Undervalued Small Caps In Australia With Insider Activity October 2024
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As the Australian market faces a downturn with a 0.17% drop in the ASX, driven by disappointment over unlikely rate cuts and cautious global sentiment, small-cap stocks are navigating a challenging landscape. In this environment, identifying promising small-cap companies often involves looking for those with strong fundamentals and potential insider activity that may signal confidence from within the company itself.
Top 10 Undervalued Small Caps With Insider Buying In Australia
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| GWA Group | 16.4x | 1.5x | 41.77% | ★★★★★★ |
| Magellan Financial Group | 7.9x | 5.0x | 33.83% | ★★★★★☆ |
| Collins Foods | 17.6x | 0.7x | 8.31% | ★★★★☆☆ |
| Dicker Data | 19.5x | 0.7x | -62.21% | ★★★★☆☆ |
| Centuria Capital Group | 21.3x | 4.8x | 46.25% | ★★★★☆☆ |
| Eagers Automotive | 11.2x | 0.3x | 36.83% | ★★★★☆☆ |
| Coventry Group | 249.8x | 0.4x | -25.50% | ★★★☆☆☆ |
| Corporate Travel Management | 20.0x | 2.4x | 2.91% | ★★★☆☆☆ |
| BSP Financial Group | 7.8x | 2.8x | 1.57% | ★★★☆☆☆ |
| Credit Corp Group | 23.2x | 3.1x | 34.46% | ★★★☆☆☆ |
Let's dive into some prime choices out of from the screener.
Data#3
Simply Wall St Value Rating: ★★★★☆☆
Overview: Data#3 is a value-added IT reseller and IT solutions provider with a market cap of A$1.01 billion.
Operations: The company generates revenue primarily from its role as a Value-Added IT Reseller and IT Solutions Provider, with recent figures showing A$805.75 million in revenue. The gross profit margin has shown an upward trend, reaching 9.87% in the most recent period. Operating expenses have been increasing alongside depreciation and amortization costs, impacting overall profitability.
PE: 27.6x
Data#3, an Australian IT services company, has shown insider confidence with recent share purchases. Despite a slight dip in sales to A$805.75 million for the year ending June 2024, net income rose to A$43.31 million from A$37.03 million last year, reflecting improved profitability. The company's transition to PwC as its auditor suggests a strategic shift towards enhanced governance. With earnings forecasted to grow annually by 10.94%, Data#3's potential for future growth remains appealing within its sector.
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Dive into the specifics of Data#3 here with our thorough valuation report.
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Understand Data#3's track record by examining our Past report.
Insignia Financial
Simply Wall St Value Rating: ★★★★★☆
Overview: Insignia Financial is a financial services company that provides advice, platforms, and asset management solutions with a market capitalization of A$3.5 billion.
Operations: Insignia Financial's revenue streams are primarily derived from its Platforms, Advice, and Asset Management segments, with the Platforms segment contributing the largest portion. The company has experienced fluctuations in its gross profit margin, which was 36.72% as of October 2024. Operating expenses are significant and include general & administrative costs and non-operating expenses.