As global markets navigate a landscape marked by easing trade tensions and mixed economic signals, small-cap stocks have shown resilience with indices like the S&P 600 advancing for the fourth consecutive week. This environment of cautious optimism presents an opportunity to explore small-cap companies that may be undervalued, particularly those experiencing insider action, as they can offer unique insights into potential growth prospects amidst current market dynamics.
Top 10 Undervalued Small Caps With Insider Buying Globally
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Chorus Aviation | NA | 0.4x | 39.09% | ★★★★★★ |
| Tristel | 29.1x | 4.1x | 22.26% | ★★★★★☆ |
| Westshore Terminals Investment | 12.4x | 3.4x | 42.45% | ★★★★☆☆ |
| Nexus Industrial REIT | 5.5x | 2.8x | 19.79% | ★★★★☆☆ |
| Sing Investments & Finance | 7.0x | 3.5x | 44.11% | ★★★★☆☆ |
| Eastnine | 17.7x | 8.5x | 40.48% | ★★★★☆☆ |
| FRP Advisory Group | 12.9x | 2.3x | 11.98% | ★★★☆☆☆ |
| Italmobiliare | 10.9x | 1.4x | -268.38% | ★★★☆☆☆ |
| Calfrac Well Services | 34.3x | 0.2x | 31.87% | ★★★☆☆☆ |
| Arendals Fossekompani | NA | 1.6x | 41.70% | ★★★☆☆☆ |
Let's explore several standout options from the results in the screener.
Iress (ASX:IRE)
Simply Wall St Value Rating: ★★★★★☆
Overview: Iress is a technology company providing software solutions for financial services, with a market cap of A$1.92 billion.
Operations: Iress generates revenue primarily from its Trading & Global Market Data and United Kingdom segments, with significant contributions from Apac Wealth Management. The company's cost structure is heavily influenced by the Cost of Goods Sold (COGS), which consistently impacts gross profit margins, recently noted at 31.30%. Operating expenses include notable General & Administrative costs, which have seen fluctuations over recent periods.
PE: 17.8x
Iress, a smaller company in the financial technology sector, has been catching attention due to insider confidence. Marcus Price recently purchased 34,399 shares for A$271,202. Despite a dip in sales and revenue from A$626 million to A$604 million last year, they turned around their net income from a loss of A$137 million to a profit of A$89 million. With earnings forecasted to grow at 3.73% annually and upcoming dividends of A$0.10 per share confirmed, Iress presents potential growth opportunities amidst its external borrowing risks.
Hammerson (LSE:HMSO)
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Hammerson is a real estate investment company focusing on the development and management of flagship retail destinations in the UK, France, and Ireland, with a market capitalization of £1.34 billion.
Operations: The company's revenue streams are primarily derived from its flagship destinations in the UK, France, and Ireland. It has seen fluctuations in its net income margin, with a notable decline to -4.97% by June 2020 before showing some improvement to -0.18% by June 2024. Operating expenses have consistently impacted profitability, with general and administrative expenses being a significant component of these costs.
PE: -27.8x
Hammerson, a smaller company in the property sector, has seen insider confidence with Habib Annous purchasing 75,806 shares valued at £204,739. Despite reporting a net loss of £526.3 million for 2024 compared to the previous year's £51.4 million loss, they are poised for potential growth with earnings forecasted to increase by 44% annually. The board's recommendation of an 8.07 pence per share dividend reflects ongoing shareholder value efforts amidst reliance on external borrowing as their primary funding source.
- Click here and access our complete valuation analysis report to understand the dynamics of Hammerson.
Examine Hammerson's past performance report to understand how it has performed in the past.
Asia United Bank (PSE:AUB)
Simply Wall St Value Rating: ★★★★☆☆
Overview: Asia United Bank is a Philippines-based commercial bank that provides a range of financial products and services to individual and corporate clients, with a market capitalization of approximately ₱27.45 billion.
Operations: Asia United Bank generates revenue primarily through its core banking operations, with a significant focus on maintaining high efficiency in cost management. Over recent periods, the gross profit margin has consistently hovered around 98.86% to 100%, indicating strong control over direct costs relative to revenue generation. Operating expenses are a notable part of the cost structure, with general and administrative expenses being the largest component. Net income margins have shown variability, ranging from approximately 24.61% to 54.61%, reflecting fluctuations in profitability after accounting for all operational costs and taxes.
PE: 4.7x
Asia United Bank recently reported a significant rise in net income to PHP 11.34 billion for the year ending December 2024, up from PHP 8.25 billion the previous year, reflecting strong earnings growth. Basic and diluted earnings per share also increased to PHP 15.57 from PHP 11.34, showcasing improved profitability despite a high bad loans ratio of 2%. Insider confidence is evident with President & Director Manuel Gomez purchasing shares worth approximately PHP 890,310 in April, indicating potential belief in future value growth despite challenges like non-performing loans and executive changes earlier this year.
- Take a closer look at Asia United Bank's potential here in our valuation report.
Evaluate Asia United Bank's historical performance by accessing our past performance report.
Key Takeaways
- Unlock more gems! Our Undervalued Global Small Caps With Insider Buying screener has unearthed 144 more companies for you to explore.Click here to unveil our expertly curated list of 147 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 Asia United Bank 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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