The market in the United Kingdom has seen a positive trend, rising 1.5% in the last 7 days and climbing 6.2% over the past year, with earnings forecasted to grow by 13% annually. In this favorable environment, identifying undervalued small-cap stocks with insider buying can offer promising opportunities for investors looking to capitalize on potential growth.
Top 10 Undervalued Small Caps With Insider Buying In The United Kingdom
Overview: Aston Martin Lagonda Global Holdings is a luxury automotive manufacturer known for producing high-performance sports cars and grand tourers, with a market cap of approximately £1.25 billion.
Operations: Aston Martin Lagonda Global Holdings generates revenue primarily from its automotive segment, which amounted to £1.56 billion in the most recent period. The company's gross profit margin has shown variability, reaching 40.80% recently. Operating expenses include significant allocations for sales and marketing as well as general and administrative costs, with non-operating expenses also impacting net income margins significantly.
PE: -4.4x
Aston Martin Lagonda Global Holdings, a notable player in the luxury automotive sector, has recently seen insider confidence with executive purchases in Q2 2024. Despite reporting a half-year sales drop to £603 million and increasing net loss to £207.8 million, the company projects medium-term revenue targets of £2.5 billion by fiscal year 2027-28. The upcoming CEO transition on September 1, 2024, could signal strategic shifts aimed at capitalizing on growth opportunities despite current financial challenges.
Overview: Breedon Group is a leading construction materials company operating primarily in Great Britain and Ireland, with a market cap of approximately £1.33 billion.
Operations: Breedon Group's primary revenue streams are from its Cement segment (£311.30 million), operations in Ireland (£237.60 million), and Great Britain (£1.01 billion). The company has seen fluctuations in its gross profit margin, with a notable recent figure of 36.23% for the period ending June 2023. Operating expenses have varied significantly over time, with a recent high of £376.5 million also reported in June 2023.
PE: 15.4x
Breedon Group, a construction materials company in the UK, reported H1 2024 sales of £764.6 million, up from £742.7 million last year, though net income dropped to £34.1 million from £43.9 million. Basic earnings per share fell to £0.10 from £0.13 year-over-year. Despite relying entirely on external borrowing for funding, insiders have shown confidence by purchasing shares over the past six months, indicating potential growth as earnings are forecasted to grow annually by 14%.
Overview: Just Group is a UK-based financial services company specializing in retirement income products and services, with a market cap of approximately £1.06 billion.
Operations: Just Group's revenue primarily comes from its core operations, with a notable gross profit margin trend peaking at 54.28% in December 2023. The company has experienced fluctuations in net income, including a significant loss of £375 million in December 2022 and a return to profitability with £117 million by December 2023. Operating expenses have remained relatively stable around the £104-£217 million range over recent periods.
PE: 10.4x
Just Group, a small cap in the UK, has shown insider confidence with significant share purchases over the past six months. The company forecasts earnings growth of 9.18% annually and recently declared a final dividend of 1.50 pence per share for 2023, payable on May 15, 2024. Despite relying solely on external borrowing for funding, Just Group's strategic moves and positive earnings outlook highlight its potential as an undervalued investment opportunity in the market.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include LSE:AML LSE:BREE and LSE:JUST.
