Undervalued Small Caps With Insider Buying In United Kingdom October 2024

In This Article:

Amidst a challenging environment for the United Kingdom's markets, with the FTSE 100 and FTSE 250 indices recently closing lower due to weak trade data from China, investors are increasingly focusing on small-cap stocks that might offer potential opportunities. In such a climate, identifying small-cap companies with strategic insider buying can be an indicator of confidence in their future prospects despite broader market uncertainties.

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

Name

PE

PS

Discount to Fair Value

Value Rating

Bytes Technology Group

26.0x

5.9x

6.38%

★★★★★☆

NWF Group

8.8x

0.1x

34.54%

★★★★★☆

Headlam Group

NA

0.2x

25.76%

★★★★★☆

CVS Group

28.9x

1.2x

37.54%

★★★★☆☆

Essentra

718.3x

1.4x

27.43%

★★★★☆☆

Genus

178.9x

2.1x

-6.35%

★★★★☆☆

Marlowe

NA

0.8x

39.74%

★★★★☆☆

Optima Health

NA

1.2x

41.35%

★★★★☆☆

Harworth Group

11.8x

6.2x

-572.62%

★★★☆☆☆

Oxford Instruments

22.8x

2.5x

-28.03%

★★★☆☆☆

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

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

C&C Group

Simply Wall St Value Rating: ★★★★☆☆

Overview: C&C Group is a beverage company focusing on the production and distribution of cider, beer, wine, spirits, and soft drinks across Ireland and Great Britain with a market capitalization of approximately €1.17 billion.

Operations: The company's revenue primarily comes from its operations in Great Britain and Ireland, with Great Britain contributing significantly more to the total. Over recent periods, the gross profit margin has shown fluctuations, reaching 23.05% in February 2024. The cost of goods sold (COGS) consistently represents a substantial portion of revenue, impacting overall profitability. Operating expenses have also been significant, with general and administrative expenses forming a major part of these costs.

PE: -6.6x

C&C Group, a smaller company in the UK market, is gaining attention due to its potential for growth and recent strategic moves. While the company's liabilities are entirely from external borrowing, which carries more risk than customer deposits, earnings are forecasted to grow at 77% annually. Insider confidence is evident with share repurchases starting September 2024 under a €15 million program. The recent appointment of Sanjay Nakra as an independent director brings significant finance expertise to the board, potentially steering future growth positively.