July 2024 Insight Into Australia's Undervalued Small Caps With Insider Buying

In This Article:

Despite a relatively flat performance over the last week, the Australian market has seen a commendable annual increase of 7.5%, with earnings expected to grow by 13% per annum. In this context, undervalued small-cap stocks with insider buying activity represent intriguing opportunities for investors looking to potentially benefit from overlooked segments of the market.

Top 10 Undervalued Small Caps With Insider Buying In Australia

Name

PE

PS

Discount to Fair Value

Value Rating

Corporate Travel Management

17.3x

2.7x

48.13%

★★★★★★

Nick Scali

13.6x

2.5x

46.13%

★★★★★★

RAM Essential Services Property Fund

NA

5.7x

41.09%

★★★★★☆

Healius

NA

0.6x

43.54%

★★★★★☆

Codan

28.9x

4.2x

26.64%

★★★★☆☆

Dicker Data

20.9x

0.8x

3.37%

★★★★☆☆

Eagers Automotive

9.6x

0.3x

33.59%

★★★★☆☆

Elders

20.3x

0.4x

49.91%

★★★★☆☆

Tabcorp Holdings

NA

0.7x

19.61%

★★★★☆☆

Coventry Group

283.1x

0.4x

-17.15%

★★★☆☆☆

Click here to see the full list of 27 stocks from our Undervalued ASX Small Caps With Insider Buying screener.

Let's dive into some prime choices out of from the screener.

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 around A$1.07 billion.

Operations: In its operations, the company generates revenue primarily from Communications and Metal Detection segments, contributing A$291.50 million and A$212.20 million respectively. Gross profit margin has shown a trend of fluctuation over the observed periods, with a notable figure of 54.42% reported in the most recent data from 2023-12-31.

PE: 28.9x

Codan, an Australian company, has recently seen insider confidence bolstered by share purchases, signaling trust in its potential. With earnings forecast to grow 16.2% annually, this insight reflects a promising outlook despite its reliance on higher risk funding sources. Such financial dynamics suggest that Codan is priced below its intrinsic market value, aligning with traits typically sought after in lesser-known entities ripe for growth. This combination of insider buying and financial prospects makes Codan a noteworthy consideration for those exploring opportunities beyond the usual big names.

ASX:CDA Share price vs Value as at Jul 2024
ASX:CDA Share price vs Value as at Jul 2024

Orora

Simply Wall St Value Rating: ★★★★☆☆

Overview: Orora is a company engaged in packaging solutions and distribution, operating primarily across Australasia and North America, with a market capitalization of approximately A$3.17 billion.