As 2026 kicks off, global markets are experiencing a robust rally, with small-cap stocks leading the charge as evidenced by the Russell 2000 Index's impressive 5.73% gain. Despite signs of a cooling U.S. labor market and ongoing geopolitical tensions, investor optimism remains buoyant, particularly for small-cap and value shares that have outpaced their large-cap counterparts.In this dynamic environment, identifying promising small-cap stocks often involves looking at companies that demonstrate strong fundamentals and potential for growth despite broader economic uncertainties.
Top 10 Undervalued Small Caps With Insider Buying Globally
| Name |
PE |
PS |
Discount to Fair Value |
Value Rating |
|---|---|---|---|---|
| Gamma Communications |
12.7x |
1.4x |
46.87% |
★★★★★★ |
| A.G. BARR |
14.0x |
1.6x |
49.78% |
★★★★★☆ |
| Eurocell |
17.1x |
0.3x |
37.69% |
★★★★☆☆ |
| PSC |
9.7x |
0.4x |
20.12% |
★★★★☆☆ |
| Eastnine |
12.4x |
7.9x |
47.01% |
★★★★☆☆ |
| Hung Hing Printing Group |
NA |
0.4x |
43.01% |
★★★★☆☆ |
| Ever Sunshine Services Group |
6.7x |
0.4x |
-441.89% |
★★★☆☆☆ |
| SmartCraft |
41.5x |
7.5x |
33.64% |
★★★☆☆☆ |
| Chinasoft International |
22.4x |
0.7x |
-1248.40% |
★★★☆☆☆ |
| Linc |
NA |
NA |
4.47% |
★★★☆☆☆ |
Let's take a closer look at a couple of our picks from the screened companies.
MCAN Mortgage
Simply Wall St Value Rating:★★★☆☆☆
Overview:MCAN Mortgage is a Canadian company that operates in the financial services sector, focusing on mortgage lending, with a market capitalization of approximately CA$0.54 billion.
Operations:MKP generates revenue primarily from its mortgage financial services, with recent figures showing a gross profit margin of 88.70%. Operating expenses, notably general and administrative costs, are significant components of the cost structure.
PE:14.1x
MCAN Mortgage, a smaller player in its sector, is navigating financial challenges with external borrowing as its sole funding source. Despite this, earnings are expected to grow 18% annually. Recent strategic leadership changes aim to enhance long-term resilience and stakeholder value. Insider confidence is evident from share purchases over the past year. Although recent net income figures show a decline—CAD 20.51 million for Q3 2025 compared to CAD 26.89 million in the previous year—the company continues paying dividends of CAD 0.41 per share, signaling commitment to shareholder returns amidst evolving market dynamics.
Nexus Industrial REIT
Simply Wall St Value Rating:★★★★☆☆
Overview:Nexus Industrial REIT is a Canadian real estate investment trust focused on owning and managing industrial properties, with a market capitalization of approximately CA$1.09 billion.
Operations:The company generates revenue primarily from investment properties, with the latest figure at CA$176.66 million. The cost of goods sold (COGS) for this period is CA$46.15 million, contributing to a gross profit margin of 73.88%. Operating expenses are reported at CA$8.43 million, while non-operating expenses amount to CA$43.43 million, impacting net income figures significantly across periods analyzed.
PE:7.5x
Nexus Industrial REIT, a small-cap player in the industrial real estate sector, recently expanded its portfolio by acquiring two Montreal buildings for C$40.1 million. Despite earnings forecasts predicting a 2.2% annual decline over the next three years, revenue is expected to grow by 6.22% annually. The REIT's dividend affirmations offer steady payouts of C$0.05333 per unit monthly through early 2026, reflecting consistent income potential for investors amid fluctuating earnings and strategic growth moves funded through external borrowing sources.
Obsidian Energy
Simply Wall St Value Rating:★★★☆☆☆
Overview:Obsidian Energy is an oil and gas exploration and production company with a market capitalization of CA$0.56 billion.
Operations:Obsidian Energy generates revenue primarily from oil and gas exploration and production, with a recent revenue of CA$614.70 million. The company's gross profit margin has shown variability, reaching 71.53% in mid-2022 before declining to 58.24% by late 2025. Operating expenses have fluctuated significantly, impacting profitability over the observed periods.
PE:-2.5x
Obsidian Energy, a company with a focus on energy production, has recently shown insider confidence through significant share purchases by Independent Director Edward Kernaghan. They acquired 489,300 shares valued at approximately C$3.5 million in recent months, reflecting strong belief in the company's prospects. Despite facing reduced revenue and income compared to last year, Obsidian has strategically refinanced debt by issuing C$175 million in senior unsecured notes to lower interest costs and improve financial flexibility. The company repurchased 1.62% of its shares for C$8.7 million from August 2025 to August 31, enhancing shareholder value amidst fluctuating production levels and earnings results that indicate potential growth opportunities ahead.
Where To Now?
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Navigate through the entire inventory of 140 Undervalued Global Small Caps With Insider Buying here.
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Curious About Other Options?
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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:MKP TSX:NXR.UN and TSX:OBE.
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