Eagers Automotive Leads Three Undervalued Small Caps With Insider Actions In Australia

In This Article:

Amidst a buoyant Australian market, which has seen a 3.1% rise in the past week and a 10% increase over the last year with earnings projected to grow by 13% annually, investors are keenly watching for opportunities. In this environment, stocks like Eagers Automotive stand out as potentially undervalued small caps, particularly when insider actions suggest confidence in their future prospects.

Top 10 Undervalued Small Caps With Insider Buying In Australia

Name

PE

PS

Discount to Fair Value

Value Rating

Corporate Travel Management

17.5x

2.7x

47.40%

★★★★★★

Healius

NA

0.6x

42.05%

★★★★★☆

Eagers Automotive

9.6x

0.3x

33.79%

★★★★☆☆

Elders

22.8x

0.5x

43.68%

★★★★☆☆

Codan

28.8x

4.2x

27.64%

★★★★☆☆

Strike Energy

301.9x

73.9x

47.97%

★★★★☆☆

Orora

18.3x

0.6x

45.65%

★★★★☆☆

RAM Essential Services Property Fund

NA

5.9x

38.03%

★★★★☆☆

Dicker Data

23.0x

0.8x

-3.86%

★★★☆☆☆

Coventry Group

301.4x

0.5x

-12.55%

★★★☆☆☆

Click here to see the full list of 23 stocks from our Undervalued ASX Small Caps With Insider Buying screener.

Here we highlight a subset of our preferred stocks from the screener.

Eagers Automotive

Simply Wall St Value Rating: ★★★★☆☆

Overview: Eagers Automotive operates primarily in car retailing, with a minor segment in property, maintaining a market capitalization of approximately A$3.41 billion.

Operations: Car Retailing is the primary revenue generator for this entity, contributing A$9.85 billion to its total income. The company's gross profit margin has shown a trend around 0.18% over recent periods, indicating the proportion of revenue exceeding direct costs associated with car retailing before accounting for other operational expenses.

PE: 9.6x

Eagers Automotive, amidst a landscape of fluctuating market valuations, stands out with its strategic maneuvers and financial agility. Recently, the company announced a share repurchase program set to reclaim up to 10% of its issued capital by June 2025—a move reflecting strong insider confidence and commitment to shareholder value. Despite facing a high debt level, Eagers is poised for revenue growth at an annual rate of 5.53%, complemented by aggressive pursuits in mergers and acquisitions as outlined in their recent shareholder communications. This approach not only underscores their proactive stance in market expansion but also aligns with their Next100 Strategy aiming for sustained growth.

ASX:APE Share price vs Value as at Jul 2024
ASX:APE Share price vs Value as at Jul 2024

Elders

Simply Wall St Value Rating: ★★★★☆☆

Overview: Elders is a diversified agribusiness company, operating in branch network services, wholesale products, feed and processing services, with a market capitalization of approximately A$1.67 billion.