Insider Activity Highlights These 3 Top Undervalued Small Caps

In recent weeks, global markets have shown resilience with U.S. stocks advancing on the back of easing core inflation and robust bank earnings, while European indices climbed amid hopes for interest rate cuts due to slowing inflation. This positive market sentiment has also been reflected in small-cap stocks, as evidenced by the S&P MidCap 400's notable gain of 3.81%, highlighting investor interest in value opportunities within this segment. In such a dynamic environment, identifying promising small-cap stocks often involves looking at those with strong fundamentals and strategic insider activity that may signal confidence in their future prospects.

Top 10 Undervalued Small Caps With Insider Buying

Name	PE	PS	Discount to Fair Value	Value Rating
4imprint Group	17.4x	1.4x	32.58%	★★★★★☆
Maharashtra Seamless	9.8x	1.7x	37.52%	★★★★★☆
Speedy Hire	NA	0.3x	33.93%	★★★★★☆
Robert Walters	35.3x	0.2x	29.44%	★★★★☆☆
ABG Sundal Collier Holding	12.4x	2.1x	40.28%	★★★★☆☆
Logistri Fastighets	12.3x	8.7x	42.26%	★★★★☆☆
Mark Dynamics Indonesia	12.7x	4.1x	9.15%	★★★☆☆☆
Paradeep Phosphates	27.9x	0.9x	19.31%	★★★☆☆☆
THG	NA	0.3x	-537.38%	★★★☆☆☆
Digital Mediatama Maxima	NA	1.3x	9.64%	★★★☆☆☆

Click here to see the full list of 191 stocks from our Undervalued Small Caps With Insider Buying screener.

Underneath we present a selection of stocks filtered out by our screen.

Eurocommercial Properties (ENXTAM:ECMPA)

Simply Wall St Value Rating: ★★★★★★

Overview: Eurocommercial Properties focuses on owning and managing retail real estate properties, with a market cap of approximately €1.55 billion.

Operations: The company primarily generates revenue through real estate rentals, with a recent revenue figure of €266.26 million. The gross profit margin has shown some fluctuation, most recently recorded at 71.19%. Operating expenses are consistently around €13 million, impacting overall profitability alongside significant non-operating expenses.

PE: 5465.1x

Eurocommercial Properties, a smaller player in the real estate sector, recently reported improved financials for the nine months ending September 2024. Sales rose to €164.64 million from €161.19 million, while net income jumped to €93.6 million from €66.51 million year-over-year. Despite these gains, profit margins have declined significantly from 14.6% to 0.08%. Insider confidence is evident with share purchases completed by September 2024 totaling €15 million for 641,151 shares (1.2%). Earnings are projected to grow annually by over 40%, though interest coverage remains a concern due to inadequate earnings support and large one-off items affecting results.

• Click here to discover the nuances of Eurocommercial Properties with our detailed analytical valuation report.

• Assess Eurocommercial Properties' past performance with our detailed historical performance reports.

Lindab International (OM:LIAB)

Simply Wall St Value Rating: ★★★★★☆

Overview: Lindab International specializes in providing ventilation and building products, with a focus on profile systems and ventilation systems, and has a market capitalization of approximately SEK 11.65 billion.

Operations: Profile Systems and Ventilation Systems are the primary revenue streams, generating SEK 3.23 billion and SEK 10.10 billion respectively. The gross profit margin has shown variability, peaking at 30.75% in early 2022 before declining to 27.81% by late 2024. Operating expenses have increased over time, with a notable rise in sales and marketing costs reaching SEK 1.63 billion by September 2024.

PE: 22.3x

Lindab International, a company in the construction products sector, is currently exploring acquisitions to enhance synergies and maintain its competitive edge. Despite a dip in net income for Q3 2024 to SEK 158 million from SEK 239 million the previous year, sales increased slightly to SEK 3,348 million. Insider confidence is evident as executives have been purchasing shares recently. With earnings projected to grow by 27% annually, Lindab's strategic focus on acquisitions could bolster future performance.

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

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

Norva24 Group (OM:NORVA)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Norva24 Group operates in the waste management sector, providing services primarily focused on sewer and pipe maintenance, with a market capitalization of NOK 4.85 billion.

Operations: The group's primary revenue stream comes from waste management, with recent revenues reaching NOK 3.50 billion. The gross profit margin has shown variability, peaking at 50.82% in late 2021 and declining to 46.76% by the end of September 2024. Operating expenses have consistently increased over time, impacting profitability alongside rising costs of goods sold (COGS).

PE: 24.5x

Norva24 Group, a company with promising growth prospects, recently reported third-quarter sales of NOK 963 million, up from NOK 785 million the previous year. Despite this revenue increase to NOK 935 million, net income dipped to NOK 49 million from NOK 70.4 million. The CEO's purchase of 18,000 shares for approximately US$561,600 suggests insider confidence in future growth potential. However, reliance on external borrowing poses funding risks despite anticipated annual earnings growth of over 20%.

• Navigate through the intricacies of Norva24 Group with our comprehensive valuation report here.

• Gain insights into Norva24 Group's past trends and performance with our Past report.

Where To Now?

• Unlock more gems! Our Undervalued Small Caps With Insider Buying screener has unearthed 188 more companies for you to explore.Click here to unveil our expertly curated list of 191 Undervalued Small Caps With Insider Buying.
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Interested In Other Possibilities?

• 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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