Printed on December twentieth, 2024 by Bob CiuraSpreadsheet information up to date every day
Micro-cap shares are publicly-traded corporations with market capitalizations between $50 million and $300 million. These symbolize the smallest corporations within the inventory market.
The full variety of micro-cap shares varies relying upon market circumstances. Proper now there are a whole lot of micro-cap shares, so there are loads for buyers to select from.
Because the smallest shares, micro-caps might have stronger development potential over the long term than large-cap shares or mega-cap shares.
On the similar time, micro-cap shares carry a lot of distinctive threat components to contemplate.
You may obtain a free spreadsheet of all 1400+ micro cap shares proper now (together with vital monetary metrics reminiscent of price-to-earnings ratios and dividend yields) by clicking on the hyperlink beneath:
The downloadable micro-cap shares listing above was curated from two main micro-cap inventory ETFs:
iShares Micro-Cap ETF (IWC)
First Belief Dow Jones Choose Micro-Cap Index Fund (FDM)
This text features a spreadsheet and desk of all of our micro-cap shares, in addition to detailed evaluation on our High 10 micro-cap shares at present.
Preserve studying to see the ten finest micro-cap shares analyzed intimately.
The ten Finest Micro Cap Shares Immediately
Now that we’ve outlined what a micro-cap inventory is, let’s check out the ten finest micro-cap shares, as outlined by our Certain Evaluation Analysis Database.
The database ranks complete anticipated annual returns, combining present yield, forecast earnings development and any change in value from the valuation.
Observe: The Certain Evaluation Analysis Database is targeted on earnings producing securities. In consequence, we don’t monitor or rank securities that don’t pay dividends. Micro-cap shares that don’t pay dividends had been excluded from the High 10 rankings beneath.
We’ve screened the micro-cap shares with the best 5-year anticipated returns and have supplied them beneath, ranked from lowest to highest.
You may immediately bounce to any particular person inventory evaluation through the use of the hyperlinks beneath:
Micro Cap Inventory #10: Parke Bancorp, Inc. (PKBK)
5-year anticipated annual returns: 11.4%
Parke Bancorp is a New Jersey-based regional financial institution. It serves clients within the South New Jersey and Better NewYork metro markets.
The financial institution has about $2 billion in complete property. About half its mortgage ebook consists of loans on single-family properties, primarily within the Philadelphia and Southern New Jersey space.
The financial institution has grown its deposit base at a 9.5% annualized charge over the previous decade whereas rising its gross mortgage ebook greater than 10% yearly.
That, mixed with a progressively rising return on fairness “ROE” metric over time, led to speedy development in earnings-per-share. This, in flip, supported an amazing 29% annualized dividend development charge since 2014.
The financial institution’s Q3 earnings outcomes, reported October 18th, 2024, confirmed vital enchancment. Revenues grew at a 6.8% charge year-over-year to $33 million. Earnings per share rose to 62 cents per share from 57 cents per share in the identical interval of final yr.
Click on right here to obtain our most up-to-date Certain Evaluation report on PKBK (preview of web page 1 of three proven beneath):
Micro Cap Inventory #9: Shoe Carnival, Inc. (SCVL)
5-year anticipated annual returns: 11.4%
Shoe Carnival, Inc. is a number one U.S.-based retailer specializing in household footwear and equipment. The corporate operates a big community of shops, providing all kinds of athletic, informal, and costume sneakers for males, girls, and youngsters.
With over 400 shops throughout the U.S. beneath the Shoe Carnival, Shoe Station, and Rogan’s Footwear manufacturers, the corporate has steadily expanded its market presence.
Along with its brick-and mortar places, Shoe Carnival has a rising e-commerce platform, supporting its omnichannel technique.
On November twenty first, 2024, Shoe Carnival reported third quarter Fiscal 2024 outcomes. The corporate reported GAAP EPS of $0.70 and Adjusted EPS of $0.71, assembly expectations.
