Dundee Precious Metals and 2 Other Undervalued Small Caps with Insider Activity in Canada

As central banks like the Bank of Canada adjust interest rates in response to changing economic indicators, the investment landscape, especially in small-cap stocks, is also changing. In this context, identifying undervalued small-cap stocks like Dundee Precious Metals becomes crucial, especially when these picks are backed by significant insider activity suggesting confidence from those who know the company best.

Top 10 Undervalued Small Caps with Insider Buyers in Canada

Name	PE	PS	Discount to fair value	Value assessment
Nexus Industrial REIT	2.4x	3.0x	20.77%	★★★★★★
Precious metals in Dundee	8.4x	2.9x	45.21%	★★★★★☆
Primaris Real Estate Investment Trust	11.2x	2.9x	36.95%	★★★★★☆
Calfrac Well Services	2.3x	0.2x	6.77%	★★★★★☆☆
Guardian Capital Group	10.6x	4.1x	31.39%	★★★★★☆☆
Sagicor Financial	1.2x	0.4x	-93.83%	★★★★★☆☆
Trican Well Services	8.3x	1.0x	-15.83%	★★★☆☆☆
Investments in Westshore terminals	14.3x	3.8x	2.22%	★★★☆☆☆
Russel Metals	8.7x	0.5x	-1.38%	★★★☆☆☆
Property License Fees	15.3x	6.6x	49.17%	★★★☆☆☆

Click here to see the full list of the 34 stocks in our TSX Small-Cap Insider Undervalued Stocks Screener.

Below we present a selection of actions selected by our screen.

Simply Wall St Value Rating: ★★★★★☆

Overview: Dundee Precious Metals is a gold and copper mining company with operations at Ada Tepe and Chelopech and a market capitalization of approximately $1.08 billion.

Operations: Ada Tepe and Chelopech generated revenues of $243.33 million and $274.18 million, respectively, contributing to a gross profit margin that peaked at 55.29% in the last quarter. The company’s net profit margin also showed significant growth, reaching 55.32% during the same period.

PE: 8.4x

Dundee Precious Metals, a well-known player in the metals sector, recently highlighted its growth potential by reaffirming its solid production guidance for 2024 and announcing a flat quarterly dividend. With insider confidence underscored by recent strategic management appointments, it is poised for further growth. Particularly compelling is its Coka Rakita project in Serbia, which is set to significantly increase production with favourable cost metrics, reflecting strong operational capabilities and regional synergies. This project not only promises high-quality gold mining, but also leverages Dundee’s existing infrastructure and proven underground mining experience.

Simply Wall St Value Rating: ★★★★★☆☆

Overview: Guardian Capital Group is a financial services firm specializing in investment management and corporate activities with a market capitalization of approximately C$0.71 billion.

Operations: The Company generates significant revenues from Investment Management and Wealth Management services, totaling CAD 198.91 million, supplemented by CAD 51.50 million from Corporate Activities and Investments. In recent periods, the Company has achieved gross profit margins ranging from 48% to 53%, reflecting cost management of revenue-generating activities.

PE: 10.6x

Guardian Capital Group, reflecting strategic confidence through recent insider purchases, has seen insiders buying shares, signaling strong conviction in the company’s prospects. Despite a challenging backdrop of a 15.7% annual decline in earnings over the past five years, they have reported a solid first quarter in 2024, with revenues rising to C$62.5 million from C$54.49 million year-over-year. Furthermore, their commitment to shareholder value is evident from the buyback of 94,000 shares for C$4.15 million in the first quarter of this year alone. This combination of insider activity and financial maneuvering positions Guardian as an intriguing entity in the Canadian investment landscape.

Simply Wall St Value Rating: ★★★★★☆☆

Overview: Softchoice is a technology company specializing in IT solutions and services with a market capitalization of approximately $1.2 billion.

Operations: Direct marketing generated $777.35 million in revenue, with a noticeable increase in gross profit margin to 41.82% by mid-2024, reflecting an upward trend from 23.91% at the end of 2018. The segment has recently seen a steady increase in gross profitability, indicating improved operational efficiency or pricing strategies.

PE: 20.1x

Softchoice, a lesser-known player in the Canadian market, recently showed its agility when it presented at the CIBC Technology & Innovation conference. Despite a difficult quarter with sales falling to $169.76 million and a net loss of $1.03 million, insider confidence remains strong; they recently increased their dividend by 18%. The decision reflects an optimistic view of future cash flow and profitability, suggesting that current market prices may not fully reflect the company’s intrinsic value.

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This Simply Wall St article is for general information purposes only. Our commentary is based solely on historical data and analyst forecasts, and is based on an objective methodology. Our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or your financial situation. Our goal is to provide you with long-term, focused analysis based on fundamental data. Please note that our analysis may not reflect the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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