In May 2025, global markets are experiencing a wave of optimism driven by easing trade tensions and robust earnings reports, with U.S. small- and mid-cap indexes advancing for the fourth consecutive week. Amid this positive market sentiment, identifying undervalued small-cap stocks with insider buying can be an effective strategy for investors seeking opportunities in an environment where economic indicators show mixed signals but generally resilient growth.
Top 10 Undervalued Small Caps With Insider Buying Globally
Overview: GrainCorp is a leading agribusiness company involved in grain handling, storage, and processing, with a market cap of A$2.60 billion.
Operations: Agribusiness is a significant revenue contributor with A$4.96 billion, while Nutrition & Energy brings in A$1.89 billion. The gross profit margin has shown fluctuations, peaking at 20.70% in September 2022 before declining to 9.99% by September 2024. Operating expenses have varied, reaching A$1.16 billion in March 2023 and then decreasing to A$628 million by September 2024, impacting net income outcomes over time.
PE: 24.7x
GrainCorp, a small company in the agricultural sector, has shown insider confidence with recent share purchases. In February 2025, they announced a buyback program of A$50 million to be completed by March 2026. Despite relying entirely on external borrowing for funding, which increases risk, GrainCorp is forecasted to grow earnings by 16.63% annually. Profit margins have dipped from last year's 3% to 0.9%, indicating potential challenges ahead despite growth prospects.
Overview: Perpetual is a diversified financial services company primarily engaged in asset management and wealth management, with a market capitalization of A$1.78 billion.
Operations: Perpetual's revenue model primarily derives from asset management and wealth management services. The company has faced increasing costs, with COGS rising to A$840.1 million as of December 2024, impacting its gross profit margin, which has decreased to 39.09%. Operating expenses have also grown significantly, reaching A$401.5 million in the same period. The net income margin turned negative in recent periods due to substantial non-operating expenses and increased general and administrative costs.
PE: -3.8x
Perpetual's recent insider confidence is evident as Christopher Mark Jones purchased 8,000 shares for A$159,420 in early 2025. Despite a challenging financial backdrop with net income dropping to A$12 million from A$34.5 million year-over-year, the company forecasts earnings growth of over 77% annually. The firm's reliance on external borrowing adds risk but also potential for upside if managed well. Meanwhile, M&A rumors swirl around its Wealth Management arm, hinting at strategic shifts ahead.
Overview: Viva Energy Group operates as a leading Australian energy company, focusing on the supply of fuel and specialty products across convenience, mobility, commercial, industrial, and energy infrastructure segments with a market capitalization of A$4.5 billion.
Operations: Viva Energy Group generates revenue primarily from its Commercial & Industrial and Convenience & Mobility segments, with the former contributing A$18.71 billion and the latter A$11.43 billion. The company's gross profit margin has shown variability, reaching 9.62% in recent periods, reflecting fluctuations in cost of goods sold relative to revenue.
PE: -38.8x
Viva Energy Group, a small-cap company, is navigating challenges with a recent net loss of A$76.3 million for 2024, contrasting with the previous year's profit. Despite this setback, insider confidence is evident with significant share purchases over the past year. The appointment of Mark Chung as Non-Executive Director on May 5, 2025, could bring strategic insights from his extensive energy sector experience. Although dividends were reduced to A$0.0387 per share in March 2025, projected earnings growth of 49% annually suggests potential recovery and value for investors seeking opportunities in smaller companies within the energy sector.
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.
Companies discussed in this article include ASX:GNC ASX:PPT and ASX:VEA.
