Undervalued Small Caps With Insider Activity To Explore In November 2024

As global markets navigate the impact of rising U.S. Treasury yields, small-cap stocks have faced particular pressure, with indices like the Russell 2000 reflecting recent declines. Amid this backdrop of economic uncertainty and moderated inflation growth as reported in the Fed’s Beige Book, investors may find opportunities by exploring small-cap companies that exhibit strong fundamentals and insider activity.

Top 10 Undervalued Small Caps With Insider Buying

Name	PE	PS	Discount to Fair Value	Value Rating
Senior	18.2x	0.6x	37.42%	★★★★★★
Trican Well Service	7.9x	0.9x	20.97%	★★★★★★
Bytes Technology Group	21.9x	5.6x	12.39%	★★★★★☆
Nexus Industrial REIT	3.6x	3.6x	19.60%	★★★★☆☆
Calfrac Well Services	2.5x	0.2x	19.71%	★★★★☆☆
Sagicor Financial	1.3x	0.3x	-44.56%	★★★★☆☆
Optima Health	NA	1.3x	37.58%	★★★★☆☆
Robert Walters	43.2x	0.3x	40.24%	★★★☆☆☆
Community West Bancshares	18.7x	2.9x	42.25%	★★★☆☆☆
Safari Investments RSA	5.6x	3.2x	5.12%	★★★☆☆☆

Click here to see the full list of 189 stocks from our Undervalued Small Caps With Insider Buying screener.

We're going to check out a few of the best picks from our screener tool.

Paradeep Phosphates (NSEI:PARADEEP)

Simply Wall St Value Rating: ★★★★★☆

Overview: Paradeep Phosphates is a company involved in the production and trading of fertilizers and other related materials, with a market capitalization of ₹40.81 billion.

Operations: The company's revenue primarily stems from fertilizers and trading materials, with a recent gross profit margin of 26.35%. Cost of goods sold (COGS) represents a significant portion of expenses, while operating expenses and non-operating expenses also impact profitability.

PE: 23.4x

Paradeep Phosphates, a smaller company in the fertilizer industry, recently showcased promising financial performance with Q2 2024 net income jumping to INR 2.3 billion from INR 894.3 million a year ago, reflecting strong earnings growth. Despite regulatory challenges and environmental compensation of INR 4 million paid recently, insider confidence is evident through share purchases this year. With liabilities primarily from external borrowing, there's potential for continued profit growth at an estimated rate of 27% annually.

• Navigate through the intricacies of Paradeep Phosphates with our comprehensive valuation report here.

• Explore historical data to track Paradeep Phosphates' performance over time in our Past section.

Electrolux Professional (OM:EPRO B)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Electrolux Professional is a company engaged in the manufacturing and sale of professional kitchen, beverage, and laundry solutions, with a market cap of approximately SEK 10.89 billion.

Operations: Electrolux Professional generates revenue primarily from its Food & Beverage and Laundry segments, with the former contributing more significantly. Over recent periods, the company has experienced fluctuations in its gross profit margin, which reached 34.12% by late 2024. The cost of goods sold (COGS) consistently represents a substantial portion of total expenses, impacting profitability. Operating expenses are largely driven by sales and marketing efforts along with general and administrative costs.

PE: 27.3x

Electrolux Professional, a company with a high debt level and reliance on external borrowing, recently reported third-quarter sales of SEK 2.9 billion, up from SEK 2.8 billion last year, alongside net income growth to SEK 187 million from SEK 159 million. Despite these improvements, nine-month earnings dipped slightly. Insider confidence is evident with recent share purchases in September and October. The launch of the NeoBlue Touch dishwasher promises to boost future sales through innovation in efficiency and productivity enhancements.

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

• Understand Electrolux Professional's track record by examining our Past report.

Nolato (OM:NOLA B)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Nolato is a Swedish company specializing in the development and production of polymer product systems for sectors such as medical solutions, with a market cap of approximately SEK 9.56 billion.

Operations: The company generates revenue primarily from its Medical Solutions segment, with a net income margin showing fluctuations over the observed periods. Notably, the gross profit margin has varied, reaching 16.36% in September 2024. Operating expenses and cost of goods sold significantly impact overall profitability, with operating expenses consistently above SEK 600 million in recent quarters.

PE: 26.3x

Nolato, a company with a market capitalization under US$1 billion, has seen notable insider confidence with share purchases in recent months. Their Q3 2024 earnings demonstrated solid growth, reporting sales of SEK 2.4 billion and net income of SEK 164 million, up from SEK 69 million the previous year. Despite relying on higher-risk external borrowing for funding, Nolato's earnings are projected to grow by nearly 20% annually. This positions them as an intriguing prospect within their industry context.

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

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

Next Steps

• Unlock more gems! Our Undervalued Small Caps With Insider Buying screener has unearthed 186 more companies for you to explore.Click here to unveil our expertly curated list of 189 Undervalued Small Caps With Insider Buying.
• Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports.
• Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com