In recent weeks, global markets have experienced a positive shift, with U.S. equities advancing amid easing trade tensions and constructive economic indicators. Small-cap stocks, in particular, have shown resilience as they posted gains for the third consecutive week despite broader economic uncertainties such as slowing business activity growth and rising consumer prices. In this context of fluctuating market conditions, identifying promising small-cap stocks often involves looking for companies that demonstrate strong fundamentals and are potentially positioned to benefit from insider actions or strategic developments.
Top 10 Undervalued Small Caps With Insider Buying Globally
Overview: Infomedia is a company that specializes in providing software solutions for the automotive industry, with a market capitalization of A$ 0.50 billion.
Operations: Infomedia generates revenue primarily from publishing periodicals, with a recent figure of A$142.41 million. The company's gross profit margin has consistently been around 95%, indicating strong profitability before accounting for operating expenses. Operating expenses are significant, with general and administrative costs being the largest component, recently at A$71.36 million. Net income margin has shown variability, reaching 11.16% in the latest period, reflecting the impact of both operational and non-operational costs on overall profitability.
PE: 29.4x
Infomedia, a smaller company in its sector, recently reported a rise in net income to A$8.33 million for the half-year ending December 2024, up from A$5.12 million the previous year. Despite relying solely on external borrowing for funding, which carries higher risk than customer deposits, they maintain high-quality earnings with minimal one-off items affecting results. Insider confidence is evident with share repurchase plans announced in February 2025 to buy back up to 18.79 million shares by March 2026.
Overview: Troax Group specializes in manufacturing and supplying mesh panel solutions for industrial applications, with a market cap of €2.3 billion.
Operations: The company's primary revenue stream is derived from mesh panels, with recent quarterly revenues reaching €275.94 million. Over the observed periods, gross profit margin has shown fluctuations, most recently recorded at 37.30%. Operating expenses are significant, driven primarily by sales and marketing expenses which have increased to €40.43 million in the latest quarter.
PE: 24.3x
Troax Group, a security solutions provider, recently reported a slight dip in Q1 2025 sales to €68.3 million from €70.9 million last year, with net income also decreasing to €5.3 million from €6.7 million. Despite these declines, insider confidence is evident as they have increased their shareholdings over the past six months. The company maintains a dividend of €0.34 per share and forecasts earnings growth at 18% annually, although its funding relies entirely on external borrowing, which carries higher risk.
Overview: NorthWest Healthcare Properties Real Estate Investment Trust operates as a global owner and manager of healthcare real estate, with a market capitalization of approximately CA$2.50 billion.
Operations: The company generates revenue primarily from the healthcare real estate industry, with a recent figure of CA$465.67 million. The gross profit margin has shown variability, reaching 82.39% in September 2021 before decreasing to 75.73% by December 2024. Operating expenses have fluctuated around CA$50-55 million in recent periods, while non-operating expenses have significantly impacted net income margins, leading to negative figures such as -64.37% in December 2024.
PE: -4.1x
NorthWest Healthcare Properties REIT, a smaller player in the real estate sector, shows potential for growth despite recent financial challenges. For the full year ending December 2024, sales dropped to C$462.4 million from C$508 million the previous year, with a net loss of C$299.76 million. However, insider confidence is evident as an independent trustee acquired 600,000 shares for approximately C$2.72 million recently. The company completed a significant debt refinancing with a C$500 million debenture offering to manage its liabilities better and maintain stability while continuing monthly dividends of C$0.03 per unit through April 2025.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include ASX:IFM OM:TROAX and TSX:NWH.UN.
