Yahoo Finance Sims Leads 3 Undervalued Small Caps With Insider Buying
As global markets rebound from recent sell-offs and economic indicators show mixed signals, small-cap stocks have garnered renewed investor interest. With the S&P 600 for small-cap stocks reflecting this sentiment, identifying undervalued opportunities becomes crucial. In such a market environment, good stock picks often exhibit solid fundamentals and insider buying, indicating confidence in future performance.
Top 10 Undervalued Small Caps With Insider Buying
Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
Columbus McKinnon | 19.6x | 0.9x | 45.87% | ★★★★★★ |
Trican Well Service | 7.6x | 0.9x | 13.31% | ★★★★★☆ |
Hanover Bancorp | 9.1x | 2.1x | 49.42% | ★★★★★☆ |
Genus | 154.5x | 1.8x | 5.44% | ★★★★★☆ |
Sagicor Financial | 1.3x | 0.3x | -35.49% | ★★★★☆☆ |
CVS Group | 23.8x | 1.3x | 37.90% | ★★★★☆☆ |
Hemisphere Energy | 6.0x | 2.3x | -210.25% | ★★★☆☆☆ |
Franchise Brands | 43.0x | 2.2x | 39.03% | ★★★☆☆☆ |
Community West Bancshares | 18.7x | 2.9x | 42.25% | ★★★☆☆☆ |
Duluth Holdings | NA | 0.2x | -900387.72% | ★★★☆☆☆ |
Let's dive into some prime choices out of from the screener.
Sims
Simply Wall St Value Rating: ★★★★☆☆
Overview: Sims operates in metal recycling and electronic waste management with a market cap of A$3.20 billion.
Operations: The company's revenue streams are primarily from North America Metals (A$4.49 billion), Australia/New Zealand Metals (A$1.60 billion), and Global Trading (A$771.20 million). The cost of goods sold (COGS) is a significant expense, consistently representing a large portion of revenue, with recent figures showing A$7.41 billion against a revenue of A$8.23 billion for the period ending September 30, 2023. Gross profit margins have varied over time, most recently at 9.91% for the same period.
PE: 1329.3x
Sims Limited, a small-cap stock, has seen significant insider confidence with notable share purchases over the past six months. Despite reporting a net loss of A$57.8 million for the year ending June 30, 2024, compared to A$181.1 million net income last year, revenue grew from A$6.66 billion to A$7.22 billion. The company repurchased shares recently and forecasts earnings growth of 40% annually, suggesting potential future value despite current challenges in profit margins and funding risks.
Unlock comprehensive insights into our analysis of Sims stock in this valuation report.
Assess Sims' past performance with our detailed historical performance reports.
Sabre
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Sabre operates as a technology solutions provider for the global travel and hospitality industry, with a market cap of approximately $1.57 billion.
Operations: Sabre generates revenue primarily from Travel Solutions ($2.70 billion) and Hospitality Solutions ($315.74 million). Gross profit margin has varied, reaching up to 81.41% in 2020-06-30 and more recently at 59.47% in 2024-06-30. Operating expenses include significant R&D costs, which were $1.61 billion in 2020-03-31 and $882.44 million in the latest quarter of 2024-09-18, impacting net income margins that have fluctuated widely over the periods analyzed.
PE: -2.8x
Sabre Corporation, a technology provider for the travel industry, has shown promising developments in recent months. They reported Q2 2024 sales of US$767 million, up from US$738 million the previous year. Despite a net loss of US$70 million for Q2 2024, this was an improvement from the previous year's loss of US$124 million. Significant insider confidence is evident with recent share purchases by executives. Sabre's PRISM tool has been adopted by Malaysia Airlines and renewed by American Airlines, enhancing corporate travel solutions with advanced analytics and compliance features.
Delve into the full analysis valuation report here for a deeper understanding of Sabre.
Explore historical data to track Sabre's performance over time in our Past section.
Victoria's Secret
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Victoria's Secret is a leading specialty retailer of women's lingerie, intimate apparel, and beauty products with a market cap of approximately $2.25 billion.
Operations: The company generates revenue primarily through retail specialty sales, with recent figures showing $6.13 billion. The cost of goods sold (COGS) for the same period was $3.39 billion, resulting in a gross profit margin of 44.67%.
PE: 14.3x
Victoria's Secret, a small-cap stock, has recently seen insider confidence with key executives purchasing shares. The company reported second-quarter sales of US$1.42 billion and net income of US$31.8 million, a significant improvement from the previous year's net loss. Recent leadership changes include appointing Hillary Super as CEO effective September 9, 2024. Despite external borrowing risks and interest payments not fully covered by earnings, the forecasted annual earnings growth of 7.58% indicates potential for future value creation.
Get an in-depth perspective on Victoria's Secret's performance by reading our valuation report here.
Evaluate Victoria's Secret's historical performance by accessing our past performance report.
Summing It All Up
Embark on your investment journey to our 169 Undervalued Small Caps With Insider Buying selection here.
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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:SGM NasdaqGS:SABR and NYSE:VSCO.
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