October 2024's Top Undervalued Small Caps In United States With Insider Buying

Simply Wall St · 10/16 11:03

The United States market has shown robust performance recently, rising 1.1% over the last week and an impressive 32% over the past year, with earnings projected to grow by 15% annually. In such a dynamic environment, identifying small-cap stocks that are perceived as undervalued and exhibit insider buying can offer intriguing opportunities for investors seeking potential value plays.

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

Name PE PS Discount to Fair Value Value Rating
Hanover Bancorp 9.5x 2.2x 47.36% ★★★★★☆
Columbus McKinnon 21.8x 1.0x 40.67% ★★★★★☆
Franklin Financial Services 9.8x 1.9x 37.53% ★★★★☆☆
HighPeak Energy 11.8x 1.5x 36.60% ★★★★☆☆
Delek US Holdings NA 0.1x -675.65% ★★★★☆☆
German American Bancorp 14.5x 4.8x 45.32% ★★★☆☆☆
Community West Bancshares 18.7x 2.9x 42.25% ★★★☆☆☆
Orion Group Holdings NA 0.3x -100.21% ★★★☆☆☆
Sabre NA 0.4x -35.11% ★★★☆☆☆
Industrial Logistics Properties Trust NA 0.7x -222.36% ★★★☆☆☆

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

Let's take a closer look at a couple of our picks from the screened companies.

Phibro Animal Health (NasdaqGM:PAHC)

Simply Wall St Value Rating: ★★★★★☆

Overview: Phibro Animal Health is a company that specializes in animal health products, mineral nutrition, and performance products with a market capitalization of approximately $0.54 billion.

Operations: Phibro Animal Health generates revenue primarily from three segments: Animal Health, Mineral Nutrition, and Performance Products. The company's gross profit margin has shown a varied trend over the periods, reaching 30.82% in June 2024. Operating expenses have increased over time, impacting net income margins, which declined to 0.24% by June 2024.

PE: 404.9x

Phibro Animal Health, a smaller player in the U.S. market, is catching attention for its potential value. Recent insider confidence is evident as they purchased shares between July and August 2024. Despite challenges like a drop in net income to US$2.42 million for the year ending June 2024, Phibro projects sales growth of up to US$1.09 billion in fiscal 2025 driven by their Animal Health segment's expansion and recovery elsewhere.

NasdaqGM:PAHC Share price vs Value as at Oct 2024
NasdaqGM:PAHC Share price vs Value as at Oct 2024

Couchbase (NasdaqGS:BASE)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Couchbase is a software company specializing in NoSQL cloud database solutions with a market cap of $0.84 billion.

Operations: The company generates revenue primarily from its Software & Programming segment, with recent figures reaching $198.82 million. Its cost structure includes significant operating expenses, notably in sales and marketing as well as research and development. The gross profit margin has shown fluctuations, recently recorded at 88.74%.

PE: -11.0x

Couchbase, a tech company in the U.S., showcases potential as an undervalued investment opportunity. Despite currently being unprofitable with no profitability forecast for the next three years, its revenue is projected to grow by 14.37% annually. Recent earnings showed a revenue increase to US$51.59 million for Q2 2024, with a reduced net loss of US$19.9 million compared to last year. Insider confidence is evident as Edward Anderson purchased 21,080 shares in August 2024 for approximately US$298K, indicating belief in future growth prospects despite current challenges and reliance on external funding sources without customer deposits.

NasdaqGS:BASE Share price vs Value as at Oct 2024
NasdaqGS:BASE Share price vs Value as at Oct 2024

Northwest Bancshares (NasdaqGS:NWBI)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Northwest Bancshares operates primarily in community banking, providing a range of financial services, and has a market capitalization of approximately $1.22 billion.

Operations: The company generates its revenue primarily from community banking, with a recent figure of $491.91 million. Operating expenses are significant, including general and administrative expenses which were $325.59 million in the latest period. The net income margin has shown variability, with the most recent figure at 20.72%.

PE: 16.9x

Northwest Bancshares, a smaller company in the U.S., exhibits potential for growth with earnings projected to rise 16.82% annually. Despite a dip in net income to US$4.75 million for Q2 2024 from US$33.04 million the previous year, insider confidence is evident as they continue purchasing shares, reinforcing belief in its prospects. The company declared a quarterly dividend of US$0.20 per share, highlighting commitment to returning value to shareholders amidst evolving financial dynamics.

NasdaqGS:NWBI Share price vs Value as at Oct 2024
NasdaqGS:NWBI Share price vs Value as at Oct 2024

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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.