3 Undervalued Small Caps In Australia With Insider Action

In the last week, the Australian market has stayed flat, with notable gains of 9.0% in the Materials sector. Over the past year, the market is up 16%, and earnings are forecast to grow by 12% annually. In this context, identifying undervalued small-cap stocks with insider action can offer promising opportunities for investors looking to capitalize on potential growth within a stable market environment.

Top 10 Undervalued Small Caps With Insider Buying In Australia

Name	PE	PS	Discount to Fair Value	Value Rating
GWA Group	16.5x	1.5x	41.27%	★★★★★★
Magellan Financial Group	7.5x	4.7x	37.58%	★★★★★☆
Bigtincan Holdings	NA	1.1x	48.63%	★★★★★☆
Centuria Capital Group	23.7x	5.3x	40.51%	★★★★☆☆
Eagers Automotive	10.9x	0.3x	37.35%	★★★★☆☆
Tabcorp Holdings	NA	0.5x	16.99%	★★★★☆☆
Dicker Data	21.2x	0.8x	-73.93%	★★★☆☆☆
Coventry Group	223.7x	0.4x	-12.35%	★★★☆☆☆
Megaport	122.0x	6.0x	45.70%	★★★☆☆☆
Corporate Travel Management	21.8x	2.6x	-1.96%	★★★☆☆☆

Click here to see the full list of 21 stocks from our Undervalued ASX Small Caps With Insider Buying screener.

Let's uncover some gems from our specialized screener.

Eagers Automotive (ASX:APE)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Eagers Automotive operates primarily in car retailing and property management, with a market cap of A$3.41 billion.

Operations: Eagers Automotive's primary revenue stream is from car retailing, generating A$10.50 billion. The company's net income margin has shown fluctuations, with recent figures around 2.47%. Operating expenses and cost of goods sold are significant contributors to the overall cost structure.

PE: 10.9x

Eagers Automotive, a small Australian company, has shown insider confidence with Nicholas Politis purchasing 200,000 shares worth A$2.09 million in recent months. For the half-year ending June 30, 2024, Eagers reported sales of A$5.46 billion and net income of A$116 million. Despite a decline in net income from the previous year’s A$137.76 million, the company announced a cash dividend of A$0.24 per share payable on September 20, 2024. Their debt is entirely from external borrowing sources which pose higher risks but no customer deposits are involved.

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

• Gain insights into Eagers Automotive's past trends and performance with our Past report.

Corporate Travel Management (ASX:CTD)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Corporate Travel Management provides travel services across Asia, Europe, North America, and Australia and New Zealand, with a market cap of A$2.98 billion.

Operations: Corporate Travel Management generates revenue primarily from its travel services across Asia, Europe, North America, and Australia/New Zealand. The company's gross profit margin has shown variability over the years, peaking at 49.97% in June 2018 and dipping to -11.73% in December 2020 before recovering to 41.60% by December 2023. Key cost components include COGS and operating expenses, with significant allocations towards general & administrative expenses and D&A expense.

PE: 21.8x

Corporate Travel Management (CTD) has shown insider confidence with Jamie Pherous purchasing 87,500 shares valued at A$1.4 million. The company reported strong financials for the year ending June 30, 2024, with sales increasing to A$710.42 million from A$653.4 million and net income rising to A$84.45 million from A$77.57 million a year ago. CTD also repurchased 1,488,232 shares in the first half of 2024 for A$23.14 million and extended its buyback plan through June 2025.

• Dive into the specifics of Corporate Travel Management here with our thorough valuation report.

• Examine Corporate Travel Management's past performance report to understand how it has performed in the past.

Neuren Pharmaceuticals (ASX:NEU)

Simply Wall St Value Rating: ★★★★★☆

Overview: Neuren Pharmaceuticals is a biopharmaceutical company focused on developing therapies for neurodevelopmental and neurodegenerative disorders, with a market cap of A$1.20 billion.

Operations: Neuren Pharmaceuticals generates revenue primarily from product sales, with a significant increase observed in recent periods. The cost of goods sold (COGS) and operating expenses are notable components of its financial structure. Net profit margin has shown positive trends recently, reaching 70.26% as of June 2023.

PE: 16.5x

Neuren Pharmaceuticals, a small Australian biotech firm, recently reported a drop in half-year sales to A$24.33 million from A$62.93 million the previous year, with net income falling to A$8.02 million from A$47.81 million. Despite these figures, the company provided optimistic full-year sales guidance of A$340-370 million for 2024 and showcased promising Phase 2 trial results for Angelman syndrome in August 2024. Insider confidence is evident through recent share purchases by executives over the past six months, signaling potential undervaluation and growth prospects ahead.

• Click to explore a detailed breakdown of our findings in Neuren Pharmaceuticals' valuation report.

• Explore historical data to track Neuren Pharmaceuticals' performance over time in our Past section.

Key Takeaways

• Gain an insight into the universe of 21 Undervalued ASX Small Caps With Insider Buying by clicking here.
• Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.
• Streamline your investment strategy with Simply Wall St's app for free and benefit from extensive research on stocks across all corners of the world.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com