Monday, December 23, 2024

Badger Infrastructure Solutions And 2 Canadian Undervalued Small Caps With Insider Buying

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The Canadian market has shown robust performance, climbing 1.6% in the past week and rising 25% over the last year, with earnings projected to grow by 16% annually. In such a dynamic environment, identifying stocks that are perceived as undervalued with insider buying can present intriguing opportunities for investors seeking potential value plays.

Name

PE

PS

Discount to Fair Value

Value Rating

Trican Well Service

7.1x

0.9x

20.26%

★★★★★★

VersaBank

12.0x

4.8x

48.92%

★★★★★☆

Spartan Delta

4.3x

2.2x

38.86%

★★★★★☆

AutoCanada

NA

0.1x

39.58%

★★★★★☆

Nexus Industrial REIT

3.7x

3.7x

17.56%

★★★★☆☆

Rogers Sugar

15.6x

0.6x

47.36%

★★★★☆☆

Primaris Real Estate Investment Trust

13.1x

3.5x

43.71%

★★★★☆☆

Sagicor Financial

1.4x

0.3x

-46.33%

★★★★☆☆

Calfrac Well Services

2.5x

0.2x

17.47%

★★★★☆☆

Vermilion Energy

NA

1.2x

-6.59%

★★★★☆☆

Click here to see the full list of 22 stocks from our Undervalued TSX Small Caps With Insider Buying screener.

Let’s uncover some gems from our specialized screener.

Simply Wall St Value Rating: ★★★★☆☆

Overview: Badger Infrastructure Solutions specializes in non-destructive excavating services and has a market capitalization of approximately $1.26 billion CAD.

Operations: The company generates revenue primarily from its Non-Destructive Excavating Services, with a gross profit margin of 28.29% as of the latest period. The cost of goods sold (COGS) accounts for a significant portion of expenses, and operating expenses include notable depreciation and amortization costs.

PE: 24.6x

Badger Infrastructure Solutions, a small cap in Canada, recently showed insider confidence with share purchases. In the second quarter of 2024, sales increased to US$186.84 million from US$171.89 million year-over-year, while net income rose slightly to US$11.91 million. Despite high debt levels and reliance on external borrowing, earnings are forecasted to grow by 36% annually. The company also affirmed a quarterly dividend of C$0.18 per share for Q3 2024 and is considering a share repurchase program for future value enhancement.

TSX:BDGI Ownership Breakdown as at Oct 2024

Simply Wall St Value Rating: ★★★★☆☆

Overview: Nexus Industrial REIT is a Canadian real estate investment trust focused on acquiring and managing industrial properties, with a market capitalization of CA$1.14 billion.

Operations: Nexus Industrial REIT generates revenue primarily from its investment properties, with the latest reported revenue at CA$167.21 million. The company has seen fluctuations in net income margin, reaching 1.23% as of March 2024 after a period of varied performance. Operating expenses are consistently managed below CA$9 million, contributing to a gross profit margin that recently stood at 71.56%.

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