Undervalued Small Caps In Australia With Insider Buying For September 2024
In This Article:
The Australian market has shown robust performance, climbing 1.2% in the last 7 days and up 11% over the past year, with earnings forecast to grow by 12% annually. In this favorable environment, identifying undervalued small-cap stocks with insider buying can present attractive opportunities for investors seeking potential growth.
Top 10 Undervalued Small Caps With Insider Buying In Australia
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Magellan Financial Group | 7.1x | 4.5x | 41.79% | ★★★★★☆ |
| Corporate Travel Management | 19.6x | 2.3x | 8.00% | ★★★★★☆ |
| GWA Group | 15.7x | 1.5x | 44.06% | ★★★★★☆ |
| Eagers Automotive | 10.1x | 0.2x | 40.60% | ★★★★★☆ |
| Credit Corp Group | 20.0x | 2.7x | 42.71% | ★★★★☆☆ |
| Coventry Group | 221.5x | 0.4x | -10.37% | ★★★☆☆☆ |
| Dicker Data | 20.4x | 0.7x | -67.16% | ★★★☆☆☆ |
| Megaport | 123.2x | 6.1x | 45.66% | ★★★☆☆☆ |
| BSP Financial Group | 7.8x | 2.8x | 2.28% | ★★★☆☆☆ |
| Abacus Group | NA | 6.1x | 23.55% | ★★★☆☆☆ |
Below we spotlight a couple of our favorites from our exclusive screener.
Deterra Royalties
Simply Wall St Value Rating: ★★★★☆☆
Overview: Deterra Royalties focuses on managing royalty arrangements and has a market cap of approximately A$2.12 billion.
Operations: Deterra Royalties derives its revenue primarily from royalty arrangements, with a notable gross profit margin of 96.22% as of September 2024. The company incurs costs including COGS and non-operating expenses, impacting net income, which stood at A$154.89 million for the same period.
PE: 12.6x
Deterra Royalties, a small cap in Australia, reported net income of A$154.89 million for the year ending June 30, 2024, a slight increase from A$152.46 million the previous year. Basic earnings per share rose to A$0.293 from A$0.2885. Despite earnings forecasted to decline by an average of 6.6% annually over the next three years and reliance on external borrowing for funding, insider confidence is evident with recent share purchases in August 2024 signaling potential undervaluation opportunities ahead.
Sims
Simply Wall St Value Rating: ★★★★☆☆
Overview: Sims is a global leader in metal and electronics recycling, with operations spanning North America, Australia/New Zealand, and other regions; the company has a market cap of A$2.51 billion.
Operations: The company's revenue streams are primarily derived from North America Metals (A$4.49 billion), Australia/New Zealand Metals (A$1.60 billion), Global Trading (A$771.20 million), and Sims Lifecycle Services (A$350 million). Its cost of goods sold significantly impacts gross profit, with the most recent gross profit margin at 9.41%. Operating expenses and non-operating expenses further affect net income, resulting in a net income margin of 1.74% for the latest period ending December 31, 2023.