Top 3 Undervalued Small Caps In Canada With Insider Action For July 2024

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Over the last 7 days, the Canadian market has remained flat, yet it is up 11% over the past year with earnings forecasted to grow by 15% annually. In this context, identifying undervalued small-cap stocks with notable insider action can present compelling opportunities for investors looking to capitalize on potential growth.

Top 10 Undervalued Small Caps With Insider Buying In Canada

Name

PE

PS

Discount to Fair Value

Value Rating

Dundee Precious Metals

8.5x

2.9x

32.59%

★★★★★★

First National Financial

8.8x

3.0x

48.09%

★★★★★☆

Calfrac Well Services

2.3x

0.2x

28.64%

★★★★★☆

Bragg Gaming Group

NA

1.4x

22.87%

★★★★★☆

Nexus Industrial REIT

2.8x

3.4x

13.95%

★★★★☆☆

Guardian Capital Group

10.4x

4.0x

31.38%

★★★★☆☆

Sagicor Financial

1.1x

0.3x

-80.21%

★★★★☆☆

Primaris Real Estate Investment Trust

11.8x

3.1x

33.68%

★★★★☆☆

Hemisphere Energy

7.0x

2.5x

0.52%

★★★☆☆☆

AutoCanada

11.0x

0.1x

-92.75%

★★★☆☆☆

Click here to see the full list of 29 stocks from our Undervalued TSX Small Caps With Insider Buying screener.

Let's explore several standout options from the results in the screener.

Exchange Income

Simply Wall St Value Rating: ★★★★☆☆

Overview: Exchange Income operates in the manufacturing and aerospace & aviation sectors with a market cap of CA$2.25 billion.

Operations: The company generates revenue primarily from its Manufacturing and Aerospace & Aviation segments, with recent figures showing $2.57 billion in total revenue. The gross profit margin has shown a general upward trend, reaching 34.55% as of the most recent period. Operating expenses and non-operating expenses are significant cost components, contributing to a net income of CA$119.97 million for the latest quarter.

PE: 19.3x

Exchange Income Corporation, a small-cap stock in Canada, has shown insider confidence with recent share purchases. Despite a slight dip in net income to C$4.53 million for Q1 2024 from C$6.86 million the previous year, revenue climbed to C$601.77 million from C$526.84 million. The company declared consistent monthly dividends of C$0.22 per share through mid-2024 and forecasts earnings growth of 22% annually, highlighting its potential for future value despite relying solely on external borrowing for funding.

TSX:EIF Share price vs Value as at Jul 2024

Interfor

Simply Wall St Value Rating: ★★★★★★

Overview: Interfor is a Canadian company engaged in the production and sale of lumber products, with a market cap of approximately CA$1.50 billion.

Operations: The company's revenue primarily comes from its Solid Wood segment, generating CA$3.30 billion. Key financial data indicates a gross profit margin of 0.03634% for the most recent period ending July 2024, with net income showing a loss of CA$298.40 million and operating expenses at CA$313.10 million.