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Over the last 7 days, the Canadian market has remained flat, but it is up 10% over the past year with earnings expected to grow by 15% per annum over the next few years. In this favorable environment, identifying undervalued small-cap stocks with insider buying can present compelling opportunities for investors.
Top 10 Undervalued Small Caps With Insider Buying In Canada
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Dundee Precious Metals | 8.6x | 2.9x | 32.00% | ★★★★★★ |
| First National Financial | 8.7x | 3.0x | 48.58% | ★★★★★☆ |
| Calfrac Well Services | 2.3x | 0.2x | 28.14% | ★★★★★☆ |
| Primaris Real Estate Investment Trust | 11.7x | 3.0x | 34.35% | ★★★★★☆ |
| Nexus Industrial REIT | 2.8x | 3.4x | 14.10% | ★★★★☆☆ |
| Guardian Capital Group | 10.4x | 4.0x | 31.27% | ★★★★☆☆ |
| Russel Metals | 9.7x | 0.5x | 43.70% | ★★★★☆☆ |
| Bragg Gaming Group | NA | 1.4x | 21.80% | ★★★★☆☆ |
| Sagicor Financial | 1.1x | 0.3x | -73.20% | ★★★★☆☆ |
| AutoCanada | 11.2x | 0.1x | -96.70% | ★★★☆☆☆ |
Here's a peek at a few of the choices from the screener.
Interfor
Simply Wall St Value Rating: ★★★★★★
Overview: Interfor is a Canadian company primarily engaged in the production and sale of solid wood products, with operations spanning North America and a market cap of approximately CA$1.20 billion.
Operations: Interfor generates revenue primarily from its Solid Wood segment, with recent quarterly revenue reaching CA$3.30 billion. The company's gross profit margin has shown significant fluctuations, peaking at 47.49% and recently dropping to 3.63%.
PE: -3.1x
Interfor, a Canadian small-cap stock, reported first-quarter 2024 sales of C$813.2 million, slightly down from C$829.9 million the previous year. Despite a net loss of C$72.9 million for the quarter, lumber production increased to 1,069 million fbm from 1,031 million fbm year-over-year. Insider confidence is evident with recent share purchases by executives in early 2024. The company’s revenue is forecasted to grow at an annual rate of 7.57%, suggesting potential for future value growth despite current financial challenges.
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Delve into the full analysis valuation report here for a deeper understanding of Interfor.
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Gain insights into Interfor's historical performance by reviewing our past performance report.
Russel Metals
Simply Wall St Value Rating: ★★★★☆☆
Overview: Russel Metals is a Canadian company involved in the distribution of metals, steel products, and energy field supplies with a market cap of approximately CA$1.82 billion.
Operations: Russel Metals generates revenue primarily from its Metals Service Centers, Energy Field Stores, and Steel Distributors segments. For the period ending 2024-03-31, the company reported a gross profit margin of 21.32% and net income margin of 5.54%.