October 2024's Undervalued Small Caps In Australia With Insider Action

In the last week, the Australian market has stayed flat, yet it has shown robust growth over the past year with a 17% increase and earnings projected to grow by 12% annually. In this dynamic environment, identifying small-cap stocks that are perceived as undervalued and have insider activity can offer unique 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	7.7x	4.8x	36.69%	★★★★★☆
GWA Group	16.8x	1.6x	40.66%	★★★★★☆
Bigtincan Holdings	NA	1.3x	40.90%	★★★★★☆
SHAPE Australia	14.1x	0.3x	34.97%	★★★★☆☆
Mader Group	21.6x	1.4x	48.36%	★★★★☆☆
Eagers Automotive	11.0x	0.3x	36.86%	★★★★☆☆
Coventry Group	217.5x	0.4x	-9.88%	★★★☆☆☆
Dicker Data	21.4x	0.8x	-75.06%	★★★☆☆☆
Corporate Travel Management	21.6x	2.6x	-0.78%	★★★☆☆☆
Credit Corp Group	21.7x	2.9x	37.97%	★★★☆☆☆

Click here to see the full list of 26 stocks from our Undervalued ASX Small Caps With Insider Buying screener.

We'll examine a selection from our screener results.

Credit Corp Group (ASX:CCP)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Credit Corp Group is a financial services company specializing in debt ledger purchasing in Australia, New Zealand, and the United States, as well as consumer lending across these regions, with a market capitalization of A$1.72 billion.

Operations: The company generates revenue primarily from Debt Ledger Purchasing in Australia, New Zealand, and the United States, as well as consumer lending across these regions. Operating expenses are significant, with general and administrative expenses being the largest component. The net income margin has shown variability over time but was 13.42% for the most recent period ending October 2024.

PE: 21.7x

Credit Corp Group, an Australian company with a focus on debt collection, has recently appointed Sarah Brennan as a Non-Executive Director, indicating ongoing Board renewal. Despite a drop in net income to A$50.71 million for the year ending June 2024 from A$91.25 million previously, the company anticipates earnings growth of 13% annually and projects NPAT between A$90 million to A$100 million for fiscal 2025. Insider confidence is evident with recent share purchases by executives within the past year.

• Get an in-depth perspective on Credit Corp Group's performance by reading our valuation report here.

• Gain insights into Credit Corp Group's past trends and performance with our Past report.

Mader Group (ASX:MAD)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Mader Group is a company that provides staffing and outsourcing services, with a market capitalization of A$1.11 billion.

Operations: Mader Group generates revenue primarily from Staffing & Outsourcing Services, with the latest reported figure at A$774.47 million. The company's gross profit margin has shown an interesting trend, reaching 22.92% as of June 2024, after peaking at 23.15% in September 2023. Operating expenses have been a significant component of costs, amounting to A$89.97 million in the most recent period.

PE: 21.6x

Mader Group, part of the S&P Global BMI Index since September 2024, is experiencing insider confidence with share purchases over recent months. The company projects revenue growth to A$870 million for fiscal 2025, up from A$774.5 million in fiscal 2024, and expects net profit after tax to rise to A$57 million. Despite relying on external borrowing for funding, Mader's earnings per share increased significantly last year. With a dividend increase of 34%, its small size may offer untapped potential amidst these developments.

• Click here and access our complete valuation analysis report to understand the dynamics of Mader Group.

• Assess Mader Group's past performance with our detailed historical performance reports.

Magellan Financial Group (ASX:MFG)

Simply Wall St Value Rating: ★★★★★☆

Overview: Magellan Financial Group is an Australian-based investment management company specializing in global equities and infrastructure, with a market capitalization of A$3.56 billion.

Operations: Magellan Financial Group generates revenue primarily from investment management services, contributing A$279.83 million, and fund investments at A$81.65 million. The company has experienced fluctuations in its gross profit margin, reaching 80.78% as of October 2024. Operating expenses include general and administrative costs totaling A$29.15 million and sales & marketing expenses of A$1.83 million for the same period.

PE: 7.7x

Magellan Financial Group, a smaller player in the Australian market, recently reported strong net income of A$238.76 million for the year ending June 30, 2024, up from A$182.66 million previously. Despite a dip in revenue to A$378.63 million from A$431.65 million, earnings per share rose to A$1.318 from A$1, signaling improved profitability amidst challenging conditions with high-risk external funding sources and an expected decline in future earnings by 10% annually over three years. The company has actively repurchased shares totaling 2.69% since March 2022 for approximately A$52.47 million and adjusted its buyback plan duration till April 2025 on September 2nd this year—demonstrating strategic financial maneuvering that could potentially enhance shareholder value despite anticipated earnings challenges ahead.

• Unlock comprehensive insights into our analysis of Magellan Financial Group stock in this valuation report.

• Evaluate Magellan Financial Group's historical performance by accessing our past performance report.

Turning Ideas Into Actions

• Delve into our full catalog of 26 Undervalued ASX Small Caps With Insider Buying here.
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Contemplating Other Strategies?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
• Find companies with promising cash flow potential yet trading below their fair value.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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