3 Undervalued Small Caps With Insider Action In Global Markets

As global markets navigate mixed performances, with the S&P 500 capping off a strong year despite a recent slump and economic indicators like the Chicago PMI highlighting challenges in manufacturing, small-cap stocks continue to attract attention for their potential growth opportunities. In this dynamic environment, identifying promising small-cap stocks often involves looking at those with insider activity, which can signal confidence from those closest to the company's operations.

Top 10 Undervalued Small Caps With Insider Buying

Name	PE	PS	Discount to Fair Value	Value Rating
4imprint Group	15.2x	1.2x	41.10%	★★★★★☆
Paradeep Phosphates	27.6x	0.9x	20.39%	★★★★★☆
Maharashtra Seamless	11.1x	1.9x	29.28%	★★★★★☆
Speedy Hire	NA	0.3x	35.22%	★★★★★☆
ABG Sundal Collier Holding	12.6x	2.1x	40.01%	★★★★☆☆
Avia Avian	15.9x	3.6x	13.63%	★★★★☆☆
Logistri Fastighets	12.4x	8.8x	42.44%	★★★★☆☆
Community West Bancshares	18.7x	2.9x	42.25%	★★★☆☆☆
THG	NA	0.3x	-603.97%	★★★☆☆☆
Digital Mediatama Maxima	NA	1.3x	9.35%	★★★☆☆☆

Click here to see the full list of 177 stocks from our Undervalued Small Caps With Insider Buying screener.

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

Beijer Alma (OM:BEIA B)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Beijer Alma is a Swedish industrial group specializing in manufacturing springs, wire, and flat strip components through its subsidiary Lesjöfors and providing industrial products and solutions via Beijer Tech, with a market cap of approximately SEK 11.43 billion.

Operations: Lesjöfors and Beijer Tech contribute significantly to the company's SEK 7.07 billion revenue, with Lesjöfors being the larger segment. The gross profit margin has shown variation, reaching 30.65% in recent periods, indicating shifts in cost management or pricing strategies over time.

PE: 14.0x

Beijer Alma, a smaller player in the market, has shown potential value with its recent financial performance. For Q3 2024, sales reached SEK 1,683 million and net income surged to SEK 303 million from SEK 134 million the previous year. Insider confidence is evident as Oskar Hellstrom purchased shares worth approximately SEK 533,000 in late December. However, the company relies solely on external borrowing for funding. With earnings projected to grow annually by 2.34%, Beijer Alma's future prospects appear cautiously optimistic amidst executive changes like appointing Peter Forslund as CFO by mid-2025.

• Get an in-depth perspective on Beijer Alma's performance by reading our valuation report here.

• Gain insights into Beijer Alma's past trends and performance with our Past report.

ITAB Shop Concept (OM:ITAB)

Simply Wall St Value Rating: ★★★★☆☆

Overview: ITAB Shop Concept is a company specializing in the design and production of retail furniture and fixtures, with a market cap of SEK 2.44 billion.

Operations: The company's revenue is primarily derived from its Furniture & Fixtures segment, amounting to SEK 6.42 billion. Over the observed periods, the gross profit margin has shown variability, reaching a high of 29.62% in mid-2024. Operating expenses are consistently significant, with sales and marketing being a major component.

PE: 15.0x

ITAB Shop Concept, a company with external borrowing as its sole funding source, has seen insider confidence through significant share purchases by Vegard Soraunet, who acquired approximately 1.8 million shares for SEK 40 million recently. Despite past shareholder dilution and a dip in Q3 net income to SEK 43 million from SEK 70 million last year, the company shows promise with projected earnings growth of 17.1% annually. Sales increased to SEK 4.8 billion over nine months compared to the previous year's SEK 4.5 billion, indicating potential for future expansion despite current financial challenges.

• Click to explore a detailed breakdown of our findings in ITAB Shop Concept's valuation report.

• Learn about ITAB Shop Concept's historical performance.

Manila Water Company (PSE:MWC)

Simply Wall St Value Rating: ★★★★★☆

Overview: Manila Water Company primarily operates in the water and wastewater services sector, focusing on its Manila Concession and head office operations, with a market capitalization of ₱57.5 billion.

Operations: The company's primary revenue streams consist of its domestic subsidiaries and the Manila Concession and Head Office, with a notable contribution from foreign subsidiaries. Over recent periods, the gross profit margin has shown an upward trend, reaching 79.12% by September 2024. Operating expenses include significant allocations to general and administrative expenses as well as depreciation and amortization.

PE: 9.4x

Manila Water Company, a small player in its sector, has shown promising growth with earnings forecasted to rise by 15.97% annually. Despite relying on high-risk external funding, recent insider confidence is evident as an individual purchased 143,664 shares for approximately ₱3.88 million between November and December 2024. The company reported strong financial performance for the third quarter of 2024 with net income increasing to ₱3.19 billion from ₱2.21 billion year-on-year, indicating potential for future growth despite financial challenges.

• Unlock comprehensive insights into our analysis of Manila Water Company stock in this valuation report.

• Assess Manila Water Company's past performance with our detailed historical performance reports.

Make It Happen

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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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