Exploring TSX's Undervalued Small Caps With Insider Action In December 2024

As the Canadian market navigates a period of political uncertainty and recent pullbacks, it remains buoyed by positive economic growth, easing inflation, and potential interest rate reductions. In this environment, small-cap stocks on the TSX with insider activity may present intriguing opportunities for investors seeking to capitalize on market volatility and strategic positioning.

Top 10 Undervalued Small Caps With Insider Buying In Canada

Name	PE	PS	Discount to Fair Value	Value Rating
Parex Resources	3.5x	0.8x	24.85%	★★★★★★
Sagicor Financial	1.1x	0.3x	37.04%	★★★★★★
Primaris Real Estate Investment Trust	13.0x	3.5x	43.13%	★★★★★☆
Nexus Industrial REIT	12.4x	3.1x	29.24%	★★★★★☆
First National Financial	13.4x	3.8x	43.40%	★★★★☆☆
Calfrac Well Services	11.7x	0.2x	37.01%	★★★★☆☆
Baytex Energy	NA	0.8x	-97.31%	★★★★☆☆
Hemisphere Energy	6.0x	2.3x	-109.04%	★★★☆☆☆
European Residential Real Estate Investment Trust	NA	2.4x	-208.60%	★★★☆☆☆
Minto Apartment Real Estate Investment Trust	NA	5.5x	19.47%	★★★☆☆☆

Click here to see the full list of 24 stocks from our Undervalued TSX Small Caps With Insider Buying screener.

Let's uncover some gems from our specialized screener.

Aris Mining (TSX:ARIS)

Simply Wall St Value Rating: ★★★★★☆

Overview: Aris Mining is a company engaged in gold mining operations, primarily focused on its Marmato Project and Segovia Operations, with a market capitalization of approximately C$0.78 billion.

Operations: Aris Mining generates revenue primarily from its Segovia Operations, contributing significantly to its total earnings. The company has experienced fluctuations in gross profit margin, which reached a peak of 51.31% in Q3 2020 but decreased to 36.40% by Q4 2024. Operating expenses and non-operating expenses have varied over time, impacting net income margins throughout the periods analyzed.

PE: -195.1x

Aris Mining, a Canadian mining company, is drawing attention in the small-cap segment due to its insider confidence and strategic financial maneuvers. Cornelius Lourens recently purchased 103,155 shares for approximately US$559K, signaling strong insider confidence. Despite a net loss of US$2.07 million in Q3 2024 compared to last year's profit, the company reported increased sales of US$134.72 million and gold production of 153,591 ounces year-to-date September 30. Aris also completed a significant debt refinancing with a US$450 million senior notes offering at 8%, aimed at optimizing their capital structure by redeeming higher-cost debt due in 2026. The company's focus on leveraging external financing reflects its strategy to manage risk while pursuing growth opportunities amid challenging market conditions.

• Navigate through the intricacies of Aris Mining with our comprehensive valuation report here.

• Examine Aris Mining's past performance report to understand how it has performed in the past.

Evertz Technologies (TSX:ET)

Simply Wall St Value Rating: ★★★★★☆

Overview: Evertz Technologies is a Canadian company that designs and manufactures broadcast equipment for the television industry, with a market capitalization of CA$1.41 billion.

Operations: Evertz Technologies generates revenue primarily from the television broadcast equipment market, with a recent gross profit margin of 59.18%. The company's cost structure includes significant operating expenses, notably in research and development, which reached CA$133.27 million in the latest period.

PE: 16.1x

Evertz Technologies, a Canadian company with a smaller market capitalization, has recently shown insider confidence through share repurchases. Between August and October 2024, the company bought back 145,174 shares for C$1.8 million. Despite a dip in sales to C$125.26 million for Q2 compared to last year’s C$130.75 million and net income dropping to C$15.8 million from C$22.09 million, earnings are forecasted to grow by over 8% annually, indicating potential future value growth amidst current challenges in funding sources primarily reliant on external borrowing.

• Take a closer look at Evertz Technologies' potential here in our valuation report.

• Review our historical performance report to gain insights into Evertz Technologies''s past performance.

Minto Apartment Real Estate Investment Trust (TSX:MI.UN)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Minto Apartment Real Estate Investment Trust is a Canadian company focused on owning and managing residential rental properties, with operations generating CA$157.94 million in revenue from its residential REIT segment.

Operations: The company generates revenue primarily through its residential REIT segment, with recent figures showing CA$157.94 million. The gross profit margin has shown an upward trend, reaching 64.42%. Operating expenses have varied, with the latest reported at CA$11.58 million, impacting net income significantly due to high non-operating expenses in recent periods.

PE: -8.3x

Minto Apartment Real Estate Investment Trust, a smaller player in the Canadian market, has been experiencing financial challenges with a net loss of C$41.85 million for Q3 2024 compared to a net income of C$27.82 million the previous year. Despite these setbacks, insider confidence is evident through share purchases in recent months. The company has maintained consistent dividend payouts, with December distributions set at C$0.04333 per unit annually totaling C$0.52 per unit, indicating steady cash flow management amidst fluctuating earnings.

• Unlock comprehensive insights into our analysis of Minto Apartment Real Estate Investment Trust stock in this valuation report.

• Evaluate Minto Apartment Real Estate Investment Trust's historical performance by accessing our past performance report.

Turning Ideas Into Actions

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Seeking Other Investments?

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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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