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Over the last 7 days, the Australian market has remained flat, though it has shown a robust increase of 9.9% over the past year with earnings forecasted to grow by 14% annually. In this context, identifying undervalued small-cap stocks with insider buying can be particularly compelling as these actions often signal confidence in the company's future prospects amidst current market conditions.
Top 10 Undervalued Small Caps With Insider Buying In Australia
Name | PE | PS | Discount to Fair Value | Value Rating |
---|---|---|---|---|
Corporate Travel Management | 17.8x | 2.7x | 39.96% | ★★★★★★ |
Neuren Pharmaceuticals | 16.5x | 11.1x | 46.55% | ★★★★★★ |
Tabcorp Holdings | NA | 0.6x | 23.48% | ★★★★★☆ |
Codan | 27.6x | 4.0x | 24.75% | ★★★★☆☆ |
GUD Holdings | 14.7x | 1.5x | 2.71% | ★★★★☆☆ |
Eagers Automotive | 10.0x | 0.3x | 27.12% | ★★★★☆☆ |
Orora | 18.2x | 0.6x | 37.47% | ★★★★☆☆ |
Dicker Data | 21.3x | 0.8x | -0.40% | ★★★☆☆☆ |
Gold Road Resources | 15.5x | 3.8x | 46.20% | ★★★☆☆☆ |
Coventry Group | 268.4x | 0.4x | -22.67% | ★★★☆☆☆ |
We're going to check out a few of the best picks from our screener tool.
Eagers Automotive
Simply Wall St Value Rating: ★★★★☆☆
Overview: Eagers Automotive is an automotive retailer primarily engaged in car retailing, with a market capitalization of approximately A$3.5 billion.
Operations: Car Retailing is the primary revenue generator, contributing A$9.85 billion, with a notable gross profit margin of 18.60%. Over recent periods, gross margins have shown slight fluctuations but remain under 19%, indicating consistency in cost management relative to sales.
PE: 10.0x
Eagers Automotive, amid its strategic expansion, recently announced a significant share repurchase program, planning to buy back 10% of its shares by June 2025—a move reflecting strong insider confidence. Concurrently, the company is actively pursuing mergers and acquisitions to bolster its revenue, which is projected to grow annually. Despite a high debt level and reliance on external borrowing posing risks, these aggressive growth tactics coupled with insider purchases suggest a potentially underappreciated asset in the market.
GUD Holdings
Simply Wall St Value Rating: ★★★★☆☆
Overview: GUD Holdings is a diversified company that operates in the automotive and water products industries, with a market capitalization of approximately A$1.08 billion.
Operations: APG and Automotive segments collectively generated A$955.64 million in revenue, with the company achieving a gross profit margin of 43.53% by the end of the most recent fiscal period. The net income for this period was A$106.997 million, reflecting a net income margin of approximately 9.94%.