Exploring Three Top Undervalued Small Caps In Canada With Insider Actions

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The Canadian market has shown robust performance, appreciating by 2.8% in the past week and 12% over the last year, with earnings projected to grow by 15% annually. In such a thriving environment, undervalued small caps with significant insider actions present intriguing opportunities for investors seeking potential growth.

Top 10 Undervalued Small Caps With Insider Buying In Canada

Name

PE

PS

Discount to Fair Value

Value Rating

Dundee Precious Metals

9.0x

3.1x

44.23%

★★★★★★

Martinrea International

6.0x

0.2x

48.76%

★★★★★★

Primaris Real Estate Investment Trust

11.7x

3.0x

34.48%

★★★★★☆

Nexus Industrial REIT

2.5x

3.1x

18.23%

★★★★☆☆

Calfrac Well Services

2.3x

0.2x

26.74%

★★★★☆☆

Guardian Capital Group

10.4x

4.0x

31.99%

★★★★☆☆

Sagicor Financial

1.2x

0.4x

-94.52%

★★★★☆☆

Westshore Terminals Investment

14.3x

3.9x

0.92%

★★★☆☆☆

Russel Metals

9.2x

0.5x

-7.56%

★★★☆☆☆

Freehold Royalties

15.8x

6.8x

47.43%

★★★☆☆☆

Click here to see the full list of 32 stocks from our Undervalued TSX Small Caps With Insider Buying screener.

Let's uncover some gems from our specialized screener.

Energy Fuels

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Energy Fuels is a company engaged in the extraction and recovery of uranium and vanadium, with a market capitalization of approximately $1.31 billion.

Operations: The entity generates revenue primarily through its Metals & Minings - Miscellaneous segment, which recorded $43.74 million in the latest period. Notably, it achieved a gross profit margin of 52.07% as of the most recent data point.

PE: -97.5x

Recently, Energy Fuels, a notable player in the rare earth elements (REE) and uranium sectors, demonstrated insider confidence with strategic insider purchases. With earnings forecasted to grow by 50.8% annually, their financial trajectory appears promising. Notably, they've achieved commercial production of separated REEs at their Utah Mill—a significant stride in positioning themselves within the critical minerals market. Despite dropping from several Russell indexes on July 1, 2024, they were added to the Russell 2000 Value-Defensive Index, reflecting a nuanced market perception. Their commitment to expanding uranium production underscores a robust strategy aimed at enhancing long-term shareholder value amidst dynamic market conditions.

TSX:EFR Share price vs Value as at Jul 2024
TSX:EFR Share price vs Value as at Jul 2024

MTY Food Group

Simply Wall St Value Rating: ★★★★☆☆

Overview: MTY Food Group is a diversified company operating primarily in the quick-service food industry, managing both corporate and franchised restaurants across Canada and internationally, with a market capitalization of approximately CA$1.41 billion.