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The Australian market has remained flat over the past week but has seen a 10% rise over the last 12 months, with earnings expected to grow by 12% annually. In this context, identifying small-cap stocks that are undervalued and have insider buying can be a promising strategy for investors looking to capitalize on potential growth opportunities.
Top 10 Undervalued Small Caps With Insider Buying In Australia
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Beach Energy | NA | 1.5x | 33.21% | ★★★★★☆ |
| Elders | 23.1x | 0.5x | 48.76% | ★★★★☆☆ |
| Corporate Travel Management | 20.7x | 2.5x | 3.51% | ★★★★☆☆ |
| Lycopodium | 9.4x | 1.4x | 25.09% | ★★★★☆☆ |
| Bapcor | NA | 0.8x | 48.23% | ★★★★☆☆ |
| Eagers Automotive | 10.7x | 0.3x | 38.39% | ★★★★☆☆ |
| Codan | 33.7x | 5.0x | 15.47% | ★★★☆☆☆ |
| Megaport | 135.3x | 6.7x | 40.05% | ★★★☆☆☆ |
| Coventry Group | 251.7x | 0.4x | -21.00% | ★★★☆☆☆ |
| Abacus Group | NA | 5.8x | 27.25% | ★★★☆☆☆ |
Here we highlight a subset of our preferred stocks from the screener.
Abacus Group
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Abacus Group is a diversified property investment and management company with operations primarily in commercial real estate, boasting a market cap of approximately A$2.50 billion.
Operations: Abacus Group's revenue streams primarily derive from commercial operations, with notable gross profit margins reaching up to 84.50%. Key costs include COGS and operating expenses, with recent data showing a net income margin of -125.81% for the latest period ending 2024-09-03.
PE: -4.6x
Abacus Group, a smaller Australian stock, recently reported a net loss of A$241.04 million for the fiscal year ending June 30, 2024, compared to a net income of A$25.5 million the previous year. Despite this downturn and reduced dividend payouts (A$0.0425 per share), insider confidence remains evident with notable share purchases in recent months. The company relies entirely on external borrowing for funding, which carries higher risk but is forecasted to grow earnings by 47% annually.
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Unlock comprehensive insights into our analysis of Abacus Group stock in this valuation report.
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Explore historical data to track Abacus Group's performance over time in our Past section.
Eagers Automotive
Simply Wall St Value Rating: ★★★★☆☆
Overview: Eagers Automotive is a leading Australian car retailing company with operations in property and car sales, boasting a market cap of A$3.92 billion.
Operations: Car Retailing generates the bulk of revenue at A$10.50 billion, with a gross profit margin fluctuating between 17.59% and 19.14% over recent periods. Operating expenses have been significant, with General & Administrative Expenses consistently being a major cost factor, reaching up to A$753.51 million recently.