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Over the last 7 days, the Australian market has dropped 1.3%, although it is up 11% over the past year with earnings forecast to grow by 12% annually. In this context, identifying undervalued small-cap stocks with insider buying can present unique opportunities for investors seeking to capitalize on potential growth within a fluctuating market.
Top 10 Undervalued Small Caps With Insider Buying In Australia
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Magellan Financial Group | 6.7x | 4.2x | 45.87% | ★★★★★☆ |
| Corporate Travel Management | 19.1x | 2.3x | 11.29% | ★★★★★☆ |
| Beach Energy | NA | 1.4x | 40.51% | ★★★★★☆ |
| Lycopodium | 9.1x | 1.3x | 27.10% | ★★★★☆☆ |
| GWA Group | 15.9x | 1.5x | 43.99% | ★★★★☆☆ |
| Credit Corp Group | 19.9x | 2.7x | 43.51% | ★★★★☆☆ |
| Domino's Pizza Enterprises | 28.6x | 1.1x | 29.44% | ★★★☆☆☆ |
| Dicker Data | 20.7x | 0.7x | -69.32% | ★★★☆☆☆ |
| BSP Financial Group | 7.7x | 2.7x | 3.79% | ★★★☆☆☆ |
| Abacus Group | NA | 5.9x | 26.73% | ★★★☆☆☆ |
We're going to check out a few of the best picks from our screener tool.
BSP Financial Group
Simply Wall St Value Rating: ★★★☆☆☆
Overview: BSP Financial Group operates as a banking and financial services provider in Papua New Guinea and the Pacific, with a market cap of PGK 10.45 billion.
Operations: BSP Financial Group generates revenue primarily from its PNG Bank, Pacific Markets, and Non-Bank Entities segments. The company reported a net income margin of 44.08% as of June 30, 2023.
PE: 7.7x
BSP Financial Group, a smaller player in the Australian market, reported strong earnings for H1 2024 with net interest income rising to PGK 981.86 million from PGK 900.52 million last year and net income reaching PGK 520.46 million up from PGK 427.17 million. The company announced an interim dividend of PGK 0.45 per share, payable on September 20, reflecting solid financial health despite a higher level of non-performing loans at around 4%. Recent insider confidence is evident with significant share purchases by executives throughout August, signaling potential growth prospects amidst ongoing executive reshuffles and strategic appointments within the management team.
Ingenia Communities Group
Simply Wall St Value Rating: ★★★★★☆
Overview: Ingenia Communities Group is an Australian company specializing in the development and management of lifestyle and holiday communities, with a market cap of A$1.89 billion.
Operations: Ingenia Communities Group generates revenue primarily from its Tourism - Ingenia Holidays and Residential - Lifestyle Development segments, contributing A$134.84 million and A$205.81 million respectively. The company has seen fluctuations in its net income margin, with a recent low of 3.01% as of June 2024. Operating expenses have increased to A$165.03 million for the same period, impacting profitability despite a gross profit margin of 61.56%.