Whereas third-quarter web gross sales fell to $306.9 million from $319.9 million in 2023 because of a retail calendar shift, adjusted figures confirmed a 2.2% year-over-year improve.
Yr-to-date, web gross sales rose 4.9%, with robust Again-to-College gross sales and contributions from the Rogan’s Footwear acquisition driving efficiency.
Click on right here to obtain our most up-to-date Certain Evaluation report on SCVL (preview of web page 1 of three proven beneath):
Micro Cap Inventory #8: Artesian Sources (ARTNA)
5-year anticipated annual returns: 11.5%
Artesian Sources Corp. was based in 1905 in New Fort County, Delaware. By its subsidiaries, the corporate supplies water, wastewater and different providers, primarily within the Delaware area.
Artesian Sources sells and distributes water to residential, industrial, industrial, governmental, and utility clients all through the state.
As well as, Artesian Sources supplies water for private and non-private hearth safety in Delaware, Maryland, and Pennsylvania. The corporate produces 7.9 billion gallons of water yearly by way of 1,311 miles of water fundamental with a inhabitants of roughly 301,000 served.
On August 5, 2024, Artesian Sources Company (ARTNA) reported its monetary outcomes for the second quarter and year-to-date 2024. For the quarter ended June 30, 2024, Artesian Sources recorded a web earnings of $5.3 million, representing a 19.9% improve from the earlier yr’s second quarter.
This equates to a diluted web earnings per share of $0.52, an 18.2% improve from $0.44 in the identical interval in 2023. Whole revenues for the quarter had been $27.4 million, a rise of $2.2 million or 8.6% in comparison with the identical quarter in 2023.
Click on right here to obtain our most up-to-date Certain Evaluation report on ARTNA (preview of web page 1 of three proven beneath):
Micro Cap Inventory #7: Timberland Bancorp (TSBK)
5-year anticipated annual returns: 11.8%
Timberland Bancorp is a Hoquiam, Washington-based regional financial institution. It has loved robust development in recent times, each from development in its core market together with the financial institution’s enlargement in enterprise and service provider providers.
It operates 23 financial institution branches at present, all in Washington, serving each rural areas and a few communities within the larger Seattle metropolitan space.
Timberland has a lending ebook weighted towards industrial credit, with greater than half its loans being in both industrial actual property or building lending.
On October thirty first, 2024, Timberland reported its fiscal fourth quarter 2024 earnings. Earnings per share of 79 cents slipped barely from 81 cents in the identical interval of 2023, however rose sequentially from Q3. Timberland reported an uptick in mortgage volumes, deposits, and web curiosity margin.
Click on right here to obtain our most up-to-date Certain Evaluation report on TSBK (preview of web page 1 of three proven beneath):
Micro Cap Inventory #6: Plymouth Industrial REIT (PLYM)
5-year anticipated annual returns: 12.4%
Plymouth Industrial REIT is a full-service, vertically built-in actual property funding belief which acquires, owns, and manages single and multi-tenant industrial properties, which embody distribution facilities, warehouses, mild industrial and small bay industrial properties.
The vast majority of its property portfolio is situated in Florida, Ohio, Indiana, Tennessee, Illinois, and Georgia. As of June 30, 2024, the belief owned and managed 210 buildings, totaling 33.8 million sq. ft in over 10 markets.
The property portfolio resides virtually solely inside The Golden Triangle states, which is inside a day’s drive to 70% of the U.S. inhabitants, and accommodates extra ports than every other area within the nation.
Plymouth Industrial reported third quarter 2024 outcomes on November sixth, 2024. The belief reported core funds from operations (FFO) of $0.44 per frequent share, down two cents in comparison with final yr.
Adjusted FFO per share of $0.40 was a 4.8% lower in comparison with Q3 2023. Identical retailer web working earnings (NOI) on a money foundation rose by 0.6% year-over-year when excluding early termination earnings.
