Undervalued Small Caps In United Kingdom Backed By Insider Buying

In This Article:

The United Kingdom's stock market has recently faced turbulence, with the FTSE 100 index closing lower due to weak trade data from China and broader global economic concerns. Despite these challenges, certain small-cap stocks in the UK present intriguing opportunities, particularly those that are undervalued and have seen insider buying. Identifying such stocks can be advantageous in a volatile market environment where insider confidence may signal potential resilience or growth prospects.

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

Name

PE

PS

Discount to Fair Value

Value Rating

Bytes Technology Group

24.4x

5.5x

13.33%

★★★★★☆

Essentra

848.9x

1.6x

47.21%

★★★★★☆

GB Group

NA

3.1x

32.72%

★★★★★☆

Norcros

7.4x

0.5x

3.23%

★★★★☆☆

NWF Group

9.1x

0.1x

32.36%

★★★★☆☆

CVS Group

22.5x

1.2x

40.33%

★★★★☆☆

Hochschild Mining

NA

1.8x

37.68%

★★★★☆☆

Foxtons Group

27.2x

1.3x

46.10%

★★★☆☆☆

Franchise Brands

115.2x

2.9x

49.48%

★★★☆☆☆

Watkin Jones

NA

0.2x

-10.21%

★★★☆☆☆

Click here to see the full list of 31 stocks from our Undervalued UK Small Caps With Insider Buying screener.

Let's take a closer look at a couple of our picks from the screened companies.

Breedon Group

Simply Wall St Value Rating: ★★★★★☆

Overview: Breedon Group is a construction materials company with operations in cement, aggregates, asphalt, ready-mixed concrete, and contracting services across Great Britain and Ireland, holding a market cap of approximately £1.40 billion.

Operations: Breedon Group generates revenue primarily from its Cement (£311.30 million), Ireland (£237.60 million), and Great Britain (£1006.60 million) segments, with total revenue reaching £1509.4 million as of August 2024. The company's gross profit margin has varied, with a recent value of 0.10819% in June 2024, reflecting changes in cost structures and operational efficiencies over time.

PE: 15.1x

Breedon Group, a small cap stock in the UK, has shown insider confidence with share purchases over the past six months. For H1 2024, they reported sales of £764.6 million and net income of £34.1 million, down from £43.9 million last year. Despite this dip, earnings are forecasted to grow 14% annually. The company relies entirely on external borrowing for funding but continues to show potential for future growth given its revenue trajectory and insider activity.

LSE:BREE Share price vs Value as at Aug 2024
LSE:BREE Share price vs Value as at Aug 2024

Domino's Pizza Group

Simply Wall St Value Rating: ★★★★★☆

Overview: Domino's Pizza Group operates a network of franchise and corporate pizza stores, generating income from sales to franchisees, corporate store operations, advertising and e-commerce, property rentals, and various fees, with a market cap of approximately £1.50 billion.