The Australian market has remained flat over the last week despite a 3.3% gain in the Real Estate sector, and it is up 11% over the past year with earnings forecasted to grow by 12% annually. In this dynamic environment, identifying undervalued small-cap stocks with notable insider action can present unique opportunities for investors seeking growth potential.

Top 10 Undervalued Small Caps With Insider Buying In Australia

Click here to see the full list of 25 stocks from our Undervalued ASX Small Caps With Insider Buying screener.

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

De Grey Mining

Simply Wall St Value Rating: ★★★☆☆☆

Overview: De Grey Mining is an Australian gold exploration company with operations focused on the Pilbara region, boasting a market cap of A$1.70 billion.

Operations: De Grey Mining generates revenue primarily from exploration activities, with recent quarterly revenue of A$0.041535 million. The company has a consistent gross profit margin of 1.0%, while its net income margin shows significant variability, most recently at -414.58%.

PE: -159.4x

De Grey Mining, an Australian exploration company, has shown insider confidence with recent share purchases in the past six months. Despite reporting a net loss of A$17.22 million for the year ending June 30, 2024, De Grey is actively advancing its projects. Significant drilling results at the Becher Project and ongoing follow-up programs highlight potential growth areas. Revenue remains minimal at A$42K, but strategic exploration efforts could unlock future value in their gold prospects.

• Click to explore a detailed breakdown of our findings in De Grey Mining's valuation report.

• Learn about De Grey Mining's historical performance.

Deterra Royalties

Simply Wall St Value Rating: ★★★★☆☆

Overview: Deterra Royalties is a company focused on managing royalty arrangements, with a market cap of A$2.45 billion.

Operations: The company generates revenue primarily through royalty arrangements, with a notable gross profit margin of 96.22% as of September 2024. The cost of goods sold (COGS) is relatively low, contributing to high profitability despite operating and non-operating expenses.

PE: 12.2x

Deterra Royalties, a small cap in Australia, recently reported net income of A$154.89 million for the fiscal year ending June 30, 2024, slightly up from A$152.46 million the previous year. Basic earnings per share rose to A$0.293 from A$0.2885. Despite a forecasted annual earnings decline of 7% over the next three years and reliance on external borrowing for funding, insider confidence remains high with recent share purchases indicating potential undervaluation opportunities in this sector.

• Dive into the specifics of Deterra Royalties here with our thorough valuation report.

• Gain insights into Deterra Royalties' past trends and performance with our Past report.

Tabcorp Holdings

Simply Wall St Value Rating: ★★★★★☆

Overview: Tabcorp Holdings operates in the gaming services and wagering and media sectors with a market cap of A$4.83 billion.

Operations: Tabcorp Holdings generates revenue primarily from its Wagering and Media segment (A$2.16 billion) and Gaming Services segment (A$176.1 million). The company's gross profit margin has consistently been at 1.00% in recent periods, while net income margins have fluctuated significantly, showing both positive and negative values over time.

PE: -0.7x

Tabcorp Holdings, a smaller Australian company, reported a net loss of A$1.36 billion for the year ending June 30, 2024, contrasting with last year's A$66.5 million profit. Despite declining sales to A$2.34 billion from A$2.43 billion and reduced dividends to A$0.003 per share, insider confidence remains high with significant share purchases in the past quarter. Earnings are expected to grow by 117% annually, suggesting potential future value despite current financial challenges and reliance on external borrowing for funding.

• Click here to discover the nuances of Tabcorp Holdings with our detailed analytical valuation report.

• Examine Tabcorp Holdings' past performance report to understand how it has performed in the past.

Where To Now?

• Embark on your investment journey to our 25 Undervalued ASX Small Caps With Insider Buying selection here.
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Seeking Other Investments?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
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• 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 ASX:DEG ASX:DRR and ASX:TAH.

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