Exploring Three Undervalued Small Caps With Insider Action In The Region

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As global markets display mixed reactions with a notable pivot towards small-cap and value shares, investors are keenly observing these segments for potential opportunities. In such an environment, identifying undervalued small-cap stocks with significant insider action can offer intriguing prospects for discerning investors looking to capitalize on market shifts and underlying economic signals.

Top 10 Undervalued Small Caps With Insider Buying

Name

PE

PS

Discount to Fair Value

Value Rating

Dundee Precious Metals

8.8x

3.0x

45.84%

★★★★★★

Hanover Bancorp

9.0x

2.0x

45.60%

★★★★★☆

Thryv Holdings

NA

0.7x

26.07%

★★★★★☆

CVS Group

21.6x

1.2x

40.01%

★★★★☆☆

Franklin Financial Services

9.8x

2.0x

31.19%

★★★★☆☆

PCB Bancorp

10.5x

2.8x

35.07%

★★★★☆☆

Chatham Lodging Trust

NA

1.4x

12.53%

★★★★☆☆

Russel Metals

9.4x

0.5x

-10.77%

★★★☆☆☆

PowerCell Sweden

NA

4.5x

40.55%

★★★☆☆☆

Community West Bancshares

18.7x

2.9x

42.25%

★★★☆☆☆

Click here to see the full list of 214 stocks from our Undervalued Small Caps With Insider Buying screener.

Let's take a closer look at a couple of our picks from the screened companies.

Marksans Pharma

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Marksans Pharma is a pharmaceutical company with operations focused on the manufacturing and marketing of formulation products, holding a market capitalization of approximately ?21.77 billion.

Operations: The pharmaceuticals segment generated ?21.77 billion in revenue, with a gross profit margin of 52.32% as of the latest reporting period, reflecting significant operational efficiency in managing costs relative to sales.

PE: 29.6x

Recently, Marksans Pharma showcased a notable financial performance with a year-on-year revenue increase to INR 22.28 billion for FY 2024, up from INR 19.11 billion. Their net income also rose to INR 3.14 billion, reflecting a robust growth trajectory. Insider confidence is evident as they recommended increasing the dividend to INR 0.60 per share, signaling strong future prospects and financial health. This move aligns with their earnings growth forecast of 21.63% annually, underscoring their potential as an undervalued entity in the pharmaceutical sector.

NSEI:MARKSANS Ownership Breakdown as at Jul 2024
NSEI:MARKSANS Ownership Breakdown as at Jul 2024

Ryman Healthcare

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Ryman Healthcare operates integrated retirement villages for older people, with a market capitalization of approximately NZ$5.72 billion.

Operations: The entity generates NZ$687.56 million from its integrated retirement villages, with a gross profit margin recently reported at 5.19%. Notably, the net income margin has seen fluctuations, currently standing at approximately 0.69%.