Undervalued Small Caps In United Kingdom With Insider Action October 2024

In This Article:

Over the past year, the United Kingdom market has experienced a 6.6% rise despite remaining flat over the last week, with earnings expected to grow by 14% annually. In this environment, identifying small-cap stocks that may be undervalued and exhibit insider activity can offer intriguing opportunities for investors seeking growth potential.

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

Name

PE

PS

Discount to Fair Value

Value Rating

Bytes Technology Group

24.6x

5.6x

11.41%

★★★★★☆

NWF Group

8.7x

0.1x

35.27%

★★★★★☆

Domino's Pizza Group

15.1x

1.7x

39.11%

★★★★★☆

Headlam Group

NA

0.2x

25.01%

★★★★★☆

Essentra

724.1x

1.4x

26.63%

★★★★☆☆

Genus

170.6x

2.0x

-1.55%

★★★★☆☆

Marlowe

NA

0.8x

39.83%

★★★★☆☆

Optima Health

NA

1.2x

40.09%

★★★★☆☆

Harworth Group

11.9x

6.2x

-574.33%

★★★☆☆☆

Oxford Instruments

22.3x

2.4x

-25.11%

★★★☆☆☆

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

Let's explore several standout options from the results in the screener.

Restore

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Restore is a company that provides secure lifecycle services and digital & information management solutions, with a market cap of £0.52 billion.

Operations: Secure Lifecycle Services and Digital & Information Management are the primary revenue streams, contributing £104.40 million and £172.50 million respectively. The gross profit margin shows an upward trend from 34.89% in December 2013 to a peak of 44.20% in December 2019, before experiencing fluctuations in recent periods, reaching 42.90% by June 2024.

PE: 89.2x

Restore, a UK-based company, recently reported a turnaround with net income of £6.4 million for H1 2024, compared to a £28.1 million loss the previous year. The interim dividend increased to 2 pence per share from 1.85 pence in H1 2023, signaling potential growth in shareholder returns. Insider confidence is evident as Charles Skinner acquired 100,000 shares for approximately £280K, reflecting belief in future prospects despite reliance on external borrowing and interest coverage challenges.

AIM:RST Share price vs Value as at Oct 2024
AIM:RST Share price vs Value as at Oct 2024

C&C Group

Simply Wall St Value Rating: ★★★★☆☆

Overview: C&C Group is a beverage company primarily operating in Ireland and Great Britain, with a market capitalization of €1.14 billion.

Operations: The company's primary revenue streams are from Ireland and Great Britain, with the latter contributing significantly more. The gross profit margin has shown variability, reaching 23.05% in recent periods. Operating expenses include significant allocations to general and administrative costs, which have been a major component of total expenses.