Stock Analysis

Global Undervalued Small Caps With Insider Action In March 2025

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In March 2025, global markets are navigating a complex landscape marked by tariff uncertainties, inflationary pressures, and fluctuating economic indicators. The S&P 600 for small-cap stocks has experienced significant declines alongside major indices, reflecting broader market sentiment as investors react to trade policy shifts and economic data. In such an environment, identifying small-cap stocks that demonstrate resilience through strategic insider actions can offer insights into potential opportunities amidst market volatility.

Top 10 Undervalued Small Caps With Insider Buying Globally

NamePEPSDiscount to Fair ValueValue Rating
Bytes Technology Group19.1x4.9x25.22%★★★★★★
Nexus Industrial REIT5.6x2.9x24.12%★★★★★★
Robert WaltersNA0.2x42.86%★★★★★☆
Hong Leong Asia9.2x0.2x44.69%★★★★☆☆
Franchise Brands38.2x2.0x26.91%★★★★☆☆
Sing Investments & Finance7.2x3.7x36.57%★★★★☆☆
Optima HealthNA1.5x45.56%★★★★☆☆
Calfrac Well Services11.1x0.2x-26.96%★★★☆☆☆
Minto Apartment Real Estate Investment Trust13.5x5.4x6.08%★★★☆☆☆
Saturn Oil & Gas1.7x0.5x-43.80%★★★☆☆☆

Click here to see the full list of 133 stocks from our Undervalued Global Small Caps With Insider Buying screener.

Let's review some notable picks from our screened stocks.

Asia United Bank (PSE:AUB)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Asia United Bank operates as a full-service bank in the Philippines, offering services across branch banking, consumer banking, commercial banking, treasury operations, and other financial segments.

Operations: Branch Banking is the primary revenue stream, generating ₱9.46 billion, followed by Commercial Banking at ₱4.14 billion and Treasury at ₱3.35 billion. The net income margin has shown an upward trend, reaching 53.33% as of September 2024. Operating expenses have been a significant cost component, with General & Administrative Expenses consistently being the largest part of these costs over time.

PE: 4.9x

Asia United Bank, a smaller company in the banking sector, has been drawing attention due to its potential for growth despite challenges. With a bad loans ratio standing at 2%, it faces some credit quality concerns. However, recent insider confidence is evident through share purchases over the past year, indicating belief in its prospects. The resignation of an independent director on February 21, 2025 may bring changes to governance dynamics but doesn't overshadow its potential value as a smaller player in the market.

PSE:AUB Share price vs Value as at Mar 2025

Artis Real Estate Investment Trust (TSX:AX.UN)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Artis Real Estate Investment Trust is a diversified Canadian REIT focused on acquiring and managing commercial properties across office, retail, and industrial sectors with a market cap of approximately CA$1.14 billion.

Operations: Artis Real Estate Investment Trust's revenue is derived from its operations, with a significant portion allocated to cost of goods sold (COGS), impacting its gross profit. Over the periods analyzed, the net income margin shows variability, reflecting fluctuations in non-operating expenses. The company's gross profit margin has shown changes over time, with a notable figure of 70.29% in Q1 2022 before declining in subsequent quarters. Operating expenses and general and administrative expenses remain relatively low compared to other costs.

PE: -16.0x

Artis Real Estate Investment Trust, a smaller company in the real estate sector, has recently faced challenges with earnings declining 41.9% annually over five years and reporting a net loss of C$47.41 million for 2024. Despite these hurdles, insider confidence is evident as they have authorized a buyback plan to repurchase up to 4.98 million shares by December 2025. The trust continues monthly cash distributions of C$0.05 per unit, showcasing commitment to shareholder returns amidst financial restructuring efforts with new credit facilities totaling C$520 million aimed at refinancing debt and supporting growth initiatives.

TSX:AX.UN Share price vs Value as at Mar 2025

Paramount Resources (TSX:POU)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Paramount Resources is a Canadian energy company engaged in the exploration, development, and production of natural gas and oil with a market capitalization of CA$4.29 billion.

Operations: Paramount Resources generates revenue primarily through sales, with a noticeable fluctuation in its net income margin, which reached a high of 6.64% in mid-2017 and saw declines thereafter. The company's cost structure includes significant expenses related to the cost of goods sold and operating expenses, contributing to variations in profitability over time.

PE: 6.8x

Paramount Resources, a smaller company in the energy sector, has recently shown insider confidence with significant share repurchases from October 2024 to March 2025. Despite a volatile share price and reduced profit margins (18.1% vs. last year's 26.1%), they reported CAD 509.5 million in fourth-quarter sales, up from CAD 451.8 million the previous year. Earnings forecasts suggest a growth of 14% annually, while their funding relies entirely on external borrowing, indicating higher risk but potential for future operational expansion with new plant developments and increased sales volumes projected for late 2025.

TSX:POU Ownership Breakdown as at Mar 2025

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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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