Top 3 Undervalued Small Caps With Insider Buys In Australia August 2024
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The Australian market has experienced a volatile period, with the ASX200 closing up 1.25% at 7777.7 points after clawing back some losses from the previous sessions. Positive economic indicators from China have lifted sentiment across Asian markets, benefiting various sectors including IT and Real Estate. In this context, identifying undervalued small-cap stocks with insider buying can be particularly rewarding for investors looking to capitalize on potential growth opportunities amidst broader market fluctuations.
Top 10 Undervalued Small Caps With Insider Buying In Australia
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Acrow | 13.0x | 1.9x | 5.05% | ★★★★★☆ |
| DUG Technology | 52.8x | 3.6x | 17.35% | ★★★★★☆ |
| Healius | NA | 0.6x | 47.16% | ★★★★★☆ |
| Elders | 22.7x | 0.5x | 49.54% | ★★★★☆☆ |
| Dicker Data | 21.5x | 0.8x | 13.24% | ★★★★☆☆ |
| Eagers Automotive | 9.2x | 0.3x | 42.89% | ★★★★☆☆ |
| Codan | 28.6x | 4.2x | 36.52% | ★★★★☆☆ |
| Coventry Group | 275.7x | 0.4x | 5.72% | ★★★★☆☆ |
| RAM Essential Services Property Fund | NA | 6.0x | 43.93% | ★★★★☆☆ |
| BSP Financial Group | 8.5x | 2.9x | 2.91% | ★★★☆☆☆ |
Let's dive into some prime choices out of from the screener.
Dicker Data
Simply Wall St Value Rating: ★★★★☆☆
Overview: Dicker Data is a leading Australian wholesale distributor specializing in computer peripherals, with a market capitalization of A$1.76 billion.
Operations: The company's primary revenue stream is derived from wholesale computer peripherals, with a recent gross profit margin of 14.23%. Over the analyzed periods, net income margins have seen fluctuations, reaching up to 3.62% in the latest period.
PE: 21.5x
Dicker Data, a small Australian company in the tech distribution sector, shows potential for value seekers. Despite having higher-risk external borrowing as its sole funding source, it maintains a good financial position. Earnings are forecasted to grow 7.83% annually. Insider confidence is evident with recent share purchases in May 2024. Additionally, a cash dividend of A$0.11 was declared on May 13, 2024, reflecting stable shareholder returns and potential for future growth in the tech industry.
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Click to explore a detailed breakdown of our findings in Dicker Data's valuation report.
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Evaluate Dicker Data's historical performance by accessing our past performance report.
Elders
Simply Wall St Value Rating: ★★★★☆☆
Overview: Elders operates a diverse agribusiness offering services through its branch network, wholesale products, and feed and processing services, with a market cap of A$1.78 billion.
Operations: Elders generates revenue primarily from its Branch Network, Wholesale Products, and Feed and Processing Services. The company's gross profit margin has shown variability, reaching up to 21.72%. Operating expenses are significant, with sales and marketing being the largest component.