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ASX Undervalued Small Caps With Insider Buying In Australia

In This Article:

The Australian market has experienced a downturn recently, with consumer discretionary stocks taking a significant hit and broader sentiment impacted by external factors such as U.S. trade policies. In this challenging environment, identifying small-cap stocks that have potential for growth often involves looking at companies where insiders are buying shares, suggesting confidence in their future prospects despite current market volatility.

Top 10 Undervalued Small Caps With Insider Buying In Australia

Name

PE

PS

Discount to Fair Value

Value Rating

Amotiv

17.1x

1.4x

48.47%

★★★★★★

Abacus Storage King

7.8x

7.0x

21.38%

★★★★★☆

Autosports Group

9.8x

0.1x

31.61%

★★★★★☆

Abacus Group

NA

4.6x

25.47%

★★★★★☆

Collins Foods

18.9x

0.6x

0.90%

★★★★☆☆

Schaffer

9.5x

1.3x

29.05%

★★★★☆☆

Dicker Data

19.4x

0.7x

-68.16%

★★★☆☆☆

Iluka Resources

8.1x

1.6x

-44.05%

★★★☆☆☆

Cromwell Property Group

NA

5.1x

19.28%

★★★☆☆☆

Tabcorp Holdings

NA

0.6x

-36.35%

★★★☆☆☆

Click here to see the full list of 16 stocks from our Undervalued ASX Small Caps With Insider Buying screener.

Let's dive into some prime choices out of from the screener.

Charter Hall Retail REIT

Simply Wall St Value Rating: ★★★★☆☆

Overview: Charter Hall Retail REIT is an Australian real estate investment trust specializing in convenience-based retail properties, with a market capitalization of A$2.37 billion.

Operations: The primary revenue streams are from Convenience Shopping Centre Retail and Convenience Net Lease Retail, contributing A$223.6 million and A$52 million, respectively. Over recent periods, the net income margin showed significant fluctuations, peaking at 1.33% in June 2022 before declining to -0.58% in December 2023 and then recovering to 0.57% by December 2024. Operating expenses have remained relatively low compared to gross profit, with a notable increase in non-operating expenses impacting net income significantly during some periods.

PE: 11.8x

Charter Hall Retail REIT, a smaller player in the Australian market, recently reaffirmed its earnings and distribution guidance for fiscal year 2025, projecting operating earnings of A$0.254 per unit. Despite a drop in sales to A$95.5 million for the half-year ending December 31, 2024, revenue rose to A$193 million from A$149.5 million the previous year. The company reported net income of A$108.6 million compared to a loss previously recorded, showcasing improved financial health amidst high-risk external funding sources and insider confidence through share purchases last quarter signals potential growth prospects ahead.