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Amidst a fluctuating Australian market, with the ASX200 experiencing a slight downturn and sectors like IT and Energy facing declines, small-cap stocks remain a focal point for investors seeking potential growth opportunities. The current economic backdrop, marked by challenges in global markets such as China's property sector woes, sets a complex stage for identifying undervalued small caps that could offer substantial value in these turbulent times.
Top 10 Undervalued Small Caps With Insider Buying In Australia
Name | PE | PS | Discount to Fair Value | Value Rating |
---|---|---|---|---|
Corporate Travel Management | 17.2x | 2.6x | 46.02% | ★★★★★★ |
Tabcorp Holdings | NA | 0.6x | 26.72% | ★★★★★★ |
GUD Holdings | 14.0x | 1.4x | 6.96% | ★★★★★☆ |
Codan | 27.6x | 4.1x | 24.68% | ★★★★☆☆ |
Eagers Automotive | 9.3x | 0.3x | 31.08% | ★★★★☆☆ |
Fiducian Group | 18.2x | 3.2x | 4.40% | ★★★☆☆☆ |
Dicker Data | 21.6x | 0.8x | -1.94% | ★★★☆☆☆ |
Smartgroup | 17.3x | 4.3x | 48.62% | ★★★☆☆☆ |
Coventry Group | 285.2x | 0.4x | -28.14% | ★★★☆☆☆ |
Lynch Group Holdings | NA | 0.4x | -14.28% | ★★★☆☆☆ |
Let's take a closer look at a couple of our picks from the screened companies.
Codan
Simply Wall St Value Rating: ★★★★☆☆
Overview: Codan is a diversified technology company specializing in communications equipment and metal detection, with a market capitalization of approximately A$1.07 billion.
Operations: The company generates its revenue primarily from communications and metal detection, contributing A$291.50 million and A$212.20 million respectively. It has observed a net income margin of 14.67% as of the most recent period, alongside a gross profit margin that stands at 54.42%.
PE: 27.6x
Recently, insiders at Codan have shown their confidence through share purchases, signaling a potential undervalued opportunity in this lesser-known Australian entity. With earnings expected to grow by 16% annually, the company's financial health appears robust. This insider activity, coupled with promising growth forecasts, suggests that Codan might be poised for future value realization despite its reliance on higher-risk funding sources. Such dynamics offer an intriguing blend of risk and potential reward for discerning investors looking beyond mainstream options.
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Click here and access our complete valuation analysis report to understand the dynamics of Codan.
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Review our historical performance report to gain insights into Codan's's past performance.
Dicker Data
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Dicker Data is a wholesale distributor of computer peripherals, with a market capitalization of approximately A$2.27 billion.