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3 Undervalued Small Caps In Australia With Insider Action

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In the last week, the Australian market has stayed flat, with notable gains of 9.0% in the Materials sector. Over the past year, the market is up 16%, and earnings are forecast to grow by 12% annually. In this context, identifying undervalued small-cap stocks with insider action can offer promising opportunities for investors looking to capitalize on potential growth within a stable market environment.

Top 10 Undervalued Small Caps With Insider Buying In Australia

Name

PE

PS

Discount to Fair Value

Value Rating

GWA Group

16.5x

1.5x

41.27%

★★★★★★

Magellan Financial Group

7.5x

4.7x

37.58%

★★★★★☆

Bigtincan Holdings

NA

1.1x

48.63%

★★★★★☆

Centuria Capital Group

23.7x

5.3x

40.51%

★★★★☆☆

Eagers Automotive

10.9x

0.3x

37.35%

★★★★☆☆

Tabcorp Holdings

NA

0.5x

16.99%

★★★★☆☆

Dicker Data

21.2x

0.8x

-73.93%

★★★☆☆☆

Coventry Group

223.7x

0.4x

-12.35%

★★★☆☆☆

Megaport

122.0x

6.0x

45.70%

★★★☆☆☆

Corporate Travel Management

21.8x

2.6x

-1.96%

★★★☆☆☆

Click here to see the full list of 21 stocks from our Undervalued ASX Small Caps With Insider Buying screener.

Let's uncover some gems from our specialized screener.

Eagers Automotive

Simply Wall St Value Rating: ★★★★☆☆

Overview: Eagers Automotive operates primarily in car retailing and property management, with a market cap of A$3.41 billion.

Operations: Eagers Automotive's primary revenue stream is from car retailing, generating A$10.50 billion. The company's net income margin has shown fluctuations, with recent figures around 2.47%. Operating expenses and cost of goods sold are significant contributors to the overall cost structure.

PE: 10.9x

Eagers Automotive, a small Australian company, has shown insider confidence with Nicholas Politis purchasing 200,000 shares worth A$2.09 million in recent months. For the half-year ending June 30, 2024, Eagers reported sales of A$5.46 billion and net income of A$116 million. Despite a decline in net income from the previous year’s A$137.76 million, the company announced a cash dividend of A$0.24 per share payable on September 20, 2024. Their debt is entirely from external borrowing sources which pose higher risks but no customer deposits are involved.

ASX:APE Share price vs Value as at Sep 2024
ASX:APE Share price vs Value as at Sep 2024

Corporate Travel Management

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Corporate Travel Management provides travel services across Asia, Europe, North America, and Australia and New Zealand, with a market cap of A$2.98 billion.

Operations: Corporate Travel Management generates revenue primarily from its travel services across Asia, Europe, North America, and Australia/New Zealand. The company's gross profit margin has shown variability over the years, peaking at 49.97% in June 2018 and dipping to -11.73% in December 2020 before recovering to 41.60% by December 2023. Key cost components include COGS and operating expenses, with significant allocations towards general & administrative expenses and D&A expense.