Undervalued Small Caps In Canada With Insider Action

The Canadian stock market has experienced notable volatility recently, with sizable swings and market pullbacks that have left investors cautious yet hopeful. Amid this fluctuating landscape, small-cap stocks often present unique opportunities for those who can identify undervalued gems supported by insider action.

Top 10 Undervalued Small Caps With Insider Buying In Canada

Name	PE	PS	Discount to Fair Value	Value Rating
Trican Well Service	7.7x	1.0x	10.94%	★★★★★☆
Nexus Industrial REIT	2.6x	3.2x	25.13%	★★★★★☆
Russel Metals	10.6x	0.5x	49.35%	★★★★★☆
Primaris Real Estate Investment Trust	10.8x	2.9x	46.00%	★★★★★☆
Bragg Gaming Group	NA	1.2x	21.05%	★★★★★☆
Hemisphere Energy	6.7x	2.4x	15.71%	★★★★☆☆
Calfrac Well Services	2.5x	0.2x	-24.95%	★★★★☆☆
Sagicor Financial	1.1x	0.4x	-63.32%	★★★★☆☆
Information Services	23.7x	2.1x	-64.23%	★★★☆☆☆
AutoCanada	10.6x	0.1x	-53.72%	★★★☆☆☆

Click here to see the full list of 27 stocks from our Undervalued TSX Small Caps With Insider Buying screener.

Here we highlight a subset of our preferred stocks from the screener.

Black Diamond Group (TSX:BDI)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Black Diamond Group provides workforce and modular space solutions, with a market cap of CA$0.44 billion.

Operations: Workforce Solutions generated CA$188.39 million, while Modular Space Solutions contributed CA$201.58 million to the total revenue of CA$389.97 million for the latest period ending 2024-06-30. The company reported a gross profit margin of 46.04% and a net income margin of 7.78%.

PE: 19.6x

Black Diamond Group, a small cap in Canada, reported Q2 2024 sales of C$95.47 million, up from C$91.14 million last year, with net income rising to C$7.5 million from C$4.57 million. Basic EPS increased to C$0.12 from C$0.08 a year ago. The company also declared a Q3 2024 dividend of C$0.03 and recently acquired assets worth $20.45 million to expand its Western Canadian market presence, reflecting insider confidence in future growth potential despite high debt levels.

• Dive into the specifics of Black Diamond Group here with our thorough valuation report.

• Explore historical data to track Black Diamond Group's performance over time in our Past section.

Innergex Renewable Energy (TSX:INE)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Innergex Renewable Energy is a company that develops, owns, and operates renewable energy facilities including wind, solar, and hydroelectric projects with a market cap of approximately CA$2.50 billion.

Operations: Innergex Renewable Energy generates revenue from wind (CA$535.48 million), solar (CA$148.35 million), and hydroelectric (CA$372.39 million) segments. The company's gross profit margin has fluctuated, reaching 74.63% in the latest period ending June 30, 2024, with a peak of 82.21% on September 30, 2013.

PE: -14.8x

Innergex Renewable Energy, a smaller player in Canada's renewable energy sector, has seen insider confidence with notable share purchases over the past six months. Despite a slight dip in Q2 2024 sales to C$239.51 million from C$251.91 million last year, the company remains focused on growth through innovative projects like its San Andres battery energy storage facility in Chile. This project is expected to generate annual revenues between US$6-8 million while keeping operational expenses low at around US$0.4 million annually.

• Unlock comprehensive insights into our analysis of Innergex Renewable Energy stock in this valuation report.

• Assess Innergex Renewable Energy's past performance with our detailed historical performance reports.

Information Services (TSX:ISV)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Information Services is a company that provides registry operations, services, and technology solutions with a market cap of CA$0.39 billion.

Operations: The company generates revenue primarily from Registry Operations (CA$116.60 million), Services (CA$108.81 million), and Technology Solutions (CA$27.31 million). The gross profit margin has shown variability, with the latest reported figure at 74.82%.

PE: 23.7x

Information Services Corporation, a small Canadian company, reported Q2 2024 sales of CAD 67.85 million, up from CAD 53.3 million the previous year. Net income rose to CAD 10.32 million from CAD 8.23 million in the same period last year. Despite improved earnings per share (CAD 0.57 vs CAD 0.47), profit margins decreased to 8.8% from last year's 13.6%. Insider confidence is evident with recent share purchases over the past six months, indicating potential future growth despite funding risks and lower profit margins compared to last year.

• Click here to discover the nuances of Information Services with our detailed analytical valuation report.

• Evaluate Information Services' historical performance by accessing our past performance report.

Next Steps

• Unlock more gems! Our Undervalued TSX Small Caps With Insider Buying screener has unearthed 24 more companies for you to explore.Click here to unveil our expertly curated list of 27 Undervalued TSX Small Caps With Insider Buying.
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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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