In the midst of escalating geopolitical tensions and fluctuating economic indicators, global markets have experienced a turbulent week, with smaller-cap indexes like the S&P MidCap 400 and Russell 2000 seeing notable declines. Despite these challenges, optimism persists among small business owners and consumers, suggesting potential opportunities for discerning investors in the small-cap sector. Identifying promising stocks often involves looking for companies that demonstrate resilience amid market volatility and are positioned to benefit from improving sentiment or strategic insider actions.
Top 10 Undervalued Small Caps With Insider Buying Globally
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Morgan Advanced Materials | 11.8x | 0.5x | 34.53% | ★★★★★☆ |
| Lion Rock Group | 5.0x | 0.4x | 49.93% | ★★★★☆☆ |
| Tristel | 28.8x | 4.1x | 10.54% | ★★★★☆☆ |
| Hemisphere Energy | 5.2x | 2.2x | 8.78% | ★★★★☆☆ |
| Sing Investments & Finance | 7.4x | 3.7x | 38.51% | ★★★★☆☆ |
| Saturn Oil & Gas | 2.7x | 0.5x | -63.79% | ★★★★☆☆ |
| Italmobiliare | 11.4x | 1.5x | -205.70% | ★★★☆☆☆ |
| Eastnine | 18.9x | 9.1x | 37.30% | ★★★☆☆☆ |
| AInnovation Technology Group | NA | 2.4x | 45.51% | ★★★☆☆☆ |
| Seeing Machines | NA | 2.2x | 46.62% | ★★★☆☆☆ |
Let's dive into some prime choices out of from the screener.
Badger Infrastructure Solutions (TSX:BDGI)
Simply Wall St Value Rating: ★★★★☆☆
Overview: Badger Infrastructure Solutions specializes in providing non-destructive excavation services and infrastructure maintenance, with a market cap of approximately C$1.22 billion.
Operations: Badger Infrastructure Solutions generates revenue primarily from its core operations, with a recent quarterly revenue of $756.02 million. The company's gross profit margin has shown an upward trend, reaching 29.37% in the latest period. Operating expenses include significant allocations for depreciation and general & administrative costs, impacting net income margins which recently stood at 6.53%.
PE: 23.0x
Badger Infrastructure Solutions, a smaller company in its sector, has shown promising growth potential with first-quarter sales rising to US$172.63 million from US$161.56 million last year and net income increasing to US$3.26 million from US$1.78 million. The company repurchased 721,200 shares for CAD 83.45 million by April 2025, indicating strategic confidence in its value proposition. Despite high debt levels and reliance on external borrowing, earnings are projected to grow annually by 28%.
NorthWest Healthcare Properties Real Estate Investment Trust (TSX:NWH.UN)
Simply Wall St Value Rating: ★★★☆☆☆
Overview: NorthWest Healthcare Properties Real Estate Investment Trust operates in the healthcare real estate industry with a focus on owning and managing properties, and has a market cap of CA$1.78 billion.
Operations: The company generates revenue primarily from the healthcare real estate industry, with recent figures indicating CA$434.41 million in revenue. The gross profit margin has shown fluctuations, reaching 74.82% in the latest quarter. Operating expenses have been a consistent element of cost structure, with general and administrative expenses being a notable component. Net income has recently been negative due to substantial non-operating expenses impacting overall profitability.
PE: -4.9x
NorthWest Healthcare Properties Real Estate Investment Trust, a smaller player in the real estate investment sector, has shown insider confidence with recent share purchases. Despite a net loss of C$0.89 million in Q1 2025, down from C$47.61 million last year, the company maintains regular monthly dividends of C$0.03 per unit. The appointment of Robert Julien as Chair and formation of an Investment Committee signal strategic shifts aimed at capitalizing on forecasted earnings growth of 136% annually amidst higher risk external funding sources.
- Navigate through the intricacies of NorthWest Healthcare Properties Real Estate Investment Trust with our comprehensive valuation report here.
Learn about NorthWest Healthcare Properties Real Estate Investment Trust's historical performance.
Elemental Altus Royalties (TSXV:ELE)
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Elemental Altus Royalties is a company focused on the acquisition of royalties, streams, and similar production-based interests, with a market cap of approximately $78.28 million.
Operations: Elemental Altus Royalties generates revenue primarily through the acquisition of royalties, streams, and similar production-based interests. The company has experienced a notable increase in its gross profit margin, reaching 99.06% as of March 31, 2025. Operating expenses have been substantial but are offset by the high gross profit margin.
PE: 79.6x
Elemental Altus Royalties, a smaller company in the royalty sector, has seen significant insider confidence with Tether Investments acquiring a 31.9% stake as of June 10, 2025. Despite higher-risk funding through external borrowing, the company reported a surge in Q1 2025 revenue to US$11.64 million from US$3.33 million year-on-year and net income of US$3.45 million compared to a prior loss. With production guidance reaffirmed for record gold sales, future growth could be promising amidst these developments.
- Click here and access our complete valuation analysis report to understand the dynamics of Elemental Altus Royalties.
Gain insights into Elemental Altus Royalties' past trends and performance with our Past report.
Turning Ideas Into Actions
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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.
Valuation is complex, but we're here to simplify it.
Discover if Elemental Altus Royalties 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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