United Kingdom's Top 3 Undervalued Small Caps With Insider Buying
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The United Kingdom's stock market has recently faced challenges, with the FTSE 100 and FTSE 250 indices experiencing declines amid weak trade data from China, highlighting global economic uncertainties that have impacted investor sentiment. In such a climate, identifying small-cap stocks with potential value can be crucial for investors looking to navigate these turbulent times effectively.
Top 10 Undervalued Small Caps With Insider Buying In The United Kingdom
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Senior | 17.8x | 0.6x | 38.10% | ★★★★★★ |
| Bytes Technology Group | 22.0x | 5.6x | 12.14% | ★★★★★☆ |
| NWF Group | 8.1x | 0.1x | 38.88% | ★★★★★☆ |
| Genus | 174.6x | 2.1x | 6.75% | ★★★★★☆ |
| Headlam Group | NA | 0.2x | 26.69% | ★★★★★☆ |
| Essentra | 728.5x | 1.4x | 26.23% | ★★★★☆☆ |
| Marlowe | NA | 0.7x | 41.54% | ★★★★☆☆ |
| Optima Health | NA | 1.3x | 37.24% | ★★★★☆☆ |
| Robert Walters | 41.5x | 0.2x | 42.00% | ★★★☆☆☆ |
| Petra Diamonds | NA | 0.3x | -44.22% | ★★★☆☆☆ |
Below we spotlight a couple of our favorites from our exclusive screener.
Domino's Pizza Group
Simply Wall St Value Rating: ★★★★★☆
Overview: Domino's Pizza Group operates as a leading pizza delivery and carryout chain, generating income through sales to franchisees, corporate stores, advertising and ecommerce, property rentals, and various franchise-related fees; it has a market capitalization of ￡1.53 billion.
Operations: The primary revenue streams include sales to franchisees, corporate store income, and royalties. The gross profit margin has shown a trend of increasing over time, reaching 47.48% as of June 2024. Operating expenses are significant and include costs such as sales & marketing and general & administrative expenses.
PE: 15.5x
Domino's Pizza Group, a smaller company in the UK market, is navigating challenges with lower profit margins, now at 11.4% compared to last year's 18.2%. Despite high debt levels and reliance on external borrowing, their strategic initiatives aim for growth in orders and sales through fiscal year 2024. Insider confidence is evident with share repurchases totaling ￡90.1 million by May 2024. The interim dividend of ￡0.035 per share underscores their commitment to shareholder returns amidst these dynamics.
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Take a closer look at Domino's Pizza Group's potential here in our valuation report.
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Understand Domino's Pizza Group's track record by examining our Past report.
Genus
Simply Wall St Value Rating: ★★★★★☆
Overview: Genus is a company specializing in animal genetics, focusing on bovine and porcine breeding, with a market cap of approximately ￡1.92 billion.
Operations: Genus generates revenue primarily from its Genus ABS and Genus PIC segments, contributing ￡314.90 million and ￡352.50 million respectively. The company experienced fluctuations in its gross profit margin, reaching a high of 53.78% in December 2014 before declining to 36.25% by December 2023. Operating expenses are significant, with research and development costs consistently around the ￡72-93 million range over recent periods.