Stock Analysis

Exploring 3 Undervalued Small Caps In Global Backed By Insider Activity

As global markets continue to react to economic data and rate cut speculations, small-cap stocks have been gaining attention, with the Russell 2000 Index notably outperforming larger indices like the S&P 500. This environment of potential interest rate adjustments and mixed inflation signals presents an intriguing backdrop for exploring small-cap opportunities, where insider activity can often provide additional insights into a company's potential.

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Top 10 Undervalued Small Caps With Insider Buying Globally

NamePEPSDiscount to Fair ValueValue Rating
Morguard North American Residential Real Estate Investment Trust6.7x1.8x20.96%★★★★★☆
Lion Rock Group5.2x0.4x49.23%★★★★☆☆
Hemisphere Energy5.8x2.2x11.14%★★★★☆☆
East West Banking3.3x0.8x15.68%★★★★☆☆
BWP Trust9.7x12.6x17.90%★★★★☆☆
Sagicor Financial7.3x0.4x-76.72%★★★★☆☆
Daiwa House Logistics Trust12.9x6.7x15.96%★★★★☆☆
CVS Group45.4x1.3x37.66%★★★★☆☆
A.G. BARR19.2x1.8x46.79%★★★☆☆☆
Far East Orchard9.7x3.1x16.00%★★★☆☆☆

Click here to see the full list of 97 stocks from our Undervalued Global Small Caps With Insider Buying screener.

Here's a peek at a few of the choices from the screener.

Growthpoint Properties Australia (ASX:GOZ)

Simply Wall St Value Rating: ★★★★★☆

Overview: Growthpoint Properties Australia focuses on owning and managing a diversified portfolio of office and industrial properties, with a market capitalization of A$3.05 billion.

Operations: Growthpoint Properties Australia's revenue is primarily derived from its office and industrial segments, generating A$210 million and A$101 million, respectively. The company's net income margin has shown significant variability, reaching a high of 2.48% in December 2021 before declining into negative territory by the end of 2024. Operating expenses have increased over time, with the most recent figure at A$39.9 million as of June 2025.

PE: -14.9x

Growthpoint Properties Australia, a smaller company in its sector, reported a net loss of A$124.6 million for the year ending June 2025, improving from A$298.2 million the previous year. Despite revenue dipping slightly to A$331.3 million from A$332.4 million, insider confidence is evident with share purchases occurring recently. However, reliance on external borrowing presents financial risks as interest payments are not well covered by earnings. The CFO transition signals potential strategic shifts ahead for Growthpoint's next growth phase.

ASX:GOZ Share price vs Value as at Aug 2025
ASX:GOZ Share price vs Value as at Aug 2025

Asia United Bank (PSE:AUB)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Asia United Bank is a Philippine-based commercial bank that provides a range of financial services including deposit products, loans, and investment banking, with a market capitalization of approximately ₱26.68 billion.

Operations: AUB's revenue model primarily involves generating income through its core banking operations, with a notable focus on maintaining high gross profit margins, which have consistently remained above 98%. The company's cost structure includes operating expenses that are largely driven by general and administrative costs. Over recent periods, net income margins have shown an upward trend, reaching over 50% in the latest quarter.

PE: 5.6x

Asia United Bank, a smaller player in the banking sector, recently showcased insider confidence with share purchases in early 2025. Their net interest income for Q2 2025 rose to PHP 4.48 billion from PHP 4.22 billion year-on-year, reflecting steady growth. Despite a dividend decrease to PHP 2 per share split into two tranches, the bank's earnings per share improved slightly over the previous year. Leadership changes include Manuel R. Bengson joining as Senior VP of Treasury Group in July 2025, bringing extensive treasury experience and strategic insight to bolster operations further.

PSE:AUB Share price vs Value as at Aug 2025
PSE:AUB Share price vs Value as at Aug 2025

Aris Mining (TSX:ARIS)

Simply Wall St Value Rating: ★★★★★☆

Overview: Aris Mining is a company engaged in gold mining operations, primarily focusing on its Marmato and Segovia projects, with a market cap of approximately $1.2 billion.

Operations: The company's revenue primarily stems from its Segovia and Marmato operations, with Segovia contributing significantly more. Over recent periods, the gross profit margin has shown a notable trend, reaching 46.99% by mid-2025. Operating expenses and non-operating expenses have varied, impacting net income margins across different quarters.

PE: 276.6x

Aris Mining, a dynamic player in the gold mining sector, recently reported Q2 2025 earnings with sales of US$203.46 million, up from US$117.19 million the previous year. Despite this revenue growth, they faced a net loss of US$16.9 million compared to last year's profit of US$5.71 million. The company is advancing its operations at Marmato and Segovia with strategic expansions and partnerships aimed at boosting production capacity and formalizing artisanal mining activities in Colombia, potentially enhancing future output and stability.

TSX:ARIS Share price vs Value as at Aug 2025
TSX:ARIS Share price vs Value as at Aug 2025

Key Takeaways

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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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