Undervalued Small Caps With Insider Action In US Markets

Over the last 7 days, the United States market has experienced a 2.1% drop, despite being up 30% over the past year with earnings forecasted to grow by 15% annually. In this context, identifying stocks that are potentially undervalued and have insider action can be an intriguing strategy for investors looking to navigate current market conditions.

Top 10 Undervalued Small Caps With Insider Buying In The United States

Name	PE	PS	Discount to Fair Value	Value Rating
Capital Bancorp	14.0x	2.9x	48.78%	★★★★☆☆
Franklin Financial Services	10.4x	2.1x	31.63%	★★★★☆☆
HighPeak Energy	11.3x	1.6x	33.06%	★★★★☆☆
German American Bancorp	16.4x	5.5x	43.42%	★★★☆☆☆
USCB Financial Holdings	18.7x	5.3x	49.58%	★★★☆☆☆
First United	13.8x	3.1x	46.20%	★★★☆☆☆
Orion Group Holdings	NA	0.4x	-218.71%	★★★☆☆☆
Community West Bancshares	18.7x	2.9x	42.25%	★★★☆☆☆
Delek US Holdings	NA	0.1x	-70.25%	★★★☆☆☆
Sabre	NA	0.5x	-113.46%	★★★☆☆☆

Click here to see the full list of 41 stocks from our Undervalued US Small Caps With Insider Buying screener.

We'll examine a selection from our screener results.

OneWater Marine (NasdaqGM:ONEW)

Simply Wall St Value Rating: ★★★★★☆

Overview: OneWater Marine is a company that operates in the recreational boating industry, focusing on boat sales and services, with a market cap of approximately $0.42 billion.

Operations: OneWater Marine generates revenue primarily through sales, with a notable gross profit margin trend peaking at 31.75% in June 2022 before declining to 24.54% by September 2024. The company experiences significant cost of goods sold and operating expenses, which impact its profitability, as evidenced by fluctuating net income margins that turned negative from September 2023 onwards.

PE: -50.4x

OneWater Marine, a small-cap company in the U.S., shows insider confidence through recent share purchases. Despite facing a net loss of US$5.71 million for the year ending September 2024, down from US$38.59 million the previous year, its projected revenue growth between US$1.7 billion and US$1.85 billion for fiscal 2025 reflects cautious optimism amid challenges like Hurricanes Helene and Milton. Recent debt financing adjustments aim to bolster financial stability by modifying key ratios and liquidity measures while waiving certain covenant requirements until September 2024's end.

• Delve into the full analysis valuation report here for a deeper understanding of OneWater Marine.

• Examine OneWater Marine's past performance report to understand how it has performed in the past.

First Commonwealth Financial (NYSE:FCF)

Simply Wall St Value Rating: ★★★★★☆

Overview: First Commonwealth Financial is a financial services company primarily engaged in providing banking services.

Operations: The primary revenue stream for First Commonwealth Financial is derived from its banking operations, with recent figures showing a revenue of $456.47 million. The company consistently reports a gross profit margin of 100%, indicating no cost of goods sold. Operating expenses are primarily driven by general and administrative costs, which recently amounted to $205.66 million, alongside sales and marketing expenses totaling $5.24 million. Net income margins have varied over time, most recently recorded at 33.20%.

PE: 12.5x

First Commonwealth Financial, a smaller player in the financial sector, recently experienced insider confidence with purchases made in the past months. Despite facing increased net charge-offs of US$8.79 million for Q3 2024 compared to US$3.98 million last year, they maintained a dividend increase of 4% from Q3 2023, offering a projected annual yield of 3%. The company repurchased shares worth US$2.47 million from July to September 2024. Earnings are expected to grow by approximately 2.88% annually, suggesting potential value amidst current challenges and strategic financial maneuvers like share buybacks and dividends that may appeal to investors seeking growth opportunities within this segment.

• Navigate through the intricacies of First Commonwealth Financial with our comprehensive valuation report here.

• Assess First Commonwealth Financial's past performance with our detailed historical performance reports.

Mativ Holdings (NYSE:MATV)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Mativ Holdings operates in the specialty materials sector, focusing on providing innovative solutions and products across various industries, with a market capitalization of approximately $1.21 billion.

Operations: Revenue streams have shown significant fluctuations, with the latest period reporting $1.97 billion in revenue. The gross profit margin has experienced a downward trend, reaching 18.99% recently, indicating increased cost pressures over time. Operating expenses have consistently been a substantial part of costs, with notable allocations towards general and administrative expenses and sales & marketing efforts.

PE: -10.6x

Mativ Holdings, a smaller company in the U.S. market, showcases potential for growth despite recent financial challenges. Their Q3 2024 sales remained stable at US$498.5 million, while net losses narrowed significantly from the previous year. The company's strategic alliance with Miru Smart Technologies aims to innovate in electrochromic windows, potentially enhancing future revenue streams. Insider confidence is evident as stakeholders have been purchasing shares recently, signaling belief in Mativ's long-term prospects amidst ongoing debt restructuring efforts like their recent US$400 million note offering due 2029.

• Click here to discover the nuances of Mativ Holdings with our detailed analytical valuation report.

• Understand Mativ Holdings' track record by examining our Past report.

Next Steps

• Embark on your investment journey to our 41 Undervalued US Small Caps With Insider Buying selection here.
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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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