In March 2025, global markets are grappling with recession concerns and trade policy uncertainties, leading to a period of negative returns across major indices like the S&P 500 and Russell 2000. Despite these challenges, easing inflation in the U.S. offers a glimmer of hope for investors seeking opportunities in small-cap stocks that may be undervalued due to broader market sentiment. In such an environment, stocks with strong fundamentals and insider activity can present intriguing possibilities for those looking at small-cap investments.
Top 10 Undervalued Small Caps With Insider Buying Globally
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Bytes Technology Group | 19.2x | 4.9x | 24.36% | ★★★★★★ |
| Nexus Industrial REIT | 5.5x | 2.8x | 25.16% | ★★★★★★ |
| Macfarlane Group | 10.6x | 0.6x | 40.01% | ★★★★★☆ |
| Robert Walters | NA | 0.2x | 45.61% | ★★★★★☆ |
| Speedy Hire | NA | 0.2x | 23.36% | ★★★★★☆ |
| Minto Apartment Real Estate Investment Trust | 8.3x | 3.4x | 22.13% | ★★★★★☆ |
| Hong Leong Asia | 8.8x | 0.2x | 46.66% | ★★★★☆☆ |
| Franchise Brands | 38.8x | 2.0x | 26.12% | ★★★★☆☆ |
| Sing Investments & Finance | 7.3x | 3.7x | 36.12% | ★★★★☆☆ |
| Optima Health | NA | 1.6x | 42.66% | ★★★★☆☆ |
Here's a peek at a few of the choices from the screener.
Lycopodium (ASX:LYL)
Simply Wall St Value Rating: ★★★★☆☆
Overview: Lycopodium is an engineering and project management consultancy specializing in resources, process industries, and rail infrastructure, with a market cap of A$0.52 billion.
Operations: Lycopodium generates its revenue primarily from the Resources segment, contributing A$347.83 million, with additional income from Process Industries and Rail Infrastructure. The company experienced fluctuations in its gross profit margin, peaking at 33.28% and most recently recorded at 26.38%. Operating expenses have shown a gradual increase over time, impacting overall profitability despite rising revenues.
PE: 8.8x
Lycopodium, a smaller player in the market, recently updated its fiscal 2025 guidance with expected revenue between A$320 million and A$340 million and net profit after tax ranging from A$37 million to A$43 million. Despite a dip in half-year earnings compared to last year, insider confidence is evident as Steven Chadwick increased their holdings by 8,000 shares worth approximately A$97,572. The company faces higher risk due to reliance on external borrowing but continues to offer dividends with an upcoming fully franked payout of 10 cents per share.
- Navigate through the intricacies of Lycopodium with our comprehensive valuation report here.
Gain insights into Lycopodium's historical performance by reviewing our past performance report.
Marston's (LSE:MARS)
Simply Wall St Value Rating: ★★★★★☆
Overview: Marston's operates a network of pubs and bars, focusing on hospitality services, with a market cap of £0.44 billion.
Operations: The company's primary revenue stream is from its Pubs and Bars segment. Over recent periods, the gross profit margin has shown an upward trend, reaching 51.87% by the latest period. Operating expenses have been a significant cost component, with recent figures around £320.3 million.
PE: 13.9x
Marston's, a company with a community-focused pub estate, recently reported a 3% increase in total retail sales over 16 weeks ending January 2025, buoyed by festive demand despite challenging weather. Insider confidence is evident as Justin Platt increased their stake by 42% with an investment of £66,528. However, the company's reliance on higher-risk external borrowing and earnings not fully covering interest payments pose financial risks. CFO Hayleigh Lupino's planned departure by October 2025 adds transitional uncertainty.
- Take a closer look at Marston's potential here in our valuation report.
Explore historical data to track Marston's performance over time in our Past section.
Eagle Nice (International) Holdings (SEHK:2368)
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Eagle Nice (International) Holdings is engaged in the manufacturing and sale of sportswear and apparel, with a market presence across the USA, Japan, Europe, Chinese Mainland, and other regions.
Operations: The company's revenue primarily comes from the Chinese Mainland, contributing significantly to its total earnings. Over recent periods, the net profit margin has shown a decline from 9.68% in September 2020 to 4.80% in March 2025. Operating expenses have consistently increased, particularly general and administrative costs, which impact overall profitability.
PE: 10.7x
Eagle Nice, a company known for its sports garment production, has recently seen insider confidence with share purchases over the past quarter. Despite facing funding risks due to reliance on external borrowing, the company maintains a strong financial position with operating cash flow covering debt. Profit margins have declined from 7% to 4.8%, yet high-quality earnings persist. The appointment of Ms. Lai as executive director may signal strategic shifts and operational improvements in their Vietnam operations moving forward.
Make It Happen
- Dive into all 145 of the Undervalued Global Small Caps With Insider Buying we have identified here.
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Want To Explore Some Alternatives?
- 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.
Valuation is complex, but we're here to simplify it.
Discover if Eagle Nice (International) Holdings 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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