Insider Buying Highlights 3 Undervalued Small Caps In Australia

In This Article:

The Australian market has experienced a flat week but remains robust with a 17% increase over the past year, and earnings are projected to grow by 12% annually. In this environment, identifying stocks that combine strong fundamentals with potential insider confidence can be key to uncovering investment opportunities.

Top 10 Undervalued Small Caps With Insider Buying In Australia

Name

PE

PS

Discount to Fair Value

Value Rating

Magellan Financial Group

7.8x

4.9x

35.85%

★★★★★☆

GWA Group

17.0x

1.6x

39.77%

★★★★★☆

Tabcorp Holdings

NA

0.5x

20.55%

★★★★★☆

SHAPE Australia

14.4x

0.3x

33.32%

★★★★☆☆

Collins Foods

18.0x

0.7x

7.96%

★★★★☆☆

Centuria Capital Group

22.7x

5.1x

43.01%

★★★★☆☆

Bapcor

NA

0.9x

45.42%

★★★★☆☆

Mader Group

22.4x

1.5x

46.28%

★★★☆☆☆

Dicker Data

21.3x

0.8x

-75.32%

★★★☆☆☆

Coventry Group

236.1x

0.4x

-16.93%

★★★☆☆☆

Click here to see the full list of 23 stocks from our Undervalued ASX Small Caps With Insider Buying screener.

Here's a peek at a few of the choices from the screener.

Mader Group

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Mader Group operates in the staffing and outsourcing services sector, with a focus on providing skilled labor solutions, and has a market capitalization of A$1.14 billion.

Operations: The company primarily generates revenue from its Staffing & Outsourcing Services, with a recent gross profit margin of 20.92%. Operating expenses, including general and administrative costs, significantly impact the financial structure.

PE: 22.4x

Mader Group, a small Australian company, has been added to the S&P Global BMI Index as of September 2024. This inclusion reflects a growing recognition in the market. With fiscal 2025 revenue forecasted at A$870 million and net profit after tax expected to rise by 13%, Mader shows strong growth potential. Insider confidence is evident with recent share purchases, indicating belief in future prospects despite reliance on external borrowing for funding.

ASX:MAD Share price vs Value as at Oct 2024
ASX:MAD Share price vs Value as at Oct 2024

Sims

Simply Wall St Value Rating: ★★★★☆☆

Overview: Sims is a company involved in metal recycling and electronics lifecycle services, with operations spanning global trading, North America Metals, Australia/New Zealand Metals, and Sims Lifecycle Services.

Operations: Sims generates revenue primarily from its North America Metals (NAM) and Australia/New Zealand (ANZ) Metals segments, with significant contributions from Global Trading and Sims Lifecycle Services (SLS). The company's cost of goods sold (COGS) is a major expense, impacting its gross profit margins, which have fluctuated between 8.37% and 14.38% over the provided periods. Operating expenses also play a critical role in determining net income outcomes.