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Over the last 7 days, the Australian market has dropped 1.7%, though it remains up 8.8% over the past year with earnings forecasted to grow by 12% annually. In this dynamic environment, identifying undervalued small-cap stocks with insider action can offer unique opportunities for investors looking to capitalize on potential growth.
Top 10 Undervalued Small Caps With Insider Buying In Australia
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Corporate Travel Management | 20.3x | 2.4x | 5.36% | ★★★★★☆ |
| Beach Energy | NA | 1.4x | 37.28% | ★★★★★☆ |
| Elders | 22.7x | 0.5x | 49.48% | ★★★★☆☆ |
| Lycopodium | 9.1x | 1.3x | 27.09% | ★★★★☆☆ |
| Bapcor | NA | 0.8x | 48.81% | ★★★★☆☆ |
| Credit Corp Group | 20.3x | 2.7x | 41.94% | ★★★★☆☆ |
| Dicker Data | 20.2x | 0.7x | -65.28% | ★★★☆☆☆ |
| Coventry Group | 233.9x | 0.4x | -14.08% | ★★★☆☆☆ |
| Megaport | 127.8x | 6.3x | 43.68% | ★★★☆☆☆ |
| Abacus Group | NA | 5.8x | 27.44% | ★★★☆☆☆ |
We'll examine a selection from our screener results.
Eagers Automotive
Simply Wall St Value Rating: ★★★★☆☆
Overview: Eagers Automotive is a leading car retailing company in Australia with operations spanning property management and eliminations, and a market cap of approximately A$3.73 billion.
Operations: Car Retailing generates A$10.50 billion in revenue, with a gross profit margin of 18.17%. Operating expenses include general and administrative costs, non-operating expenses, and depreciation & amortization.
PE: 10.3x
Eagers Automotive, a small yet dynamic player in the Australian market, has shown promising signs of being undervalued. For H1 2024, it reported A$5.46 billion in sales and A$116 million in net income. Although net income dipped from A$137.76 million last year, insider confidence is evident with share purchases announced on June 11, 2024. Additionally, a dividend of A$0.24 per share was affirmed for distribution on September 20, 2024. The company's recent buyback plan further underscores its potential for growth and value retention amidst market fluctuations.
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Unlock comprehensive insights into our analysis of Eagers Automotive stock in this valuation report.
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Gain insights into Eagers Automotive's past trends and performance with our Past report.
Ingenia Communities Group
Simply Wall St Value Rating: ★★★★★☆
Overview: Ingenia Communities Group is an Australian company focused on the development, management, and operation of lifestyle and holiday communities with a market cap of approximately A$1.85 billion.
Operations: Ingenia Communities Group generates revenue primarily from its Residential - Lifestyle Development and Tourism - Ingenia Holidays segments, contributing A$205.81 million and A$134.84 million respectively. The company's gross profit margin has fluctuated, reaching 64.88% as of June 2022, but later adjusted to 61.56% by June 2024. Operating expenses have consistently impacted net income margins, which were at 3.01% in June 2024 following higher non-operating expenses of A$108 million during the same period.