Research on three undervalued small companies with insider actions in the market.

Right now, as global markets are experiencing a relatively calm period and small-cap and technology stocks are showing outstanding results, investors are closely watching the upcoming rebalancing of major indices like the Russell 2000. In this context, understanding what undervalued stocks are becomes extremely important, especially when insider actions indicate unrecognized potential in less active segments of the market.

Top 10 undervalued small companies with insider purchases:

• Cabka| PE: NA | Discount to fair value: 0.5x | Valuation: 28.02% | ★★★★★★
• Dundee Precious Metals| PE: 8.3x | Discount to fair value: 2.8x | Valuation: 45.28% | ★★★★★☆
• Tokmanni Group Plc| PE: 17.1x | Discount to fair value: 0.5x | Valuation: 38.63% | ★★★★★☆
• Nexus Industrial REIT| PE: 2.4x | Discount to fair value: 3.0x | Valuation: 19.86% | ★★★★★☆
• THG| PE: NA | Discount to fair value: 0.4x | Rating: 42.82% | ★★★★★☆
• Primaris Real Estate Investment Trust| PE: 11.4x | Discount to fair value: 3.0x | Valuation: 36.49% | ★★★★★☆
• Russel Metals| PE: 9.0x | Discount to fair value: 0.5x | Valuation: -5.67% | ★★★★☆
• Chatham Lodging Trust| PE: NA | Discount to fair value: 1.3x | Valuation: 18.79% | ★★★★☆
• Papa John's International| PE: 19.8x | Discount to fair value: 0.7x | Valuation: 36.84% | ★★★☆☆
• Freehold Royalties| PE: 15.4x | Discount to fair value: 6.6x | Valuation: 48.46% | ★★★☆☆

Semen Indonesia (Persero)

Simply Wall St Rating: ★★★★★☆

Overview: Semen Indonesia focuses on cement production and non-oil products, with a capitalization exceeding 53.24 trillion Indonesian rupiah.

Operations: The main sources of the company's income include the production of cement and other products, which bring in 34.11 trillion and 13.13 trillion rupees, respectively. The gross profit margin has varied over recent periods and stood at 25.72%.

PE: 13.1x The recent quarterly report shows a decline in sales and net profit; however, forecasts suggest a revenue growth of 13.5% per year. Considering all obligations related to external borrowings, the company's financial structure appears to be high-risk. Insider interest is reflected in recent stock purchases since May 8, highlighting confidence in the company's future. This also aligns with its presentation at the international conference, indicating a strategic positioning for recovery and growth.

Ramaco Resources

Simply Wall St Rating: ★★★★☆☆

Overview: Ramaco Resources is focused on the metals and mining sector, specializing in coal, with a market capitalization of approximately $699.84 million.

Operations: In the metals and mining sector - coal, the company reported revenue of $699.84 million, with a gross profit margin of 25.27% and a net income of $56.32 million for the last reporting period. The cost of goods sold amounted to $522.96 million, indicating significant operating expenses in this area.

PE: 13.7x Ramaco Resources was recently added to several Russell indices, highlighting its potential for growth despite changes in the index composition. Further insider purchases confirm confidence in the company's future, and an expanded credit line of $275 million underscores its strong financial position. Despite a decrease in profit margins compared to last year, proactive management actions and insider investments suggest that this company has every chance for successful development.

Clear Channel Outdoor Holdings

Simply Wall St Rating: ★★★★★☆

Overview: Clear Channel Outdoor Holdings is a global outdoor advertising company operating in the US and Europe, including airports, with a market capitalization of approximately $0.54 billion.

Operations: A significant portion of the company's revenue comes from the USA (excluding airports) with a figure of 1.11 billion dollars, followed by Northern European countries with 630.45 million dollars, and airports with 334.74 million dollars. In recent periods, gross profit has fluctuated significantly: from 47.43% in March 2016 to 32.12% in March 2021, illustrating the variability of profitability.

PE: -4.9x Recently, Clear Channel Outdoor Holdings demonstrated insider confidence through significant stock purchases, indicating strong expectations for the future despite current losses. With its addition to several Russell indices on July 1, 2024, the company is attracting the attention of the investment community. First-quarter sales rose to $481.75 million compared to $437.42 million a year ago, despite increased net losses of $89.67 million.

Result:

Explore our list of undervalued small companies with insider purchases in more detail.

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Find companies with promising cash flow that are also trading at prices below their fair value. This article from Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts, using an impartial methodology. Our article is not financial advice. It is not a recommendation to buy or sell stocks and does not take into account your goals or financial situation. We aim to provide you with a long-term analysis based on fundamental data. Please note that our analysis may not consider the latest company announcements that are relevant to prices or qualitative factors. Simply Wall St does not hold shares in the mentioned stocks.

The companies discussed in this article include IDX:SMGR, NasdaqGS:METC, and NYSE:CCO.

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