In April 2025, global markets are navigating significant volatility driven by escalating trade tensions between the U.S. and China, which have led to fluctuating investor sentiment and impacted key indices such as the Russell 2000. Despite these challenges, small-cap stocks have shown resilience, with some investors eyeing opportunities in this segment as consumer sentiment hits a near three-year low and economic indicators suggest cautious optimism amid uncertainty. In this environment, identifying promising small-cap stocks involves looking for companies with strong fundamentals that can weather economic fluctuations and benefit from strategic insider buying—a signal that insiders believe in their company's potential despite broader market turbulence.
Top 10 Undervalued Small Caps With Insider Buying Globally
Overview: Chemtrade Logistics Income Fund operates in the industrial chemicals sector, focusing on electrochemicals and sulphur and water chemicals, with a market capitalization of CA$1.16 billion.
Operations: The company generates its revenue primarily from two segments: Electrochemicals (EC) and Sulphur and Water Chemicals (SWC), with SWC being the larger contributor. Over recent periods, the gross profit margin has shown an upward trend, reaching 24.09% by the end of 2024. Operating expenses are a significant component of costs, including general and administrative expenses.
PE: 8.5x
Chemtrade Logistics Income Fund, a smaller player in the market, has caught attention for its strategic buybacks and insider confidence. Alan Robinson's purchase of 48,175 shares reflects this sentiment. Despite a decline in net income to C$126.91 million from C$249.32 million, Chemtrade continues to prioritize share repurchases over organic growth and M&A opportunities due to its low trading multiple. Recent dividend affirmations and strategic focus on water chemicals underscore potential growth avenues amidst evolving market conditions.
Overview: Evertz Technologies is a company that designs, manufactures, and distributes video and audio infrastructure solutions for the television broadcast equipment market with a market cap of approximately CA$1.22 billion.
Operations: The company's primary revenue stream is from the Television Broadcast Equipment Market, with recent revenues reaching CA$496.59 million. The gross profit margin has shown a trend around 58.88% as of the latest period, indicating a significant portion of revenue retained after covering the cost of goods sold. Operating expenses are primarily driven by R&D and General & Administrative expenses, which together account for substantial costs impacting profitability.
PE: 12.9x
Evertz Technologies, a small company in the tech sector, has shown steady financial performance with Q3 2025 sales reaching C$136.92 million and net income at C$20.92 million. Despite lower nine-month sales compared to the previous year, insider confidence is evident through recent share purchases. The company's collaboration with intoPIX enhances its AV-over-IP solutions, offering advanced compression technology for seamless interoperability. While reliant on external borrowing for funding, Evertz continues to pay regular dividends of C$0.20 per share as of March 2025.
Overview: Paramount Resources is a Canadian energy company engaged in the exploration, development, and production of natural gas and oil with a market capitalization of approximately CA$5.27 billion.
Operations: Paramount Resources generates revenue primarily through its operations, with significant costs attributed to COGS and operating expenses. The company has experienced fluctuations in its gross profit margin, which reached a high of 66.17% in Q3 2022 before declining to 50.32% by Q4 2024.
PE: 6.8x
Paramount Resources, a smaller company in the energy sector, has shown potential for growth despite challenges. The company's net profit margin decreased from 26.1% to 18.1% over the past year, indicating some financial pressure. However, insider confidence is evident with recent share repurchases totaling CAD 177 million for 5.67 million shares from October 2024 to March 2025. The firm continues to pay dividends consistently and expects sales volumes between 37,500 and 42,500 Boe/d in 2025's fourth quarter as new projects come online.
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:CHE.UN TSX:ET and TSX:POU.
