November 21, 2024
Insider Buying Backs These 3 Undervalued Small Caps In Canada #CanadaFinance

Insider Buying Backs These 3 Undervalued Small Caps In Canada #CanadaFinance

CashNews.co

As the Canadian economy shows signs of slowing and central banks continue their rate-cutting cycles, small-cap stocks are garnering attention for their potential resilience in a cooling labor market. In this environment, identifying small-cap companies with strong fundamentals and insider buying activity can be particularly compelling, as these factors may signal confidence from those closest to the business.

Name

PE

PS

Discount to Fair Value

Value Rating

Trican Well Service

7.8x

0.9x

20.68%

★★★★★★

AutoCanada

THAT

0.1x

40.52%

★★★★★★

Calfrac Well Services

2.5x

0.2x

18.41%

★★★★★☆

Rogers Sugar

15.2x

0.6x

48.82%

★★★★☆☆

Nexus Industrial REIT

3.5x

3.5x

19.89%

★★★★☆☆

First National Financial

13.7x

3.9x

42.78%

★★★★☆☆

Primaris Real Estate Investment Trust

12.9x

3.4x

46.36%

★★★★☆☆

Sagicor Financial

1.3x

0.3x

-41.14%

★★★★☆☆

Vermilion Energy

THAT

1.1x

-217.85%

★★★★☆☆

Hemisphere Energy

6.1x

2.3x

-219.94%

★★★☆☆☆

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

Here we highlight a subset of our preferred stocks from the screener.

Simply Wall St Value Rating: ★★★★☆☆

Overview: First National Financial operates as a mortgage lender in Canada, focusing on commercial and residential segments, with a market cap of CA$2.72 billion.

Operations: The company generates revenue primarily from its residential and commercial segments, with recent figures indicating a total revenue of CA$772.21 million. The gross profit margin has shown an upward trend, reaching 86.04% in the latest period. Operating expenses are significant, with general and administrative expenses being a major component at CA$221.12 million in the most recent quarter.

PE: 13.7x

First National Financial, a Canadian company with a smaller market presence, is attracting attention due to insider confidence shown by Stephen J. Smith’s purchase of 128,614 shares valued at C$4.86 million in the past year. Despite recent declines in quarterly net income to C$36.41 million from C$83.63 million last year, the company has increased its regular dividend and announced a special dividend of $0.50 per share for December 2024, indicating potential value for investors seeking income growth opportunities amidst financial challenges.

TSX:FN Share price vs Value as at Nov 2024
TSX:FN Share price vs Value as at Nov 2024

Simply Wall St Value Rating: ★★★★★★

Overview: Trican Well Service operates in the oilfield services industry, providing equipment and services for oil well operations, with a market capitalization of CA$1.14 billion.

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