Exploring 3 Undervalued Small Caps In United Kingdom With Insider Activity

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The market in the United Kingdom has climbed by 2.7% over the past week, with every sector up, and is up 8.8% over the last 12 months. In this favorable environment, identifying undervalued small-cap stocks with notable insider activity can present intriguing opportunities for investors seeking potential growth aligned with forecasted earnings increases of 13% annually.

Top 10 Undervalued Small Caps With Insider Buying In The United Kingdom

Name

PE

PS

Discount to Fair Value

Value Rating

GB Group

NA

3.2x

21.67%

★★★★★☆

THG

NA

0.4x

42.29%

★★★★★☆

Bytes Technology Group

26.1x

5.9x

-3.86%

★★★★☆☆

Harworth Group

14.2x

7.4x

-594.15%

★★★★☆☆

Breedon Group

15.4x

1.0x

36.28%

★★★★☆☆

CVS Group

23.1x

1.3x

37.08%

★★★★☆☆

Hochschild Mining

NA

1.7x

35.84%

★★★★☆☆

Norcros

7.7x

0.5x

-11.36%

★★★☆☆☆

H&T Group

7.9x

0.8x

-11.77%

★★★☆☆☆

Foxtons Group

28.0x

1.3x

31.92%

★★★☆☆☆

Click here to see the full list of 26 stocks from our Undervalued UK Small Caps With Insider Buying screener.

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

Breedon Group

Simply Wall St Value Rating: ★★★★☆☆

Overview: Breedon Group is a leading construction materials company operating primarily in Great Britain and Ireland, with a market cap of approximately £1.50 billion.

Operations: The company generates revenue primarily from its Great Britain and Ireland segments, with additional contributions from its Cement segment. For the period ending June 30, 2023, it reported a gross profit margin of 36.23%.

PE: 15.4x

Breedon Group, a small cap in the UK, reported H1 2024 sales of £764.6 million, up from £742.7 million the previous year. Net income dipped to £34.1 million from £43.9 million last year; EPS fell to £0.10 from £0.13. Despite relying solely on external borrowing for funding, earnings are projected to grow by 14% annually. Insider confidence is evident with recent share purchases in June 2024, signaling potential growth and value recognition within the market.

LSE:BREE Share price vs Value as at Aug 2024
LSE:BREE Share price vs Value as at Aug 2024

Just Group

Simply Wall St Value Rating: ★★★★☆☆

Overview: Just Group is a financial services company specializing in retirement income products and services, with a market cap of approximately £0.96 billion.

Operations: Just Group's revenue streams primarily come from its core business operations. The company has seen fluctuations in its gross profit margin, with recent figures showing a significant increase to 54.28% as of December 2023. Operating expenses have remained relatively stable, while non-operating expenses have varied significantly over the periods analyzed.