Click on right here to obtain our most up-to-date Certain Evaluation report on PLYM (preview of web page 1 of three proven beneath):
Micro Cap Inventory #5: NETSTREIT Corp. (NTST)
5-year anticipated annual returns: 13.2%
Netstreit Corp is a REIT which acquires, owns, and manages a diversified portfolio of single-tenant, retail industrial actual property.
The property portfolio focuses on leasing to tenants the place brick and mortal is vital, reminiscent of important providers within the retail sector, and is unfold throughout 45 states and over 25 retail sectors.
Netstreit’s prime 5 tenants by annualized base lease are Greenback Common, CVS, Dwelling Depot, Greenback Tree, and Walgreens.
Supply: Investor Presentation
On November 4th, 2024, Netstreit reported third quarter 2024 outcomes for the interval ending September thirtieth, 2024. The belief reported core FFO and AFFO per share of $0.32 for the quarter.
AFFO was 3% increased in comparison with $0.31 earned in Q3 2023. Throughout Q3, Netstreit accomplished $152 million in funding exercise, a brand new quarterly file, at a blended money yield of seven.5% throughout 33 investments. It additionally made eight disposition for $24 million in proceeds.
Click on right here to obtain our most up-to-date Certain Evaluation report on NTST (preview of web page 1 of three proven beneath):
Micro Cap Inventory #4: Douglas Dynamics, Inc. (PLOW)
5-year anticipated annual returns: 13.6%
Douglas Dynamics is a North American producer and upfitter of economic truck attachments and gear. The corporate’s product portfolio and providers are organized into two segments: Work Truck Attachments (WTA) and Work Truck Options (WTS).
Its WTA section (accounting for 51% of the corporate’s 2023 gross sales) consists of its industrial snow and ice management gear, whereas its WTS section (49% of gross sales) contains its upfit of market main attachments and storage options. Its main manufacturers are FISHER, SNOWEX, WESTERN, HENDERSON, and DEJANA.
On October twenty eighth, 2024, Douglas reported third quarter 2024 outcomes. For the quarter, Douglas generated $129 million in web gross sales, a ten% year-over-year lower.
The gross sales decline was largely because of decrease attachments quantity, pushed by low snowfall within the firm’s core markets, offset by elevated costs for its Options section.
Douglas’ adjusted EPS was $0.24, one penny decrease in comparison with the prior yr quarter. The corporate’s leverage ratio on the finish of the third quarter stood at 2.6X.
Click on right here to obtain our most up-to-date Certain Evaluation report on PLOW (preview of web page 1 of three proven beneath):
Micro Cap Inventory #3: Ares Industrial Actual Property (ACRE)
5-year anticipated annual returns: 13.7%
Ares Industrial Actual Property Company is a specialty finance firm primarily engaged in originating and investing in industrial actual property (“CRE”) loans and associated investments. ACRE generated round $198.6 million in curiosity earnings final yr.
The corporate’s mortgage portfolio (98% of that are senior loans) contains 44 market loans throughout 8 asset sorts, with an excellent principal steadiness of $2 billion. The vast majority of the loans are tied to multifamily, workplace, and mixed-use properties.
Supply: Investor Presentation
When it comes to geographical diversification, ACRE’s publicity incorporates a wholesome combine between the Southeast, West, and Midwest.
On November seventh, 2024, ACRE reported its Q3 outcomes for the interval ending September thirtieth, 2024. Curiosity earnings got here in at $39.3 million, 26% decrease year-over-year, with industrial actual property persevering with to battle.
Within the meantime, curiosity expense fell by 8% to about $27.4 million. Thus, complete revenues (curiosity earnings – curiosity bills + $4.7 million in income from ACRE’s personal actual property) fell by about 30% to roughly $16.7 million. Whole bills rose by about 41% to $9.3 million, primarily because of increased bills from actual property owned beforehand absent.
