Undervalued Small Caps In Australia With Insider Action For September 2024
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The market has climbed by 2.1% over the past week, with every sector up. As for the past 12 months, the market is up 13%, and earnings are expected to grow by 12% per annum over the next few years. In this thriving environment, identifying undervalued small-cap stocks with insider action can present compelling opportunities for investors seeking growth potential.
Top 10 Undervalued Small Caps With Insider Buying In Australia
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| GWA Group | 16.0x | 1.5x | 43.06% | ★★★★★☆ |
| Bigtincan Holdings | NA | 1.2x | 47.43% | ★★★★★☆ |
| Tabcorp Holdings | NA | 0.4x | 25.64% | ★★★★★☆ |
| SHAPE Australia | 14.0x | 0.3x | 35.75% | ★★★★☆☆ |
| Corporate Travel Management | 20.6x | 2.5x | 3.01% | ★★★★☆☆ |
| Eagers Automotive | 10.2x | 0.3x | 40.00% | ★★★★☆☆ |
| Credit Corp Group | 20.9x | 2.8x | 40.39% | ★★★★☆☆ |
| Coventry Group | 221.5x | 0.4x | -10.94% | ★★★☆☆☆ |
| Dicker Data | 20.6x | 0.7x | -68.39% | ★★★☆☆☆ |
| BSP Financial Group | 7.8x | 2.8x | 1.77% | ★★★☆☆☆ |
Let's review some notable picks from our screened stocks.
Corporate Travel Management
Simply Wall St Value Rating: ★★★★☆☆
Overview: Corporate Travel Management provides travel services across Asia, Europe, North America, and Australia/New Zealand with a market cap of A$2.75 billion.
Operations: The company generates revenue primarily from travel services in Asia (A$63.66M), Europe (A$168.32M), North America (A$309.63M), and Australia/New Zealand (A$168.82M). The net profit margin has shown variability, reaching its highest at 20.68% in June 2018 and dipping to -51.18% in December 2020, with a recent figure of 11.88% as of June 2024.
PE: 20.6x
Corporate Travel Management, a small cap in Australia, shows promising growth with earnings forecasted to grow 12.22% annually. The company reported A$710 million in sales and A$84 million net income for the year ending June 30, 2024. Insider confidence is evident as Jamie Pherous purchased 87,500 shares worth approximately A$1.4 million recently. Additionally, the company repurchased over 1.6 million shares for A$26.1 million and extended its buyback plan to June 2025 with increased authorization of A$126 million.
Deterra Royalties
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Deterra Royalties is a company that primarily generates revenue through royalty arrangements, with a market cap of approximately A$2.34 billion.
Operations: The company generates revenue primarily from royalty arrangements, with recent figures showing A$240.51 million. The cost of goods sold (COGS) is relatively low, most recently at A$9.08 million, leading to a gross profit margin of 96.22%. Operating expenses and non-operating expenses are minimal compared to revenue, contributing to a net income margin of 64.40%.