Top 3 Undervalued Small Caps With Insider Buys In Canada For September 2024

The Canadian market has experienced a notable uptick, climbing 1.4% in the last 7 days and 19% over the past year, with earnings projected to grow by 15% annually in the coming years. In this favorable environment, identifying undervalued small-cap stocks with insider buying could present compelling opportunities for investors seeking growth potential.

Top 10 Undervalued Small Caps With Insider Buying In Canada

Name	PE	PS	Discount to Fair Value	Value Rating
Vermilion Energy	NA	1.1x	47.10%	★★★★★★
Trican Well Service	7.9x	1.0x	10.83%	★★★★★☆
Nexus Industrial REIT	3.8x	3.8x	20.12%	★★★★★☆
Flagship Communities Real Estate Investment Trust	3.7x	3.8x	45.08%	★★★★★☆
Foraco International	5.2x	0.5x	-19.56%	★★★★☆☆
Rogers Sugar	15.6x	0.6x	47.45%	★★★★☆☆
Calfrac Well Services	2.5x	0.2x	-60.37%	★★★★☆☆
Sagicor Financial	1.2x	0.3x	-32.33%	★★★★☆☆
Primaris Real Estate Investment Trust	12.6x	3.4x	39.59%	★★★★☆☆
Hemisphere Energy	6.0x	2.3x	-211.93%	★★★☆☆☆

Click here to see the full list of 18 stocks from our Undervalued TSX Small Caps With Insider Buying screener.

Let's dive into some prime choices out of from the screener.

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, focusing on owning and managing a diversified portfolio of medical office buildings, clinics, and hospitals with a market cap of CA$2.75 billion.

Operations: NorthWest Healthcare Properties Real Estate Investment Trust generates revenue primarily from the healthcare real estate industry, with recent figures showing CA$523.85 million. The company's gross profit margin has varied, most recently recorded at 77.81%. Operating expenses and significant non-operating expenses have impacted net income, which has shown fluctuations over time.

PE: -3.5x

NorthWest Healthcare Properties Real Estate Investment Trust, a small cap stock in Canada, has seen insider confidence with Peter Aghar purchasing 100,000 shares worth C$477,861. Despite reporting a net loss of C$122.34 million for Q2 2024 and lower sales compared to the previous year, the company continues to declare monthly dividends of C$0.03 per unit. Earnings are forecasted to grow significantly by 117.9% annually, indicating potential future value despite current financial challenges.

• Unlock comprehensive insights into our analysis of NorthWest Healthcare Properties Real Estate Investment Trust stock in this valuation report.

• Understand NorthWest Healthcare Properties Real Estate Investment Trust's track record by examining our Past report.

Trican Well Service (TSX:TCW)

Simply Wall St Value Rating: ★★★★★☆

Overview: Trican Well Service provides oil well equipment and services, operating within a market cap of CA$1.07 billion.

Operations: Trican Well Service generates revenue primarily from its Oil Well Equipment & Services segment, totaling CA$991.15 million. The company's gross profit margin has shown variability, with a recent figure of 28.05%.

PE: 7.9x

Trican Well Service, a Canadian small-cap stock, has shown promising signs of being undervalued. The company recently reported strong earnings for Q2 2024, with sales increasing to C$211.81 million from C$168.23 million the previous year and net income rising to C$16.23 million from C$9.84 million. Insider confidence is evident as Scott Matson purchased 27,000 shares valued at approximately C$130,140 in July 2024, reflecting a significant increase in their holdings by over 68%. Additionally, Trican announced a dividend increase and completed share repurchases totaling nearly 5% of outstanding shares for C$44.96 million since October 2023. These factors collectively suggest potential growth despite forecasted earnings decline and reliance on higher-risk funding sources.

• Delve into the full analysis valuation report here for a deeper understanding of Trican Well Service.

• Explore historical data to track Trican Well Service's performance over time in our Past section.

Vermilion Energy (TSX:VET)

Simply Wall St Value Rating: ★★★★★★

Overview: Vermilion Energy is an international oil and gas exploration and production company with a market cap of CA$3.50 billion.

Operations: Vermilion Energy generates revenue primarily from its Oil & Gas - Exploration & Production segment, with recent quarterly revenue at CA$1.81 billion. The company has seen fluctuations in net income margins, recently reporting a net income margin of -45.56% for the quarter ending June 2024. Gross profit margins have varied, reaching 65.72% during the same period.

PE: -2.5x

Vermilion Energy, a small-cap Canadian stock, has shown promising developments in its operations. Recently, the company reported successful testing of its first deep gas exploration well in Germany and initiated drilling for a second well. Vermilion also increased production on the SA-10 block in Croatia to over 2,000 boe/d and brought five new wells online from its Mica Montney asset. Insider confidence is evident with significant share purchases throughout 2024. Despite reporting a net loss for Q2 2024, Vermilion's operational updates and strategic moves indicate potential growth ahead.

• Take a closer look at Vermilion Energy's potential here in our valuation report.

• Gain insights into Vermilion Energy's historical performance by reviewing our past performance report.

Taking Advantage

• Take a closer look at our Undervalued TSX Small Caps With Insider Buying list of 18 companies by clicking here.
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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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