Click on right here to obtain our most up-to-date Certain Evaluation report on ACRE (preview of web page 1 of three proven beneath):
Micro Cap Inventory #2: Ellington Credit score Co. (EARN)
5-year anticipated annual returns: 16.2%
Ellington Credit score Co. acquires, invests in, and manages residential mortgage and actual property associated property. Ellington focuses totally on residential mortgage-backed securities, particularly these backed by a U.S. Authorities company or U.S. authorities–sponsored enterprise.
Company MBS are created and backed by authorities companies or enterprises, whereas non-agency MBS are not assured by the federal government.
Supply: Investor Presentation
On November twelfth, 2024, Ellington Residential reported its third quarter outcomes for the interval ending September thirtieth, 2024. The corporate generated web earnings of $5.4 million, or $0.21 per share.
Ellington achieved adjusted distributable earnings of $7.2 million within the quarter, resulting in adjusted earnings of $0.28 per share, which lined the dividend paid within the interval.
Web curiosity margin was 5.22% general. At quarter finish, Ellington had $25.7 million of money and money equivalents, and $96 million of different unencumbered property.
Click on right here to obtain our most up-to-date Certain Evaluation report on EARN (preview of web page 1 of three proven beneath):
Micro Cap Inventory #1: Hyster Yale Inc. (HY)
5-year anticipated annual returns: 18.3%
Hyster-Yale Supplies Dealing with operates within the supplies dealing with trade. The corporate designs, manufactures, and sells a complete vary of carry vehicles and aftermarket components, serving various clients throughout numerous sectors, together with manufacturing, warehousing, and logistics.
HY maintains a powerful aggressive place with a big market share because of its respected manufacturers, Hyster and Yale. The corporate segments its income primarily into three classes: new gear gross sales, components gross sales, and repair revenues. In 2023, HY reported sturdy financials, demonstrating constant development and a diversified income stream.
On November fifth, 2024, the corporate introduced outcomes for the third quarter of 2024. The corporate reported Q3 non GAAP EPS of $0.97, lacking estimates by $1.00 and produced income of $1.02 billion, which was up 2.0% year-over yr.
The corporate generated $70 million in working money circulate however confronted a 44% decline in working revenue, reaching $33.1 million, as ongoing price pressures and decrease volumes in EMEA and JAPIC weighed on margins. Web earnings dropped to $17.2 million from $35.8 million in Q3 2023, whereas diluted EPS fell 53% to $0.97.
Click on right here to obtain our most up-to-date Certain Evaluation report on HY (preview of web page 1 of three proven beneath):
Last Ideas
Micro-cap shares are the smallest corporations presently buying and selling on the inventory market. The potential advantage of investing in micro-cap shares is the potential for increased development, and shareholder returns, over time.
After all, buyers have to fastidiously take into account the distinctive dangers related to investing in micro-cap shares. The ten micro-cap shares on this listing all pay dividends to shareholders and have optimistic anticipated returns.
In consequence, these 10 micro-cap shares might be engaging for dividend development buyers.
Different Dividend Lists
The next lists include many extra high-quality dividend shares:
The Dividend Aristocrats Checklist is comprised of 66 shares within the S&P 500 Index with 25+ years of consecutive dividend will increase.
The Excessive Yield Dividend Aristocrats Checklist is comprised of the 20 Dividend Aristocrats with the best present yields.
The Dividend Achievers Checklist is comprised of ~400 NASDAQ shares with 10+ years of consecutive dividend will increase.
The Dividend Kings Checklist is much more unique than the Dividend Aristocrats. It’s comprised of 53 shares with 50+ years of consecutive dividend will increase.
The Excessive Yield Dividend Kings Checklist is comprised of the 20 Dividend Kings with the best present yields.
The Excessive Dividend Shares Checklist: shares that attraction to buyers within the highest yields of 5% or extra.
The Month-to-month Dividend Shares Checklist: shares that pay dividends each month, for 12 dividend funds per yr.
The Dividend Champions Checklist: shares which have elevated their dividends for 25+ consecutive years.Observe: Not all Dividend Champions are Dividend Aristocrats as a result of Dividend Aristocrats have extra necessities like being in The S&P 500.
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