Top Undervalued Small Caps With Insider Buying In Australia For August 2024

The Australian market has climbed 1.2% in the last 7 days and is up 9.8% over the last 12 months, with earnings forecast to grow by 13% annually. In this thriving environment, identifying undervalued small-cap stocks with insider buying can present compelling opportunities for investors looking to capitalize on potential growth.

Top 10 Undervalued Small Caps With Insider Buying In Australia

Name	PE	PS	Discount to Fair Value	Value Rating
Acrow	13.6x	2.0x	0.02%	★★★★★☆
Healius	NA	0.6x	44.25%	★★★★★☆
Elders	23.7x	0.5x	47.44%	★★★★☆☆
Dicker Data	22.4x	0.8x	8.68%	★★★★☆☆
Eagers Automotive	9.8x	0.3x	39.81%	★★★★☆☆
Codan	31.0x	4.5x	30.63%	★★★★☆☆
RAM Essential Services Property Fund	NA	6.0x	43.30%	★★★★☆☆
Coventry Group	314.5x	0.5x	-5.64%	★★★☆☆☆
Gold Road Resources	15.9x	3.9x	49.19%	★★★☆☆☆
BSP Financial Group	8.7x	2.9x	0.95%	★★★☆☆☆

Click here to see the full list of 18 stocks from our Undervalued ASX Small Caps With Insider Buying screener.

Here we highlight a subset of our preferred stocks from the screener.

Eagers Automotive (ASX:APE)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Eagers Automotive is a leading Australian automotive retail group primarily engaged in car retailing operations, with a market cap of approximately A$3.20 billion.

Operations: The company's primary revenue stream is car retailing, generating A$9.85 billion. The gross profit margin has varied over the years, with a recent figure of 18.60%. Operating expenses include general and administrative costs, depreciation and amortization, and non-operating expenses.

PE: 9.8x

Eagers Automotive, a small cap in Australia, has shown insider confidence with recent share purchases. In June 2024, the company announced a buyback program to repurchase up to 25.8 million shares by June 2025. Despite high debt levels from external borrowing and no customer deposits, Eagers forecasts revenue growth of 5.53% annually over the next three years while earnings are expected to decline slightly by 0.7% per year. The CEO emphasized their commitment to revenue growth and strategic M&A opportunities during the May AGM.

• Delve into the full analysis valuation report here for a deeper understanding of Eagers Automotive.

• Assess Eagers Automotive's past performance with our detailed historical performance reports.

Dicker Data (ASX:DDR)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Dicker Data is an Australian wholesale distributor specializing in computer peripherals, with a market cap of A$1.92 billion.

Operations: The company generates revenue primarily from wholesale computer peripherals, with a recent gross profit margin of 14.23%. The net income margin has shown an upward trend, reaching 3.62% in the latest period.

PE: 22.4x

Dicker Data, a small Australian tech distributor, has recently garnered attention due to insider confidence. Over the past six months, insiders have been actively purchasing shares, signaling strong belief in the company’s prospects. Despite carrying high debt levels funded entirely through external borrowing, Dicker Data is set to grow earnings by 7.83% annually. The ex-dividend date on May 13 for their A$0.11 cash dividend highlights consistent shareholder returns amidst growth projections.

• Take a closer look at Dicker Data's potential here in our valuation report.

• Gain insights into Dicker Data's past trends and performance with our Past report.

MFF Capital Investments (ASX:MFF)

Simply Wall St Value Rating: ★★★★☆☆

Overview: MFF Capital Investments is an Australian-based investment company specializing in equity investments, with a market cap of A$1.77 billion.

Operations: The company generates revenue primarily from equity investments, with a recent figure of A$659.96 million. Operating expenses are relatively low at A$3.89 million, and the net income margin stands at 67.78%.

PE: 5.1x

MFF Capital Investments, a small cap in Australia, has shown promise with insider confidence reflected through significant share purchases over the past six months. The company focuses on international investments, providing diversified exposure. Recent financials indicate strong asset management with A$1.2 billion under management and minimal liabilities due to no customer deposits. This structure suggests a lower risk profile compared to peers relying heavily on external borrowing. Future prospects look stable given their strategic investment approach and insider confidence.

• Dive into the specifics of MFF Capital Investments here with our thorough valuation report.

• Examine MFF Capital Investments' past performance report to understand how it has performed in the past.

Taking Advantage

• Discover the full array of 18 Undervalued ASX Small Caps With Insider Buying right here.
• Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly.
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Want To Explore Some Alternatives?

• 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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