Undervalued Small Caps In United States With Insider Buys For September 2024

The market has been flat over the last week but is up 23% over the past year, with earnings expected to grow by 15% per annum over the next few years. In this environment, identifying undervalued small-cap stocks with insider buys can provide unique opportunities for investors seeking growth potential.

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

Name	PE	PS	Discount to Fair Value	Value Rating
Thryv Holdings	NA	0.8x	23.77%	★★★★★☆
Chatham Lodging Trust	NA	1.3x	28.59%	★★★★★☆
Franklin Financial Services	10.2x	2.0x	36.40%	★★★★☆☆
MYR Group	33.8x	0.5x	42.69%	★★★☆☆☆
Community West Bancshares	18.7x	2.9x	42.25%	★★★☆☆☆
Leggett & Platt	NA	0.4x	-4.66%	★★★☆☆☆
Alta Equipment Group	NA	0.1x	-82.87%	★★★☆☆☆
Metals Acquisition	NA	2.6x	45.70%	★★★☆☆☆
Delek US Holdings	NA	0.1x	-93.60%	★★★☆☆☆
Industrial Logistics Properties Trust	NA	0.7x	-256.98%	★★★☆☆☆

Click here to see the full list of 61 stocks from our Undervalued US Small Caps With Insider Buying screener.

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

Advantage Solutions (NasdaqGS:ADV)

Simply Wall St Value Rating: ★★★★★☆

Overview: Advantage Solutions provides sales and marketing services to consumer goods manufacturers and retailers, with a market cap of approximately $1.48 billion.

Operations: Advantage Solutions generates revenue primarily through its services, with a significant portion of costs attributed to COGS. The company's net income margin has seen fluctuations, reaching -0.36652% in Q3 2023 and -0.04337% in Q2 2024. Gross profit margins have varied, peaking at 23.28% in FY 2016 and declining to around 13.79% by mid-2024.

PE: -7.0x

Advantage Solutions, a small-cap company, recently reported Q2 2024 earnings with sales of US$873.36 million and a net loss of US$100.84 million. They also faced a significant goodwill impairment charge of US$99.67 million. Despite these challenges, the company repurchased 6 million shares from April to July for US$22.07 million, indicating insider confidence in their future prospects. Their strategic alliance with Genpact aims to address supply chain inefficiencies in the CPG and retail sectors using advanced data analytics and automation technologies like Genpact Cora.

• Dive into the specifics of Advantage Solutions here with our thorough valuation report.

• Assess Advantage Solutions' past performance with our detailed historical performance reports.

American Software (NasdaqGS:AMSW.A)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: American Software specializes in providing supply chain management and enterprise resource planning (ERP) solutions, with a market cap of approximately $0.56 billion.

Operations: The company generates revenue primarily from Supply Chain Management (including ERP) services, with a recent gross profit margin of 65.20%. Operating expenses include significant allocations to Sales & Marketing and R&D, which were $21.35 million and $17.77 million respectively in the latest period ending July 31, 2024.

PE: 42.4x

American Software has caught the eye of investors due to its potential undervaluation. The company recently reaffirmed fiscal 2025 guidance with expected revenues between US$104 million and US$108 million, while Q1 revenue slightly increased to US$26.19 million from last year’s US$25.9 million. Insider confidence is evident as James Miller acquired 292,302 shares worth approximately US$2.63 million, indicating a strong belief in the company's prospects despite recent index drops and changes in bylaws.

• Click here to discover the nuances of American Software with our detailed analytical valuation report.

• Gain insights into American Software's past trends and performance with our Past report.

MaxLinear (NasdaqGS:MXL)

Simply Wall St Value Rating: ★★★★☆☆

Overview: MaxLinear is a company that designs and sells semiconductors, with a market cap of $2.38 billion.

Operations: The company generates revenue primarily from its semiconductor segment, amounting to $448.14 million. Over recent periods, the gross profit margin has shown variability, with the latest figure at 53.99%.

PE: -6.7x

MaxLinear, a small company in the semiconductor sector, has recently caught attention due to insider confidence. Co-Founder Kishore Seendripu purchased 108,303 shares for US$1.4 million between July and August 2024, reflecting strong belief in the company's potential. Despite volatile share prices and past shareholder dilution, MaxLinear's innovative Panther III storage accelerator offers significant cost savings and performance boosts for data centers. The company anticipates earnings growth of 82% annually but faces challenges like high external borrowing risks and recent net losses.

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

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

Taking Advantage

• Dive into all 61 of the Undervalued US Small Caps With Insider Buying we have identified here.
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Want To Explore Some Alternatives?

• 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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