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Undervalued Small Caps With Insider Action On ASX In November 2024

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In recent weeks, the Australian market has demonstrated resilience, with the ASX200 reaching new highs despite mixed performances across various sectors. While Health Care and Financials have shown strength, Energy and Industrials have lagged behind, highlighting a diverse landscape for investors to navigate. In this context, identifying small-cap stocks with potential insider action can offer unique opportunities for those seeking growth in an evolving market environment.

Top 10 Undervalued Small Caps With Insider Buying In Australia

Name

PE

PS

Discount to Fair Value

Value Rating

GWA Group

15.9x

1.5x

42.58%

★★★★★★

DUG Technology

53.9x

2.3x

49.40%

★★★★★☆

Collins Foods

18.3x

0.7x

3.16%

★★★★☆☆

Dicker Data

18.8x

0.7x

-56.10%

★★★★☆☆

Eureka Group Holdings

18.8x

6.0x

26.79%

★★★★☆☆

FINEOS Corporation Holdings

NA

3.4x

47.93%

★★★★☆☆

Healius

NA

0.6x

11.05%

★★★★☆☆

Tabcorp Holdings

NA

0.5x

7.44%

★★★★☆☆

Corporate Travel Management

24.1x

2.9x

40.90%

★★★☆☆☆

Cromwell Property Group

NA

4.5x

-17.12%

★★★☆☆☆

Click here to see the full list of 28 stocks from our Undervalued ASX Small Caps With Insider Buying screener.

Let's explore several standout options from the results in the screener.

Healius

Simply Wall St Value Rating: ★★★★☆☆

Overview: Healius is a healthcare company primarily engaged in providing pathology and imaging services, with a market capitalization of A$2.36 billion.

Operations: Healius generates revenue primarily from its Pathology and Imaging segments, contributing A$1.27 billion and A$474.5 million, respectively. The company's gross profit margin has shown a declining trend, reaching 31.00% by the end of 2024. Operating expenses have consistently impacted profitability, with significant non-operating expenses further affecting net income margins negatively over recent periods.

PE: -1.6x

Healius, a smaller player in Australia's healthcare sector, presents an intriguing case for investors seeking overlooked opportunities. Despite recent shareholder dilution and reliance on external borrowing, the company's earnings are projected to soar by 85% annually. Insider confidence is evident with recent share purchases throughout 2024. The sale of Lumus Imaging in September 2024 highlights strategic repositioning efforts. With constitutional amendments approved in November 2024, Healius is poised for potential transformation amidst industry shifts.

ASX:HLS Share price vs Value as at Nov 2024
ASX:HLS Share price vs Value as at Nov 2024

Infomedia

Simply Wall St Value Rating: ★★★★★★

Overview: Infomedia is a company that specializes in providing software solutions and data analytics for the automotive industry, with a market capitalization of A$0.45 billion.