In the current global market landscape, small-cap stocks are capturing attention as U.S. indices like the S&P MidCap 400 show signs of recovery and value stocks continue to outperform growth counterparts. Amidst this backdrop of mixed economic signals and steady interest rates, identifying promising small-cap opportunities involves considering factors such as insider buying, which can indicate confidence in a company's future prospects.
Top 10 Undervalued Small Caps With Insider Buying Globally
Overview: FRP Advisory Group provides specialist business advisory services and has a market cap of approximately £0.39 billion.
Operations: The company primarily generates revenue from providing specialist business advisory services, with recent figures showing a revenue of £147.1 million. The gross profit margin has shown an upward trend, reaching 45.96% as of October 2024. Operating expenses and non-operating expenses are key cost components impacting net income, which was reported at £26.3 million for the same period.
PE: 12.7x
FRP Advisory Group, a player in the small company sector, is currently drawing attention due to its potential for growth and insider confidence. Recently, insiders have shown confidence by purchasing shares over the past few months. Despite its reliance on external borrowing for funding, which carries higher risk compared to customer deposits, earnings are projected to grow at 2.41% annually. The company continues rewarding shareholders with dividends, recently affirming an interim dividend of £0.0095 per share for Q3 2025.
Overview: Vital Healthcare Property Trust focuses on investing in health sector-related properties, with a market cap of approximately NZ$1.31 billion.
Operations: The primary revenue stream is derived from investments in health sector-related properties, generating NZ$172.60 million. The cost of goods sold (COGS) recently stood at NZ$26.15 million, leading to a gross profit margin of 84.85%. Operating expenses have been recorded at NZ$27.01 million, while non-operating expenses are significant at NZ$153.21 million, impacting net income margins negatively in recent periods.
PE: -34.3x
Vital Healthcare Property Trust, a smaller player in the healthcare real estate sector, has recently shown signs of improvement despite its challenges. For the half year ending December 31, 2024, sales increased to NZ$77.14 million from NZ$75.16 million the previous year, while net loss narrowed significantly to NZ$39.29 million from NZ$113.13 million. Insiders have shown confidence through recent share purchases over the past six months, suggesting potential optimism about future growth prospects amidst forecasted earnings growth of 46% annually.
Overview: Nexus Industrial REIT is a Canadian real estate investment trust focused on owning and managing industrial properties, with a market capitalization of approximately CA$1.07 billion.
Operations: Nexus Industrial REIT generates revenue primarily from investment properties, with the latest reported figure at CA$177.57 million. The company has experienced fluctuations in its net income margin, recently recorded at 51.18%. Operating expenses have varied but were most recently noted at CA$7.81 million, impacting overall profitability. The gross profit margin has shown an upward trend, reaching 71.94% in the latest period analyzed.
PE: 5.4x
Nexus Industrial REIT, a smaller player in the industrial real estate sector, reported CAD 175.7 million in sales for 2024, up from CAD 157.65 million the previous year. However, net income dropped to CAD 90.88 million from CAD 160.03 million due to large one-off items affecting results and lower profit margins at 51.2%. Despite these challenges, insider confidence is evident as they increased their holdings recently, suggesting potential value recognition within the company amidst forecasted revenue growth of 5.41% annually despite expected earnings decline over three years.
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 AIM:FRP NZSE:VHP and TSX:NXR.UN.
