
| SHAPE Australia | 13.9x | 0.3x | 36.61% | ★★★★☆☆ |
| Credit Corp Group | 20.2x | 2.7x | 42.83% | ★★★★☆☆ |
| Coventry Group | 233.0x | 0.4x | -15.65% | ★★★☆☆☆ |
| Dicker Data | 20.6x | 0.7x | -68.15% | ★★★☆☆☆ |
| Megaport | 125.2x | 6.2x | 44.90% | ★★★☆☆☆ |
| BSP Financial Group | 7.7x | 2.7x | 3.82% | ★★★☆☆☆ |
| Abacus Group | NA | 6.0x | 25.79% | ★★★☆☆☆ |
We'll examine a selection from our screener results.
De Grey Mining
Simply Wall St Value Rating: ★★★☆☆☆
Overview: De Grey Mining is an Australian-based company focused on gold exploration and development, with a market cap of A$1.55 billion.
Operations: De Grey Mining's revenue primarily stems from exploration activities, with a recent gross profit of A$0.04154 million. The company incurred operating expenses amounting to A$28.35 million and non-operating expenses of -A$11.09 million, resulting in a net income margin of -414.58%.
PE: -154.5x
De Grey Mining, a small company in Australia, reported a net loss of A$17.22 million for the year ended June 30, 2024, slightly improving from A$19.01 million last year. They showcased promising drilling results at the Becher Project and Lowe prospects in H2 2023 and recommenced follow-up programs with an ambitious 28,000 m combined AC and RC drilling plan. Insider confidence is evident with recent share purchases by key personnel between July and September 2024.
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Click to explore a detailed breakdown of our findings in De Grey Mining's valuation report.
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Assess De Grey Mining's past performance with our detailed historical performance reports.
Deterra Royalties
Simply Wall St Value Rating: ★★★★☆☆
Overview: Deterra Royalties operates by managing and acquiring royalty arrangements, with a market cap of A$2.11 billion.
Operations: Deterra Royalties generates revenue primarily through royalty arrangements, with a recent gross profit margin of 96.22%. The company's net income margin has shown variability, reaching 64.40% in the most recent period.
PE: 12.0x
Deterra Royalties, a smaller player in the Australian market, reported net income of A$154.89 million for the year ending June 30, 2024, slightly up from A$152.46 million the previous year. Basic earnings per share rose to A$0.293 from A$0.2885. Despite forecasted earnings decline of 7.6% annually over the next three years and reliance on higher-risk external borrowing, insider confidence is evident with recent share purchases throughout July and August 2024 signaling potential optimism about future prospects.