In a global market marked by economic uncertainty and inflation concerns, small-cap stocks have shown resilience, with value shares outperforming growth for several weeks. As major indices such as the S&P 600 experience fluctuations due to trade policy uncertainties and persistent inflation, investors are increasingly attentive to insider activities that may signal potential opportunities in undervalued small-cap companies. Identifying promising stocks often involves looking at insider buying trends as they can indicate confidence from those closest to the company amidst broader market challenges.
Top 10 Undervalued Small Caps With Insider Buying Globally
Overview: Philippine National Bank is a financial institution providing a range of services including retail and corporate banking, treasury operations, and other financial services, with a market capitalization of ₱48.80 billion.
Operations: Philippine National Bank generates revenue primarily from its retail and corporate banking segments, with additional contributions from treasury operations. The company's gross profit margin has shown a strong performance, reaching as high as 99.92% in recent periods. Operating expenses are significant, with general and administrative expenses consistently being a major component.
PE: 3.7x
Philippine National Bank, a smaller player in the banking sector, is experiencing significant changes. The appointment of Edwin R. Bautista as CEO, effective April 29, 2025, brings expertise from Union Bank's digital transformation and retail lending success. Despite a high bad loans ratio of 6.9%, recent insider confidence is evident with Roberto Baltazar's purchase of 119,600 shares for PHP 4.99 million. While earnings are expected to decline by an average of 5.4% annually over the next three years, its net income grew to PHP 21 billion in 2024 from PHP 18 billion previously.
Overview: Clairvest Group is a Canadian private equity management firm that invests in and partners with mid-market businesses, with a market cap of CA$1.26 billion.
Operations: The company generates revenue primarily from its venture capital activities, with recent figures indicating CA$180.88 million in revenue. Operating expenses have varied significantly, impacting net income margins which have fluctuated widely from 0.03% to 78.42%. The gross profit margin has consistently been at 100%, reflecting no reported cost of goods sold over the periods analyzed.
PE: 7.8x
Clairvest Group has shown significant financial improvement, with third-quarter revenue hitting C$52.48 million, a stark contrast to last year's negative figures. Net income rose to C$38.45 million from a loss of C$4.95 million, reflecting positive earnings per share at C$2.7 compared to last year’s losses. The company announced a buyback program for up to 718,192 shares, indicating potential value recognition by the board amidst its reliance on riskier external funding sources for capital needs.
Overview: Dream Unlimited is a Canadian real estate company engaged in development and recurring income operations, with a market capitalization of approximately CA$1.45 billion.
Operations: Dream Unlimited generates revenue primarily from Development and Recurring Income, with recent figures indicating $403.27 million and $221.24 million respectively. The company has experienced fluctuations in its gross profit margin, which reached 42.57% during one period but has also been as low as 24.92%. Operating expenses include significant allocations to sales and marketing, often exceeding CA$40 million per quarter, alongside general and administrative costs typically around CA$30 million or more.
PE: 4.4x
Dream Unlimited, a smaller company in the investment landscape, recently reported a notable turnaround with CAD 624.51 million in sales for 2024, up from CAD 386.95 million the previous year, and net income of CAD 187.86 million compared to a prior loss. Despite earnings forecasted to decline by an average of 67.7% annually over the next three years, insider confidence is evident through recent share purchases. Additionally, their strategic joint venture aims to invest up to $2 billion in Canadian rental properties, highlighting growth potential amidst financial challenges like reliance on external borrowing for funding and insufficient earnings coverage for interest payments.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include PSE:PNB TSX:CVG and TSX:DRM.
