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The Australian market has shown notable resilience, with the Financials sector gaining 3.6% while the overall market remained flat over the last week and up 10% over the past year. In this environment of anticipated 12% annual earnings growth, identifying undervalued small-cap stocks with insider action can offer promising opportunities for investors seeking to capitalize on potential market gains.
Top 10 Undervalued Small Caps With Insider Buying In Australia
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| SHAPE Australia | 13.6x | 0.3x | 37.58% | ★★★★★☆ |
| Corporate Travel Management | 20.5x | 2.4x | 4.66% | ★★★★★☆ |
| Beach Energy | NA | 1.5x | 36.35% | ★★★★★☆ |
| Elders | 22.6x | 0.5x | 49.87% | ★★★★☆☆ |
| Lycopodium | 9.2x | 1.4x | 26.17% | ★★★★☆☆ |
| Bapcor | NA | 0.8x | 49.25% | ★★★★☆☆ |
| Eagers Automotive | 10.5x | 0.3x | 39.22% | ★★★★☆☆ |
| Codan | 33.6x | 5.0x | 15.96% | ★★★☆☆☆ |
| Coventry Group | 251.7x | 0.4x | -20.29% | ★★★☆☆☆ |
| Abacus Group | NA | 5.7x | 28.62% | ★★★☆☆☆ |
We're going to check out a few of the best picks from our screener tool.
Abacus Group
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Abacus Group is a diversified property group primarily involved in the investment and management of commercial properties, with a market cap of A$2.36 billion.
Operations: Abacus Group (ASX:ABG) generates revenue primarily from its commercial segment. The company's gross profit margin has shown fluctuations, most recently at 77.34% as of September 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 with a net income margin of -125.81%.
PE: -4.5x
Abacus Group, a smaller player in the Australian market, 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 last year. Despite this downturn, insider confidence remains high with significant share purchases over the past six months. The company announced an ordinary dividend of A$0.0425 per security for H1 2024 and forecasts earnings growth at 47% annually.
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Navigate through the intricacies of Abacus Group with our comprehensive valuation report here.
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Explore historical data to track Abacus Group's performance over time in our Past section.
Eagers Automotive
Simply Wall St Value Rating: ★★★★☆☆
Overview: Eagers Automotive is a leading Australian automotive retail group with operations primarily in car retailing and a market cap of approximately A$3.56 billion.
Operations: The company generates revenue primarily from car retailing, amounting to A$10.50 billion. Over recent periods, it has experienced fluctuations in its net income margin, peaking at 3.75% and dipping to -1.42%. The gross profit margin reached a high of 19.14%.