Uncovering September 2024's Undiscovered Gems In The United Kingdom

In This Article:

Over the last 7 days, the United Kingdom market has risen 1.1%, and over the past 12 months, it is up 6.9%. With earnings expected to grow by 14% per annum over the next few years, identifying stocks with solid fundamentals and growth potential becomes crucial.

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

1.69%

3.16%

★★★★★★

London Security

0.22%

10.13%

7.75%

★★★★★★

Globaltrans Investment

15.40%

2.68%

16.51%

★★★★★★

Impellam Group

31.12%

-5.43%

-6.86%

★★★★★★

M&G Credit Income Investment Trust

NA

-0.35%

1.18%

★★★★★★

Kodal Minerals

NA

nan

72.74%

★★★★★★

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%

★★★★★☆

Mountview Estates

16.64%

4.50%

-0.59%

★★★★☆☆

Click here to see the full list of 82 stocks from our UK Undiscovered Gems With Strong Fundamentals screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Alpha Group International

Simply Wall St Value Rating: ★★★★★★

Overview: Alpha Group International plc offers foreign exchange risk management and alternative banking solutions across the United Kingdom, Europe, Canada, and internationally with a market cap of £955.88 million.

Operations: Alpha Group International plc generates revenue primarily from its Alpha Pay (£72.30 million), Institutional (£67.47 million), and Corporate segments in Toronto (£3.72 million), Amsterdam (£9.57 million), and London excluding Amsterdam (£46.92 million).

Earnings for Alpha Group International surged 46.3% over the past year, significantly outpacing the Capital Markets industry's 6.1%. Trading at a P/E ratio of 10.2x, well below the UK market average of 16.7x, it offers good value compared to peers and industry standards. The company is debt-free and has been consistently free cash flow positive, with a recent share repurchase program authorized to buy back up to 4.32 million shares representing 10% of its issued capital.

LSE:ALPH Earnings and Revenue Growth as at Sep 2024
LSE:ALPH Earnings and Revenue Growth as at Sep 2024

Cairn Homes

Simply Wall St Value Rating: ★★★★★☆

Overview: Cairn Homes plc, a holding company with a market cap of £1.01 billion, operates as a home and community builder in Ireland.

Operations: The primary revenue stream for Cairn Homes comes from building and property development, generating €813.40 million.

Cairn Homes has shown impressive growth, with earnings rising 49.5% over the past year, far outpacing the Consumer Durables industry. Trading at a price-to-earnings ratio of 10.8x compared to the UK market's 16.7x, it offers good value for investors. The company repurchased 56,545,318 shares this year for €70 million and expects operating profit of around €145 million in fiscal year 2024. Net income for H1 2024 was €46.89 million on sales of €366.13 million.