GB Group And 2 Other Undervalued Small Caps In The United Kingdom With Insider Buying

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The United Kingdom's stock market has been under pressure recently, with the FTSE 100 and FTSE 250 indices both closing lower amid weak trade data from China. This downturn has highlighted the importance of identifying resilient small-cap stocks that can weather broader economic challenges. In this context, we will explore GB Group and two other undervalued small caps in the UK that have shown promising insider buying activity.

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

Name

PE

PS

Discount to Fair Value

Value Rating

Bytes Technology Group

24.0x

5.4x

14.72%

★★★★★☆

Domino's Pizza Group

15.1x

1.7x

29.10%

★★★★★☆

C&C Group

NA

0.4x

47.74%

★★★★★☆

GB Group

NA

3.0x

33.30%

★★★★★☆

CVS Group

21.9x

1.2x

42.14%

★★★★☆☆

Hochschild Mining

NA

1.6x

43.57%

★★★★☆☆

Norcros

7.9x

0.5x

-0.47%

★★★☆☆☆

H&T Group

8.0x

0.8x

-2.52%

★★★☆☆☆

Foxtons Group

27.2x

1.3x

46.89%

★★★☆☆☆

Harworth Group

14.5x

7.6x

-531.39%

★★★☆☆☆

Click here to see the full list of 25 stocks from our Undervalued UK Small Caps With Insider Buying screener.

We're going to check out a few of the best picks from our screener tool.

GB Group

Simply Wall St Value Rating: ★★★★★☆

Overview: GB Group specializes in identity verification, fraud prevention, and location intelligence services with a market cap of approximately £1.09 billion.

Operations: The company generates revenue primarily from Identity (£156.06m), Location (£81.07m), and Fraud (£40.20m) segments. Over the analyzed periods, its gross profit margin has shown an upward trend, reaching 0.77612% in September 2017 before experiencing fluctuations and settling at 0.70142% by March 2024.

PE: -17.3x

GB Group, a small-cap stock in the UK, reported sales of £277.33 million for the year ending March 31, 2024, with a net loss of £48.58 million—an improvement from the previous year's £119.79 million loss. They declared a final dividend of 4.20 pence per share at their AGM on July 23, 2024. Insider confidence is evident as several insiders made share purchases over the last six months. The company expects mid-single-digit revenue growth and high single-digit profit growth for FY25 due to operational efficiency gains achieved in FY24.

AIM:GBG Share price vs Value as at Aug 2024
AIM:GBG Share price vs Value as at Aug 2024

Hochschild Mining

Simply Wall St Value Rating: ★★★★☆☆

Overview: Hochschild Mining is a precious metals company engaged in the exploration, mining, processing, and sale of gold and silver with operations primarily in Peru and Argentina; it has a market cap of approximately £0.95 billion.