Top 3 Undervalued Small Caps With Insider Action In August 2024

As global markets faced significant volatility in August 2024, the rotation toward value stocks and small-caps saw a notable pullback, reflecting broader economic concerns. Despite these challenges, discerning investors continue to seek opportunities within the small-cap sector, particularly those with insider action that may signal potential undervaluation. In this environment, identifying good stocks often involves looking for companies with strong fundamentals and insider buying activity, which can indicate confidence in the company's future prospects.

Top 10 Undervalued Small Caps With Insider Buying

Name	PE	PS	Discount to Fair Value	Value Rating
Nexus Industrial REIT	2.6x	3.3x	24.76%	★★★★★☆
Chatham Lodging Trust	NA	1.3x	29.45%	★★★★★☆
Citizens & Northern	12.4x	2.8x	46.00%	★★★★☆☆
Guardian Capital Group	10.5x	4.1x	37.94%	★★★★☆☆
Calfrac Well Services	2.7x	0.2x	-118.24%	★★★★☆☆
Hemisphere Energy	6.8x	2.5x	14.13%	★★★☆☆☆
NSI	NA	4.5x	45.59%	★★★☆☆☆
Community West Bancshares	18.7x	2.9x	42.25%	★★★☆☆☆
Alta Equipment Group	NA	0.2x	-158.61%	★★★☆☆☆
Delek US Holdings	NA	0.1x	-108.57%	★★★☆☆☆

Click here to see the full list of 211 stocks from our Undervalued Small Caps With Insider Buying screener.

Here we highlight a subset of our preferred stocks from the screener.

Assura (LSE:AGR)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Assura is a UK-based real estate investment trust specializing in the development and management of primary care properties, with a market cap of approximately £2.22 billion.

Operations: Assura generates revenue primarily from its core segment, with the latest figure being £157.8 million. The company has experienced fluctuations in net income margins, with recent periods showing negative values. Gross profit margin was 90.81% as of March 2024, reflecting a downward trend over time from earlier higher levels such as 95.75% in September 2016. Operating expenses and general & administrative expenses have shown slight increases over the years, impacting overall profitability.

PE: -44.0x

Assura, a healthcare property investor and developer, recently entered a £250 million joint venture with the Universities Superannuation Scheme to support NHS infrastructure. This partnership aims for significant growth, potentially reaching £400 million. Despite reporting a net loss of £28.8 million for the year ending March 2024, insider confidence has been evident with recent share purchases in June 2024. The company’s strategic moves and earnings forecast of 40.91% annual growth highlight its potential within its sector.

• Click here and access our complete valuation analysis report to understand the dynamics of Assura.

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

GHCL (NSEI:GHCL)

Simply Wall St Value Rating: ★★★★★☆

Overview: GHCL operates in the inorganic chemicals sector, primarily focusing on the production and sale of soda ash, with a market capitalization of approximately ₹39.13 billion.

Operations: The company generates revenue primarily from its Inorganic Chemicals segment, reaching ₹32.58 billion recently. The net income margin has seen fluctuations, with the latest figure at 15.90%.

PE: 11.6x

GHCL's recent financial performance indicates a dip with Q1 2024 sales at ₹8.3 billion, down from ₹10.2 billion the previous year, and net income falling to ₹1.5 billion from ₹4.3 billion. Despite this, insider confidence remains high as Anurag Dalmia purchased 5,000 shares worth approximately ₹2.55 million in July 2024, reflecting potential optimism about future prospects. The company faces higher risk due to reliance on external borrowing but forecasts suggest a promising annual earnings growth of 19%.

• Delve into the full analysis valuation report here for a deeper understanding of GHCL.

• Learn about GHCL's historical performance.

LT Foods (NSEI:LTFOODS)

Simply Wall St Value Rating: ★★★★☆☆

Overview: LT Foods is a company engaged in the manufacture and storage of rice, with a market cap of approximately ₹31.65 billion.

Operations: The company generates revenue primarily from the manufacture and storage of rice, amounting to ₹81.21 billion. Over recent periods, its net income margin has shown an upward trend, reaching 7.53% in the latest quarter ending June 2024. Operating expenses have been significant but stable at around ₹17.77 billion for the same period.

PE: 17.5x

LT Foods, a small company in the rice and rice-based food industry, recently reported strong financial performance with first-quarter sales reaching ₹20.71 billion and net income of ₹1.55 billion for the period ending June 30, 2024. The company has also approved a second interim dividend of ₹0.50 per share for FY 2024-25. Notably, insider confidence is evident as Radhika Seth purchased 8,795 shares worth approximately ₹1.49 million on July 25, indicating potential optimism about future growth prospects despite some regulatory challenges faced recently.

• Click here to discover the nuances of LT Foods with our detailed analytical valuation report.

• Understand LT Foods' track record by examining our Past report.

Make It Happen

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Curious About Other Options?

• 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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