Discover Australia's Top Undervalued Small Caps With Insider Action For August 2024
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The Australian market has been flat over the last week but is up 8.0% over the past year, with earnings forecast to grow by 13% annually. In this environment, identifying undervalued small-cap stocks with notable insider activity can offer compelling investment opportunities.
Top 10 Undervalued Small Caps With Insider Buying In Australia
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| RAM Essential Services Property Fund | NA | 5.8x | 45.52% | ★★★★★☆ |
| Healius | NA | 0.6x | 47.02% | ★★★★★☆ |
| Dicker Data | 20.9x | 0.8x | 15.47% | ★★★★☆☆ |
| Eagers Automotive | 9.2x | 0.3x | 42.89% | ★★★★☆☆ |
| MFF Capital Investments | 4.8x | 3.3x | 47.04% | ★★★★☆☆ |
| Codan | 28.7x | 4.2x | 36.45% | ★★★★☆☆ |
| Coventry Group | 283.1x | 0.4x | 3.95% | ★★★★☆☆ |
| Deterra Royalties | 12.2x | 8.1x | 10.02% | ★★★☆☆☆ |
| Kelsian Group | 44.8x | 0.8x | 31.38% | ★★★☆☆☆ |
| BSP Financial Group | 8.4x | 2.8x | 4.90% | ★★★☆☆☆ |
Below we spotlight a couple of our favorites from our exclusive screener.
Aspen Group
Simply Wall St Value Rating: ★★★★★☆
Overview: Aspen Group is a real estate investment company focusing on parks, lifestyle, and residential properties with a market cap of A$0.24 billion.
Operations: Aspen Group generates revenue from three primary segments: Parks (A$35.34 million), Lifestyle (A$20.41 million), and Residential (A$19.84 million). The company has shown a gross profit margin ranging between 39.61% and 79.49% over the analyzed periods, with recent figures around 56-58%. Operating expenses typically include general & administrative costs, depreciation & amortization, and non-operating expenses which can significantly impact net income margins that have varied widely from -1.55% to 1.61%.
PE: 7.7x
Aspen Group, a small cap in Australia, has recently announced a final distribution for fiscal year 2024 of A$0.0425 per security, with total distributions up 10% from the previous year. Insider confidence is evident as they have been actively purchasing shares over the past six months. Despite debt not being well-covered by operating cash flow and lower profit margins at 66.8%, earnings are projected to grow annually by 18.35%.
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Dive into the specifics of Aspen Group here with our thorough valuation report.
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Examine Aspen Group's past performance report to understand how it has performed in the past.
Deterra Royalties
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Deterra Royalties is a company that focuses on earning revenue through royalty arrangements, with a market cap of A$2.51 billion.
Operations: Deterra Royalties generates revenue primarily through royalty arrangements, with the latest reported revenue at A$251.84 million. The company's gross profit margin has shown a notable trend, reaching 96.55% as of December 2023. Operating expenses and non-operating expenses are relatively low compared to its gross profit, contributing to a net income margin of 66.63%.