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The Australian market has recently seen mixed performance, with the ASX200 closing slightly down by 0.04% at 8,024 points. While sectors like Telecommunications and Health Care have shown resilience, Utilities and Energy experienced notable declines. In this context of fluctuating market sentiment, identifying undervalued small-cap stocks with insider buying can offer unique opportunities for investors seeking growth potential amidst economic uncertainties.
Top 10 Undervalued Small Caps With Insider Buying In Australia
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Servcorp | 12.2x | 1.5x | 13.58% | ★★★★☆☆ |
| Elders | 23.0x | 0.5x | 48.98% | ★★★★☆☆ |
| Eagers Automotive | 10.2x | 0.3x | 40.01% | ★★★★☆☆ |
| Growthpoint Properties Australia | NA | 5.4x | 30.54% | ★★★★☆☆ |
| Codan | 33.1x | 4.9x | 16.35% | ★★★☆☆☆ |
| Coventry Group | 235.7x | 0.4x | -16.09% | ★★★☆☆☆ |
| oOh!media | 20.4x | 1.1x | -26.18% | ★★★☆☆☆ |
| Neuren Pharmaceuticals | 12.6x | 8.6x | -49.80% | ★★★☆☆☆ |
| Kelsian Group | 45.6x | 0.8x | 29.55% | ★★★☆☆☆ |
| Credit Corp Group | 21.1x | 2.8x | 40.04% | ★★★☆☆☆ |
Here we highlight a subset of our preferred stocks from the screener.
Codan
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Codan is a technology company specializing in communications and metal detection solutions, with a market cap of A$1.54 billion.
Operations: The company generates revenue primarily from its Communications and Metal Detection segments, with total revenue reaching A$550.46 million as of June 30, 2024. The net income margin has shown a downward trend, hitting 14.79% in the same period.
PE: 33.1x
Codan, a small-cap Australian company, reported impressive annual sales of A$550.46 million for the year ending June 30, 2024, up from A$456.5 million the previous year. Net income rose to A$81.39 million from A$67.7 million, reflecting strong growth in earnings per share to A$0.45 from A$0.375 previously. Insider confidence is evident with recent significant share purchases by executives over the past six months, indicating belief in future prospects despite reliance on external borrowing for funding.
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Navigate through the intricacies of Codan with our comprehensive valuation report here.
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Assess Codan's past performance with our detailed historical performance reports.
Cedar Woods Properties
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Cedar Woods Properties is a property development and investment company with operations primarily focused on residential, commercial, and retail projects, holding a market cap of approximately A$0.36 billion.
Operations: The company's primary revenue stream is derived from property development and investment, with recent revenue reported at A$386.30 million. The gross profit margin has shown variability, reaching 46.68% in June 2016 and 19.27% in December 2023, reflecting fluctuations in cost of goods sold (COGS). Operating expenses have also varied over the periods, impacting net income margins which have ranged from a high of 29.29% in December 2015 to a low of 6.96% in December 2023.