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As the Canadian market navigates political uncertainties and recent pullbacks, it remains buoyed by strong economic fundamentals and easing inflation, positioning it for potential growth despite leadership transitions. In this environment, identifying small-cap stocks with solid financials and insider activity can offer intriguing opportunities for investors looking to capitalize on market volatility.
Top 10 Undervalued Small Caps With Insider Buying In Canada
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Sagicor Financial | 1.1x | 0.3x | 37.71% | ★★★★★★ |
| Primaris Real Estate Investment Trust | 12.7x | 3.4x | 43.63% | ★★★★★☆ |
| Calfrac Well Services | 11.5x | 0.2x | 37.46% | ★★★★★☆ |
| Nexus Industrial REIT | 12.5x | 3.1x | 28.71% | ★★★★★☆ |
| Aris Mining | NA | 1.2x | 45.59% | ★★★★★☆ |
| First National Financial | 13.4x | 3.8x | 43.47% | ★★★★☆☆ |
| Baytex Energy | NA | 0.8x | -109.64% | ★★★★☆☆ |
| Hemisphere Energy | 6.0x | 2.3x | -108.28% | ★★★☆☆☆ |
| Minto Apartment Real Estate Investment Trust | NA | 5.5x | 19.92% | ★★★☆☆☆ |
| StorageVault Canada | NA | 4.9x | -676.91% | ★★★☆☆☆ |
Underneath we present a selection of stocks filtered out by our screen.
Hammond Power Solutions
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Hammond Power Solutions specializes in the manufacture and sale of transformers, with a market capitalization of CA$1.56 billion.
Operations: The company's revenue is primarily derived from the manufacture and sale of transformers, with a recent gross profit margin of 33.46%. Operating expenses include significant allocations to sales and marketing, as well as general and administrative costs.
PE: 22.3x
Hammond Power Solutions, a Canadian company in the transformer industry, recently reported third-quarter sales of C$191.97 million, up from C$179.52 million year-over-year, with net income rising to C$16.31 million. Insider confidence is evident as Dahra Granovsky purchased 1,500 shares for approximately C$175,538 between September and December 2024. The company's earnings are projected to grow by 11% annually despite relying solely on external borrowing for funding, highlighting potential growth amid higher risk factors.
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Click to explore a detailed breakdown of our findings in Hammond Power Solutions' valuation report.
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Gain insights into Hammond Power Solutions' past trends and performance with our Past report.
H&R Real Estate Investment Trust
Simply Wall St Value Rating: ★★★★★☆
Overview: H&R Real Estate Investment Trust is a Canadian-based REIT with a market capitalization of CA$3.93 billion, focused on managing and developing properties across office, retail, industrial, and residential sectors.