Undervalued Small Caps With Insider Action In US For January 2025

Over the last 7 days, the United States market has experienced a 2.1% decline, although it has risen by 21% over the past year, with earnings projected to grow by 15% annually. In this dynamic environment, identifying small-cap stocks that are perceived as undervalued and exhibit insider activity can be a strategic approach for investors seeking opportunities in less prominent segments of the market.

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

Name	PE	PS	Discount to Fair Value	Value Rating
OptimizeRx	NA	1.1x	45.01%	★★★★★☆
Quanex Building Products	31.0x	0.8x	41.59%	★★★★☆☆
Franklin Financial Services	8.8x	1.7x	42.65%	★★★★☆☆
McEwen Mining	4.3x	2.2x	43.85%	★★★★☆☆
RGC Resources	17.1x	2.4x	22.37%	★★★☆☆☆
Community West Bancshares	18.7x	2.9x	42.25%	★★★☆☆☆
ProPetro Holding	NA	0.7x	16.76%	★★★☆☆☆
Tilray Brands	NA	1.4x	-34.70%	★★★☆☆☆
Delek US Holdings	NA	0.1x	-80.45%	★★★☆☆☆
Sabre	NA	0.4x	-61.47%	★★★☆☆☆

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

Underneath we present a selection of stocks filtered out by our screen.

Hudson Technologies (NasdaqCM:HDSN)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Hudson Technologies specializes in providing innovative solutions for the refrigeration industry, with a focus on refrigerant sales and services, and has a market capitalization of approximately $0.69 billion.

Operations: The company generates revenue primarily through its wholesale segment, with a recent figure of $247.33 million. The gross profit margin has shown fluctuations over time, reaching 52.15% in September 2022 before declining to 29.88% by September 2024. Operating expenses have consistently impacted profitability, with general and administrative costs being a significant component, recorded at $33.55 million in September 2024.

PE: 8.5x

Hudson Technologies, a small company in the U.S., is facing challenges with declining earnings and lower profit margins. In Q3 2024, sales fell to US$61.94 million from US$76.5 million the previous year, while net income decreased to US$7.81 million from US$13.58 million. Despite this, insider confidence is evident through recent share repurchases totaling 326,028 shares for US$2.63 million between August and September 2024. The company also adjusted its revenue guidance for 2024 downward but expanded its buyback plan by an additional US$10 million, signaling potential long-term value recognition amidst current financial hurdles.

• Unlock comprehensive insights into our analysis of Hudson Technologies stock in this valuation report.

• Gain insights into Hudson Technologies' past trends and performance with our Past report.

Capitol Federal Financial (NasdaqGS:CFFN)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Capitol Federal Financial is a banking institution primarily engaged in community banking operations, with a market capitalization of approximately $1.24 billion.

Operations: The company primarily generates revenue through its community banking operations, with recent figures showing a revenue of $166.05 million. Operating expenses are significant, totaling $105.89 million in the latest period, with general and administrative expenses accounting for $87.85 million of this amount. The net income margin has shown fluctuations over time, most recently recorded at 22.87%.

PE: 19.1x

Capitol Federal Financial, a smaller player in the financial sector, has shown resilience with its recent earnings turnaround. For the year ending September 2024, net income reached US$38.01 million compared to a net loss of US$101.66 million previously. This improvement reflects stronger operations and potential growth prospects as earnings are forecasted to grow annually by 26.21%. Despite no insider buying activity reported recently, the company remains committed to shareholder returns with a consistent dividend of US$0.085 per share announced for November 2024 payout.

• Navigate through the intricacies of Capitol Federal Financial with our comprehensive valuation report here.

• Understand Capitol Federal Financial's track record by examining our Past report.

Capital Southwest (NasdaqGS:CSWC)

Simply Wall St Value Rating: ★★★★★☆

Overview: Capital Southwest is a business development company that provides financing solutions to middle-market companies, with a market capitalization of approximately $0.56 billion.

Operations: The company generates revenue primarily from investments, with a recent figure of $195.06 million. Operating expenses are a significant cost component, recently reported at $26.26 million. The net income margin has shown variability, with the latest being 37.77%.

PE: 14.1x

Capital Southwest, a smaller company in the U.S., has been attracting attention for its potential value. Despite challenges with debt coverage by operating cash flow, the firm maintains strong liquidity and seeks acquisitions to bolster growth. Recent insider confidence is evident as insiders have been purchasing shares over the past year, signaling belief in future prospects. The company reported Q2 2025 revenues of US$48.71 million, up from US$42.78 million last year, though net income remained stable at around US$22 million.

• Click here to discover the nuances of Capital Southwest with our detailed analytical valuation report.

• Gain insights into Capital Southwest's historical performance by reviewing our past performance report.

Key Takeaways

• Unlock more gems! Our Undervalued US Small Caps With Insider Buying screener has unearthed 38 more companies for you to explore.Click here to unveil our expertly curated list of 41 Undervalued US Small Caps With Insider Buying.
• 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.
• Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.

Ready For A Different Approach?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
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• 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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