Top 3 Undervalued Small Caps With Insider Action In Australia For September 2024

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The Australian market has shown mixed performance recently, with the ASX200 closing up 0.58% at 8,091.9 points amid a flurry of earnings reports and flat retail sales data. While sectors like Industrials and Energy posted gains, Consumer Discretionary stocks faced declines, reflecting broader economic uncertainties. In such a dynamic environment, identifying undervalued small-cap stocks with insider action can offer unique opportunities for investors looking to capitalize on potential growth and strategic moves within these companies.

Top 10 Undervalued Small Caps With Insider Buying In Australia

Name

PE

PS

Discount to Fair Value

Value Rating

Corporate Travel Management

20.0x

2.4x

6.22%

★★★★★☆

Beach Energy

NA

1.6x

31.05%

★★★★★☆

SHAPE Australia

13.9x

0.3x

35.42%

★★★★☆☆

Elders

22.9x

0.5x

49.21%

★★★★☆☆

Lycopodium

9.6x

1.4x

22.54%

★★★★☆☆

Bapcor

NA

0.8x

47.74%

★★★★☆☆

Eagers Automotive

10.4x

0.3x

39.43%

★★★★☆☆

Credit Corp Group

20.2x

2.7x

41.67%

★★★★☆☆

Codan

34.5x

5.1x

13.15%

★★★☆☆☆

Coventry Group

246.3x

0.4x

-19.92%

★★★☆☆☆

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

Let's dive into some prime choices out of from the screener.

Abacus Group

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Abacus Group is a diversified property investment company focused on commercial real estate, with a market cap of A$2.50 billion.

Operations: Abacus Group's revenue primarily comes from commercial operations, with recent figures showing A$192.35 million. The company has experienced fluctuations in its net income margin, reaching a peak of 1.3826% in March 2022 but recently falling to -1.2581% by September 2024. Operating expenses have varied, with general and administrative expenses consistently being a significant component.

PE: -4.5x

Abacus Group, a small cap in Australia, recently reported a net loss of A$241.04 million for the year ending June 30, 2024, compared to a net income of A$25.5 million the previous year. Despite this setback, earnings are forecasted to grow by 47.27% annually. Insider confidence is evident with recent share purchases over the past six months. The company announced an ordinary dividend of A$0.0425 per security for H1 2024, highlighting its commitment to returning value to shareholders despite current challenges.

ASX:ABG Share price vs Value as at Sep 2024
ASX:ABG Share price vs Value as at Sep 2024

Eagers Automotive

Simply Wall St Value Rating: ★★★★☆☆

Overview: Eagers Automotive is a leading automotive retail group in Australia, primarily engaged in car retailing with operations that also include property management, and it has a market cap of A$3.27 billion.