Discovering Cohort And 2 Other Hidden Small Caps with Solid Fundamentals

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The UK market has been experiencing some turbulence, with the FTSE 100 and FTSE 250 indices both closing lower recently due to weak trade data from China and declining commodity prices. Despite these challenges, there are still promising opportunities in the small-cap sector for investors who prioritize solid fundamentals. In this article, we will explore three such hidden gems, starting with Cohort.

Top 10 Undiscovered Gems With Strong Fundamentals In The United Kingdom

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Andrews Sykes Group

NA

2.15%

4.93%

★★★★★★

M&G Credit Income Investment Trust

NA

17.28%

15.80%

★★★★★★

London Security

0.22%

10.13%

7.75%

★★★★★★

Globaltrans Investment

15.40%

2.68%

16.51%

★★★★★★

Impellam Group

31.12%

-5.43%

-6.86%

★★★★★★

Kodal Minerals

NA

nan

72.74%

★★★★★★

VH Global Sustainable Energy Opportunities

NA

18.30%

20.03%

★★★★★★

BBGI Global Infrastructure

0.02%

3.08%

6.85%

★★★★★☆

Goodwin

52.21%

9.26%

13.12%

★★★★★☆

Mountview Estates

16.64%

4.50%

-0.59%

★★★★☆☆

Click here to see the full list of 82 stocks from our UK Undiscovered Gems With Strong Fundamentals screener.

Here's a peek at a few of the choices from the screener.

Cohort

Simply Wall St Value Rating: ★★★★★★

Overview: Cohort plc operates in the defense, security, and related markets across multiple regions including the United Kingdom, Germany, Portugal, Africa, North and South America, Asia Pacific, and other European countries with a market cap of £376.82 million.

Operations: Cohort plc generates revenue primarily from its Sensors and Effectors segment (£120.49 million) and Communications and Intelligence segment (£83.38 million). The company's financial performance is influenced by these key revenue streams across various regions.

Cohort has demonstrated notable financial health, with earnings growing by 34.9% over the past year, outpacing the Aerospace & Defense industry’s 14.8%. The company reported sales of £202.53 million for FY2024, up from £182.71 million last year, and net income rose to £15.32 million from £11.36 million previously. Additionally, Cohort's debt-to-equity ratio improved from 32.5% to 29.2% over five years while maintaining high-quality earnings and strong interest coverage (17x EBIT).

AIM:CHRT Debt to Equity as at Sep 2024
AIM:CHRT Debt to Equity as at Sep 2024

Warpaint London

Simply Wall St Value Rating: ★★★★★★

Overview: Warpaint London PLC, with a market cap of £451.69 million, operates through its subsidiaries to produce and sell cosmetics.

Operations: Warpaint London PLC generates revenue primarily from its Own Brand segment (£96.72 million) and a smaller portion from Close-Out sales (£2.12 million).