The United Kingdom’s stock market has recently faced challenges, with the FTSE 100 and FTSE 250 indices experiencing declines amid weak trade data from China, highlighting global economic uncertainties that have impacted investor sentiment. In such a climate, identifying small-cap stocks with potential value can be crucial for investors looking to navigate these turbulent times effectively.
Top 10 Undervalued Small Caps With Insider Buying In The United Kingdom
|
Name |
PE |
PS |
Discount to Fair Value |
Value Rating |
|---|---|---|---|---|
|
Senior |
17.8x |
0.6x |
38.10% |
★★★★★★ |
|
Bytes Technology Group |
22.0x |
5.6x |
12.14% |
★★★★★☆ |
|
NWF Group |
8.1x |
0.1x |
38.88% |
★★★★★☆ |
|
Genus |
174.6x |
2.1x |
6.75% |
★★★★★☆ |
|
Headlam Group |
NA |
0.2x |
26.69% |
★★★★★☆ |
|
Essentra |
728.5x |
1.4x |
26.23% |
★★★★☆☆ |
|
Marlowe |
NA |
0.7x |
41.54% |
★★★★☆☆ |
|
Optima Health |
NA |
1.3x |
37.24% |
★★★★☆☆ |
|
Robert Walters |
41.5x |
0.2x |
42.00% |
★★★☆☆☆ |
|
Petra Diamonds |
NA |
0.3x |
-44.22% |
★★★☆☆☆ |
Below we spotlight a couple of our favorites from our exclusive screener.
Simply Wall St Value Rating: ★★★★★☆
Overview: Domino’s Pizza Group operates as a leading pizza delivery and carryout chain, generating income through sales to franchisees, corporate stores, advertising and ecommerce, property rentals, and various franchise-related fees; it has a market capitalization of £1.53 billion.
Operations: The primary revenue streams include sales to franchisees, corporate store income, and royalties. The gross profit margin has shown a trend of increasing over time, reaching 47.48% as of June 2024. Operating expenses are significant and include costs such as sales & marketing and general & administrative expenses.
PE: 15.5x
Domino’s Pizza Group, a smaller company in the UK market, is navigating challenges with lower profit margins, now at 11.4% compared to last year’s 18.2%. Despite high debt levels and reliance on external borrowing, their strategic initiatives aim for growth in orders and sales through fiscal year 2024. Insider confidence is evident with share repurchases totaling £90.1 million by May 2024. The interim dividend of £0.035 per share underscores their commitment to shareholder returns amidst these dynamics.
Simply Wall St Value Rating: ★★★★★☆
Overview: Genus is a company specializing in animal genetics, focusing on bovine and porcine breeding, with a market cap of approximately £1.92 billion.
Operations: Genus generates revenue primarily from its Genus ABS and Genus PIC segments, contributing £314.90 million and £352.50 million respectively. The company experienced fluctuations in its gross profit margin, reaching a high of 53.78% in December 2014 before declining to 36.25% by December 2023. Operating expenses are significant, with research and development costs consistently around the £72-93 million range over recent periods.
PE: 174.6x
Genus, a UK-based company, recently proposed a final dividend of 21.7 pence per share, maintaining its commitment to shareholders. Despite reporting a decrease in sales to £668.8 million and net income dropping to £7.9 million for the year ending June 2024, insider confidence is evident with recent share purchases by company insiders throughout the year. The firm navigates primarily through external borrowing but forecasts suggest potential earnings growth of 37% annually, hinting at future opportunities for investors seeking undervalued stocks.
Simply Wall St Value Rating: ★★★★☆☆
Overview: Oxford Instruments is a company that specializes in providing high-technology tools and systems for research, discovery, service, healthcare, materials analysis, and characterization with a market cap of £1.34 billion.
Operations: Research & Discovery, Service & Healthcare, and Materials & Characterisation contribute to Oxford Instruments’ revenue streams. The company reported a gross profit margin of 52.24% as of September 30, 2023. Operating expenses are primarily driven by sales and marketing, R&D, and general administrative costs.
PE: 24.3x
Oxford Instruments, a smaller player in the UK market, has caught attention with its promising growth prospects. Their earnings are projected to rise by 10.45% annually, indicating potential for future expansion. Despite relying solely on external borrowing for funding, which poses some risk, insider confidence is evident as insiders have been purchasing shares over recent months. Recent participation in high-profile conferences like the Geotechnologist Symposium and NanoFabUK highlights their active engagement within industry circles and commitment to innovation.
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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 LSE:DOM LSE:GNS and LSE:OXIG.
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