Discover Australia's Top Undervalued Small Caps With Insider Buying In August 2024
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The Australian market has seen a positive trend, rising 2.1% over the last week and 11% over the past year, with earnings projected to grow by 13% annually in the coming years. In this favorable environment, identifying undervalued small-cap stocks with insider buying can offer promising 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 |
|---|---|---|---|---|
| Eagers Automotive | 9.9x | 0.3x | 39.27% | ★★★★☆☆ |
| MFF Capital Investments | 5.0x | 3.4x | 45.30% | ★★★★☆☆ |
| Elders | 22.8x | 0.5x | 49.43% | ★★★★☆☆ |
| Codan | 31.3x | 4.6x | 30.22% | ★★★★☆☆ |
| Neuren Pharmaceuticals | 12.6x | 8.5x | -49.41% | ★★★★☆☆ |
| Dicker Data | 22.9x | 0.8x | 7.40% | ★★★☆☆☆ |
| Deterra Royalties | 13.1x | 8.5x | -1.08% | ★★★☆☆☆ |
| Kelsian Group | 46.0x | 0.8x | 29.20% | ★★★☆☆☆ |
| Coventry Group | 244.6x | 0.4x | -18.64% | ★★★☆☆☆ |
| RAM Essential Services Property Fund | NA | 6.0x | 42.53% | ★★★☆☆☆ |
Let's review some notable picks from our screened stocks.
Eagers Automotive
Simply Wall St Value Rating: ★★★★☆☆
Overview: Eagers Automotive operates as a major car retailing company with additional property interests, and has a market cap of approximately A$3.85 billion.
Operations: Eagers Automotive generates revenue primarily from car retailing, with a gross profit margin of 18.60% as of December 31, 2023. The company's cost structure includes significant operating expenses and non-operating expenses, contributing to a net income margin of 2.85%.
PE: 9.9x
Eagers Automotive, a notable player in the Australian market, is currently seeking acquisitions to bolster its growth. Despite having high debt levels and relying entirely on external borrowing, the company projects a 5.52% annual revenue increase. However, earnings are expected to decline by 0.7% annually over the next three years. Insider confidence is evident from recent share purchases authorized by the board in June 2024, with plans to repurchase up to 25.8 million shares by mid-2025.
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Delve into the full analysis valuation report here for a deeper understanding of Eagers Automotive.
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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 company specializing in communications and metal detection technologies, with a market cap of approximately 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 has experienced varying gross profit margins, with recent figures around 54.42%. Operating expenses, including sales & marketing and R&D, have shown an upward trend, reaching approximately A$174.85 million in the latest period.