Three Undiscovered Gems In The United Kingdom Backed By Strong Fundamentals

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The United Kingdom market has recently experienced a downturn, with the FTSE 100 and FTSE 250 indices both closing lower amid weak trade data from China, which has impacted global sentiment. Despite these challenges, there are still opportunities to be found in the UK market, particularly among small-cap stocks backed by strong fundamentals. In this article, we will explore three such undiscovered gems that stand out due to their robust financial health and growth potential.

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%

★★★★★★

Rights and Issues Investment Trust

NA

-3.68%

-4.07%

★★★★★★

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%

★★★★★☆

Click here to see the full list of 81 stocks from our UK Undiscovered Gems With Strong Fundamentals screener.

Here we highlight a subset of our preferred stocks from the screener.

Cohort

Simply Wall St Value Rating: ★★★★★★

Overview: Cohort plc offers a range of products and services in defense, security, and related markets across multiple regions including the United Kingdom, Germany, Portugal, Africa, North and South America, the Asia Pacific region, and other European countries; it has a market cap of £364.69 million.

Operations: Cohort plc generates revenue primarily from its Sensors and Effectors segment (£120.49 million) and Communications and Intelligence segment (£83.38 million).

Cohort, a small player in the Aerospace & Defense sector, has seen its earnings grow by 34.9% over the past year, outpacing the industry average of 14.8%. The company’s debt-to-equity ratio has improved from 32.5% to 29.2% over five years, and it holds more cash than total debt. Cohort's interest payments are well covered by EBIT at 17.5x coverage, indicating strong financial health. Recent news includes a €33 million contract with NATO and a final dividend increase to 10 pence per share for FY2024.

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

Yellow Cake

Simply Wall St Value Rating: ★★★★★★

Overview: Yellow Cake plc operates in the uranium sector and has a market cap of approximately £1.25 billion.