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The Australian market remained flat over the last week but has risen 12% in the past 12 months, with earnings expected to grow by 14% per annum over the next few years. In this context, identifying undervalued small caps with insider action can offer promising opportunities for investors seeking to capitalize on potential growth in a steady market.
Top 10 Undervalued Small Caps With Insider Buying In Australia
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Corporate Travel Management | 19.9x | 2.4x | 6.54% | ★★★★★☆ |
| Growthpoint Properties Australia | NA | 5.5x | 28.73% | ★★★★★☆ |
| Elders | 22.8x | 0.5x | 49.32% | ★★★★☆☆ |
| Lycopodium | 9.4x | 1.4x | 24.08% | ★★★★☆☆ |
| Eagers Automotive | 10.0x | 0.2x | 40.60% | ★★★★☆☆ |
| Abacus Group | NA | 5.2x | 33.14% | ★★★★☆☆ |
| Codan | 33.5x | 5.0x | 15.50% | ★★★☆☆☆ |
| Dicker Data | 22.7x | 0.8x | 7.95% | ★★★☆☆☆ |
| Coventry Group | 241.0x | 0.4x | -18.27% | ★★★☆☆☆ |
| Credit Corp Group | 20.8x | 2.8x | 40.56% | ★★★☆☆☆ |
Here's a peek at a few of the choices from the screener.
Codan
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Codan is a company that specializes in communications and metal detection technologies, with a market cap of A$2.14 billion.
Operations: The company generates revenue primarily from Communications (A$326.91 million) and Metal Detection (A$219.85 million). The gross profit margin has varied, with recent figures around 54.55% to 55.45%.
PE: 33.5x
Codan Limited, a small Australian company, reported impressive financial results for the year ending June 30, 2024. Sales increased to A$550.46 million from A$456.5 million the previous year, while net income rose to A$81.39 million from A$67.7 million. Basic earnings per share grew to A$0.45 from A$0.375 last year, reflecting strong performance despite higher-risk funding sources like external borrowing only. Insider confidence is evident with recent share purchases by executives in August 2024, suggesting potential growth ahead.
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Delve into the full analysis valuation report here for a deeper understanding of Codan.
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Understand Codan's track record by examining our Past report.
Cedar Woods Properties
Simply Wall St Value Rating: ★★★★★☆
Overview: Cedar Woods Properties is an Australian property development and investment company with operations focused on residential, commercial, and industrial projects, and a market cap of approximately A$0.36 billion.
Operations: The company generates revenue primarily from property development and investment, with a recent reported revenue of A$386.35 million. The cost of goods sold (COGS) for the same period was A$311.45 million, resulting in a gross profit margin of 19.39%. Operating expenses amounted to A$27.72 million, with non-operating expenses at A$6.68 million, leading to a net income margin of 10.48%.