Exploring Undervalued Small Caps With Insider Action In Australia July 2024
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The Australian market has shown robust performance, rising 2.1% over the last week and achieving a 10% increase over the past year with earnings expected to grow by 13% annually. In this context, identifying undervalued small-cap stocks with recent insider buying can be particularly compelling, as these actions often signal confidence in the company's future prospects amidst favorable market conditions.
Top 10 Undervalued Small Caps With Insider Buying In Australia
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Corporate Travel Management | 17.5x | 2.7x | 47.07% | ★★★★★★ |
| Healius | NA | 0.6x | 40.97% | ★★★★★☆ |
| Eagers Automotive | 9.7x | 0.3x | 32.81% | ★★★★☆☆ |
| Elders | 22.8x | 0.5x | 43.62% | ★★★★☆☆ |
| Codan | 29.5x | 4.3x | 25.69% | ★★★★☆☆ |
| Strike Energy | 301.9x | 73.9x | 48.49% | ★★★★☆☆ |
| RAM Essential Services Property Fund | NA | 5.9x | 37.40% | ★★★★☆☆ |
| Tasmea | 15.1x | 1.0x | 9.12% | ★★★☆☆☆ |
| Dicker Data | 22.9x | 0.8x | -3.95% | ★★★☆☆☆ |
| Coventry Group | 304.0x | 0.5x | -14.02% | ★★★☆☆☆ |
We'll examine a selection from our screener results.
Elders
Simply Wall St Value Rating: ★★★★☆☆
Overview: Elders is an Australian company involved in providing a range of services including branch network operations, wholesale products, feed and processing services, and corporate services, with a market capitalization of approximately A$1.47 billion.
Operations: Branch Network, Wholesale Products, and Feed and Processing Services collectively generated A$3.00 billion in revenue, with Corporate Services contributing minimally. The gross profit margin observed a slight increase from 16.22% to 19.41% over the analyzed periods, reflecting improved efficiency in managing cost of goods sold relative to revenue.
PE: 22.8x
Elders Limited, an Australian firm, recently reaffirmed its fiscal 2024 EBIT forecast of A$120 million to A$140 million amidst a challenging backdrop with a significant drop in half-year sales from A$1.66 billion to A$1.34 billion and net income falling to A$11.59 million from last year's A$48.85 million. Despite these hurdles and a high debt level, insider confidence is evident as they recently purchased shares, signaling belief in the company’s resilience and future prospects.
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Click here to discover the nuances of Elders with our detailed analytical valuation report.
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Gain insights into Elders' historical performance by reviewing our past performance report.
Neuren Pharmaceuticals
Simply Wall St Value Rating: ★★★★★☆
Overview: Neuren Pharmaceuticals is a company focused on the development of pharmaceutical products, with a market capitalization of approximately A$231.94 million.