In This Article:
Despite a flat performance over the last week, the Australian market has shown robust growth, up 9.8% over the past year with earnings expected to grow by 13% annually. In this context, identifying undervalued small-cap stocks with insider buying can be a promising approach for investors seeking opportunities in a growing market.
Top 10 Undervalued Small Caps With Insider Buying In Australia
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Corporate Travel Management | 17.5x | 2.7x | 47.43% | ★★★★★★ |
| Nick Scali | 13.8x | 2.6x | 45.17% | ★★★★★★ |
| RAM Essential Services Property Fund | NA | 5.7x | 40.00% | ★★★★★☆ |
| Healius | NA | 0.6x | 42.81% | ★★★★★☆ |
| Elders | 21.4x | 0.5x | 47.24% | ★★★★☆☆ |
| Eagers Automotive | 9.4x | 0.3x | 35.11% | ★★★★☆☆ |
| Codan | 29.1x | 4.3x | 27.07% | ★★★★☆☆ |
| Tabcorp Holdings | NA | 0.7x | 19.80% | ★★★★☆☆ |
| Dicker Data | 22.8x | 0.8x | -3.66% | ★★★☆☆☆ |
| Coventry Group | 280.4x | 0.4x | -15.58% | ★★★☆☆☆ |
Let's dive into some prime choices out of from the screener.
Codan
Simply Wall St Value Rating: ★★★★☆☆
Overview: Codan is a diversified technology company specializing in communications, metal detection, and other electronic technologies, with a market capitalization of approximately A$1.07 billion.
Operations: Communications and Metal Detection are the primary revenue drivers, generating A$291.50 million and A$212.20 million respectively. The company's gross profit margin has shown a trend around 55% to 57% over recent periods, reflecting its cost management in relation to revenue generation from these segments.
PE: 29.1x
Codan, a notable player in the technology sector, recently saw insider confidence bolstered as they acquired shares, signaling strong belief in the company's trajectory. With earnings projected to grow by 16.2% annually, this firm exemplifies potential within Australia's underappreciated market segments. Despite relying solely on external borrowing—a higher risk funding source—Codan maintains a compelling position with its strategic focus and insider investments underscoring its promising outlook.
-
Delve into the full analysis valuation report here for a deeper understanding of Codan.
-
Assess Codan's past performance with our detailed historical performance reports.
Dicker Data
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Dicker Data is an Australian company specializing in the wholesale distribution of computer peripherals, with a market capitalization of approximately A$2.27 billion.
Operations: The gross profit margin of Wholesale - Computer Peripherals increased from 8.48% in 2013 to 14.23% by the end of 2023, reflecting a growing efficiency in managing cost of goods sold relative to revenue, which stood at A$2.27 billion for both initial and final recorded periods. This sector achieved a net income margin increase from approximately 2.07% to over 3.62% over the same period, indicating improved profitability after accounting for all operational expenses and costs.