Exploring Undervalued Small Caps With Insider Actions In Australia June 2024
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In recent times, the Australian market has shown a steady increase, rising 8.9% over the past year despite remaining flat in the last week. Given these conditions and with earnings expected to grow by 14% annually in the near future, undervalued small caps with insider buying actions can present intriguing opportunities for investors looking to potentially benefit from market inefficiencies.
Top 10 Undervalued Small Caps With Insider Buying In Australia
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Corporate Travel Management | 17.6x | 2.7x | 40.28% | ★★★★★★ |
| Tabcorp Holdings | NA | 0.7x | 21.97% | ★★★★★★ |
| Nick Scali | 14.1x | 2.6x | 42.09% | ★★★★★☆ |
| Amotiv | 13.8x | 1.4x | 8.34% | ★★★★★☆ |
| Codan | 28.6x | 4.2x | 22.17% | ★★★★☆☆ |
| Eagers Automotive | 9.7x | 0.3x | 29.23% | ★★★★☆☆ |
| Elders | 20.6x | 0.4x | 46.36% | ★★★★☆☆ |
| Tasmea | 13.6x | 0.9x | 16.72% | ★★★☆☆☆ |
| Dicker Data | 21.6x | 0.8x | -1.63% | ★★★☆☆☆ |
| Coventry Group | 278.9x | 0.4x | -26.16% | ★★★☆☆☆ |
We're going to check out a few of the best picks from our screener tool.
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$1.02 billion.
Operations: The company generates its revenue primarily from communications and metal detection, with respective contributions of A$291.50 million and A$212.20 million. Its gross profit margin has shown a trend, averaging approximately 0.56% over recent periods, indicating the cost-effectiveness of its operations relative to sales.
PE: 28.6x
Recently, Codan has demonstrated insider confidence with significant share purchases, underscoring a belief in the company's potential. With earnings expected to grow by 16% annually, this reflects not just resilience but an optimistic outlook despite its reliance on external borrowing for funding. This strategic financial posture might raise eyebrows due to higher risk; however, it also suggests a proactive approach to leveraging opportunities within their market sector. These elements collectively suggest that Codan remains undervalued amidst its peers, presenting a noteworthy opportunity for discerning investors looking toward future growth prospects in the Australian market.
Clarity Pharmaceuticals
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Clarity Pharmaceuticals is a company focused on the development of radiopharmaceuticals.
Operations: Radiopharmaceutical Development generated A$9.49 million in revenue, with a consistent gross profit margin of 100%. The net income margin has deteriorated over recent periods, reaching -3.22% by the end of 2024.