Top Undervalued Small Caps With Insider Actions In Australia July 2024

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Amidst a fluctuating Australian market where the ASX200 has seen a slight decline and sectors like IT have struggled significantly, small-cap stocks continue to present unique opportunities. Particularly, certain undervalued small caps are drawing attention with insider actions suggesting potential unrecognized value in this turbulent economic landscape. In such conditions, discerning investors might look for stocks that not only show promising fundamentals but also exhibit positive insider engagements, hinting at confidence from those who know the company best.

Top 10 Undervalued Small Caps With Insider Buying In Australia

Name

PE

PS

Discount to Fair Value

Value Rating

Corporate Travel Management

17.5x

2.7x

47.31%

★★★★★★

Nick Scali

13.7x

2.5x

45.54%

★★★★★★

Healius

NA

0.6x

43.37%

★★★★★☆

Codan

28.6x

4.2x

27.32%

★★★★☆☆

Dicker Data

20.8x

0.8x

3.61%

★★★★☆☆

Eagers Automotive

9.6x

0.3x

33.24%

★★★★☆☆

Tabcorp Holdings

NA

0.7x

19.38%

★★★★☆☆

RAM Essential Services Property Fund

NA

5.8x

40.26%

★★★★☆☆

Smartgroup

17.5x

4.3x

49.61%

★★★☆☆☆

Coventry Group

295.6x

0.4x

-21.34%

★★★☆☆☆

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

Let's review some notable picks from our screened stocks.

Codan

Simply Wall St Value Rating: ★★★★☆☆

Overview: Codan is a diversified technology company specializing in communications and metal detection, with a market capitalization of approximately A$1.37 billion.

Operations: Communications and Metal Detection are the primary revenue contributors, generating A$291.50 million and A$212.20 million respectively. The company's gross profit margin has shown a trend of fluctuation, with recent figures around 54.42% for the latest reported period.

PE: 28.6x

Codan, a notable player in the Australian market, recently saw insider confidence demonstrated through share purchases, signaling strong belief in the company's prospects. With earnings expected to grow by 16% annually, this reflects positively on its financial trajectory. Despite relying solely on external borrowing—a riskier funding method—these strategic moves suggest a robust foundation for future growth. This blend of insider activity and solid growth forecasts paints Codan as an appealing prospect for those eyeing potential in lesser-known entities.

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

Lifestyle Communities

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Lifestyle Communities is a company engaged in property development and management, with a market capitalization of approximately A$1.5 billion.