As the ASX200 edges closer to its all-time high, buoyed by positive sentiment from Wall Street and optimism around potential US Fed rate cuts, Australian markets are experiencing a mixed performance across various sectors. While Discretionary and Utilities have shown gains, Real Estate has lagged behind, reflecting the nuanced landscape that investors must navigate. In this environment, identifying undervalued small-cap stocks with insider action becomes crucial for discerning investors. Such stocks often present unique opportunities for growth and resilience amidst broader market fluctuations.
Top 10 Undervalued Small Caps With Insider Buying In Australia
Overview: Corporate Travel Management provides travel services across Asia, Europe, North America, and Australia/New Zealand with a market cap of A$2.93 billion.
Operations: The company generates revenue primarily from travel services across Asia, Europe, North America, and Australia/New Zealand. For the period ending 2023-12-31, it reported total revenue of A$724.00 million with a net income of A$111.09 million and a gross profit margin of 41.60%. Operating expenses for the same period were A$154.59 million while non-operating expenses amounted to A$35.49 million.
PE: 20.6x
Corporate Travel Management, a small cap in Australia, shows strong insider confidence with Jamie Pherous purchasing 87,500 shares for A$1.4 million recently. The company reported solid financials for the year ending June 30, 2024, with sales of A$710.42 million and net income of A$84.45 million. It has also repurchased 1.65 million shares worth A$26.1 million as part of its buyback plan and extended this plan until June 2025 by increasing the authorization to A$126.1 million.
Overview: Neuren Pharmaceuticals focuses on developing therapies for neurodevelopmental disorders and has a market cap of A$1.08 billion.
Operations: Neuren Pharmaceuticals generates revenue primarily through sales, with significant fluctuations observed over the periods. The company has experienced varying gross profit margins, reaching as high as 88.47% in recent periods. Operating expenses have generally been around A$5 million, impacting net income outcomes significantly.
PE: 15.5x
Neuren Pharmaceuticals, a small-cap stock in Australia, has shown significant insider confidence with recent share purchases by executives. The company reported half-year sales of A$24.33 million and net income of A$8.02 million, reflecting a decline from the previous year. Despite this, their Phase 2 trial for Angelman syndrome showed promising results, and they project full-year net sales between A$340-370 million for 2024. Earnings are forecast to grow at 4.6% annually.
Overview: Sims is a global leader in metal and electronics recycling, operating through segments such as Global Trading, North America Metals, Sims Lifecycle Services, and Australia/New Zealand Metals with a market cap of A$3.22 billion.
Operations: The company generates revenue primarily from North America Metals (A$4.49 billion), Australia/New Zealand Metals (A$1.60 billion), and Global Trading (A$771.20 million). Over recent periods, the net income margin has shown variability, with a notable peak at 6.46% in June 2022 and a low of -5.39% in June 2020, reflecting fluctuations in profitability amidst changing market conditions and cost structures.
PE: 1325.0x
Sims Limited, a small-cap stock in Australia, recently reported A$7.22 billion in sales for the year ending June 30, 2024, up from A$6.66 billion the previous year. Despite this increase, they posted a net loss of A$57.8 million compared to last year's net income of A$181.1 million. Insider confidence is evident with significant share purchases over the past six months. The company announced a reduced dividend of A$0.10 per share payable on October 16, 2024.
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 ASX:CTD ASX:NEU and ASX:SGM.
