In recent weeks, global markets have been navigating a complex landscape marked by mixed economic signals and fluctuating investor sentiment. While the U.S. labor market shows signs of weakening, hopes for interest rate cuts have buoyed smaller-cap stocks, which often react more sensitively to such monetary policy changes. In this environment, identifying potentially undervalued small-cap stocks with insider buying can be an intriguing strategy for investors seeking opportunities amid market volatility.
Top 10 Undervalued Small Caps With Insider Buying Globally
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| GDI Integrated Facility Services | 18.4x | 0.3x | 3.59% | ★★★★★☆ |
| Bytes Technology Group | 18.7x | 4.7x | 5.89% | ★★★★☆☆ |
| BWP Trust | 9.8x | 12.7x | 15.67% | ★★★★☆☆ |
| Hung Hing Printing Group | NA | 0.4x | 44.86% | ★★★★☆☆ |
| CVS Group | 44.7x | 1.3x | 38.57% | ★★★★☆☆ |
| Sagicor Financial | 7.4x | 0.4x | -80.59% | ★★★★☆☆ |
| Daiwa House Logistics Trust | 13.1x | 6.9x | 11.59% | ★★★★☆☆ |
| Nexus Industrial REIT | 18.7x | 3.1x | 20.11% | ★★★☆☆☆ |
| Pizu Group Holdings | 11.9x | 1.2x | 42.39% | ★★★☆☆☆ |
| Morguard North American Residential Real Estate Investment Trust | 6.8x | 1.8x | 18.29% | ★★★☆☆☆ |
Let's review some notable picks from our screened stocks.
Sinofert Holdings (SEHK:297)
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Sinofert Holdings is a leading integrated fertilizer company in China, focusing on the production and distribution of fertilizers with a market capitalization of CN¥6.50 billion.
Operations: The company's revenue streams are primarily driven by its Basic and Growth Business segments, contributing significantly to its overall income. The cost of goods sold (COGS) is a major expense, impacting the gross profit margin, which has shown an upward trend from 3.94% in September 2014 to 12.84% in June 2025. Operating expenses include sales and marketing as well as general and administrative costs, with fluctuations observed over the periods analyzed. Non-operating expenses also affect profitability but vary across different time frames.
PE: 8.5x
Sinofert Holdings, a company with a focus on the fertilizer industry, recently reported an increase in half-year sales to CNY 14.7 billion and net income of CNY 1.1 billion. This growth reflects its potential as an undervalued stock within its sector. Insider confidence is highlighted by Tielin Wang's purchase of 450,000 shares for approximately CNY 640,000 in June 2025, indicating belief in future prospects despite reliance on external borrowing for funding.
- Get an in-depth perspective on Sinofert Holdings' performance by reading our valuation report here.
Explore historical data to track Sinofert Holdings' performance over time in our Past section.
Sagicor Financial (TSX:SFC)
Simply Wall St Value Rating: ★★★★☆☆
Overview: Sagicor Financial is a financial services company operating primarily in life insurance and related sectors across regions including the Caribbean, Canada, and the United States, with a market capitalization of approximately $1.74 billion CAD.
Operations: Sagicor Financial generates revenue primarily from its segments in Canada, Jamaica, and Life operations, with Sagicor Canada contributing $771.26 million and Sagicor Jamaica adding $704.47 million. The company's gross profit margin has shown a varied trend, reaching 52.64% as of September 2023. Operating expenses have fluctuated over the periods observed, impacting net income margins significantly at different times.
PE: 7.4x
Sagicor Financial, a smaller company in the financial sector, has recently shown signs of insider confidence with notable share purchases. Despite reporting a net loss of US$6.45 million for Q2 2025, this was an improvement from the previous year's larger loss. The company's earnings are projected to grow annually by 13.78%, offering potential for future value appreciation. However, reliance on higher-risk external borrowing remains a concern for their financial stability.
- Unlock comprehensive insights into our analysis of Sagicor Financial stock in this valuation report.
VersaBank (TSX:VBNK)
Simply Wall St Value Rating: ★★★☆☆☆
Overview: VersaBank operates as a digital bank in Canada, focusing on innovative banking solutions and cybersecurity services, with a market capitalization of CA$0.36 billion.
Operations: The company generates revenue primarily from its Digital Banking Canada segment, contributing CA$96.56 million, and DRTC services at CA$8.83 million. Over recent periods, the net income margin has shown variability, reaching as high as 40.54% in April 2024 before declining to 25.04% by July 2025. Operating expenses have also fluctuated significantly, peaking at CA$74.23 million in July 2025 from a lower base of CA$49.53 million in April 2024.
PE: 19.0x
VersaBank, a smaller player in the financial industry, is gaining attention for its recent strategic moves and insider confidence. President & Director David Taylor's purchase of 57,948 shares for approximately C$701,172 signals belief in future potential. The bank's net interest income rose to C$29.78 million in Q3 2025 from C$24.94 million a year ago, though net income decreased to C$6.58 million from C$9.71 million due to lower profit margins and shareholder dilution over the past year. Meanwhile, their Receivable Purchase Program expansion into securitized financing aims to leverage demand amidst current interest rates, potentially boosting future growth prospects despite current challenges like reduced profit margins and increased shareholder dilution over the past year.
- Click here and access our complete valuation analysis report to understand the dynamics of VersaBank.
Gain insights into VersaBank's historical performance by reviewing our past performance report.
Make It Happen
- Embark on your investment journey to our 106 Undervalued Global Small Caps With Insider Buying selection here.
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Seeking Other Investments?
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- 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.
Valuation is complex, but we're here to simplify it.
Discover if Sinofert Holdings might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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