Global's Top 3 Undervalued Small Caps With Recent Insider Buying
In recent weeks, the global markets have exhibited mixed performance with small-cap indices like the Russell 2000 and S&P MidCap 400 showing notable gains amid easing inflation concerns and fluctuating oil prices. As investors navigate this complex environment, identifying promising small-cap stocks with strong fundamentals and insider confidence can be a strategic move to capitalize on potential growth opportunities.
Top 10 Undervalued Small Caps With Insider Buying Globally
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Nederman Holding | 18.8x | 0.8x | 25.42% | ★★★★★☆ |
| Security Bank | 4.3x | 0.9x | 19.86% | ★★★★★☆ |
| Bilia | 16.0x | 0.3x | 30.97% | ★★★★☆☆ |
| Franchise Brands | 26.6x | 2.0x | 48.40% | ★★★★☆☆ |
| Sagicor Financial | 7.1x | 0.5x | -83.77% | ★★★★☆☆ |
| Natural Food International Holding | 11.5x | 1.2x | 7.85% | ★★★☆☆☆ |
| Firan Technology Group | 40.5x | 3.0x | 18.05% | ★★★☆☆☆ |
| Primaris Real Estate Investment Trust | 20.2x | 3.8x | 47.65% | ★★★☆☆☆ |
| Travis Perkins | NA | 0.3x | -80.52% | ★★★☆☆☆ |
| Samhällsbyggnadsbolaget i Norden | NA | 3.2x | -116.64% | ★★★☆☆☆ |
Let's dive into some prime choices out of from the screener.
ATS (TSX:ATS)
Simply Wall St Value Rating: ★★★★☆☆
Overview: ATS is a company that specializes in automation systems, with operations generating revenue primarily from this segment, and it has a market capitalization of CA$4.08 billion.
Operations: The company generates revenue primarily from its Automation Systems segment, with the latest quarterly revenue reported at CA$2.93 billion. The gross profit margin for the most recent period was 28.90%, reflecting a focus on cost management with COGS being a significant portion of expenses. Operating expenses, including general and administrative costs, are also notable contributors to the company's financial structure.
PE: 57.9x
ATS, a smaller company in its sector, recently reported first-quarter sales of C$693.72 million, down from C$736.72 million the previous year, with a net loss of C$0.31 million compared to a net income of C$24.12 million last year. Despite these figures, insider confidence is evident as Douglas Wright purchased 16,900 shares for over C$681K in early August 2026. The company forecasts second-quarter revenues between $660 and $700 million and anticipates earnings growth around 49% annually despite challenges with interest coverage and reliance on external borrowing for funding.
- Delve into the full analysis valuation report here for a deeper understanding of ATS.
Evaluate ATS' historical performance by accessing our past performance report.
Mattr (TSX:MATR)
Simply Wall St Value Rating: ★★★★☆☆
Overview: Mattr is a company involved in providing advanced materials and technology solutions, with a market cap of approximately CA$1.33 billion.
Operations: Mattr generates revenue primarily through its core operations, with a notable gross profit margin trend peaking at 37.40% in December 2017 before experiencing fluctuations and reaching 26.43% by June 2026. The company's cost of goods sold (COGS) significantly impacts its gross profit, with COGS consistently representing a substantial portion of revenue over the observed periods. Operating expenses are primarily driven by general and administrative costs, which have varied but remained significant throughout the years.
PE: 38.2x
Mattr recently reported a significant turnaround with Q2 revenue hitting C$396.19 million, up from C$320.96 million the previous year, and net income reaching C$19.82 million compared to a loss previously. This improvement aligns with their guidance of $390-$400 million for the period. Insider confidence is evident as insiders have been purchasing shares over the past months, suggesting belief in future growth potential despite reliance on external borrowing for funding.
- Click here to discover the nuances of Mattr with our detailed analytical valuation report.
Explore historical data to track Mattr's performance over time in our Past section.
Flagship Communities Real Estate Investment Trust (TSX:MHC.UN)
Simply Wall St Value Rating: ★★★★★☆
Overview: Flagship Communities Real Estate Investment Trust operates as a real estate investment trust focusing on the ownership and management of residential manufactured housing communities, with a market cap of C$0.54 billion.
Operations: The company generates revenue primarily from its residential real estate investment trust operations, with recent revenue reaching $113.85 million. Over time, the gross profit margin has shown variability, with a recent figure of 65.37%. Operating expenses have been increasing alongside revenue growth, impacting net income margins which recently stood at 0.85%.
PE: 4.5x
Flagship Communities Real Estate Investment Trust, a smaller player in the real estate sector, is actively seeking strategic acquisitions to bolster its position in key markets. Despite reporting a drop in net income to US$4.24 million for Q2 2026 from US$35.09 million the previous year, revenue rose to US$30.44 million from US$25.07 million, indicating potential growth areas. With insider confidence evident through share purchases and a steady dividend of US$0.0545 per unit monthly, Flagship aims for organic growth while managing higher-risk external borrowing as its primary funding source.
Make It Happen
- Embark on your investment journey to our 131 Undervalued Global Small Caps With Insider Buying selection here.
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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.
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