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Codan And Two More Undervalued Small Caps With Insider Action In Australia

In This Article:

In the past year, the Australian market has demonstrated resilience with a 6.5% increase, despite a recent 1.4% dip over the last seven days. In such an environment, undervalued small-cap stocks like Codan that exhibit insider buying activity can present intriguing opportunities for investors looking to capitalize on potential growth prospects forecasted at 13% annually.

Top 10 Undervalued Small Caps With Insider Buying In Australia

Name

PE

PS

Discount to Fair Value

Value Rating

Corporate Travel Management

17.6x

2.7x

47.32%

★★★★★★

Nick Scali

13.7x

2.5x

45.68%

★★★★★★

RAM Essential Services Property Fund

NA

5.6x

41.70%

★★★★★☆

Healius

NA

0.6x

43.68%

★★★★★☆

Dicker Data

20.7x

0.8x

3.94%

★★★★☆☆

Eagers Automotive

9.5x

0.3x

34.15%

★★★★☆☆

Codan

28.7x

4.2x

27.05%

★★★★☆☆

Elders

20.3x

0.4x

49.88%

★★★★☆☆

Tabcorp Holdings

NA

0.6x

21.65%

★★★★☆☆

Coventry Group

283.1x

0.4x

-17.24%

★★★☆☆☆

Click here to see the full list of 28 stocks from our Undervalued ASX Small Caps With Insider Buying screener.

Let's take a closer look at a couple of our picks from the screened companies.

Codan

Simply Wall St Value Rating: ★★★★☆☆

Overview: Codan is a diversified technology company specializing in communications equipment and metal detection, with a market capitalization of approximately A$1.02 billion.

Operations: Communications and Metal Detection are the primary revenue contributors, generating A$291.50 million and A$212.20 million respectively. The company has experienced a gross profit margin of approximately 54.42% as of the latest reporting period in 2024.

PE: 28.7x

Recently, insiders at Codan have shown their belief in the company's potential through share purchases, signaling insider confidence. This action aligns with projections that forecast a 16% annual growth in earnings. Despite relying solely on external borrowing—a higher risk funding method—Codan remains a compelling prospect within the undervalued Australian market sector, suggesting both challenges and opportunities ahead. This blend of financial health and insider activity makes it an interesting consideration for those eyeing hidden gems in the market.

ASX:CDA Share price vs Value as at Jul 2024
ASX:CDA Share price vs Value as at Jul 2024

Lifestyle Communities

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Lifestyle Communities is a company engaged in property development and management, with a market capitalization of approximately A$1.20 billion.

Operations: The company generates revenue primarily through property development and management, evidenced by a recent figure of A$239.11 million. Over the years, it has demonstrated a fluctuating gross profit margin, with the most recent being 21.02%.