Discover Australia's Top 3 Undervalued Small Caps With Insider Activity In August 2024
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As the ASX200 climbed 1.3% to close above 7970 points, driven by Wall Street's ongoing rally and strong performances in the Energy and Materials sectors, investors are increasingly looking for opportunities in undervalued small-cap stocks. In this dynamic market environment, identifying small caps with notable insider activity can provide valuable insights into potentially promising investments.
Top 10 Undervalued Small Caps With Insider Buying In Australia
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Healius | NA | 0.6x | 45.02% | ★★★★★☆ |
| Elders | 22.7x | 0.5x | 49.48% | ★★★★☆☆ |
| Eagers Automotive | 9.8x | 0.3x | 39.94% | ★★★★☆☆ |
| Neuren Pharmaceuticals | 12.7x | 8.6x | -50.28% | ★★★★☆☆ |
| Coventry Group | 296.7x | 0.4x | 0.13% | ★★★★☆☆ |
| RAM Essential Services Property Fund | NA | 6.0x | 43.50% | ★★★★☆☆ |
| Dicker Data | 22.5x | 0.8x | 8.83% | ★★★☆☆☆ |
| Codan | 30.7x | 4.5x | 31.45% | ★★★☆☆☆ |
| Kelsian Group | 47.1x | 0.8x | 27.96% | ★★★☆☆☆ |
| FINEOS Corporation Holdings | NA | 2.5x | -746.32% | ★★★☆☆☆ |
Let's dive into some prime choices out of from the screener.
Eagers Automotive
Simply Wall St Value Rating: ★★★★☆☆
Overview: Eagers Automotive operates as a major car retailer in Australia with a market cap of A$3.50 billion.
Operations: Car Retailing contributes the majority of revenue at A$9.85 billion. The net income margin has seen fluctuations, reaching a peak of 3.75% in December 2021 before declining to 2.85% by December 2023. Operating expenses have consistently been a significant portion of costs, with General & Administrative Expenses alone accounting for over A$700 million in recent periods.
PE: 9.8x
Eagers Automotive, a small cap stock in Australia, has recently announced a share repurchase program to buy back up to 25.8 million shares by June 2025, indicating insider confidence. They are actively seeking M&A opportunities as part of their Next100 Strategy and expect revenue growth of 5.52% annually despite projected earnings decline by 0.7% per year over the next three years. This positions Eagers as an intriguing prospect for investors looking at undervalued stocks with potential growth catalysts in place.
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Delve into the full analysis valuation report here for a deeper understanding of Eagers Automotive.
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Understand Eagers Automotive's track record by examining our Past report.
Codan
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Codan is an Australian company specializing in the development and manufacturing of communications equipment and metal detection products, with a market cap of A$1.16 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 a trend of slight fluctuations, reaching 54.42% as of December 2023. Operating expenses include significant allocations to Sales & Marketing and R&D, amounting to A$97.79 million and A$33.31 million, respectively, in the same period.