In August 2026, the global markets have been experiencing heightened volatility, with major U.S. equity indices like the S&P MidCap 400 and Russell 2000 facing declines amid rising Treasury yields and geopolitical tensions. Despite these challenges, small-cap stocks continue to capture investor interest due to their potential for growth in an uncertain economic landscape. Identifying promising small-cap opportunities often involves looking at companies with strong fundamentals that can navigate current market conditions effectively.
Top 10 Undervalued Small Caps With Insider Buying Globally
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Eurocell | 12.4x | 0.3x | 46.32% | ★★★★★☆ |
| East West Banking | 2.9x | 0.6x | 49.49% | ★★★★★☆ |
| Australian Finance Group | 8.8x | 0.3x | 10.40% | ★★★★☆☆ |
| Natural Food International Holding | 11.9x | 1.2x | 4.90% | ★★★☆☆☆ |
| Centurion | 19.7x | 3.8x | 6.11% | ★★★☆☆☆ |
| Pizza Pizza Royalty | 13.3x | 10.2x | 32.83% | ★★★☆☆☆ |
| Chinasoft International | 22.2x | 0.5x | -82.78% | ★★★☆☆☆ |
| AB Dynamics | NA | 1.8x | 28.66% | ★★★☆☆☆ |
| Hong Fok | 22.6x | 6.5x | 30.76% | ★★★☆☆☆ |
| Paragon Care | NA | 0.1x | -9.17% | ★★★☆☆☆ |
Let's review some notable picks from our screened stocks.
SHAPE Australia (ASX:SHA)
Simply Wall St Value Rating: ★★★★☆☆
Overview: SHAPE Australia is a company that operates in the heavy construction industry, with a market cap of A$0.15 billion.
Operations: SHA generates revenue primarily from heavy construction projects, with the latest reported revenue at A$1.24 billion. The company's cost structure is heavily influenced by its cost of goods sold (COGS), which was A$1.11 billion, leading to a gross profit margin of 10.37%. Operating expenses include significant general and administrative costs amounting to A$53.34 million, impacting overall profitability.
PE: 19.5x
SHAPE Australia, a company in the construction services sector, is currently seeking strategic acquisitions to enhance its growth. In the fiscal year ending June 30, 2026, SHAPE reported sales of A$1.24 billion and net income of A$31.74 million, reflecting significant revenue and profit increases from the previous year. Insider confidence is evident with recent share purchases by key stakeholders over the past six months. Future growth prospects are bolstered by planned acquisitions aimed at doubling gross margins compared to their business-as-usual operations.
- Click to explore a detailed breakdown of our findings in SHAPE Australia's valuation report.
Examine SHAPE Australia's past performance report to understand how it has performed in the past.
Truecaller (OM:TRUE B)
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Truecaller is a communications software company that specializes in caller identification and spam blocking services, with a market capitalization of approximately SEK 17.11 billion.
Operations: Truecaller generates revenue primarily from its communications software segment, with a recent gross profit margin of 73.06%. The cost of goods sold (COGS) and operating expenses are significant components impacting profitability, with general and administrative expenses being the largest portion of operating costs. Over the past periods, net income margins have shown variability but recently stood at 14.80%.
PE: 31.2x
Truecaller, a company with a focus on growth through strategic acquisitions, has shown insider confidence with Rishit Jhunjhunwala purchasing 43,782 shares for approximately €500K. Despite recent challenges in earnings—reporting SEK 51.65M in net income for Q2 2026 compared to SEK 117.99M the previous year—the company is actively managing its capital structure via share buybacks and an SEK 850 million loan facility. Truecaller's continued exploration of M&A opportunities and product expansion into emerging markets like Africa and Asia underscores its potential for future growth amidst current financial volatility.
- Get an in-depth perspective on Truecaller's performance by reading our valuation report here.
Gain insights into Truecaller's past trends and performance with our Past report.
Natural Food International Holding (SEHK:1837)
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Natural Food International Holding focuses on the processing and selling of natural health products, with a market capitalization of CN¥1.2 billion.
Operations: The company primarily generates revenue from processing and selling natural health products, with a recent gross profit margin of 65.04%. Operating expenses are significant, driven largely by sales and marketing efforts, which reached CN¥1.23 billion.
PE: 11.9x
Natural Food International Holding, a smaller player in its industry, has shown promising financial growth with sales rising to CNY 1.45 billion for the first half of 2026 from CNY 1.13 billion in the previous year. Net income also increased to CNY 155.9 million from CNY 106.77 million, reflecting a positive trajectory despite relying solely on external borrowing for funding. Insider confidence is evident as CEO Zejun Zhang purchased one million shares valued at approximately US$1.55 million, indicating belief in future prospects bolstered by forecasted earnings growth of nearly 18% annually.
Next Steps
- Embark on your investment journey to our 119 Undervalued Global Small Caps With Insider Buying selection here.
- Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks.
- Take control of your financial future using Simply Wall St, offering free, in-depth knowledge of international markets to every investor.
Contemplating Other Strategies?
- Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
- Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
- Find companies with promising cash flow potential yet trading below their fair value.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com