As global markets navigate the anticipation of interest rate cuts and the ongoing AI boom, small-cap stocks have shown resilience, with indices like the Russell 2000 logging consistent gains. In this environment, identifying promising small-cap stocks often involves looking for those demonstrating strong insider activity, as it can signal confidence in a company's potential amidst evolving economic conditions.
Top 10 Undervalued Small Caps With Insider Buying Globally
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| GDI Integrated Facility Services | 18.3x | 0.3x | 4.16% | ★★★★★☆ |
| Bytes Technology Group | 18.2x | 4.6x | 7.72% | ★★★★☆☆ |
| Hung Hing Printing Group | NA | 0.4x | 43.71% | ★★★★☆☆ |
| Sagicor Financial | 7.6x | 0.4x | -79.85% | ★★★★☆☆ |
| Daiwa House Logistics Trust | 13.4x | 7.0x | 10.28% | ★★★★☆☆ |
| Asante Gold | NA | 1.4x | 23.93% | ★★★★☆☆ |
| Pizu Group Holdings | 12.3x | 1.2x | 40.52% | ★★★☆☆☆ |
| Chinasoft International | 25.3x | 0.8x | -1221.93% | ★★★☆☆☆ |
| Morguard North American Residential Real Estate Investment Trust | 6.8x | 1.8x | 18.31% | ★★★☆☆☆ |
| CVS Group | 45.3x | 1.3x | 37.86% | ★★★☆☆☆ |
Let's take a closer look at a couple of our picks from the screened companies.
Morguard North American Residential Real Estate Investment Trust (TSX:MRG.UN)
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Morguard North American Residential Real Estate Investment Trust operates in the multi-suite residential real estate sector, focusing on acquiring and managing residential properties across North America, with a market capitalization of CA$1.57 billion.
Operations: The primary revenue stream comes from multi-suite residential real estate, generating CA$358.51 million. Gross profit margin has shown variability over the periods, with a recent figure of 52.98%. Operating expenses have been recorded at CA$22.88 million, impacting net income which was last reported at CA$95.05 million with a net income margin of 26.51%.
PE: 6.8x
Morguard North American Residential Real Estate Investment Trust, a smaller player in the market, has shown insider confidence with Bruce Robertson acquiring 16,100 shares valued at C$305,893. Despite a drop in net profit margins from 40.2% to 26.5%, the company maintains consistent monthly dividends of C$0.06333 per unit and completed a share repurchase of 629,617 shares for C$10.81 million by June 2025. Earnings have declined annually by 13.6% over five years; however, recent sales figures show slight growth year-over-year for Q2 and six months ending June 2025.
Obsidian Energy (TSX:OBE)
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Obsidian Energy is a Canadian oil and gas exploration and production company with a market cap of CA$0.57 billion, focusing on the development of its assets in the Western Canadian Sedimentary Basin.
Operations: The company generates revenue primarily from its oil and gas exploration and production activities, with a gross profit margin that reached 71.53% in mid-2022 before declining to 60.48% by mid-2025. Operating expenses have varied significantly, occasionally showing negative values due to adjustments or reversals. General & administrative expenses have generally remained below CA$50 million per quarter during the analyzed period.
PE: -2.6x
Obsidian Energy, a smaller company in the energy sector, is currently operating multiple drilling rigs and has released several wells into production in Peace River and Willesden Green. Recent operational updates indicate ongoing development with promising initial production rates from new wells. The firm has also been proactive in managing its financial obligations, redeeming US$30 million of senior unsecured notes to reduce interest expenses. Additionally, insider confidence is evident through significant share repurchases amounting to CAD 51.5 million between April and July 2025, indicating potential growth opportunities despite past earnings challenges.
- Unlock comprehensive insights into our analysis of Obsidian Energy stock in this valuation report.
Understand Obsidian Energy's track record by examining our Past report.
Versamet Royalties (TSXV:VMET)
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Versamet Royalties focuses on acquiring and managing royalty interests in the mining sector, with a market cap of approximately $1.5 billion.
Operations: Versamet Royalties generates revenue primarily from its Greenstone, Canada segment, contributing $11.78 million, and Mercedes, Mexico segment at $2.08 million. The company reported a gross profit margin of 55.52% in 2023 but saw a decline to 15.39% by March 2025 as cost of goods sold increased significantly over the periods analyzed. Despite growing revenues reaching $14.71 million by September 2025, net income remained negative across all periods reviewed due to substantial operating and non-operating expenses impacting profitability.
PE: -371.8x
Versamet Royalties, a smaller company in the investment landscape, shows potential for growth despite some risks. They rely entirely on external borrowing, which adds financial risk but also indicates strategic leveraging. Director Marcel de Groot's insider confidence is evident with their recent purchase of 28,600 shares valued at approximately C$146,000. A stock split occurred on September 12, 2025, potentially increasing liquidity and attracting more investors. Their earnings are projected to grow by over 43% annually, indicating promising future prospects.
- Get an in-depth perspective on Versamet Royalties' performance by reading our valuation report here.
Examine Versamet Royalties' past performance report to understand how it has performed in the past.
Key Takeaways
- Click here to access our complete index of 106 Undervalued Global 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.
Valuation is complex, but we're here to simplify it.
Discover if Morguard North American Residential Real Estate Investment Trust 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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