Top Undervalued Small Caps With Insider Action In Australia For September 2024
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The Australian market has climbed 1.7% in the last 7 days, with a gain of 4.5%, and over the past year, it has increased by 12%. In this environment of steady growth and optimistic earnings forecasts, identifying small-cap stocks with insider action can offer unique opportunities for investors seeking value.
Top 10 Undervalued Small Caps With Insider Buying In Australia
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Corporate Travel Management | 20.1x | 2.4x | 5.43% | ★★★★★☆ |
| SHAPE Australia | 13.9x | 0.3x | 35.99% | ★★★★☆☆ |
| Bapcor | NA | 0.8x | 46.66% | ★★★★☆☆ |
| GWA Group | 16.3x | 1.5x | 42.20% | ★★★★☆☆ |
| Credit Corp Group | 20.3x | 2.7x | 41.65% | ★★★★☆☆ |
| Coventry Group | 218.0x | 0.4x | -9.69% | ★★★☆☆☆ |
| Dicker Data | 20.3x | 0.7x | -66.57% | ★★★☆☆☆ |
| Megaport | 124.2x | 6.1x | 45.11% | ★★★☆☆☆ |
| BSP Financial Group | 7.8x | 2.7x | 2.58% | ★★★☆☆☆ |
| Abacus Group | NA | 6.1x | 22.91% | ★★★☆☆☆ |
Let's review some notable picks from our screened stocks.
Deterra Royalties
Simply Wall St Value Rating: ★★★★☆☆
Overview: Deterra Royalties is a company that primarily operates through royalty arrangements and has a market cap of A$2.53 billion.
Operations: The company's revenue primarily comes from royalty arrangements, with a gross profit margin of 96.22% as of the latest period ending on 2024-09-18. Operating expenses and non-operating expenses are relatively low compared to revenue, contributing to a net income margin of 64.40%.
PE: 12.5x
Deterra Royalties, a smaller Australian company, recently reported net income of A$154.89 million for the year ending June 30, 2024, up slightly from A$152.46 million the previous year. Basic earnings per share rose to A$0.293 from A$0.2885. Despite a forecasted earnings decline of 6.6% annually over the next three years and reliance on external borrowing for funding, insider confidence is evident with recent share purchases in August 2024 indicating potential long-term value amidst current challenges.
Sims
Simply Wall St Value Rating: ★★★★☆☆
Overview: Sims operates in the metal and electronics recycling industry with significant segments including North America Metals, Australia/New Zealand Metals, and Global Trading, and has a market capitalization of A$2.60 billion.
Operations: The company generates revenue primarily from North America Metals (A$4487.80 million) and Australia/New Zealand Metals (A$1599.60 million), with additional contributions from Global Trading (A$771.20 million) and Sims Lifecycle Services (A$350 million). The cost of goods sold is a significant expense, impacting the gross profit margin, which has shown variability, reaching up to 14.22% in recent periods. Operating expenses and non-operating expenses also play substantial roles in determining net income margins, which have fluctuated over time.