As global markets navigate a period of heightened uncertainty, the Federal Reserve's decision to hold rates steady has provided some relief, with U.S. stocks closing the week higher and small-cap indices like the S&P MidCap 400 showing signs of recovery. In this environment, identifying promising small-cap stocks involves assessing factors such as insider activity and market positioning, which can offer insights into potential undervaluation amidst broader economic fluctuations.
Top 10 Undervalued Small Caps With Insider Buying Globally
Overview: Argosy Property is a New Zealand-based property investment company with a market cap of approximately NZ$1.32 billion, focusing on commercial real estate assets across office, industrial, and retail sectors.
Operations: Argosy Property's revenue primarily comes from its operations, with a notable gross profit margin of 78.32% as of March 2014, which has seen a gradual decline to 75.08% by September 2024. The company incurs costs mainly in the form of cost of goods sold and operating expenses, with non-operating expenses significantly impacting net income figures in recent periods.
PE: -287.9x
Argosy Property, a smaller player in the property sector, has recently shown insider confidence with share purchases. Despite relying on higher-risk external borrowing for funding, they are expanding their portfolio with new leases and sustainable projects. A notable 12-year lease with Bascik Transport and a 10-year deal with Viatris Ltd highlight their strategic growth moves. As these developments progress, Argosy's focus on long-term leases and green building initiatives could drive future revenue growth.
Overview: Minto Apartment Real Estate Investment Trust is a Canadian entity focused on owning and managing a portfolio of residential rental properties, with a market capitalization of approximately CA$1.37 billion.
Operations: The company generates revenue primarily from its residential real estate investment trust operations, with a reported CA$157.09 million in the most recent period. The gross profit margin has shown an upward trend, reaching 64.42% by the end of September 2024, indicating efficient cost management relative to revenue growth. Operating expenses have varied but were CA$8.48 million at the end of December 2024, reflecting a focus on managing overhead costs effectively amidst fluctuating non-operating expenses.
PE: 8.5x
Minto Apartment Real Estate Investment Trust, a smaller player in the real estate sector, recently reported a significant turnaround with net income hitting CAD 63.24 million for 2024, compared to a substantial loss the previous year. Insider confidence is evident as they completed repurchases of over 1.1 million shares from October 2024 to March 2025 for CAD 14.99 million. Despite challenges like high-risk funding and limited earnings coverage for interest payments, Minto's consistent monthly dividends of CAD 0.04333 per unit indicate stability and potential appeal for value-seeking investors looking at smaller companies in the market.
Overview: Primaris Real Estate Investment Trust focuses on the ownership, management, and development of its investment properties with a market capitalization of CA$1.58 billion.
Operations: The company generates revenue primarily from the ownership, management, and development of its investment properties, with a recent revenue figure of CA$501.93 million. The gross profit margin has shown an upward trend, reaching 57.65% by the end of 2024. Operating expenses have been increasing alongside revenues but remain a smaller portion compared to gross profits. Net income has fluctuated over time but showed positive figures in recent periods, indicating improved profitability metrics such as a net income margin of 15.83% in late 2024.
PE: 19.7x
Primaris Real Estate Investment Trust, a smaller player in the real estate sector, recently launched a share repurchase program targeting 7.36% of its units, signaling insider confidence. The company declared a monthly distribution of C$0.0717 per unit for March 2025, maintaining an annualized payout of C$0.86 per unit. Despite lower profit margins at 15.8% compared to last year's 24.9%, revenue rose to C$501 million for 2024 from C$411 million in the previous year, reflecting growth potential amidst financial challenges such as uncovered interest payments and reliance on external borrowing sources like the recent C$200 million debenture offering maturing in 2031 with a fixed rate of 4.468%.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include NZSE:ARG TSX:MI.UN and TSX:PMZ.UN.
