In recent weeks, global markets have experienced a wave of optimism, with U.S. small- and mid-cap indexes advancing for the fourth consecutive week amid easing trade tensions and positive earnings reports. Despite mixed economic signals such as declining job openings and a slight contraction in GDP, investor sentiment remains buoyant, particularly within the small-cap sector which often benefits from domestic economic resilience. In this context, identifying stocks that are potentially undervalued with notable insider activity can offer intriguing opportunities for investors looking to capitalize on these market dynamics.
Top 10 Undervalued Small Caps With Insider Buying Globally
Overview: Bloomberry Resorts operates integrated resort facilities and has a market capitalization of approximately ₱114.07 billion.
Operations: The company's primary revenue stream is derived from its integrated resort facility, with recent figures indicating revenue of ₱52.76 billion. The cost of goods sold (COGS) for the latest period was ₱14.39 billion, resulting in a gross profit margin of 72.72%. Operating expenses have been significant, impacting net income margins which stood at 4.97% for the most recent period analyzed.
PE: 18.0x
Bloomberry Resorts, a smaller company in the gaming and hospitality sector, has experienced insider confidence with Cyrus Sherafat purchasing 9 million shares for approximately PHP 69.93 million recently. Despite reporting a net loss of PHP 920 million in Q4 2024, their revenue increased to PHP 14.55 billion from PHP 11.91 billion the previous year. The company declared a cash dividend of PHP 0.0847 per share in March and completed a significant refinancing deal to manage debt more effectively over time, potentially easing future financial strain.
Overview: Exchange Income is a diversified company operating primarily in the aerospace, aviation, and manufacturing sectors with a market cap of CA$2.15 billion.
Operations: The company generates revenue primarily from its Manufacturing and Aerospace & Aviation segments, with recent figures showing CA$1.02 billion and CA$1.64 billion respectively. Over the analyzed period, gross profit margin has shown fluctuations, reaching 36.40% by the end of 2024. Operating expenses have consistently increased alongside revenue growth, impacting overall profitability metrics such as net income margin which was at 4.56% in December 2024.
PE: 23.2x
Exchange Income, a smaller company in its sector, recently expanded its credit facility to C$3 billion, signaling financial flexibility despite relying solely on external borrowing. The company's earnings are projected to grow by 25.41% annually. While dividends remain steady at C$0.22 per share monthly, insider confidence is reflected through recent share purchases by insiders between January and March 2025. These actions suggest potential growth opportunities amid current market conditions without any recent buybacks executed yet under the new program expiring in 2026.
Overview: Propel Holdings is a financial technology company that provides innovative online credit solutions to underserved consumers, with a market capitalization of approximately CAD $0.2 billion.
Operations: Propel Holdings generates revenue primarily through its operations, with a notable gross profit margin of 100% from 2020 onwards. Operating expenses have consistently increased, reaching $381.84 million by early 2025, while net income margins have shown improvement over time, rising to approximately 11.53% in the same period.
PE: 16.7x
Propel Holdings, a dynamic player in its sector, recently reported strong financial performance with Q1 2025 revenue at US$138.94 million and net income rising to US$23.5 million. The company increased its annual dividend to CAD 0.72 per share, marking the eighth hike since early 2023, reflecting confidence in future cash flows. Recent insider confidence is evident as they have been acquiring more shares over the past months, suggesting belief in Propel's growth potential amidst expanding U.S. partnerships and reduced borrowing costs following credit facility adjustments.
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 PSE:BLOOM TSX:EIF and TSX:PRL.
