Exploring Undervalued Small Caps With Insider Actions In The United Kingdom July 2024

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As the United Kingdom's financial markets show signs of resilience, with the FTSE 100 poised to break a two-day losing streak and broader positive sentiment reflected in global indices, investors are closely monitoring shifts that could influence market dynamics. In this context, understanding what constitutes a good undervalued small-cap stock becomes crucial, especially when insider actions suggest potential unrecognized value amidst these evolving economic conditions.

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

Name

PE

PS

Discount to Fair Value

Value Rating

Ultimate Products

9.5x

0.7x

19.05%

★★★★★☆

GB Group

NA

3.1x

22.56%

★★★★★☆

THG

NA

0.4x

41.49%

★★★★★☆

Bytes Technology Group

25.9x

5.9x

-2.93%

★★★★☆☆

Tracsis

46.7x

2.7x

29.17%

★★★★☆☆

Robert Walters

19.8x

0.2x

28.82%

★★★★☆☆

CVS Group

20.6x

1.1x

42.45%

★★★★☆☆

M&C Saatchi

NA

0.6x

48.49%

★★★★☆☆

Norcros

7.9x

0.5x

-12.54%

★★★☆☆☆

Hochschild Mining

NA

1.8x

44.95%

★★★☆☆☆

Click here to see the full list of 29 stocks from our Undervalued UK Small Caps With Insider Buying screener.

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

Just Group

Simply Wall St Value Rating: ★★★★★★

Overview: Just Group is a financial services company specializing in retirement products and services, with a market capitalization of approximately £0.60 billion.

Operations: The company's gross profit margin has seen fluctuations, ranging from a low of 0.03% to a high of 54.28%, indicating variability in the cost efficiency of its revenue generation over time. Notably, net income has also varied significantly, with margins ranging from -25.37% to 11.62%, reflecting challenges and successes in overall profitability after accounting for all expenses.

PE: 10.0x

Just Group, a notable player among undervalued UK entities, recently declared a dividend increase, signaling strong financial health and management confidence. With earnings expected to rise annually by 9.58%, their reliance on external borrowing does introduce higher risk, yet this is tempered by insider confidence as evidenced by recent share purchases. Such actions underscore a robust outlook for Just Group, enhancing its appeal to those eyeing potential in less conspicuous markets.

LSE:JUST Share price vs Value as at Jul 2024
LSE:JUST Share price vs Value as at Jul 2024

Kier Group

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Kier Group is a construction and infrastructure services provider, operating primarily in sectors including property, corporate, and infrastructure services with a market capitalization of approximately £241 million.