In recent weeks, global markets have experienced a notable upswing, particularly in the U.S., where equities rallied following a temporary suspension of tariffs between the U.S. and China. This positive sentiment has been further bolstered by cooling inflation rates and a strong performance across several indices, including small-cap benchmarks like the S&P MidCap 400 Index and Russell 2000 Index. In this context, identifying small-cap stocks that exhibit promising fundamentals and insider activity can be an effective strategy for investors looking to capitalize on current market conditions.
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 | 35.68% | ★★★★★☆ |
| FRP Advisory Group | 11.7x | 2.1x | 20.62% | ★★★★★☆ |
| Savills | 24.5x | 0.5x | 41.46% | ★★★★☆☆ |
| Cloetta | 15.3x | 1.1x | 46.94% | ★★★★☆☆ |
| SmartCraft | 41.7x | 7.4x | 34.47% | ★★★★☆☆ |
| Sing Investments & Finance | 7.2x | 3.7x | 41.71% | ★★★★☆☆ |
| Close Brothers Group | NA | 0.6x | 44.59% | ★★★★☆☆ |
| Absolent Air Care Group | 22.7x | 1.8x | 48.49% | ★★★☆☆☆ |
| Italmobiliare | 11.7x | 1.5x | -207.90% | ★★★☆☆☆ |
| Seeing Machines | NA | 2.4x | 44.74% | ★★★☆☆☆ |
Below we spotlight a couple of our favorites from our exclusive screener.
Automotive Properties Real Estate Investment Trust (TSX:APR.UN)
Simply Wall St Value Rating: ★★★★☆☆
Overview: Automotive Properties Real Estate Investment Trust is a Canadian company that focuses on owning and acquiring primarily income-producing automotive dealership properties, with a market cap of approximately CA$0.63 billion.
Operations: The revenue model primarily consists of rental income from properties, with a gross profit margin fluctuating around 84.45% to 86.49% in recent periods. Operating expenses are relatively stable, ranging from CA$5.66 million to CA$6.55 million over the last few quarters, impacting overall profitability alongside non-operating expenses which have shown variability.
PE: 9.0x
Automotive Properties Real Estate Investment Trust, a smaller company in the real estate sector, shows potential for growth with recent insider confidence demonstrated by Kapil Dilawri's purchase of 42,400 shares valued at approximately C$426,734. Despite challenges like high-risk funding and one-off earnings impacts, the trust's strategic acquisitions in Florida and Ohio signal expansion efforts. Recent earnings revealed sales of C$23.9 million for Q1 2025 but a drop in net income to C$7.7 million from C$20.9 million year-over-year suggests financial headwinds.
Winpak (TSX:WPK)
Simply Wall St Value Rating: ★★★★☆☆
Overview: Winpak specializes in manufacturing and distributing packaging materials and related machinery, with a market capitalization of approximately C$3.09 billion.
Operations: Winpak generates revenue primarily from Flexible Packaging and Rigid Packaging and Flexible Lidding, with a smaller contribution from Packaging Machinery. The company's gross profit margin has shown variability, reaching 31.98% in December 2024. Operating expenses are a significant cost factor, including sales and marketing as well as research and development expenses.
PE: 13.0x
Winpak, a smaller player in the packaging industry, recently announced a share repurchase program to buy back up to 3.09 million shares by March 2026, which may indicate management's belief in its potential value. The company reported Q1 2025 sales of US$284.8 million and net income of US$34.58 million, showing steady performance despite a slight dip from last year. Earnings are projected to grow annually by 6.87%, supported by insider confidence through recent purchases within the past year, reflecting trust in future growth prospects despite reliance on external borrowing for funding needs.
- Dive into the specifics of Winpak here with our thorough valuation report.
Examine Winpak's past performance report to understand how it has performed in the past.
Westshore Terminals Investment (TSX:WTE)
Simply Wall St Value Rating: ★★★★☆☆
Overview: Westshore Terminals Investment operates as a coal export terminal company, primarily engaging in the transportation infrastructure sector, with a market capitalization of CA$1.83 billion.
Operations: The company's revenue is derived entirely from its transportation infrastructure segment, amounting to CA$402.78 million. The cost of goods sold (COGS) stands at CA$210.58 million, resulting in a gross profit of CA$192.20 million and a gross profit margin of 47.72%. Operating expenses are recorded at CA$20.19 million, with non-operating expenses adding another CA$60.53 million to the total costs impacting net income figures, which are reported at CA$111.48 million for the latest period analyzed.
PE: 12.7x
Westshore Terminals Investment, a small company in the terminal operations sector, is currently undergoing significant leadership changes. With William Stinson stepping down as CEO and Chair, M. Dallas Ross will assume the Chair role following their resignation as CFO. Insider confidence is evident with Ross purchasing 60,000 shares for over C$1.41 million, marking a 166% increase in their holdings. Despite first-quarter earnings showing a decline to C$11.47 million from C$15.25 million last year, the company maintains shareholder value through dividends and an active share repurchase program targeting up to 807,118 shares by April 2026.
- Take a closer look at Westshore Terminals Investment's potential here in our valuation report.
Learn about Westshore Terminals Investment's historical performance.
Turning Ideas Into Actions
- Explore the 169 names from our Undervalued Global Small Caps With Insider Buying screener here.
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- Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets.
Searching for a Fresh Perspective?
- 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 Winpak 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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