3 Undervalued Small Caps In United States With Insider Buying

Simply Wall St.
2024-10-01

The market has been flat over the last week but is up 33% over the past year, with earnings expected to grow by 15% per annum over the next few years. In this context, identifying undervalued small-cap stocks with insider buying can be a strategic move for investors looking to capitalize on potential growth opportunities.

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

Name PE PS Discount to Fair Value Value Rating
Columbus McKinnon 22.6x 1.0x 39.15% ★★★★★☆
Thryv Holdings NA 0.7x 26.22% ★★★★★☆
MYR Group 34.3x 0.5x 42.30% ★★★★☆☆
Franklin Financial Services 9.7x 1.9x 39.61% ★★★★☆☆
Scholastic 37.8x 0.6x 42.81% ★★★☆☆☆
German American Bancorp 13.9x 4.7x 46.42% ★★★☆☆☆
Community West Bancshares 18.7x 2.9x 42.25% ★★★☆☆☆
Orion Group Holdings NA 0.3x -107.63% ★★★☆☆☆
Sabre NA 0.5x -72.14% ★★★☆☆☆
Delek US Holdings NA 0.1x -216.32% ★★★☆☆☆

Click here to see the full list of 53 stocks from our Undervalued US Small Caps With Insider Buying screener.

Let's uncover some gems from our specialized screener.

NewAmsterdam Pharma

Simply Wall St Value Rating: ★★★☆☆☆

Overview: NewAmsterdam Pharma focuses on developing transformative therapies for cardiovascular diseases and has a market cap of approximately $1.23 billion.

Operations: NewAmsterdam Pharma's revenue primarily comes from its biotechnology segment, with recent figures showing $7.42 million. The company consistently reports a gross profit margin of 1.00%, while net income margins have fluctuated significantly, reaching as low as -33.33%. Major expenses include R&D and General & Administrative costs, which were $165.47 million and $40.08 million respectively in the latest period ending September 2024.

PE: -6.5x

NewAmsterdam Pharma, a small cap in the U.S., recently reported Q2 2024 sales of US$2.28 million, up from US$1.72 million last year, with a net loss of US$39.01 million. The company showcased insider confidence with share purchases over the past six months and was added to the S&P Global BMI Index on September 23, 2024. Positive Phase 3 BROOKLYN trial results for obicetrapib indicate potential growth in their pipeline despite current unprofitability and reliance on external borrowing for funding.

  • Navigate through the intricacies of NewAmsterdam Pharma with our comprehensive valuation report here.
  • Explore historical data to track NewAmsterdam Pharma's performance over time in our Past section.

NasdaqGM:NAMS Share price vs Value as at Oct 2024

Columbus McKinnon

Simply Wall St Value Rating: ★★★★★☆

Overview: Columbus McKinnon is a company specializing in machinery and industrial equipment with a market cap of approximately $1.36 billion.

Operations: The majority of revenue is derived from the Machinery & Industrial Equipment segment, with a notable gross profit margin trend peaking at 37.18% as of December 31, 2023. Key operational expenses include Sales & Marketing and General & Administrative costs, which were $108.13 million and $105.42 million respectively for the period ending June 30, 2024.

PE: 22.6x

Columbus McKinnon, a small-cap company in the industrial sector, has shown modest financial performance recently. For Q1 2024, sales reached US$239.73 million, up slightly from US$235.49 million the previous year. Net income dropped to US$8.63 million from US$9.28 million year-over-year, with earnings per share at US$0.30 compared to US$0.32 last year. The company has completed a minor buyback of 31,085 shares for $1 million and announced a quarterly dividend of $0.07 per share payable on August 19, 2024.

  • Click here to discover the nuances of Columbus McKinnon with our detailed analytical valuation report.
  • Review our historical performance report to gain insights into Columbus McKinnon's's past performance.

NasdaqGS:CMCO Share price vs Value as at Oct 2024

Armada Hoffler Properties

Simply Wall St Value Rating: ★★★★☆☆

Overview: Armada Hoffler Properties is a real estate investment trust engaged in developing, building, acquiring, and managing office, retail, and multifamily residential properties with a market cap of approximately $1.30 billion.

Operations: Armada Hoffler Properties generates revenue primarily from General Contracting and Real Estate Services ($509.33 million), Retail Real Estate ($101.26 million), Office Real Estate ($86.98 million), and Multifamily Residential Real Estate ($59.66 million). The company's gross profit margin has shown variability, peaking at 44.86% in Q3 2019 before declining to 26.13% in Q2 2024, indicating fluctuations in cost efficiency over time.

PE: -333.5x

Armada Hoffler Properties, a prominent name in the US real estate sector, has shown potential for growth despite recent financial challenges. The company reported Q2 2024 sales of US$63.27 million, up from US$59.95 million last year, though net income dropped to US$3.17 million from US$11.86 million. A recent $94.5 million equity offering and strong leasing activity at their Harbor Point development underscore their strategic initiatives and insider confidence in future prospects evidenced by significant share purchases over the past year.

  • Get an in-depth perspective on Armada Hoffler Properties' performance by reading our valuation report here.
  • Understand Armada Hoffler Properties' track record by examining our Past report.

NYSE:AHH Share price vs Value as at Oct 2024

Where To Now?

  • Discover the full array of 53 Undervalued US Small Caps With Insider Buying right here.
  • Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports.
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Ready To Venture Into Other Investment Styles?

  • 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.

Companies discussed in this article include NasdaqGM:NAMS NasdaqGS:CMCO and NYSE:AHH.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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