In June 2025, global markets have been navigating a complex landscape marked by geopolitical tensions in the Middle East and mixed economic signals, with smaller-cap indexes showing resilience amid these challenges. As the Federal Reserve holds interest rates steady and anticipates potential rate cuts later in the year, small-cap stocks are capturing attention due to their performance relative to larger indices. In this environment, identifying promising small-cap stocks involves looking for those with strong fundamentals and insider activity that may indicate confidence from within the company.

Top 10 Undervalued Small Caps With Insider Buying Globally

Name PE PS Discount to Fair Value Value Rating Tristel 29.0x 4.1x 10.03% ★★★★☆☆ A.G. BARR 19.3x 1.8x 43.89% ★★★★☆☆ Hemisphere Energy 5.1x 2.1x 10.66% ★★★★☆☆ Nexus Industrial REIT 6.6x 2.9x 19.62% ★★★★☆☆ Sing Investments & Finance 7.3x 3.7x 39.01% ★★★★☆☆ AKVA group 18.2x 0.8x 47.22% ★★★★☆☆ Morguard North American Residential Real Estate Investment Trust 5.6x 1.8x 10.83% ★★★☆☆☆ DIRTT Environmental Solutions 9.7x 0.6x 11.49% ★★★☆☆☆ H+H International 32.3x 0.7x 46.51% ★★★☆☆☆ Seeing Machines NA 2.6x 39.64% ★★★☆☆☆

Click here to see the full list of 169 stocks from our Undervalued Global Small Caps With Insider Buying screener.

We'll examine a selection from our screener results.

Hammond Power Solutions

Simply Wall St Value Rating: ★★★★★☆

Overview: Hammond Power Solutions specializes in the manufacture and sale of transformers, with a market cap of CA$0.53 billion.

Operations: The primary revenue stream for the company is derived from the manufacture and sale of transformers, with recent revenue reaching CA$799.06 million. The gross profit margin has shown a notable trend, peaking at 33.46% in September 2024 before slightly adjusting to 32.70% by March 2025. Operating expenses have varied over time, with significant allocations towards sales and marketing as well as general and administrative expenses.

PE: 15.2x

Hammond Power Solutions, a smaller company in its sector, recently reported impressive financial performance with Q1 sales reaching C$201.4 million and net income surging to C$26.22 million from C$7.95 million the previous year. Their earnings per share also increased significantly to C$2.2 from C$0.67, reflecting strong operational efficiency despite relying solely on external borrowing for funding. Insider confidence is evident as new directors joined in May 2025, suggesting strategic leadership changes amidst consistent dividend payouts of C$0.275 per share set for June 27, 2025.

Navigate through the intricacies of Hammond Power Solutions with our comprehensive valuation report here. Explore historical data to track Hammond Power Solutions' performance over time in our Past section.

Story Continues

TSX:HPS.A Share price vs Value as at Jun 2025

Queen's Road Capital Investment

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Queen's Road Capital Investment focuses on the selection, acquisition, and management of investments with a market capitalization of approximately $0.29 billion.

Operations: Queen's Road Capital Investment generates its revenue through the selection, acquisition, and management of investments. The company has reported a gross profit margin of 100% consistently over several periods, indicating no cost of goods sold is recorded against its revenue streams. Operating expenses primarily consist of general and administrative costs, with occasional non-operating expenses impacting net income.

PE: -6.5x

Queen's Road Capital Investment, a smaller company with limited revenue, faces challenges with external borrowing as its sole funding source. Recent earnings show a significant downturn, with negative revenue of US$68 million and a net loss of US$70 million for the second quarter ending February 2025. Despite these hurdles, insider confidence is apparent as Brett Blundy purchased approximately 397,000 shares valued at nearly A$2.8 million in April 2025, reflecting potential belief in future prospects.

Click to explore a detailed breakdown of our findings in Queen's Road Capital Investment's valuation report. Examine Queen's Road Capital Investment's past performance report to understand how it has performed in the past.TSX:QRC Share price vs Value as at Jun 2025

Russel Metals

Simply Wall St Value Rating: ★★★★☆☆

Overview: Russel Metals operates as one of North America's largest metal distribution and processing companies, with key operations in metals service centers, energy field stores, and steel distribution, and has a market capitalization of approximately CA$2.64 billion.

Operations: The primary revenue streams are Metals Service Centers, Energy Field Stores, and Steel Distributors, with Metals Service Centers contributing the largest share. Over recent periods, the gross profit margin has shown a notable range from 15.28% to 28.46%, reflecting fluctuations in cost management and pricing strategies. The company faces significant costs of goods sold (COGS), which directly impact its profitability metrics such as net income margin.

PE: 15.5x

Russel Metals, a player in the metals distribution industry, shows potential as an undervalued stock. Despite a dip in profit margins from 5.5% to 3.5% over the past year, earnings are projected to grow at 15.33% annually. The company recently reported Q1 sales of CAD 1.17 billion and net income of CAD 43 million, slightly down from last year. Insider confidence is evident with recent share repurchases totaling CAD 83.76 million since August 2024, reflecting management's belief in future prospects despite reliance on external borrowing for funding needs.

Delve into the full analysis valuation report here for a deeper understanding of Russel Metals. Evaluate Russel Metals' historical performance by accessing our past performance report.TSX:RUS Ownership Breakdown as at Jun 2025

Make It Happen

Click this link to deep-dive into the 169 companies within our Undervalued Global Small Caps With Insider Buying screener. Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes. Take control of your financial future using Simply Wall St, offering free, in-depth knowledge of international markets to every investor.

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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 TSX:HPS.A TSX:QRC and TSX:RUS.

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