As global markets navigate a period of volatility, with U.S. stocks experiencing fluctuations due to AI competition fears and mixed corporate earnings, small-cap indices like the S&P 600 are also feeling the impact of broader economic sentiments. In this environment, identifying small-cap stocks that may be undervalued can offer potential opportunities, particularly when insider actions suggest confidence in their future performance amidst these market dynamics.

Top 10 Undervalued Small Caps With Insider Buying

Click here to see the full list of 194 stocks from our Undervalued Small Caps With Insider Buying screener.

Let's explore several standout options from the results in the screener.

Basic-Fit

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Basic-Fit operates a chain of fitness clubs across Europe, focusing on the Benelux region, France, Spain, and Germany, with a market capitalization of €2.5 billion.

Operations: The company generates revenue primarily from its operations in Benelux and France, Spain & Germany, with recent figures showing a gross profit margin of 79.76%. Operating expenses are significant, including costs for depreciation and amortization (D&A) and sales & marketing.

PE: 211.9x

Basic-Fit, a smaller company in the fitness industry, shows potential for growth despite some financial challenges. Insider confidence is evident as Hans van der Aar recently purchased 10,000 shares for €211K in January 2025, indicating belief in the company's prospects. While earnings are forecast to grow by 78% annually, profit margins have declined from last year's 1.9% to 0.7%. The company's reliance on external borrowing poses risks but also underscores its undervalued status amidst growth opportunities.

• Unlock comprehensive insights into our analysis of Basic-Fit stock in this valuation report.

• Evaluate Basic-Fit's historical performance by accessing our past performance report.

Medistim

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Medistim specializes in developing and selling medical devices focused on intraoperative ultrasound imaging and flow measurement, with a market capitalization of NOK 5.78 billion.

Operations: Medistim generates revenue primarily from its own products, totaling NOK 459.38 million, and third-party products, contributing NOK 87.70 million. The company's gross profit margin has shown an upward trend, reaching 79.29% as of September 2024.

PE: 28.8x

Medistim, a company in the medical device sector, is gaining attention with insider confidence shown through recent share purchases. Their launch of the PATENT study aims to enhance clinical outcomes for bypass surgeries using innovative TTFM and HFUS technologies. With 37% of CABG procedures already utilizing their devices, Medistim sees growth potential in markets like the U.S. The introduction of their MiraQ INTUI software platform further positions them as a competitive player by improving surgical efficiency and data accessibility.

• Delve into the full analysis valuation report here for a deeper understanding of Medistim.

• Understand Medistim's track record by examining our Past report.

Asia United Bank

Simply Wall St Value Rating: ★★★★☆☆

Overview: Asia United Bank is a financial institution that provides a range of services including branch, consumer, commercial, and treasury banking with a market capitalization of ₱43.65 billion.

Operations: Asia United Bank generates revenue primarily from branch banking and commercial banking, with additional contributions from consumer banking and treasury operations. The company has shown a gross profit margin of approximately 98.89% in recent periods, indicating efficient management of its cost of goods sold relative to revenue. Operating expenses are predominantly driven by general and administrative costs, which consistently form a significant portion of total expenses.

PE: 4.7x

Asia United Bank has demonstrated strong financial performance, with a third-quarter net income of PHP 3.3 billion, up from PHP 1.9 billion the previous year. Despite a high non-performing loans ratio of 2%, insider confidence is evident as President & Director Manuel Gomez increased their shareholding by over 100% in recent months, investing approximately PHP 890,310. This activity suggests potential value recognition within the company despite challenges in loan quality management.

• Take a closer look at Asia United Bank's potential here in our valuation report.

• Examine Asia United Bank's past performance report to understand how it has performed in the past.

Seize The Opportunity

• Take a closer look at our Undervalued Small Caps With Insider Buying list of 194 companies by clicking here.
• Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools.
• Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.

Want To Explore Some Alternatives?

• 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 ENXTAM:BFIT OB:MEDI and PSE:AUB.

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