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The Australian market has shown resilience, with the ASX200 closing up 0.51% at 8,416 points, driven by gains in the materials and IT sectors following China's measured response to international trade tensions. As investors navigate this dynamic landscape, identifying small-cap stocks that are potentially undervalued can be appealing, especially when there is insider buying which may indicate confidence in their future prospects amidst current economic conditions.
Top 10 Undervalued Small Caps With Insider Buying In Australia
Name | PE | PS | Discount to Fair Value | Value Rating |
---|---|---|---|---|
Infomedia | 40.5x | 3.6x | 37.11% | ★★★★★★ |
Rural Funds Group | 7.5x | 5.6x | 38.71% | ★★★★★★ |
Collins Foods | 17.5x | 0.6x | 9.66% | ★★★★★☆ |
Dicker Data | 19.2x | 0.7x | -60.40% | ★★★★☆☆ |
Cromwell Property Group | NA | 4.8x | 25.05% | ★★★★☆☆ |
Healius | NA | 0.6x | 8.73% | ★★★★☆☆ |
Corporate Travel Management | 24.8x | 3.0x | 37.17% | ★★★☆☆☆ |
Abacus Storage King | 10.8x | 6.8x | -19.02% | ★★★☆☆☆ |
Eureka Group Holdings | 19.4x | 6.2x | 26.02% | ★★★☆☆☆ |
Tabcorp Holdings | NA | 0.6x | -8.72% | ★★★☆☆☆ |
Let's take a closer look at a couple of our picks from the screened companies.
Abacus Group
Simply Wall St Value Rating: ★★★★☆☆
Overview: Abacus Group is a diversified property investment company focusing on commercial real estate, with a market capitalization of A$2.15 billion.
Operations: Abacus Group's revenue primarily stems from its commercial segment, with recent figures showing A$192.35 million. The company has experienced fluctuations in net income margin, which reached as high as 1.38% but recently reported -1.26%. The gross profit margin has shown an upward trend, peaking at 77.34%. Operating expenses and non-operating expenses significantly impact the company's financial performance, with recent non-operating expenses recorded at A$351.99 million.
PE: -4.3x
Abacus Group, a small player in the Australian market, recently announced a dividend of A$0.0425 per share for the six months ending December 2024. Despite relying solely on external borrowing for funding, which poses higher risk, insider confidence is evident with recent share purchases. Earnings are projected to grow by 59% annually, suggesting potential future value. The appointment of Lucy Rowe as company secretary marks a shift in leadership dynamics at Abacus.
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Take a closer look at Abacus Group's potential here in our valuation report.
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Evaluate Abacus Group's historical performance by accessing our past performance report.
Corporate Travel Management
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Corporate Travel Management is a company that provides travel services across Asia, Europe, North America, and Australia/New Zealand, with a market capitalization of A$3.18 billion.