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As the Australian market prepares for a modest rise, with the ASX200 expected to increase by 0.4%, investors are closely watching economic developments such as China's recent stimulus measures and US inflation trends. In this environment, identifying promising small-cap stocks can be crucial, especially those that demonstrate potential resilience and growth opportunities amidst broader market fluctuations.
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 | 35.78% | ★★★★★☆ |
| GWA Group | 17.1x | 1.6x | 39.55% | ★★★★★☆ |
| SHAPE Australia | 14.1x | 0.3x | 34.91% | ★★★★☆☆ |
| Collins Foods | 18.1x | 0.7x | 7.33% | ★★★★☆☆ |
| Centuria Capital Group | 22.4x | 5.0x | 43.54% | ★★★★☆☆ |
| Eagers Automotive | 11.2x | 0.3x | 36.47% | ★★★★☆☆ |
| Tabcorp Holdings | NA | 0.5x | 17.52% | ★★★★☆☆ |
| Dicker Data | 21.4x | 0.8x | -76.01% | ★★★☆☆☆ |
| Corporate Travel Management | 22.1x | 2.6x | -4.05% | ★★★☆☆☆ |
| Abacus Storage King | 12.6x | 7.9x | -33.00% | ★★★☆☆☆ |
Here we highlight a subset of our preferred stocks from the screener.
Eagers Automotive
Simply Wall St Value Rating: ★★★★☆☆
Overview: Eagers Automotive is a leading car retailing company in Australia, with operations primarily focused on the sale of new and used vehicles, and it has a market capitalization of approximately A$3.47 billion.
Operations: Car Retailing is the primary revenue stream, contributing significantly to total earnings. The company's gross profit margin has shown fluctuations, with a recent figure of 18.17%. Operating expenses have consistently been a substantial portion of costs.
PE: 11.2x
Eagers Automotive, a company in the Australian market often overlooked, recently reported A$5.46 billion in sales for H1 2024, up from A$4.82 billion the previous year. Despite a dip in net income to A$116 million from A$137.76 million, insider confidence is evident with Nicholas Politis purchasing 200,000 shares valued at approximately A$2.09 million between July and August 2024. While relying on external borrowing poses some risks, the company remains financially stable with operating cash flow covering its debt obligations effectively.
Mader Group
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Mader Group specializes in providing staffing and outsourcing services, with a market capitalization of A$1.06 billion.
Operations: Mader Group's primary revenue stream is from Staffing & Outsourcing Services, with recent revenues reaching A$774.47 million. The company's gross profit margin has shown an upward trend, peaking at 22.92% as of June 2024. Operating expenses are a significant cost component, with General & Administrative Expenses being the largest portion within this category.