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3 Undervalued Small Caps In UK With Insider Buying To Consider

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The United Kingdom's stock market has recently faced challenges, with the FTSE 100 and FTSE 250 indices both experiencing declines amid weak trade data from China, highlighting concerns over global economic recovery. In this context of broader market volatility, small-cap stocks with insider buying may present intriguing opportunities for investors seeking potential value plays.

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

Name

PE

PS

Discount to Fair Value

Value Rating

4imprint Group

17.4x

1.4x

32.44%

★★★★★☆

Speedy Hire

NA

0.3x

31.87%

★★★★★☆

NCC Group

NA

1.3x

27.05%

★★★★★☆

Robert Walters

33.7x

0.2x

32.56%

★★★★☆☆

iomart Group

23.5x

0.6x

35.59%

★★★★☆☆

CVS Group

26.5x

1.1x

46.23%

★★★★☆☆

XPS Pensions Group

11.3x

3.2x

5.29%

★★★☆☆☆

Telecom Plus

17.2x

0.7x

33.39%

★★★☆☆☆

Warpaint London

24.2x

4.2x

0.99%

★★★☆☆☆

THG

NA

0.3x

-512.81%

★★★☆☆☆

Click here to see the full list of 37 stocks from our Undervalued UK Small Caps With Insider Buying screener.

We'll examine a selection from our screener results.

CVS Group

Simply Wall St Value Rating: ★★★★☆☆

Overview: CVS Group operates as a provider of veterinary services, including crematoria and laboratory services, with a focus on veterinary practices and online retail, holding a market cap of approximately £1.57 billion.

Operations: The primary revenue stream is from Veterinary Practices, contributing significantly to the overall revenue of £647.3 million, with additional income from Laboratories and Online Retail Business. The gross profit margin has shown fluctuations over time, reaching 43.83% in June 2023 before slightly declining to 42.93% by January 2025. Operating expenses are a major cost component, with General & Administrative Expenses being consistently significant across periods.

PE: 26.5x

CVS Group, a UK-based company, is drawing attention in the small-cap sector due to its potential for value appreciation. Despite a dip in profit margins from 8.2% to 4%, earnings are expected to grow by 15.48% annually. The company plans a dividend increase pending shareholder approval, indicating confidence in future cash flows. However, their high reliance on external borrowing poses risks despite no customer deposits being involved.

AIM:CVSG Share price vs Value as at Jan 2025
AIM:CVSG Share price vs Value as at Jan 2025

Judges Scientific

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Judges Scientific is a company specializing in the acquisition and development of scientific instrument businesses, with operations primarily in vacuum and materials sciences, and a market cap of approximately £0.54 billion.