Top Undervalued Small Caps With Insider Buying In August 2024
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In August 2024, the global markets experienced a notable uptick, with small-cap stocks outperforming their large-cap counterparts amid investor optimism fueled by anticipated interest rate cuts from the Federal Reserve. This positive sentiment was reflected in key indices such as the S&P 600 for small-cap stocks, which saw significant gains. When evaluating potential investments in this environment, it's crucial to consider factors like insider buying activity and overall market sentiment. These indicators can provide valuable insights into a company's perceived value and growth prospects.
Top 10 Undervalued Small Caps With Insider Buying
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Ever Sunshine Services Group | 5.5x | 0.4x | 26.52% | ★★★★★☆ |
| Essentra | 858.4x | 1.7x | 46.68% | ★★★★★☆ |
| Cabka | NA | 0.4x | 49.20% | ★★★★★☆ |
| Lion Rock Group | 6.0x | 0.4x | 45.56% | ★★★★☆☆ |
| Avia Avian | 17.9x | 4.1x | 3.33% | ★★★★☆☆ |
| Sagicor Financial | 1.3x | 0.3x | -42.17% | ★★★★☆☆ |
| Semen Indonesia (Persero) | 15.0x | 0.7x | 24.79% | ★★★★☆☆ |
| China Leon Inspection Holding | 9.6x | 0.7x | 37.26% | ★★★☆☆☆ |
| Franchise Brands | 118.4x | 3.0x | 48.24% | ★★★☆☆☆ |
| Community West Bancshares | 18.7x | 2.9x | 42.25% | ★★★☆☆☆ |
Here we highlight a subset of our preferred stocks from the screener.
Codan
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Codan specializes in the development and manufacturing of metal detection and communications equipment, with a market cap of approximately A$1.20 billion.
Operations: Codan generates revenue primarily from its Communications and Metal Detection segments, with the former contributing A$326.91 million and the latter A$219.85 million. The company's gross profit margin experienced fluctuations, peaking at 60.25% in June 2017 before settling at around 54.42% by December 2023. Operating expenses have shown a general upward trend, reaching A$190.78 million by June 2024, driven significantly by Sales & Marketing and R&D expenditures.
PE: 34.0x
Codan, a small-cap stock, recently reported strong financial results for the full year ending June 30, 2024. Sales increased to A$550.46 million from A$456.5 million last year, while net income rose to A$81.39 million compared to A$67.7 million previously. Earnings per share also grew from A$0.375 to A$0.45, reflecting solid performance despite higher-risk funding sources through external borrowing only. Insider confidence is evident with recent share purchases within the last quarter of 2023 and early 2024.
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Click to explore a detailed breakdown of our findings in Codan's valuation report.
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Examine Codan's past performance report to understand how it has performed in the past.
