The Canadian market has shown robust performance, climbing 1.1% in the last 7 days and up 15% over the past year, with earnings projected to grow by 16% annually in the coming years. In this favorable environment, identifying undervalued small-cap stocks with insider buying can offer promising opportunities for investors looking to capitalize on potential growth.

Top 10 Undervalued Small Caps With Insider Buying In Canada

Click here to see the full list of 27 stocks from our Undervalued TSX Small Caps With Insider Buying screener.

Let's dive into some prime choices out of from the screener.

Calibre Mining

Simply Wall St Value Rating: ★★★★☆☆

Overview: Calibre Mining is a gold mining company focused on the acquisition, exploration, and development of gold properties in Nicaragua and Nevada with a market cap of approximately $0.49 billion (CAD).

Operations: Calibre Mining generates revenue primarily from refined gold sales, amounting to $564.69 million in the latest period. The company reported a gross profit margin of 42.07% and a net income margin of 9.30%.

PE: 26.0x

Calibre Mining, a small Canadian mining company, has shown promising results from recent exploration programs. Their Pan Heap Leach Gold Mine in Nevada and Eastern Borosi Mine Complex in Nicaragua revealed higher-than-expected gold grades. Despite a drop in net income to US$20.76 million for Q2 2024, insider confidence is evident with significant share purchases over the past year. The company's consolidated production guidance for 2024 remains strong at 275,000-300,000 ounces of gold.

• Get an in-depth perspective on Calibre Mining's performance by reading our valuation report here.

• Gain insights into Calibre Mining's historical performance by reviewing our past performance report.

Killam Apartment REIT

Simply Wall St Value Rating: ★★★★☆☆

Overview: Killam Apartment REIT primarily operates in the residential real estate sector, focusing on apartments, commercial properties, and manufactured home communities with a market cap of approximately CA$2.22 billion.

Operations: The company generates revenue primarily from Apartments (CA$312.15 million), with additional income from Commercial properties (CA$21.61 million) and Manufactured Home Communities (MHCs) (CA$20.92 million). The gross profit margin has shown a notable trend, reaching 65.59% as of the latest period ending 2024-06-30.

PE: 7.6x

Killam Apartment REIT, a Canadian real estate investment trust, reported CAD 241.69 million in net income for the first half of 2024, up from CAD 197.99 million the previous year. Sales reached CAD 178.28 million over the same period. The company declared monthly distributions of CAD 0.05833 per unit for June through August and initiated a share repurchase program to buy back up to three million shares by June 2025, reflecting insider confidence in its future prospects.

• Click to explore a detailed breakdown of our findings in Killam Apartment REIT's valuation report.

• Assess Killam Apartment REIT's past performance with our detailed historical performance reports.

NorthWest Healthcare Properties Real Estate Investment Trust

Simply Wall St Value Rating: ★★★☆☆☆

Overview: NorthWest Healthcare Properties Real Estate Investment Trust operates in the healthcare real estate industry, managing a portfolio of medical office buildings, hospitals, and clinics with a market cap of approximately CA$2.86 billion.

Operations: The company generates revenue primarily from its healthcare real estate industry segment, with recent figures reaching CA$523.85 million. Key expenses include cost of goods sold (COGS) and operating expenses, with COGS at CA$116.25 million and operating expenses at CA$55.60 million for the latest period. The gross profit margin has shown variability, most recently recorded at 77.81%.

PE: -3.2x

NorthWest Healthcare Properties Real Estate Investment Trust, a small-cap stock in Canada, has shown insider confidence with recent share purchases. Despite reporting a net loss of CAD 122.34 million for Q2 2024, the company anticipates earnings growth of 105.4% annually. The REIT declared consistent monthly distributions of CAD 0.03 per unit through August 2024, indicating steady income for investors. With all liabilities funded through external borrowing, it presents both risk and potential opportunity for value-seeking investors.

• Take a closer look at NorthWest Healthcare Properties Real Estate Investment Trust's potential here in our valuation report.

• Understand NorthWest Healthcare Properties Real Estate Investment Trust's track record by examining our Past report.

Turning Ideas Into Actions

• Access the full spectrum of 27 Undervalued TSX Small Caps With Insider Buying by clicking on this link.

• Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.

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Contemplating Other Strategies?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.

• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

• Find companies with promising cash flow potential yet trading below their fair value.

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:CXB TSX:KMP.UN and TSX:NWH.UN.

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