3 Undervalued Small Caps In Canada With Insider Buying
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The Canadian market has climbed 1.1% in the last 7 days, led by the Materials sector with a gain of 3.8%. In the last year, the market has risen by 21%, with earnings forecast to grow by 15% annually. In this favorable environment, identifying small-cap stocks that are undervalued and have insider buying can present compelling investment opportunities.
Top 10 Undervalued Small Caps With Insider Buying In Canada
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Vermilion Energy | NA | 1.1x | 46.85% | ★★★★★★ |
| Trican Well Service | 7.7x | 1.0x | 12.77% | ★★★★★☆ |
| Nexus Industrial REIT | 3.8x | 3.8x | 20.61% | ★★★★★☆ |
| Flagship Communities Real Estate Investment Trust | 3.7x | 3.9x | 44.28% | ★★★★★☆ |
| AutoCanada | NA | 0.1x | 48.60% | ★★★★★☆ |
| Rogers Sugar | 15.7x | 0.6x | 47.26% | ★★★★☆☆ |
| Sagicor Financial | 1.3x | 0.3x | -34.46% | ★★★★☆☆ |
| Calfrac Well Services | 2.5x | 0.2x | -58.86% | ★★★★☆☆ |
| Primaris Real Estate Investment Trust | 12.6x | 3.4x | 39.19% | ★★★★☆☆ |
| Hemisphere Energy | 6.3x | 2.4x | -229.68% | ★★★☆☆☆ |
Let's explore several standout options from the results in the screener.
Centerra Gold
Simply Wall St Value Rating: ★★★★★☆
Overview: Centerra Gold is a mining company engaged in the exploration, development, and production of gold and copper with a market cap of approximately C$1.76 billion.
Operations: Centerra Gold's revenue streams are primarily derived from its ?ksüt ($603.31 million), Molybdenum ($239.65 million), and Mount Milligan ($429.08 million) segments. The company experienced a gross profit margin of 44.22% in Q2 2024, up from 32.93% in Q4 2023, reflecting improved cost management and operational efficiency across its segments.
PE: 12.1x
Centerra Gold's recent performance highlights its small cap potential in Canada. For Q2 2024, the company reported US$282.31 million in sales, up from US$184.52 million last year, and net income of US$37.67 million compared to a net loss previously. They repurchased 1,439,700 shares for US$9.8 million between April and June 2024, showing insider confidence in their strategy despite earnings forecasted to decline by an average of 13.4% annually over the next three years.
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Take a closer look at Centerra Gold's potential here in our valuation report.
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Gain insights into Centerra Gold's historical performance by reviewing our past performance report.
Chemtrade Logistics Income Fund
Simply Wall St Value Rating: ★★★★★☆
Overview: Chemtrade Logistics Income Fund operates in the industrial chemicals and services sector, providing products such as sulfuric acid and water treatment chemicals, with a market cap of approximately CA$1.04 billion.