In This Article:
In the past week, Australia's market has experienced a slight downturn with a 1.2% drop, yet it maintains a robust annual growth of 7.8%, with earnings expected to grow by 13% annually. In this context, undervalued small-cap stocks showing insider buying activity could present intriguing opportunities for investors looking to capitalize on potential market inefficiencies and anticipated growth.
Top 10 Undervalued Small Caps With Insider Buying In Australia
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Neuren Pharmaceuticals | 16.4x | 11.1x | 49.13% | ★★★★★☆ |
| Healius | NA | 0.6x | 41.95% | ★★★★★☆ |
| Dicker Data | 21.4x | 0.8x | 3.31% | ★★★★☆☆ |
| Eagers Automotive | 9.5x | 0.3x | 34.85% | ★★★★☆☆ |
| Elders | 22.9x | 0.5x | 43.31% | ★★★★☆☆ |
| Codan | 30.3x | 4.4x | 24.46% | ★★★★☆☆ |
| Smartgroup | 17.4x | 4.3x | 49.65% | ★★★☆☆☆ |
| Gold Road Resources | 16.6x | 4.1x | 46.82% | ★★★☆☆☆ |
| Coventry Group | 297.7x | 0.5x | -11.53% | ★★★☆☆☆ |
| RAM Essential Services Property Fund | NA | 6.0x | 36.41% | ★★★☆☆☆ |
Let's uncover some gems from our specialized screener.
Codan
Simply Wall St Value Rating: ★★★★☆☆
Overview: Codan is a diversified technology company that specializes in communications, metal detection, and other electronic technologies, with a market capitalization of approximately A$1.31 billion.
Operations: The company generates revenue primarily from Communications and Metal Detection, contributing A$291.50 million and A$212.20 million respectively. Gross profit margin has shown a trend, fluctuating between 54% to 57% over recent periods, reflecting variability in cost management relative to sales.
PE: 30.3x
Recently, Codan has demonstrated a compelling financial trajectory with earnings expected to grow by 16.2% annually. Despite the reliance on external borrowing—posing a higher risk due to the absence of customer deposits—the company continues to attract insider confidence, evidenced by their recent share purchases. This activity underscores a strong belief in Codan's prospects among those closest to its operations, reinforcing its appeal in the context of undervalued entities within Australia’s vibrant market landscape.
Elders
Simply Wall St Value Rating: ★★★★☆☆
Overview: Elders is an Australian company involved in providing a range of services including branch network operations, wholesale products, feed and processing services, and corporate services.
Operations: Branch Network generates the largest portion of revenue at A$2.54 billion, followed by Wholesale Products and Feed and Processing Services, which contribute A$341.19 million and A$120.14 million respectively. The gross profit margin has shown a fluctuating trend over recent periods, with the latest recorded at 19.41%.