Yahoo Finance Exploring Dicker Data And Two More Undervalued Small Caps With Insider Action In Australia
Over the last 7 days, the Australian market has remained flat, though it has risen by 11% over the past year with earnings forecasted to grow by 13% annually. In this context, undervalued small caps like Dicker Data offer potential opportunities for investors looking for growth in a steadily advancing market.
Top 10 Undervalued Small Caps With Insider Buying In Australia
Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
Corporate Travel Management | 17.3x | 2.6x | 48.17% | ★★★★★★ |
Nick Scali | 13.4x | 2.5x | 46.37% | ★★★★★★ |
Tabcorp Holdings | NA | 0.7x | 20.82% | ★★★★★☆ |
Healius | NA | 0.6x | 43.74% | ★★★★★☆ |
Elders | 21.3x | 0.5x | 47.37% | ★★★★☆☆ |
Eagers Automotive | 9.3x | 0.3x | 35.61% | ★★★★☆☆ |
Codan | 29.5x | 4.3x | 26.17% | ★★★★☆☆ |
RAM Essential Services Property Fund | NA | 5.8x | 38.92% | ★★★★☆☆ |
Dicker Data | 22.6x | 0.8x | -2.83% | ★★★☆☆☆ |
Coventry Group | 278.9x | 0.4x | -14.57% | ★★★☆☆☆ |
Below we spotlight a couple of our favorites from our exclusive screener.
Dicker Data
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Dicker Data is a wholesale distributor of computer peripherals with a market capitalization of approximately A$2.27 billion.
Operations: Wholesale - Computer Peripherals generated A$2.27 billion in revenue, with a gross profit margin of 14.23% as of the latest reporting period, reflecting an upward trend from previous years. The net income for this segment stood at A$82.15 million, marking a net income margin increase to 3.62%.
PE: 22.6x
Dicker Data's financial landscape shows promise, with earnings expected to grow by approximately 8% annually. Despite a high debt level, the company secures funding through external borrowing, avoiding customer deposits and their associated risks. Recently, insider confidence was demonstrated as they purchased shares, signaling a strong belief in the company’s potential. With its latest dividend announced on May 13th for A$0.11 per share payable soon after, Dicker Data exemplifies traits often sought in undervalued entities within Australia's dynamic market sectors.
Delve into the full analysis valuation report here for a deeper understanding of Dicker Data.
Examine Dicker Data's past performance report to understand how it has performed in the past.
Elders
Simply Wall St Value Rating: ★★★★☆☆
Overview: Elders is an Australian company involved in providing a range of services and products across the agricultural sector, with a market capitalization of approximately A$1.62 billion.
Operations: Branch Network, Wholesale Products, and Feed and Processing Services collectively generated A$3.00 billion in revenue, with gross profit margins showing a notable increase from 16.22% to 19.41% over the observed periods.
PE: 21.3x
Elders, navigating through a challenging financial landscape with a significant drop in net income from A$48.85 million to A$11.59 million year-over-year, still forecasts robust earnings growth of 22.8% annually. Despite relying entirely on higher-risk external borrowing, insider confidence was recently demonstrated through share purchases, signaling potential undetected strength in the company's future prospects. Additionally, Elders' reaffirmation of its earnings guidance between A$120 million to A$140 million underscores resilience and adaptability amidst prevailing market conditions.
Take a closer look at Elders' potential here in our valuation report.
Evaluate Elders' historical performance by accessing our past performance report.
Orora
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Orora is a packaging solutions company operating primarily in Australasia and North America, with a market capitalization of approximately A$3.20 billion.
Operations: Australasia and North America are significant markets for the company, generating A$1.03 billion and A$3.02 billion in revenue respectively. The firm has observed a gross profit margin trend which increased from 16.68% to 18.95% over the analyzed periods, reflecting varying profitability levels across different fiscal quarters.
PE: 18.5x
Orora, a lesser-known entity in the Australian market, recently showcased its potential during an Analyst/Investor Day on April 17, 2024. Despite challenges like debt not being well covered by operating cash flow and reliance on higher risk external borrowing, insider confidence is evident as they recently purchased shares. This action suggests a belief in the company’s prospects amidst forecasts of a 14.82% earnings growth annually. Orora's financial stability and strategic moves could hint at latent growth opportunities ahead.
Click here and access our complete valuation analysis report to understand the dynamics of Orora.
Understand Orora's track record by examining our Past report.
Make It Happen
Take a closer look at our Undervalued ASX Small Caps With Insider Buying list of 22 companies by clicking here.
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Interested In Other Possibilities?
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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.
Companies discussed in this article include ASX:DDR ASX:ELD and ASX:ORA.
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