Exploring 3 Undervalued Small Caps On ASX With Insider Buying

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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%

★★★☆☆☆

Click here to see the full list of 20 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.

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.

ASX:ABG Share price vs Value as at Feb 2025
ASX:ABG Share price vs Value as at Feb 2025

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.