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Over the last 7 days, the Australian market has dropped 2.2%. In contrast to the last week, the market is up 5.2% over the past year, with earnings expected to grow by 13% per annum over the next few years. In this context, identifying undervalued small-cap stocks with insider buying can present compelling opportunities for investors looking to capitalize on potential growth.
Top 10 Undervalued Small Caps With Insider Buying In Australia
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| DUG Technology | 55.2x | 3.8x | 13.79% | ★★★★★☆ |
| RAM Essential Services Property Fund | NA | 5.9x | 44.25% | ★★★★★☆ |
| Healius | NA | 0.6x | 46.87% | ★★★★★☆ |
| Elders | 23.1x | 0.5x | 48.76% | ★★★★☆☆ |
| Eagers Automotive | 9.4x | 0.3x | 41.98% | ★★★★☆☆ |
| MFF Capital Investments | 4.9x | 3.3x | 46.34% | ★★★★☆☆ |
| Codan | 29.9x | 4.4x | 33.67% | ★★★★☆☆ |
| Coventry Group | 289.4x | 0.4x | 2.20% | ★★★★☆☆ |
| Dicker Data | 22.5x | 0.8x | 9.20% | ★★★☆☆☆ |
| BSP Financial Group | 8.6x | 2.9x | 2.41% | ★★★☆☆☆ |
Here's a peek at a few of the choices from the screener.
Codan
Simply Wall St Value Rating: ★★★★☆☆
Overview: Codan is an Australian technology company specializing in communications and metal detection solutions, with a market cap of A$1.15 billion.
Operations: Codan generates revenue primarily from its Communications and Metal Detection segments, with recent quarterly revenues reaching A$510.57 million. The company's gross profit margin has recently been around 54.42%.
PE: 29.9x
Codan, a small-cap Australian company, has seen significant insider confidence with multiple share purchases over the past six months. They are forecasted to grow earnings by 16.2% annually. Despite relying solely on external borrowing for funding, which carries higher risk compared to customer deposits, Codan's growth potential remains strong. Recent developments in their technology segment have bolstered investor interest, hinting at promising future prospects for this undervalued stock in the tech industry.
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Take a closer look at Codan's potential here in our valuation report.
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Explore historical data to track Codan's performance over time in our Past section.
Dicker Data
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Dicker Data is a wholesale distributor specializing in computer peripherals, with a market cap of approximately A$1.75 billion.
Operations: The company generates revenue primarily from wholesale computer peripherals, with a recent gross profit margin of 14.23%. Operating expenses include general and administrative costs, depreciation and amortization, and non-operating expenses. Net income margin stands at 3.62%.