Undervalued Small Caps With Insider Buying To Watch In November 2024

As global markets continue to navigate geopolitical tensions and economic uncertainties, U.S. indexes have approached record highs with small-cap indices outperforming their larger counterparts, driven by strong labor market data and positive sentiment in housing sales. In this environment, identifying promising small-cap stocks involves looking for those that may be undervalued yet show potential through factors such as insider buying, which can signal confidence in the company's future prospects amidst broader market optimism.

Top 10 Undervalued Small Caps With Insider Buying

Name	PE	PS	Discount to Fair Value	Value Rating
GWA Group	15.9x	1.5x	42.48%	★★★★★★
Paradeep Phosphates	23.2x	0.8x	30.52%	★★★★★☆
Maharashtra Seamless	9.8x	1.7x	36.37%	★★★★★☆
Collins Foods	18.2x	0.7x	3.58%	★★★★☆☆
Avia Avian	15.5x	3.5x	15.36%	★★★★☆☆
NCL Industries	15.3x	0.6x	-86.28%	★★★☆☆☆
Semen Indonesia (Persero)	20.7x	0.7x	29.52%	★★★☆☆☆
L.G. Balakrishnan & Bros	14.2x	1.6x	-41.19%	★★★☆☆☆
Community West Bancshares	18.7x	2.9x	42.25%	★★★☆☆☆
THG	NA	0.3x	-985.01%	★★★☆☆☆

Click here to see the full list of 190 stocks from our Undervalued Small Caps With Insider Buying screener.

We'll examine a selection from our screener results.

Olav Thon Eiendomsselskap (OB:OLT)

Simply Wall St Value Rating: ★★★★★☆

Overview: Olav Thon Eiendomsselskap is a Norwegian real estate company primarily engaged in the ownership and operation of shopping centres and commercial properties, with a market capitalization of NOK 14.56 billion.

Operations: The company generates revenue primarily from shopping centres and commercial properties, with a recent focus on maintaining a gross profit margin around 69.37%. Over the past periods, operating expenses have been relatively stable, while non-operating expenses have shown significant fluctuations impacting net income margins.

PE: -253.1x

Olav Thon Eiendomsselskap, a company with a small market capitalization, has shown promising financial performance. In the third quarter of 2024, they reported sales of NOK 946 million and net income of NOK 392 million, compared to a loss in the previous year. Insider confidence is evident through recent share purchases. Despite relying on external borrowing for funding, earnings are expected to grow annually by 47%. The passing of founder Olav Thon marks a leadership transition period for the company.

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

• Examine Olav Thon Eiendomsselskap's past performance report to understand how it has performed in the past.

BHG Group (OM:BHG)

Simply Wall St Value Rating: ★★★★☆☆

Overview: BHG Group operates as a leading online retailer specializing in home improvement, premium living, and value home products, with a market capitalization of SEK 2.52 billion.

Operations: The company generates revenue primarily from Value Home (SEK 2.52 billion), Premium Living (SEK 2.28 billion), and Home Improvement (SEK 5.16 billion) segments. Over recent periods, the gross profit margin has shown fluctuations, reaching a high of 19.15% in June 2021 before declining to around 16.48% by November 2024, indicating variability in cost management and pricing strategies across its offerings.

PE: -8.1x

BHG Group, a smaller company in its sector, has shown insider confidence with recent share purchases. Despite a volatile share price over the past three months, BHG's earnings are projected to grow significantly at 113% annually. However, the company relies entirely on external borrowing for funding, posing higher risk. Recent financials reveal third-quarter sales of SEK 2.35 billion and a reduced net loss of SEK 67 million compared to last year's figures.

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

• Learn about BHG Group's historical performance.

China Lesso Group Holdings (SEHK:2128)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: China Lesso Group Holdings is a leading manufacturer and supplier of building materials and interior decoration products, with a focus on plastics and rubber, operating primarily in the Chinese market.

Operations: The company generates revenue primarily from its Plastics & Rubber segment, with recent figures showing a gross profit margin of 26.04%. Operating expenses are significant, including sales and marketing as well as general and administrative costs. Net income margin has been observed at 6.58% in the latest period.

PE: 5.3x

China Lesso, a player in the small-cap space, shows insider confidence with Founder & Executive Chairman Luen Hei Wong purchasing 4 million shares for CNY 10.05 million between August and November 2024. Despite a dip in sales and net income for the half-year ending June 30, they maintain potential growth with earnings forecasted to rise by 10.65% annually. However, their reliance on external borrowing poses financial risks despite no customer deposits involved.

• Click here and access our complete valuation analysis report to understand the dynamics of China Lesso Group Holdings.

• Evaluate China Lesso Group Holdings' historical performance by accessing our past performance report.

Key Takeaways

• Discover the full array of 190 Undervalued Small Caps With Insider Buying right here.
• Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments.
• Take control of your financial future using Simply Wall St, offering free, in-depth knowledge of international markets to every investor.

Contemplating Other Strategies?

• 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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