Insider Buying Highlights 3 Undervalued Small Caps In Australia
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In the last week, the Australian market has remained flat, yet it has shown impressive growth of 20% over the past year with earnings forecasted to increase by 12% annually. In this context, identifying stocks that are potentially undervalued can be crucial for investors seeking opportunities in a stable yet growing market environment.
Top 10 Undervalued Small Caps With Insider Buying In Australia
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| GWA Group | 16.5x | 1.5x | 41.40% | ★★★★★★ |
| Aurelia Metals | NA | 1.1x | 46.78% | ★★★★★☆ |
| SHAPE Australia | 14.3x | 0.3x | 33.63% | ★★★★☆☆ |
| Collins Foods | 17.9x | 0.7x | 7.79% | ★★★★☆☆ |
| Corporate Travel Management | 19.5x | 2.3x | 7.53% | ★★★★☆☆ |
| Tabcorp Holdings | NA | 0.5x | 19.19% | ★★★★☆☆ |
| Mader Group | 23.4x | 1.5x | 43.90% | ★★★☆☆☆ |
| Dicker Data | 20.4x | 0.7x | -68.47% | ★★★☆☆☆ |
| Coventry Group | 242.6x | 0.4x | -19.48% | ★★★☆☆☆ |
| Abacus Storage King | 12.2x | 7.7x | -30.39% | ★★★☆☆☆ |
We're going to check out a few of the best picks from our screener tool.
Insignia Financial
Simply Wall St Value Rating: ★★★★★☆
Overview: Insignia Financial operates in the financial services industry, providing advice, platforms, and asset management services, with a market capitalization of A$2.5 billion.
Operations: The company generates revenue primarily from its Platforms and Advice segments, with Platforms contributing A$1.16 billion and Advice generating A$527.9 million. The gross profit margin has shown a notable increase, reaching 36.72% in recent periods, indicating an improvement in managing cost of goods sold relative to revenue growth.
PE: -11.3x
Insignia Financial, a small-cap player in Australia, is experiencing insider confidence with recent share purchases. Despite reporting a net loss of A$185.3 million for the year ending June 2024, compared to a net income of A$51.4 million the previous year, earnings are forecasted to grow by 51% annually. The company faces higher risk due to reliance on external borrowing rather than customer deposits. Recent executive changes may influence future strategies and performance outcomes.
Mader Group
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Mader Group provides staffing and outsourcing services, with a market cap of A$1.08 billion.
Operations: Mader Group's primary revenue stream is derived from Staffing & Outsourcing Services, generating A$774.47 million. The company's cost structure includes significant expenses in Cost of Goods Sold (COGS) at A$612.49 million and Operating Expenses at A$89.97 million, impacting its profitability metrics. Notably, the gross profit margin has shown a trend reaching 22.92% as of the latest period ending June 2024, indicating efficiency in managing production costs relative to revenue generation over time.