Exploring Dicker Data And Two More Undervalued Small Caps With Insider Action In Australia

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Over the last 7 days, the Australian market has remained flat, though it has risen by 11% over the past year with earnings forecasted to grow by 13% annually. In this context, undervalued small caps like Dicker Data offer potential opportunities for investors looking for growth in a steadily advancing market.

Top 10 Undervalued Small Caps With Insider Buying In Australia

Name

PE

PS

Discount to Fair Value

Value Rating

Corporate Travel Management

17.3x

2.6x

48.17%

★★★★★★

Nick Scali

13.4x

2.5x

46.37%

★★★★★★

Tabcorp Holdings

NA

0.7x

20.82%

★★★★★☆

Healius

NA

0.6x

43.74%

★★★★★☆

Elders

21.3x

0.5x

47.37%

★★★★☆☆

Eagers Automotive

9.3x

0.3x

35.61%

★★★★☆☆

Codan

29.5x

4.3x

26.17%

★★★★☆☆

RAM Essential Services Property Fund

NA

5.8x

38.92%

★★★★☆☆

Dicker Data

22.6x

0.8x

-2.83%

★★★☆☆☆

Coventry Group

278.9x

0.4x

-14.57%

★★★☆☆☆

Click here to see the full list of 22 stocks from our Undervalued ASX Small Caps With Insider Buying screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Dicker Data

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Dicker Data is a wholesale distributor of computer peripherals with a market capitalization of approximately A$2.27 billion.

Operations: Wholesale - Computer Peripherals generated A$2.27 billion in revenue, with a gross profit margin of 14.23% as of the latest reporting period, reflecting an upward trend from previous years. The net income for this segment stood at A$82.15 million, marking a net income margin increase to 3.62%.

PE: 22.6x

Dicker Data's financial landscape shows promise, with earnings expected to grow by approximately 8% annually. Despite a high debt level, the company secures funding through external borrowing, avoiding customer deposits and their associated risks. Recently, insider confidence was demonstrated as they purchased shares, signaling a strong belief in the company’s potential. With its latest dividend announced on May 13th for A$0.11 per share payable soon after, Dicker Data exemplifies traits often sought in undervalued entities within Australia's dynamic market sectors.

ASX:DDR Ownership Breakdown as at Jul 2024
ASX:DDR Ownership Breakdown as at Jul 2024

Elders

Simply Wall St Value Rating: ★★★★☆☆

Overview: Elders is an Australian company involved in providing a range of services and products across the agricultural sector, with a market capitalization of approximately A$1.62 billion.

Operations: Branch Network, Wholesale Products, and Feed and Processing Services collectively generated A$3.00 billion in revenue, with gross profit margins showing a notable increase from 16.22% to 19.41% over the observed periods.