Stock Analysis

Exploring Delek US Holdings And Two More Undervalued Small Caps With Insider Actions In The United States

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The United States stock market has experienced a dip of 2.4% over the last week, although it has risen by 18% over the past year with earnings expected to grow by 15% annually. In this context, identifying undervalued small-cap stocks with insider buying can be particularly compelling, as these actions often signal potential unrecognized value in a fluctuating market.

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

NamePEPSDiscount to Fair ValueValue Rating
Hanover Bancorp8.5x1.9x48.69%★★★★★☆
Ramaco Resources12.4x1.0x19.98%★★★★★☆
AtriCureNA2.8x46.76%★★★★★☆
Franklin Financial Services9.9x2.0x31.08%★★★★☆☆
PCB Bancorp10.9x2.9x32.31%★★★★☆☆
Columbus McKinnon23.9x1.1x43.30%★★★★☆☆
Titan Machinery4.3x0.1x18.52%★★★★☆☆
Community West Bancshares18.7x2.9x42.25%★★★☆☆☆
Alta Equipment GroupNA0.2x-237.84%★★★☆☆☆
Delek US HoldingsNA0.1x-132.83%★★★☆☆☆

Click here to see the full list of 66 stocks from our Undervalued US Small Caps With Insider Buying screener.

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

Delek US Holdings (NYSE:DK)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Delek US Holdings is an energy company primarily engaged in petroleum refining, with additional operations in retail fuel and logistics, boasting a market capitalization of approximately $1.22 billion.

Operations: Refining constitutes the predominant revenue stream for the entity, generating $15.72 billion, complemented by contributions from Retail and Logistics amounting to $871.2 million and $1.029 billion respectively. The Gross Profit Margin over recent periods shows a fluctuating trend with current figures at approximately 5.79%, reflecting variability in operational efficiency and market conditions.

PE: -19.1x

Despite a challenging quarter where Delek US Holdings reported a net loss and a drop in sales, their strategic inclusion in multiple Russell indexes underscores market recognition of potential growth. With insider confidence reflected through substantial share repurchases totaling $485.21 million, the firm demonstrates commitment to enhancing shareholder value. Additionally, an increase in dividends suggests optimism about future cash flows, positioning this entity intriguingly for those eyeing undervalued opportunities within dynamic sectors.

NYSE:DK Ownership Breakdown as at Jul 2024

Enhabit (NYSE:EHAB)

Simply Wall St Value Rating: ★★★★★☆

Overview: Enhabit operates in the healthcare sector, providing hospice and home health services with a market capitalization of approximately $1.04 billion.

Operations: The company generated a gross profit of $506.40 million with a gross profit margin of 48.52% in the most recent quarter, reflecting its cost management in relation to revenue of $1043.60 million. Over the past years, gross profit margins have shown a slight decline from 51.70% in 2019 to current levels, indicating changes in cost dynamics or pricing strategies within the operational framework.

PE: -6.2x

Recently, Enhabit has been a focal point of investor activism, with significant boardroom challenges and strategic reviews influencing its trajectory. Amidst this backdrop, the company's earnings are projected to surge by 105% annually. Insider confidence is reflected through recent purchases, underscoring a belief in the firm’s potential despite external pressures and operational critiques from entities like AREX Capital Management. Added to key growth indices like the Russell 2000, Enhabit exemplifies a promising yet undervalued entity within its sector, poised for recalibration and growth.

NYSE:EHAB Share price vs Value as at Jul 2024

Enviri (NYSE:NVRI)

Simply Wall St Value Rating: ★★★★★☆

Overview: Enviri is a diversified company with operations in environmental solutions, including the Clean Earth and Harsco Environmental segments, boasting a market capitalization of approximately $2.11 billion.

Operations: Clean Earth and Harsco Environmental are the primary revenue segments for the company, generating $931.89 million and $1.17 billion respectively. The gross profit margin has seen a fluctuation over recent periods, with the latest recorded at 21.29%.

PE: -16.0x

Enviri, a burgeoning entity in the market, recently projected its 2027 revenues to touch US$2.7 billion, signaling robust growth prospects. Despite a net loss in Q1 2024, revised upward guidance for the year suggests improving operational efficiency. Insider confidence is evident as they recently purchased shares, underscoring belief in the company’s trajectory. With no high-risk funding dependencies and a strategic ESOP-related offering initiated, Enviri stands out for its financial prudence and insider-endorsed potential.

NYSE:NVRI Share price vs Value as at Jul 2024

Summing It All Up

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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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