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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% | ★★★☆☆☆ |
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.
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.