November 7, 2024
Exploring 3 Undervalued Small Caps On TSX With Insider Buying In Canada #CanadaFinance

Exploring 3 Undervalued Small Caps On TSX With Insider Buying In Canada #CanadaFinance

CashNews.co

As the Canadian market navigates a period of economic transition, the cooling labor market and anticipated rate cuts by both the Federal Reserve and Bank of Canada present a potentially favorable environment for small-cap stocks on the TSX. In this context, identifying small-cap companies with strong fundamentals and insider buying can be an attractive strategy for investors looking to capitalize on potential growth opportunities amidst broader market shifts.

Name

PE

PS

Discount to Fair Value

Value Rating

AutoCanada

THAT

0.1x

20.87%

★★★★★★

Parex Resources

3.0x

0.8x

49.71%

★★★★★☆

Trican Well Service

8.0x

0.9x

18.66%

★★★★★☆

Calfrac Well Services

2.5x

0.2x

18.27%

★★★★★☆

Rogers Sugar

15.3x

0.6x

48.64%

★★★★☆☆

Nexus Industrial REIT

3.6x

3.6x

18.78%

★★★★☆☆

Primaris Real Estate Investment Trust

13.0x

3.5x

45.40%

★★★★☆☆

Sagicor Financial

1.3x

0.3x

-37.66%

★★★★☆☆

Hemisphere Energy

6.0x

2.3x

-216.79%

★★★☆☆☆

First National Financial

13.7x

3.9x

42.88%

★★★☆☆☆

Click here to see the full list of 23 stocks from our Undervalued TSX Small Caps With Insider Buying screener.

Let’s review some notable picks from our screened stocks.

Simply Wall St Value Rating: ★★★★☆☆

Overview: Primaris Real Estate Investment Trust focuses on the ownership, management, and development of its investment properties with a market capitalization of CA$1.55 billion.

Operations: The company generates revenue primarily through the ownership, management, and development of its investment properties, with a recent quarterly revenue of CA$457.86 million. Its cost structure includes significant components such as COGS and operating expenses. The gross profit margin has recently been recorded at 56.92%.

PE: 13.0x

Primaris Real Estate Investment Trust, a smaller player in the Canadian market, has shown potential for growth despite its reliance on external borrowing. Recent insider confidence is evident with Patrick Sullivan purchasing 20,000 shares valued at C$271,600 in September 2024. The trust’s revenue is projected to grow by 7.87% annually. Although shareholder dilution occurred over the past year, Primaris completed a follow-on equity offering of C$69.59 million in October 2024 and maintains regular dividend distributions of C$0.07 per unit monthly.

TSX:PMZ.UN Share price vs Value as at Nov 2024
TSX:PMZ.UN Share price vs Value as at Nov 2024

Simply Wall St Value Rating: ★★★☆☆☆

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