3 Undervalued Small Caps On ASX With Insider Action In Australia

The Australian stock market has experienced a slight downturn, with the ASX200 closing down 0.1% at 8,436 points, while sectors like Materials and IT have shown resilience. Amidst this mixed market performance, small-cap stocks on the ASX offer intriguing opportunities for investors seeking growth potential in dynamic economic conditions. Identifying promising small caps often involves evaluating insider actions and sector performance to gauge future prospects effectively.

Top 10 Undervalued Small Caps With Insider Buying In Australia

Name	PE	PS	Discount to Fair Value	Value Rating
GWA Group	15.9x	1.5x	42.48%	★★★★★★
Collins Foods	18.2x	0.7x	3.58%	★★★★☆☆
Dicker Data	19.2x	0.7x	-59.96%	★★★★☆☆
Centuria Capital Group	21.9x	4.9x	44.38%	★★★★☆☆
Hansen Technologies	56.1x	3.3x	26.22%	★★★★☆☆
FINEOS Corporation Holdings	NA	3.3x	48.36%	★★★★☆☆
Healius	NA	0.6x	11.85%	★★★★☆☆
Tabcorp Holdings	NA	0.5x	10.21%	★★★★☆☆
Corporate Travel Management	24.2x	2.9x	40.66%	★★★☆☆☆
Cromwell Property Group	NA	4.5x	-17.60%	★★★☆☆☆

Click here to see the full list of 29 stocks from our Undervalued ASX Small Caps With Insider Buying screener.

Here's a peek at a few of the choices from the screener.

GrainCorp (ASX:GNC)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: GrainCorp is a diversified agribusiness company involved in grain handling, storage, trading, and processing with operations in agribusiness and nutrition & energy segments, holding a market cap of approximately A$2.67 billion.

Operations: Agribusiness and Nutrition & Energy are key revenue streams, contributing A$4.96 billion and A$1.89 billion respectively. The gross profit margin has shown a declining trend from 20.70% to 9.99% over the observed periods, reflecting changes in cost structures or pricing strategies.

PE: 28.0x

GrainCorp, a company with a market presence in Australia, is navigating financial challenges with net income dropping to A$61.8 million from A$249.7 million last year and profit margins shrinking to 0.9% from 3%. Despite these hurdles, they are actively seeking acquisitions to bolster growth and diversify their portfolio for the 2025 fiscal year. The company's strategic focus on business transformation aims to enhance integration capabilities, potentially positioning them for future revenue growth projected at 16% annually.

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

• Gain insights into GrainCorp's historical performance by reviewing our past performance report.

Gold Road Resources (ASX:GOR)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Gold Road Resources is an Australian gold exploration and production company with a focus on developing and operating the Gruyere Gold Mine, boasting a market cap of A$1.62 billion.

Operations: Gold Road Resources generates revenue primarily from its Development and Production segment, with a reported revenue of A$454.82 million for the latest period. The company's gross profit margin has shown variations, with the most recent figure at 45.12%. Operating expenses and non-operating expenses are significant cost components, impacting net income margins which have varied over time.

PE: 19.6x

Gold Road Resources, a player in the Australian gold mining sector, is drawing attention for its potential acquisition interest in the Ravenswood Gold Mine. With earnings projected to grow by 20.9% annually, it shows promising financial prospects despite relying entirely on external borrowing for funding. Insider confidence is evident as insiders have been purchasing shares throughout 2024, signaling belief in future growth. The company's strategic moves and market positioning could enhance its value proposition amidst industry competition.

• Navigate through the intricacies of Gold Road Resources with our comprehensive valuation report here.

• Assess Gold Road Resources' past performance with our detailed historical performance reports.

Hansen Technologies (ASX:HSN)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Hansen Technologies is a global provider of billing and customer care solutions, primarily serving the utilities and telecommunications industries, with a market cap of A$1.05 billion.

Operations: Billing is the primary revenue stream, generating A$347.61 million. The gross profit margin has shown variability, with a recent figure of 31.24%. Operating expenses and non-operating expenses contribute to the overall cost structure, impacting net income margins over time.

PE: 56.1x

Hansen Technologies, a company focused on utility and telecommunications billing solutions, is gaining attention in the Australian market for its potential value. Despite a decrease in profit margins from 13.7% to 6%, earnings are projected to grow by over 22% annually. Recent client wins, such as partnerships with the City of Kinston and Å Entelios, highlight their expanding influence in North America and Europe. Insider confidence is shown through recent share purchases within the last year, indicating belief in future growth prospects despite reliance on external borrowing for funding.

• Unlock comprehensive insights into our analysis of Hansen Technologies stock in this valuation report.

• Understand Hansen Technologies' track record by examining our Past report.

Summing It All Up

• Embark on your investment journey to our 29 Undervalued ASX Small Caps With Insider Buying selection here.
• Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
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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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