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Recent movements in the Australian market have seen the ASX200 rise by 0.83%, with all sectors gaining ground, notably led by IT and Financials. As markets closely monitor ongoing developments such as the US election, investors are increasingly focused on identifying opportunities within small-cap stocks that may offer potential value amidst broader economic shifts. In this context, understanding what constitutes a promising stock—such as solid fundamentals and strategic insider activities—can be crucial for navigating current market conditions effectively.
Top 10 Undervalued Small Caps With Insider Buying In Australia
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Magellan Financial Group | 7.6x | 4.8x | 36.04% | ★★★★★☆ |
| GWA Group | 16.4x | 1.5x | 41.37% | ★★★★★☆ |
| SHAPE Australia | 14.3x | 0.3x | 32.66% | ★★★★☆☆ |
| Collins Foods | 18.0x | 0.7x | 5.69% | ★★★★☆☆ |
| Dicker Data | 19.7x | 0.7x | -64.56% | ★★★★☆☆ |
| Centuria Capital Group | 20.6x | 4.6x | 47.36% | ★★★★☆☆ |
| Fiducian Group | 19.0x | 3.5x | 1.27% | ★★★☆☆☆ |
| Coventry Group | 234.4x | 0.4x | -19.88% | ★★★☆☆☆ |
| BSP Financial Group | 7.8x | 2.8x | 1.10% | ★★★☆☆☆ |
| Cromwell Property Group | NA | 4.8x | -20.95% | ★★★☆☆☆ |
Here's a peek at a few of the choices from the screener.
Collins Foods
Simply Wall St Value Rating: ★★★★☆☆
Overview: Collins Foods is a company that operates Taco Bell and KFC restaurants in Australia and Europe, with a market capitalization of A$1.63 billion.
Operations: Revenue is primarily generated from KFC Restaurants in Australia, followed by KFC Restaurants in Europe and Taco Bell. The gross profit margin has shown a slight downward trend, reaching 50.44% recently. Operating expenses are significant, with sales and marketing being a major component.
PE: 18.0x
Collins Foods, a smaller player in the Australian market, is drawing attention due to its growth potential and strategic leadership changes. With earnings projected to grow 15% annually, the company is positioned for expansion despite relying solely on external borrowing. Recent insider confidence was shown through share purchases in September 2024. The appointment of Xavier Simonet as CEO and Managing Director from November 2024 brings a wealth of experience in global retail operations and strategic transformations, potentially enhancing Collins Foods' competitive edge.
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Unlock comprehensive insights into our analysis of Collins Foods stock in this valuation report.
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Explore historical data to track Collins Foods' 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 operations that contribute to its market capitalization of A$2.01 billion.