3 Undervalued Small Caps In Canada With Insider Buying

The market in Canada has shown positive momentum, rising 2.0% over the last week and climbing 13% in the past year, with earnings forecasted to grow by 15% annually. In this favorable environment, identifying undervalued small-cap stocks with insider buying can present compelling opportunities for investors looking to capitalize on potential growth.

Top 10 Undervalued Small Caps With Insider Buying In Canada

Name	PE	PS	Discount to Fair Value	Value Rating
Vermilion Energy	NA	1.1x	47.24%	★★★★★★
Trican Well Service	7.5x	0.9x	15.85%	★★★★★☆
Nexus Industrial REIT	3.8x	3.7x	20.71%	★★★★★☆
Flagship Communities Real Estate Investment Trust	3.7x	3.8x	44.70%	★★★★★☆
VersaBank	10.0x	4.0x	13.26%	★★★★☆☆
Rogers Sugar	15.4x	0.6x	48.09%	★★★★☆☆
Calfrac Well Services	2.6x	0.2x	-63.53%	★★★★☆☆
Sagicor Financial	1.3x	0.3x	-37.32%	★★★★☆☆
Primaris Real Estate Investment Trust	12.4x	3.3x	40.51%	★★★★☆☆
Hemisphere Energy	5.6x	2.2x	-192.34%	★★★☆☆☆

Click here to see the full list of 19 stocks from our Undervalued TSX Small Caps With Insider Buying screener.

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

Centerra Gold (TSX:CG)

Simply Wall St Value Rating: ★★★★★☆

Overview: Centerra Gold is a mining company engaged in the exploration, development, and production of gold and copper with operations primarily at the Öksüt, Mount Milligan, and Molybdenum sites.

Operations: Centerra Gold generates revenue primarily from its Öksüt, Molybdenum, and Mount Milligan segments. The company's gross profit margin has ranged from 0.14% to 58.82% over the reported periods, reflecting fluctuations in cost of goods sold (COGS) and operating expenses.

PE: 10.9x

Centerra Gold, a small cap Canadian miner, recently reported strong Q2 2024 results with sales of US$282.31 million and net income of US$37.67 million, reversing last year's losses. The company also repurchased 1.44 million shares for US$9.8 million between April and June 2024, indicating insider confidence in its value proposition. Additionally, Centerra's board approved a quarterly dividend of CAD0.07 per share payable on August 29, 2024.

• Get an in-depth perspective on Centerra Gold's performance by reading our valuation report here.

• Gain insights into Centerra Gold's historical performance by reviewing our past performance report.

NorthWest Healthcare Properties Real Estate Investment Trust (TSX:NWH.UN)

Simply Wall St Value Rating: ★★★★☆☆

Overview: NorthWest Healthcare Properties Real Estate Investment Trust operates in the healthcare real estate industry with a market cap of approximately CA$2.76 billion.

Operations: NorthWest Healthcare Properties Real Estate Investment Trust generates revenue primarily from the healthcare real estate industry, with a recent quarterly revenue of CA$523.85 million. The company's gross profit margin has shown variability, reaching 77.81% in the latest quarter ending June 30, 2024. Operating expenses and non-operating expenses significantly impact net income, which was reported as -CA$394.40 million for the same period.

PE: -3.3x

NorthWest Healthcare Properties Real Estate Investment Trust (REIT) has recently seen insider confidence with Peter Aghar purchasing 100,000 shares valued at CAD 477,861. Despite a net loss of CAD 122 million in Q2 2024 compared to CAD 32 million the previous year, the REIT maintains its monthly distribution of CAD 0.03 per unit. This consistent dividend payout reflects stability amidst financial challenges and positions it as an intriguing option among undervalued small caps in Canada.

• Navigate through the intricacies of NorthWest Healthcare Properties Real Estate Investment Trust with our comprehensive valuation report here.

• Examine NorthWest Healthcare Properties Real Estate Investment Trust's past performance report to understand how it has performed in the past.

Nexus Industrial REIT (TSX:NXR.UN)

Simply Wall St Value Rating: ★★★★★☆

Overview: Nexus Industrial REIT is a real estate investment trust focused on owning and managing industrial properties, with a market cap of approximately CA$1.04 billion.

Operations: Nexus Industrial REIT generates revenue primarily from investment properties, with a recent quarterly revenue of CA$167.21 million. The company's gross profit margin for the latest period stands at 71.56%, reflecting efficient cost management relative to its revenue generation.

PE: 3.8x

Nexus Industrial REIT, a Canadian small-cap, has been experiencing insider confidence with notable share purchases over the past year. Despite earnings forecasted to decline by an average of 46.2% annually for the next three years, Nexus reported second-quarter sales of C$43.91 million, up from C$38.42 million last year. Recent dividends affirmed at C$0.05333 per unit reflect consistent cash distributions to unitholders through November 2024, although net income showed a decrease compared to last year’s figures.

• Dive into the specifics of Nexus Industrial REIT here with our thorough valuation report.

• Evaluate Nexus Industrial REIT's historical performance by accessing our past performance report.

Where To Now?

• Delve into our full catalog of 19 Undervalued TSX Small Caps With Insider Buying here.
• Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly.
• Maximize your investment potential with Simply Wall St, the comprehensive app that offers global market insights for free.

Ready To Venture Into Other Investment Styles?

• 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.

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