Undervalued Small Caps With Insider Buying In Australia
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Over the last 7 days, the Australian market has dropped 5.0%, though it has risen by 4.4% over the past year with earnings forecast to grow by 13% annually. In this fluctuating environment, identifying small-cap stocks with insider buying can be a strategic approach to uncovering potentially undervalued opportunities.
Top 10 Undervalued Small Caps With Insider Buying In Australia
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Acrow | 12.8x | 1.9x | 6.09% | ★★★★★☆ |
| Eagers Automotive | 9.0x | 0.3x | 43.78% | ★★★★★☆ |
| DUG Technology | 51.6x | 3.5x | 19.45% | ★★★★★☆ |
| RAM Essential Services Property Fund | NA | 5.8x | 45.67% | ★★★★★☆ |
| Healius | NA | 0.6x | 46.75% | ★★★★★☆ |
| Dicker Data | 20.8x | 0.8x | 16.01% | ★★★★☆☆ |
| Codan | 28.3x | 4.2x | 37.31% | ★★★★☆☆ |
| Coventry Group | 274.7x | 0.4x | 6.43% | ★★★★☆☆ |
| BSP Financial Group | 8.5x | 2.9x | 3.37% | ★★★☆☆☆ |
| FINEOS Corporation Holdings | NA | 2.5x | -730.21% | ★★★☆☆☆ |
Let's dive into some prime choices out of from the screener.
BSP Financial Group
Simply Wall St Value Rating: ★★★☆☆☆
Overview: BSP Financial Group operates as a diversified financial services provider with banking and non-banking entities, holding a market cap of PGK 8.75 billion.
Operations: BSP Financial Group generates revenue primarily from PNG Bank (PGK 1.98 billion), Offshore Banks (PGK 599.52 million), and Non-Bank Entities (PGK 111.02 million). The company has seen its net income margin fluctuate, reaching a high of 44.53% in Q4 2021 and dropping to 33.72% by Q4 2023, reflecting changes in operating expenses over time.
PE: 8.5x
BSP Financial Group, a small cap in Australia, has seen significant insider confidence with recent share purchases by executives. The company faces challenges with a high level of bad loans at 4%. Recent executive changes include Maryann Lameko-Vaai becoming Acting CFO and Peter Beswick appointed as Deputy CEO effective August 19, 2024. These leadership shifts aim to bolster BSP's strategic direction amidst its financial hurdles.
FINEOS Corporation Holdings
Simply Wall St Value Rating: ★★★☆☆☆
Overview: FINEOS Corporation Holdings is a software company specializing in providing core systems for life, accident, and health insurance carriers with a market cap of approximately €1.20 billion.
Operations: FINEOS Corporation Holdings generates revenue primarily from its Software & Programming segment, with the latest reported revenue at €124.66 million. The company has seen a gross profit margin of 70.81% in the most recent period, while operating expenses include significant allocations to R&D and general administrative costs.