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The Australian market has climbed 1.1% in the last 7 days and is up 11% over the last 12 months, with earnings forecast to grow by 13% annually. In this thriving environment, identifying undervalued small-cap stocks with insider buying can offer promising opportunities for investors looking to capitalize on potential growth.
Top 10 Undervalued Small Caps With Insider Buying In Australia
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Corporate Travel Management | 19.9x | 2.4x | 6.69% | ★★★★★☆ |
| Dicker Data | 22.2x | 0.8x | 10.12% | ★★★★☆☆ |
| Elders | 22.7x | 0.5x | 49.48% | ★★★★☆☆ |
| Lycopodium | 9.3x | 1.4x | 24.78% | ★★★★☆☆ |
| Neuren Pharmaceuticals | 16.7x | 10.1x | -8.11% | ★★★★☆☆ |
| Eagers Automotive | 10.0x | 0.2x | 40.90% | ★★★★☆☆ |
| Credit Corp Group | 20.0x | 2.7x | 42.56% | ★★★★☆☆ |
| Codan | 33.4x | 4.9x | 15.89% | ★★★☆☆☆ |
| Coventry Group | 244.6x | 0.4x | -19.28% | ★★★☆☆☆ |
| Abacus Group | NA | 5.6x | 29.57% | ★★★☆☆☆ |
Below we spotlight a couple of our favorites from our exclusive screener.
Abacus Group
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Abacus Group is a diversified property investment and management company with operations primarily in commercial real estate, boasting a market cap of approximately A$2.50 billion.
Operations: The company generates revenue primarily from its commercial segment, with recent figures showing A$192.35 million. Its gross profit margin has varied, reaching as high as 77.34% in the latest period ending June 30, 2024. Operating expenses and non-operating expenses have significantly impacted net income, leading to a net loss of A$241.99 million for the same period.
PE: -4.5x
Abacus Group, a smaller Australian investment option, recently reported a net loss of A$241.04 million for the fiscal year ending June 30, 2024, compared to a net income of A$25.5 million the previous year. Despite this setback, insider confidence is evident with notable share purchases over the past six months. Sales slightly dipped to A$144.37 million from A$147.08 million last year. Interest payments remain poorly covered by earnings; however, earnings are forecasted to grow 56% annually moving forward.
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Get an in-depth perspective on Abacus Group's performance by reading our valuation report here.
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Examine Abacus Group's past performance report to understand how it has performed in the past.
Codan
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Codan is a technology company specializing in communications and metal detection products, with a market cap of A$1.19 billion.
Operations: Codan generates revenue primarily from its Communications and Metal Detection segments, with the former contributing A$326.91 million and the latter A$219.85 million. The company's gross profit margin has shown variability, peaking at 60.25% in June 2017 and declining to 54.42% by December 2023. Operating expenses have increased over time, reaching A$190.78 million in June 2024, driven mainly by sales & marketing and R&D expenditures.