In May 2025, global markets are navigating a complex landscape marked by mixed performances among major indices and ongoing trade negotiations that could influence economic dynamics. Small-cap stocks have shown resilience, with indexes like the S&P MidCap 400 and Russell 2000 posting gains for the fifth consecutive week amid hopes for tariff de-escalation between major economies. In this environment, identifying small-cap stocks with strong fundamentals and insider activity can be crucial, as these factors may indicate potential value opportunities in an uncertain market landscape.
Top 10 Undervalued Small Caps With Insider Buying Globally
Overview: Evertz Technologies is a company that specializes in manufacturing and distributing television broadcast equipment, with operations contributing to a market cap of CA$1.25 billion.
Operations: The company generates revenue primarily from the Television Broadcast Equipment Market, with recent revenue reaching CA$496.59 million. The gross profit margin has shown a trend around 58.85%, reflecting the relationship between cost of goods sold and total revenue. Operating expenses are significant, including research and development costs which recently amounted to CA$136.46 million, impacting net income figures that have been recorded at CA$60.15 million for the latest period.
PE: 14.9x
Evertz Technologies, a smaller player in its industry, reported Q3 sales of C$136.92 million, up slightly from the previous year. Despite a dip in nine-month revenue to C$373.82 million from C$391.85 million, net income rose for the quarter to C$20.92 million. Insider confidence is evident with share purchases completed by November 2024 for C$2.94 million under their buyback plan announced in 2023, suggesting management's belief in its potential value amidst external borrowing risks and modest growth forecasts of 5% annually.
Overview: Flagship Communities Real Estate Investment Trust operates in the residential real estate sector, focusing on manufactured housing communities, with a market cap of approximately $0.51 billion.
Operations: Flagship Communities Real Estate Investment Trust generates revenue primarily from its residential REIT segment, with the most recent figure being $92.99 million. The company incurs costs of goods sold (COGS) and operating expenses as part of its financial structure, with COGS at $31.49 million and operating expenses at $11.22 million in the latest period. Its gross profit margin has shown a consistent trend around 66% over several periods, indicating efficient cost management relative to revenue generation.
PE: 3.4x
Flagship Communities Real Estate Investment Trust, a smaller player in the real estate sector, recently reported Q1 2025 sales of US$24.78 million, up from US$19.92 million last year. Despite this increase, net income dipped to US$10.46 million from US$11.12 million. Earnings are predicted to decline by 64% annually over the next three years, while revenue is expected to grow at 6.74% per year. The REIT announced a monthly cash distribution of US$0.0517 per unit for April 2025, maintaining an annual payout of US$0.62 per unit amidst insider confidence through share purchases earlier this year.
Overview: Saturn Oil & Gas is engaged in the acquisition and exploration of resource properties, with operations generating CA$903.95 million.
Operations: The company generates revenue primarily from the acquisition and exploration of resource properties, with a recent reported revenue of CA$903.95 million. The cost of goods sold (COGS) for this period was CA$276.34 million, resulting in a gross profit margin of 69.43%. Operating expenses include significant allocations towards general and administrative costs, which amounted to CA$45.15 million in the latest period. Net income stood at CA$154.91 million, reflecting a net income margin of 17.14%.
PE: 2.2x
Saturn Oil & Gas, a smaller energy player, recently reported a significant revenue jump to C$242.08 million in Q1 2025 from C$42.66 million the previous year, alongside net income of C$37.82 million reversing a prior loss. Despite high debt levels and shareholder dilution last year, insider confidence is evident with recent share repurchases totaling 3.31% for C$14.9 million by March 2025. Production guidance suggests potential growth with anticipated output between 39,000 to 40,000 boe/d in Q2 2025.
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 TSX:ET TSX:MHC.UN and TSX:SOIL.
