Top Undervalued Small Caps With Insider Buying In August 2024

In August 2024, the global markets experienced a notable uptick, with small-cap stocks outperforming their large-cap counterparts amid investor optimism fueled by anticipated interest rate cuts from the Federal Reserve. This positive sentiment was reflected in key indices such as the S&P 600 for small-cap stocks, which saw significant gains. When evaluating potential investments in this environment, it's crucial to consider factors like insider buying activity and overall market sentiment. These indicators can provide valuable insights into a company's perceived value and growth prospects.

Top 10 Undervalued Small Caps With Insider Buying

Name	PE	PS	Discount to Fair Value	Value Rating
Ever Sunshine Services Group	5.5x	0.4x	26.52%	★★★★★☆
Essentra	858.4x	1.7x	46.68%	★★★★★☆
Cabka	NA	0.4x	49.20%	★★★★★☆
Lion Rock Group	6.0x	0.4x	45.56%	★★★★☆☆
Avia Avian	17.9x	4.1x	3.33%	★★★★☆☆
Sagicor Financial	1.3x	0.3x	-42.17%	★★★★☆☆
Semen Indonesia (Persero)	15.0x	0.7x	24.79%	★★★★☆☆
China Leon Inspection Holding	9.6x	0.7x	37.26%	★★★☆☆☆
Franchise Brands	118.4x	3.0x	48.24%	★★★☆☆☆
Community West Bancshares	18.7x	2.9x	42.25%	★★★☆☆☆

Click here to see the full list of 217 stocks from our Undervalued Small Caps With Insider Buying screener.

Here we highlight a subset of our preferred stocks from the screener.

Codan (ASX:CDA)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Codan specializes in the development and manufacturing of metal detection and communications equipment, with a market cap of approximately A$1.20 billion.

Operations: Codan generates revenue primarily from its Communications and Metal Detection segments, with the former contributing A$326.91 million and the latter A$219.85 million. The company's gross profit margin experienced fluctuations, peaking at 60.25% in June 2017 before settling at around 54.42% by December 2023. Operating expenses have shown a general upward trend, reaching A$190.78 million by June 2024, driven significantly by Sales & Marketing and R&D expenditures.

PE: 34.0x

Codan, a small-cap stock, recently reported strong financial results for the full year ending June 30, 2024. Sales increased to A$550.46 million from A$456.5 million last year, while net income rose to A$81.39 million compared to A$67.7 million previously. Earnings per share also grew from A$0.375 to A$0.45, reflecting solid performance despite higher-risk funding sources through external borrowing only. Insider confidence is evident with recent share purchases within the last quarter of 2023 and early 2024.

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

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

Lindblad Expeditions Holdings (NasdaqCM:LIND)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Lindblad Expeditions Holdings operates expedition cruises and adventure travel experiences, with a market cap of approximately $0.52 billion.

Operations: The company generated $591.46 million in revenue, with a gross profit margin of 44.10%. Operating expenses totaled $254.57 million, and the net income margin stood at -9.28%.

PE: -10.2x

Lindblad Expeditions Holdings, a leader in expedition cruising, recently closed a $6 million shelf registration on August 1, 2024. Their Q2 2024 earnings report showed sales of US$136.5 million, up from US$124.8 million the previous year, but net loss remained steady at around US$24.67 million. Despite higher risk funding through external borrowing and no customer deposits, insider confidence is evident with recent share purchases indicating potential undervaluation. The addition of two new Galápagos vessels highlights ongoing expansion efforts and growth prospects for the company’s unique travel experiences.

• Navigate through the intricacies of Lindblad Expeditions Holdings with our comprehensive valuation report here.

• Review our historical performance report to gain insights into Lindblad Expeditions Holdings''s past performance.

Electrolux Professional (OM:EPRO B)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Electrolux Professional operates in the laundry and food & beverage equipment sectors, with a market cap of approximately SEK 8.92 billion.

Operations: Electrolux Professional generates revenue primarily from its Laundry and Food & Beverage segments, amounting to SEK 4.53 billion and SEK 7.52 billion respectively. The company's net income margin has shown variability, with recent figures such as 6.75% for Q1 2022 and 6.05% for Q2 2024 reflecting this trend.

PE: 27.4x

Electrolux Professional, a smaller company in the appliance sector, has shown mixed financial results. For Q2 2024, sales increased to SEK 3.27 billion from SEK 3.15 billion year-on-year, yet net income dipped to SEK 230 million from SEK 257 million. Despite this, earnings are projected to grow at nearly 20% annually. Insider confidence is evident with recent share purchases within the last quarter, indicating potential optimism about future performance despite current high-risk funding through external borrowing only.

• Dive into the specifics of Electrolux Professional here with our thorough valuation report.

• Understand Electrolux Professional's track record by examining our Past report.

Taking Advantage

• Unlock more gems! Our Undervalued Small Caps With Insider Buying screener has unearthed 214 more companies for you to explore.Click here to unveil our expertly curated list of 217 Undervalued Small Caps With Insider Buying.
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Searching for a Fresh Perspective?

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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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