Yahoo Finance Exploring Undervalued Small Caps With Insider Action In Canada June 2024
The Canadian market has shown a steady upward trajectory, with a 1.1% increase over the last week and a notable 9.9% rise over the past year, accompanied by an anticipated annual earnings growth of 15%. In this context, identifying undervalued small-cap stocks with significant insider buying can be particularly compelling, as these actions often signal underlying value not yet recognized by the broader market.
Top 10 Undervalued Small Caps With Insider Buying In Canada
Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
Dundee Precious Metals | 8.1x | 2.8x | 47.13% | ★★★★★★ |
Nexus Industrial REIT | 2.4x | 3.0x | 18.24% | ★★★★★☆ |
Calfrac Well Services | 2.2x | 0.2x | 3.46% | ★★★★★☆ |
Primaris Real Estate Investment Trust | 11.0x | 2.8x | 36.95% | ★★★★★☆ |
Russel Metals | 9.1x | 0.5x | 13.55% | ★★★★☆☆ |
Guardian Capital Group | 10.5x | 4.1x | 32.03% | ★★★★☆☆ |
Sagicor Financial | 1.2x | 0.4x | -95.61% | ★★★★☆☆ |
Gear Energy | 19.2x | 1.3x | 31.05% | ★★★☆☆☆ |
Freehold Royalties | 15.2x | 6.6x | 47.67% | ★★★☆☆☆ |
AutoCanada | 11.3x | 0.1x | -117.43% | ★★★☆☆☆ |
Let's review some notable picks from our screened stocks.
Exchange Income
Simply Wall St Value Rating: ★★★★☆☆
Overview: Exchange Income is a diversified corporation operating primarily in the manufacturing and aerospace & aviation sectors, with a market capitalization of approximately CA$1.6 billion.
Operations: Manufacturing and Aerospace & Aviation are the primary revenue contributors, with recent figures showing CA$1.03 billion and CA$1.54 billion respectively. The company's gross profit margin has seen fluctuations, recently recorded at 34.55% in the latest quarter of 2024, indicating variability in cost management relative to sales over time.
PE: 17.9x
Exchange Income, a lesser-known yet intriguing entity in Canada's investment landscape, recently affirmed its monthly dividends at CAD 0.22 per share, underscoring a stable financial posture despite facing earnings pressure with net income dropping from CAD 6.86 million to CAD 4.53 million year-over-year in Q1 2024. This performance aligns with their revenue growth forecast of approximately 23% annually, reflecting both resilience and potential for scaling. Insider confidence is evident as they consistently declared dividends amidst fluctuating earnings, suggesting a strategic optimism about future prospects without direct insider purchases reported recently.
Unlock comprehensive insights into our analysis of Exchange Income stock in this valuation report.
Examine Exchange Income's past performance report to understand how it has performed in the past.
Guardian Capital Group
Simply Wall St Value Rating: ★★★★☆☆
Overview: Guardian Capital Group operates primarily in investment management, including wealth management, and engages in corporate activities and investments, with a market capitalization of approximately CA$0.68 billion.
Operations: The company generates revenue primarily through investment management, including wealth management services, totaling CA$198.91 million. Gross profit margins have shown a fluctuating trend over the years, with a notable figure of 53.07% in the latest reported period of 2024.
PE: 10.5x
Guardian Capital Group has shown a notable increase in revenue, rising to CAD 62.5 million this quarter from CAD 54.49 million the previous year, though net income sharply decreased. Recently, insiders displayed confidence through share purchases, reinforcing belief in the company's potential despite past earnings volatility. Additionally, with a strategic buyback of 94,000 shares for CAD 4.15 million completed by March end underlines their commitment to enhancing shareholder value. This blend of insider activity and financial maneuvers suggests Guardian is positioning for recovery and growth.
Hammond Power Solutions
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Hammond Power Solutions specializes in the manufacture and sale of transformers, with a market capitalization of approximately CA$729.61 million.
Operations: The manufacture and sale of transformers generated CA$729.61 million in revenue, with a gross profit margin of 32.49% as of the latest reporting period. The company's net income for the same period was CA$55.63 million, reflecting a net income margin of 7.62%.
PE: 23.1x
Hammond Power Solutions, a lesser-known yet intriguing player in the Canadian market, recently showcased a strong financial performance with annual sales jumping to CAD 710 million from CAD 558 million. Despite a dip in quarterly net income to CAD 8 million from last year's CAD 16 million, insider confidence remains high as evidenced by recent purchases of shares by insiders. This move aligns with their robust earnings forecast of an annual growth rate of 18.59%. Moreover, the company's strategic actions, including a new shelf registration for Class A shares and consistent dividend payouts, underscore its proactive approach in capital management and shareholder value enhancement.
Click to explore a detailed breakdown of our findings in Hammond Power Solutions' valuation report.
Explore historical data to track Hammond Power Solutions' performance over time in our Past section.
Where To Now?
Dive into all 31 of the Undervalued TSX Small Caps With Insider Buying we have identified 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 TSX:EIF TSX:GCG.A and TSX:HPS.A.
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