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Over the last 7 days, the Australian market has risen 1.7%, driven by gains of 12% in the Materials sector, although the Financials sector is down 3.2%. Over the past 12 months, the market is up 17%, with earnings forecast to grow by 12% annually. In this context, identifying undervalued small-cap stocks with insider buying can be a strategic move for investors looking to capitalize on potential growth opportunities within a robust market environment.
Top 10 Undervalued Small Caps With Insider Buying In Australia
Name | PE | PS | Discount to Fair Value | Value Rating |
---|---|---|---|---|
GWA Group | 16.3x | 1.5x | 41.91% | ★★★★★★ |
Magellan Financial Group | 7.5x | 4.8x | 37.48% | ★★★★★☆ |
Bigtincan Holdings | NA | 1.1x | 48.65% | ★★★★★☆ |
Tabcorp Holdings | NA | 0.5x | 20.01% | ★★★★★☆ |
Mader Group | 21.0x | 1.4x | 49.66% | ★★★★☆☆ |
Centuria Capital Group | 23.2x | 5.2x | 41.48% | ★★★★☆☆ |
Eagers Automotive | 11.0x | 0.3x | 36.82% | ★★★★☆☆ |
Dicker Data | 21.1x | 0.8x | -73.23% | ★★★☆☆☆ |
Coventry Group | 221.9x | 0.4x | -11.64% | ★★★☆☆☆ |
Corporate Travel Management | 21.9x | 2.6x | -2.46% | ★★★☆☆☆ |
Let's review some notable picks from our screened stocks.
Eagers Automotive
Simply Wall St Value Rating: ★★★★☆☆
Overview: Eagers Automotive is a major car retailing company with operations primarily focused on the automotive sector and a market cap of approximately A$3.81 billion.
Operations: The company generates revenue primarily from car retailing, with a gross profit margin of 18.37% as of the latest period. Operating expenses and non-operating expenses are significant cost components, impacting net income margins which stood at 2.47%.
PE: 11.0x
Eagers Automotive, a small Australian company, recently reported A$5.46 billion in sales for the first half of 2024, up from A$4.82 billion the previous year. Despite this growth, net income dipped to A$116 million from A$137.76 million. Insider confidence is evident with Nicholas Politis purchasing 200,000 shares worth approximately A$2.09 million between July and August 2024. The company's reliance on external borrowing highlights its higher risk profile but also underscores potential undervaluation opportunities for investors seeking growth in smaller companies.
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Navigate through the intricacies of Eagers Automotive with our comprehensive valuation report here.
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Explore historical data to track Eagers Automotive's performance over time in our Past section.
Neuren Pharmaceuticals
Simply Wall St Value Rating: ★★★★★☆
Overview: Neuren Pharmaceuticals develops therapies for neurodevelopmental disorders and has a market cap of A$1.20 billion.
Operations: Neuren Pharmaceuticals generates revenue primarily from product sales, with recent figures showing a significant increase to A$193.34 million as of June 30, 2024. The company's cost of goods sold (COGS) for the same period was A$32.90 million, resulting in a gross profit margin of 82.98%. Operating expenses are relatively low compared to revenue, at A$5.28 million for the quarter ending June 30, 2024. Net income reached A$117.29 million with a net income margin of 60.67% during this period.