Top 3 Undervalued Small Caps In The United Kingdom With Insider Action October 2024

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The United Kingdom's market has been experiencing turbulence, with the FTSE 100 closing lower amid weak trade data from China and broader global economic concerns. Despite these challenges, small-cap stocks often present unique opportunities for investors, particularly those that show signs of being undervalued and have insider action indicating confidence in their potential.

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

Name

PE

PS

Discount to Fair Value

Value Rating

Dr. Martens

7.8x

0.6x

40.04%

★★★★★★

Domino's Pizza Group

15.2x

1.7x

39.05%

★★★★★☆

C&C Group

NA

0.5x

44.71%

★★★★★☆

Bytes Technology Group

26.5x

6.0x

5.49%

★★★★☆☆

CVS Group

31.0x

1.3x

41.39%

★★★★☆☆

Essentra

732.1x

1.4x

37.04%

★★★★☆☆

Genus

166.4x

2.0x

-0.52%

★★★★☆☆

NWF Group

8.8x

0.1x

34.98%

★★★☆☆☆

Alpha Group International

9.9x

4.6x

-24.24%

★★★☆☆☆

Harworth Group

12.5x

6.5x

-620.87%

★★★☆☆☆

Click here to see the full list of 19 stocks from our Undervalued UK Small Caps With Insider Buying screener.

Let's uncover some gems from our specialized screener.

Dr. Martens

Simply Wall St Value Rating: ★★★★★★

Overview: Dr. Martens is a renowned footwear company primarily engaged in the design, manufacturing, and sale of iconic boots and shoes, with a market capitalization of approximately £2.50 billion.

Operations: Dr. Martens generates revenue primarily from its footwear segment, with a gross profit margin of 65.58% as of September 30, 2024. The company's operating expenses include significant costs in general and administrative areas, which have reached £377.70 million for the same period.

PE: 7.8x

Dr. Martens, a notable player in the UK market, has seen insider confidence with share purchases in Q2 2024. Despite its high debt levels and reliance on external borrowing, earnings are forecast to grow at 5.88% annually. The company’s profit margins have dipped from 12.9% last year to 7.9%. Additionally, recent investor activism by Sparta Capital Management Ltd concluded without further discussions post-July AGM results announcement on July 11, 2024.

LSE:DOCS Share price vs Value as at Oct 2024
LSE:DOCS Share price vs Value as at Oct 2024

Genus

Simply Wall St Value Rating: ★★★★☆☆

Overview: Genus is a company specializing in animal genetics, with operations in bovine and porcine breeding, and a market cap of approximately £2.50 billion.

Operations: Genus generates revenue through its Genus ABS and Genus PIC segments, with the latter contributing £352.5 million. The company's gross profit margin has shown significant fluctuations, peaking at 68.02% in March 2024, while net income margins have varied widely, reaching up to 14.05% in December 2017 but dropping to lower levels in recent periods.