Genus And 2 Other Undervalued Small Caps With Insider Buying To Enhance Your Portfolio

In the current global market landscape, small-cap stocks have shown resilience amid economic fluctuations, with indices like the S&P 600 reflecting a notable recovery from recent declines. As central banks adjust interest rates and inflation data presents mixed signals, investors are increasingly looking towards undervalued small caps with insider buying as potential opportunities. Identifying strong candidates in this category often involves evaluating fundamental factors such as solid financial health and growth potential. In this article, we will explore Genus and two other promising small-cap stocks that could enhance your portfolio in these dynamic times.

Top 10 Undervalued Small Caps With Insider Buying

Name	PE	PS	Discount to Fair Value	Value Rating
Trican Well Service	7.4x	0.9x	16.46%	★★★★★☆
Rogers Sugar	15.6x	0.6x	47.63%	★★★★☆☆
Franklin Financial Services	10.3x	2.0x	37.71%	★★★★☆☆
Delek US Holdings	NA	0.1x	-276.72%	★★★★☆☆
Norcros	7.9x	0.5x	-1.39%	★★★☆☆☆
German American Bancorp	14.2x	4.8x	45.26%	★★★☆☆☆
Citizens & Northern	13.2x	3.0x	42.75%	★★★☆☆☆
Studsvik	19.9x	1.2x	43.31%	★★★☆☆☆
Community West Bancshares	18.7x	2.9x	42.25%	★★★☆☆☆
Sabre	NA	0.4x	-47.75%	★★★☆☆☆

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

Let's take a closer look at a couple of our picks from the screened companies.

Genus (LSE:GNS)

Simply Wall St Value Rating: ★★★★★☆

Overview: Genus is a biotechnology company specializing in animal genetics, with operations focused on the development and commercialization of advanced breeding products for livestock, and it has a market cap of approximately £2.50 billion.

Operations: Genus generates revenue primarily from its Genus ABS and Genus PIC segments, with recent figures showing £314.90 million and £352.50 million respectively. The company's gross profit margin has shown significant fluctuations, reaching as high as 68.02% in March 2024 but also experiencing periods of lower margins such as 36.25% in December 2023. Operating expenses are a substantial part of the cost structure, with R&D expenses consistently around £93 million in recent periods.

PE: 162.3x

Genus, a smaller company in its sector, reported full-year sales of £668.8 million for the year ending June 30, 2024, down from £689.7 million the previous year. Net income dropped to £7.9 million from £33.3 million. Despite lower profit margins (1.2% vs 4.8% last year), earnings are projected to grow by 39.4% annually going forward. Insider confidence is evident with recent share purchases throughout this period, indicating potential long-term value despite current financial challenges.

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

• Assess Genus' past performance with our detailed historical performance reports.

Advantage Solutions (NasdaqGS:ADV)

Simply Wall St Value Rating: ★★★★★☆

Overview: Advantage Solutions provides outsourced sales, marketing, and technology services to consumer goods companies and retailers with a market cap of approximately $1.55 billion.

Operations: Advantage Solutions generates revenue primarily through its sales and marketing services, with a notable gross profit margin trend ranging from 13.28% to 23.28%. The company's operating expenses include significant allocations towards General & Administrative and D&A Expenses. Over recent periods, the net income margin has fluctuated, showing both positive and negative values, reflecting varied financial performance outcomes.

PE: -7.1x

Advantage Solutions, a provider of sales and omnichannel marketing solutions, recently unveiled a new brand identity to reflect its transition into a unified retail solutions entity. Despite reporting second-quarter sales of US$873 million and a net loss of US$101 million, the company remains focused on growth through strategic rebranding and operational streamlining. Insider confidence is evident with recent share purchases totaling 6 million shares for US$22.07 million between April and July 2024. This activity suggests potential long-term value despite current financial challenges.

• Unlock comprehensive insights into our analysis of Advantage Solutions stock in this valuation report.

• Understand Advantage Solutions' track record by examining our Past report.

MYR Group (NasdaqGS:MYRG)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: MYR Group is a company specializing in electrical construction services, focusing on commercial and industrial projects as well as transmission and distribution, with a market cap of approximately $1.89 billion.

Operations: MYR Group generates revenue primarily from its Commercial & Industrial (C&I) and Transmission & Distribution (T&D) segments. The company reported a net income of $49.22 million for the period ending September 16, 2024, with a gross profit margin of 8.83%. Operating expenses for the same period were $248.84 million, including general and administrative expenses amounting to $242.14 million.

PE: 33.2x

MYR Group's second quarter 2024 earnings report showed sales of US$828.89 million, down from US$888.62 million the previous year, and a net loss of US$15.28 million compared to a net income of US$22.27 million last year. Despite this, insider confidence is evident with recent share repurchases totaling 117,422 shares for US$16.26 million between May 6 and June 30, 2024. The company plans to leverage its strong balance sheet for acquisitions and organic growth opportunities in the coming months.

• Click here to discover the nuances of MYR Group with our detailed analytical valuation report.

• Explore historical data to track MYR Group's performance over time in our Past section.

Next Steps

• Reveal the 169 hidden gems among our Undervalued Small Caps With Insider Buying screener with a single click here.
• Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks.
• Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.

Interested In Other Possibilities?

• 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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