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The Australian market has shown robust growth, climbing 3.0% in the past week and achieving a 10% increase over the last twelve months, with earnings projected to grow by 14% per annum. In this context, identifying undervalued small-cap stocks can offer potential opportunities for investors looking to capitalize on companies with promising prospects yet to be fully recognized by the broader market.
Top 10 Undervalued Small Caps With Insider Buying In Australia
Name | PE | PS | Discount to Fair Value | Value Rating |
---|---|---|---|---|
Corporate Travel Management | 17.2x | 2.6x | 49.28% | ★★★★★★ |
Healius | NA | 0.6x | 41.53% | ★★★★★☆ |
Eagers Automotive | 9.7x | 0.3x | 33.32% | ★★★★☆☆ |
Elders | 23.0x | 0.5x | 43.25% | ★★★★☆☆ |
Codan | 29.1x | 4.3x | 26.95% | ★★★★☆☆ |
Strike Energy | 301.9x | 73.9x | 48.54% | ★★★★☆☆ |
Orora | 18.9x | 0.7x | 41.73% | ★★★★☆☆ |
RAM Essential Services Property Fund | NA | 5.9x | 37.41% | ★★★★☆☆ |
Dicker Data | 22.3x | 0.8x | -0.95% | ★★★☆☆☆ |
Coventry Group | 325.0x | 0.5x | -19.71% | ★★★☆☆☆ |
Let's uncover some gems from our specialized screener.
Elders
Simply Wall St Value Rating: ★★★★☆☆
Overview: Elders is an Australian company involved in providing a range of services and products across branch network operations, wholesale products, feed and processing services, with a market capitalization of approximately A$1.47 billion.
Operations: Branch Network is the primary revenue contributor, generating A$2.54 billion, supplemented by Wholesale Products and Feed and Processing Services at A$341.19 million and A$120.14 million respectively. The company's gross profit margin has shown variability over recent periods, with a recent figure of 0.194% as of mid-2024, reflecting changes in cost of goods sold and operational efficiency.
PE: 23.0x
Elders, reflecting a mix of challenges and potential, recently reaffirmed its earnings guidance for FY 2024 with expected EBIT between A$120 million to A$140 million. Despite a significant drop in sales and net income in the first half of the year, insider confidence is evident as they recently purchased shares, signaling belief in long-term value. The company's reliance on external borrowing underscores a higher-risk financial structure but also points to possible growth avenues from strategic leadership additions like Damien Frawley starting July 2024.
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Click here and access our complete valuation analysis report to understand the dynamics of Elders.
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Evaluate Elders' historical performance by accessing our past performance report.
Neuren Pharmaceuticals
Simply Wall St Value Rating: ★★★★★☆
Overview: Neuren Pharmaceuticals is a company focused on the development of pharmaceutical products, specifically targeting neurological disorders, with a market capitalization of approximately A$231.94 million.