Exploring Codan And Two More Top Undervalued Small Caps With Insider Actions In Australia
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The Australian market has shown resilience, remaining stable in the past week and achieving an 8.4% increase over the past year, with earnings expected to grow by 13% annually. In this context, identifying undervalued small-cap stocks with insider buying actions can offer potential opportunities for informed investors looking to capitalize on market inefficiencies.
Top 10 Undervalued Small Caps With Insider Buying In Australia
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Neuren Pharmaceuticals | 16.9x | 11.4x | 47.56% | ★★★★★☆ |
| Healius | NA | 0.6x | 42.00% | ★★★★★☆ |
| Elders | 23.2x | 0.5x | 42.64% | ★★★★☆☆ |
| Eagers Automotive | 9.7x | 0.3x | 33.66% | ★★★★☆☆ |
| Codan | 30.2x | 4.4x | 24.39% | ★★★★☆☆ |
| RAM Essential Services Property Fund | NA | 5.9x | 37.18% | ★★★★☆☆ |
| Dicker Data | 22.2x | 0.8x | -0.46% | ★★★☆☆☆ |
| Smartgroup | 17.8x | 4.4x | 48.56% | ★★★☆☆☆ |
| Gold Road Resources | 16.9x | 4.2x | 45.58% | ★★★☆☆☆ |
| Coventry Group | 297.7x | 0.5x | -12.02% | ★★★☆☆☆ |
Here's a peek at a few of the choices from the screener.
Codan
Simply Wall St Value Rating: ★★★★☆☆
Overview: Codan is a diversified technology company specializing in communications equipment and metal detection, with a market capitalization of approximately A$1.09 billion.
Operations: The Communications and Metal Detection segments significantly contribute to the revenue, generating A$291.50 million and A$212.20 million respectively. The company's gross profit margin has shown a trend of fluctuation, with a notable figure of approximately 54% in the most recent period recorded.
PE: 30.2x
Recently, Codan has demonstrated insider confidence with strategic share purchases, underscoring a positive outlook from those within. With earnings expected to grow by 16.2% annually, this reflects not just potential but a solid trajectory in an often-overlooked sector. Despite relying solely on external borrowing—a higher risk funding method—these moves suggest a robust strategy tailored for growth. This blend of financial health and insider activity paints Codan as a compelling player among undervalued entities in Australia's market landscape.
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Dive into the specifics of Codan here with our thorough valuation report.
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Review our historical performance report to gain insights into Codan's's past performance.
Elders
Simply Wall St Value Rating: ★★★★☆☆
Overview: Elders is an agribusiness company operating in branch network services, wholesale products, and feed and processing services, with a market capitalization of approximately A$1.56 billion.
Operations: Branch Network generates the majority of revenue at A$2.54 billion, followed by Wholesale Products and Feed and Processing Services contributing A$341.19 million and A$120.14 million, respectively. The company has experienced a gross profit margin fluctuation, with a notable increase to 0.194% in the latest period reported from an earlier figure of 0.162%.