ASX January 2025 Undervalued Small Caps With Insider Action
Wesley ParkThursday, Jan 2, 2025 4:19 am ET
3min readAs we step into 2025, investors are keeping a keen eye on the Australian Securities Exchange (ASX) for undervalued small-cap stocks with insider action. With the market still buzzing from the previous year's performance, let's dive into three promising small caps that have caught the attention of industry experts and insiders alike.
1. Gentrack Group Ltd (ASX: GTK)
Gentrack, a provider of customer billing software to energy utility companies, has seen insider buying activity, indicating confidence in the company's growth prospects. The stock is up 132% in a year, reflecting the market's optimism. Eleanor Swanson, portfolio manager at Firetrail Investments, believes Gentrack will benefit from the energy transition, as utilities shift towards renewable energy sources. With its modern, flexible architecture, Gentrack is well-positioned to take market share from larger competitors like SAP and Oracle, helping utilities transition their businesses and service their customers better.
GENC Closing Price, P/E(TTM)...
| Name |
|---|
| Date |
| Closing Price(USD) |
| P/E(TTM) |
| Trading Volume(Share) |
| Gencor IndustriesGENC |
| 20241231 |
| 17.65 |
| 15.96 |
| 30.72K |
2. RPM Global Holdings Ltd (ASX: RUL)
RPM Global, a mining service company, has seen insider buying activity and is trading at 50 times earnings. The company has spent around $200 million on R&D over the past 20 years, building software for tier 1 mining companies like BHP, Rio Tinto, and Newmont. David Wanis, co-founder of Longwave Capital Partners, is bullish on RPM Global due to its strong fundamentals and growth prospects. With only 25% of tier 1 miners as current customers, RPM Global has ample room for new customer opportunities and multiple modules to sell, indicating a bright future for the company.
3. NZME Ltd (ASX: NZM)
NZME, which operates three business segments, has seen insider buying activity, particularly in its property portal, One Roof. Despite a lackluster share price performance, NZME's property portal is expected to play out in a big way, with a potential margin of 20% if it applies the same margin as Domain in Australia. Matthew Booker, co-founder of Spheria Asset Management, is particularly bullish on One Roof, as the New Zealand property market has been slow to shift to digital. With a current market capitalization of around NZ$190 million, NZME presents an attractive valuation story and significant growth potential.
In conclusion, Gentrack Group Ltd (ASX: GTK), RPM Global Holdings Ltd (ASX: RUL), and NZME Ltd (ASX: NZM) are three undervalued small caps with insider action that investors should keep an eye on in 2025. With strong earnings and revenue growth prospects, these companies present attractive investment opportunities for those willing to conduct thorough research and analysis. As always, it's essential to stay informed and make well-considered investment decisions based on the latest market trends and expert insights.
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