Undervalued Small Caps In Australia With Insider Action October 2024

As the Australian market remains relatively stable, with the ASX 200 opening nearly flat and investors closely watching upcoming inflation data, small-cap stocks are drawing attention amidst this cautious economic backdrop. In such an environment, identifying promising small-cap opportunities often involves looking at those with strong fundamentals and potential catalysts that align with current market conditions.

Top 10 Undervalued Small Caps With Insider Buying In Australia

Name	PE	PS	Discount to Fair Value	Value Rating
GWA Group	16.6x	1.6x	41.13%	★★★★★★
Magellan Financial Group	8.2x	5.2x	31.53%	★★★★★☆
Tabcorp Holdings	NA	0.4x	21.93%	★★★★★☆
SHAPE Australia	13.9x	0.3x	35.88%	★★★★☆☆
Collins Foods	17.8x	0.7x	7.93%	★★★★☆☆
Dicker Data	19.6x	0.7x	-62.23%	★★★★☆☆
Corporate Travel Management	19.5x	2.3x	5.81%	★★★★☆☆
Coventry Group	237.6x	0.4x	-17.31%	★★★☆☆☆
Abacus Storage King	12.4x	7.8x	-31.31%	★★★☆☆☆
Credit Corp Group	23.4x	3.1x	33.51%	★★★☆☆☆

Click here to see the full list of 23 stocks from our Undervalued ASX Small Caps With Insider Buying screener.

Underneath we present a selection of stocks filtered out by our screen.

Abacus Storage King (ASX:ASK)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Abacus Storage King operates in the self-storage sector, providing rental and merchandising services, with a market cap of A$1.25 billion.

Operations: ASK generates revenue primarily from rental and merchandising activities. The company's cost of goods sold (COGS) has been consistently around A$41.90 million to A$42.46 million in recent periods, while its operating expenses have shown an upward trend, reaching approximately A$70.77 million by the latest period. Notably, ASK's net income margin saw a significant increase to 62.67% in the most recent period, reflecting improved profitability despite rising costs.

PE: 12.4x

Abacus Storage King, a player in the self-storage sector, has been navigating changes with recent board shifts and dividend affirmations. Despite a forecasted 6.74% annual revenue growth, its earnings are expected to decline by an average of 1.7% annually over the next three years. The company relies on external borrowing for funding, which poses higher risk but is currently manageable given their financial position. Insider confidence was shown through share purchases earlier this year, signaling potential optimism about future prospects amidst these challenges.

• Navigate through the intricacies of Abacus Storage King with our comprehensive valuation report here.

• Evaluate Abacus Storage King's historical performance by accessing our past performance report.

Corporate Travel Management (ASX:CTD)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Corporate Travel Management is a company that provides travel services across Asia, Europe, North America, and Australia/New Zealand with a market cap of A$2.89 billion.

Operations: Corporate Travel Management generates revenue primarily from its travel services across Asia, Europe, North America, and Australia/New Zealand. The company's cost of goods sold (COGS) has shown an upward trend over the years, impacting its gross profit margins. The gross profit margin has fluctuated significantly, with recent figures around 40.60%. Operating expenses have been substantial due to general and administrative costs and depreciation & amortization expenses.

PE: 19.5x

Corporate Travel Management, a smaller player in the Australian market, has shown insider confidence with Jamie Pherous purchasing 87,500 shares for A$1.4 million. This reflects a positive outlook despite the company's reliance on riskier external borrowing for funding. Recent financials reveal growth, with revenue increasing to A$716.86 million from A$660.08 million year-over-year and net income rising to A$84.45 million from A$77.57 million. Additionally, their share buyback plan increased by 8 million shares up to June 2025 suggests strategic capital management amidst evolving auditor relationships and dividend adjustments.

• Take a closer look at Corporate Travel Management's potential here in our valuation report.

• Gain insights into Corporate Travel Management's historical performance by reviewing our past performance report.

Insignia Financial (ASX:IFL)

Simply Wall St Value Rating: ★★★★★☆

Overview: Insignia Financial is a financial services company that provides advice, platform solutions, and asset management services, with a market capitalization of A$2.63 billion.

Operations: Insignia Financial generates revenue primarily from its Platforms segment, followed by Advice and Asset Management. The company's gross profit margin has shown an increasing trend, reaching 36.72% in the latest period. Operating expenses are a significant cost component, with general and administrative expenses being the largest portion within this category.

PE: -11.7x

Insignia Financial, a small player in Australia's financial sector, faces challenges with its external borrowing as the sole funding source. Despite reporting a net loss of A$185.3 million for the year ending June 2024, compared to A$51.4 million net income previously, there's insider confidence with recent share purchases hinting at potential long-term value. Earnings are projected to grow significantly by 56% annually, suggesting possible future recovery amidst current hurdles like leadership changes and financial setbacks.

• Click to explore a detailed breakdown of our findings in Insignia Financial's valuation report.

• Understand Insignia Financial's track record by examining our Past report.

Taking Advantage

• Reveal the 23 hidden gems among our Undervalued ASX Small Caps With Insider Buying screener with a single click here.
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Seeking Other Investments?

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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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