Stock Analysis

Discover Global's Undervalued Small Caps With Insider Action In May 2025

OM:SVED B
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In recent weeks, global markets have experienced a positive shift, driven by the U.S.-China agreement to pause tariffs for 90 days and cooling inflation rates in the U.S., which have buoyed investor sentiment and lifted major indices. This environment presents an intriguing backdrop for exploring small-cap stocks, where insider actions can often signal potential opportunities amidst broader market optimism.

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Top 10 Undervalued Small Caps With Insider Buying Globally

NamePEPSDiscount to Fair ValueValue Rating
Savills24.6x0.5x41.24%★★★★☆☆
FRP Advisory Group11.7x2.1x19.48%★★★★☆☆
Cloetta15.5x1.1x45.81%★★★★☆☆
SmartCraft41.3x7.4x34.63%★★★★☆☆
Nexus Industrial REIT6.4x2.8x12.68%★★★★☆☆
AKVA group15.5x0.7x46.69%★★★★☆☆
Sing Investments & Finance7.2x3.7x40.28%★★★★☆☆
Close Brothers GroupNA0.6x0.48%★★★☆☆☆
Eastnine18.3x8.8x39.80%★★★☆☆☆
Seeing MachinesNA2.5x43.26%★★★☆☆☆

Click here to see the full list of 169 stocks from our Undervalued Global Small Caps With Insider Buying screener.

Let's review some notable picks from our screened stocks.

Cedar Woods Properties (ASX:CWP)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Cedar Woods Properties is a property development and investment company with operations focused on residential communities, commercial properties, and apartments, holding a market cap of A$0.33 billion.

Operations: Cedar Woods Properties generates revenue primarily from property development and investment, with a recent revenue figure of A$459.01 million. The company's cost of goods sold (COGS) was A$362.57 million, resulting in a gross profit margin of 21.01%. Operating expenses stood at A$28.78 million, while non-operating expenses were reported at A$14.80 million, impacting the net income margin which was 11.52%.

PE: 10.2x

Cedar Woods Properties, a company in the property development sector, shows potential as an undervalued investment. Despite relying entirely on external borrowing for funding, which carries higher risk, they project an 8.83% annual earnings growth and anticipate a 15% increase in FY25 NPAT over FY24. Insider confidence is evident with William Hames purchasing 16,000 shares worth A$71,200 recently. Looking ahead to FY26, strong profit growth is expected due to secured presales.

ASX:CWP Ownership Breakdown as at May 2025
ASX:CWP Ownership Breakdown as at May 2025

AKVA group (OB:AKVA)

Simply Wall St Value Rating: ★★★★☆☆

Overview: AKVA group specializes in providing technology and services for the aquaculture industry, focusing on digital solutions, sea-based technology, and land-based technology, with a market cap of NOK 2.03 billion.

Operations: The company's revenue primarily comes from Sea Based Technology, contributing significantly to its total income. Over recent periods, the gross profit margin has shown fluctuations, reaching 45.30% in the latest quarter. Operating expenses are a major component of costs, with General & Administrative Expenses being a notable part of this category.

PE: 15.5x

AKVA, a player in aquaculture technology, is navigating the small-cap landscape with a focus on deep farming concepts. Recent earnings show significant growth, with Q1 2025 sales at NOK 1,012.95 million compared to NOK 784.36 million last year and net income rising sharply to NOK 42.28 million from NOK 4.78 million. Insider confidence is evident as an insider increased their holdings by over 25% recently, signaling belief in future prospects despite financial risks tied to external borrowing. The company targets minimum revenue of NOK 4 billion and EBIT of 6% for this year while expanding its footprint through new contracts like the one with Laxey EHF for salmon facilities in Iceland.

OB:AKVA Share price vs Value as at May 2025
OB:AKVA Share price vs Value as at May 2025

Svedbergs Group (OM:SVED B)

Simply Wall St Value Rating: ★★★★★☆

Overview: Svedbergs Group is a company engaged in the design, production, and sale of bathroom furniture and fixtures, with a market capitalization of SEK 1.88 billion.

Operations: Roper Rhodes is the largest revenue contributor with SEK 1.16 billion, followed by Thebalux and Svedberg's at SEK 410.80 million and SEK 394 million respectively. The company's gross profit margin has shown a trend of increasing over time, reaching 45.98% in the latest period ending March 2025. Operating expenses are primarily driven by sales and marketing costs, which have been consistently significant across periods.

PE: 16.5x

Svedbergs Group, a company with a market cap that reflects its smaller size, recently reported first-quarter sales of SEK 596.2 million and net income of SEK 52.4 million, showing growth from the previous year. Despite relying entirely on external borrowing for funding, insider confidence is evident as they have been purchasing shares since early 2025. The appointment of Martina Axell as MD in April brings fresh perspectives to the company known for its innovative approach in the bathroom furniture industry.

OM:SVED B Share price vs Value as at May 2025
OM:SVED B Share price vs Value as at May 2025

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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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