Top Undervalued Small Caps In Canada With Insider Buying August 2024

As the Canadian market navigates a period of economic uncertainty, small-cap stocks have garnered attention due to their potential for growth amid shifting monetary policies and evolving market dynamics. With inflation moving closer to target and central banks poised for possible rate cuts, investors are increasingly looking at undervalued small-cap companies with insider buying as promising opportunities in this environment.

Top 10 Undervalued Small Caps With Insider Buying In Canada

Name	PE	PS	Discount to Fair Value	Value Rating
Dundee Precious Metals	7.8x	2.9x	29.62%	★★★★★★
Nexus Industrial REIT	2.6x	3.2x	25.62%	★★★★★☆
Trican Well Service	8.2x	1.0x	5.63%	★★★★☆☆
Russel Metals	10.9x	0.5x	47.98%	★★★★☆☆
Guardian Capital Group	10.4x	4.0x	39.32%	★★★★☆☆
Calfrac Well Services	2.7x	0.2x	-30.48%	★★★★☆☆
Primaris Real Estate Investment Trust	11.0x	2.9x	46.37%	★★★★☆☆
Sagicor Financial	1.1x	0.3x	-58.36%	★★★★☆☆
Hemisphere Energy	6.8x	2.5x	14.33%	★★★☆☆☆
Westshore Terminals Investment	14.2x	3.8x	26.01%	★★★☆☆☆

Click here to see the full list of 30 stocks from our Undervalued TSX Small Caps With Insider Buying screener.

We'll examine a selection from our screener results.

Dundee Precious Metals (TSX:DPM)

Simply Wall St Value Rating: ★★★★★★

Overview: Dundee Precious Metals is a mining company engaged in the extraction and processing of gold and copper, with operations primarily at its Ada Tepe and Chelopech mines, boasting a market cap of approximately $1.63 billion CAD.

Operations: The company generates revenue primarily from its Ada Tepe and Chelopech segments, with recent quarterly revenues reaching $541.83 million. The gross profit margin has shown an upward trend, peaking at 56.96% in the latest quarter.

PE: 7.8x

Dundee Precious Metals, a small Canadian mining company, has demonstrated strong financial performance with Q2 2024 sales of US$156.84 million and net income of US$62.42 million. Despite earnings forecasted to decline by 7.2% annually over the next three years, insider confidence is evident through recent share purchases in July 2024. The company also declared a third-quarter dividend of US$0.04 per share and reported solid production results for gold and copper, maintaining its appeal as an undervalued investment opportunity in the sector.

• Click here and access our complete valuation analysis report to understand the dynamics of Dundee Precious Metals.

• Evaluate Dundee Precious Metals' historical performance by accessing our past performance report.

BSR Real Estate Investment Trust (TSX:HOM.UN)

Simply Wall St Value Rating: ★★★★☆☆

Overview: BSR Real Estate Investment Trust operates in the residential real estate sector, focusing on owning and managing multi-family properties with a market cap of approximately $0.55 billion (CAD).

Operations: The primary revenue stream is derived from residential real estate, with recent quarterly revenue at $168.20 million. The company has seen fluctuations in net income, with the latest figures showing a loss of $196.30 million. Gross profit margin for the most recent period stands at 54.71%.

PE: -2.2x

BSR Real Estate Investment Trust, a small cap in Canada, reported Q2 2024 earnings with sales of US$37.28 million and a net loss of US$39.21 million, an improvement from the previous year's loss of US$45.92 million. For the first half of 2024, sales reached US$74.41 million with a net loss reduced to US$40.78 million from US$62.05 million last year. Insider confidence is evident with recent share purchases by executives in June and July 2024, indicating potential value recognition within the company’s leadership team despite ongoing financial challenges.

• Get an in-depth perspective on BSR Real Estate Investment Trust's performance by reading our valuation report here.

• Assess BSR Real Estate Investment Trust's past performance with our detailed historical performance reports.

Innergex Renewable Energy (TSX:INE)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Innergex Renewable Energy operates in the renewable energy sector, focusing on wind, solar, and hydroelectric power generation with a market cap of CA$2.23 billion.

Operations: Innergex Renewable Energy generates revenue from three main segments: Wind (CA$538.67 million), Solar (CA$152.85 million), and Hydroelectric (CA$374.25 million). The company had a gross profit margin of 74.63% as of March 31, 2024, with operating expenses and non-operating expenses significantly impacting net income margins over recent periods.

PE: -15.0x

Innergex Renewable Energy, a Canadian renewable energy company, recently began operations at its San Andres battery energy storage facility in Northern Chile. This facility is expected to generate annual revenues between US$6 million and US$8 million while incurring operating expenses of around US$0.4 million in its first year. Notably, insiders have shown confidence by purchasing shares over the past six months. Innergex's Q1 2024 revenue rose to C$242.54 million from C$218.33 million a year ago despite reporting a net loss of C$41.43 million compared to C$14.34 million previously.

• Click to explore a detailed breakdown of our findings in Innergex Renewable Energy's valuation report.

• Review our historical performance report to gain insights into Innergex Renewable Energy's's past performance.

Turning Ideas Into Actions

• Unlock more gems! Our Undervalued TSX Small Caps With Insider Buying screener has unearthed 27 more companies for you to explore.Click here to unveil our expertly curated list of 30 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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