3 Undervalued Small Caps In United Kingdom With Insider Buying

In This Article:

The United Kingdom's market has recently faced headwinds, with the FTSE 100 closing lower due to weak trade data from China, highlighting global economic uncertainties. Despite these challenges, small-cap stocks can present unique opportunities for investors, particularly those with insider buying which may indicate confidence in their 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

22.9x

5.2x

18.73%

★★★★★☆

Domino's Pizza Group

14.6x

1.7x

37.56%

★★★★★☆

C&C Group

NA

0.4x

48.71%

★★★★★☆

Essentra

771.1x

1.5x

42.70%

★★★★★☆

GB Group

NA

2.8x

38.45%

★★★★★☆

Genus

160.2x

1.9x

2.21%

★★★★★☆

NWF Group

8.4x

0.1x

37.64%

★★★★☆☆

Norcros

7.6x

0.5x

1.54%

★★★★☆☆

Harworth Group

14.3x

7.5x

-522.39%

★★★★☆☆

CVS Group

22.8x

1.3x

40.27%

★★★★☆☆

Click here to see the full list of 21 stocks from our Undervalued UK Small Caps With Insider Buying screener.

We'll examine a selection from our screener results.

Genus

Simply Wall St Value Rating: ★★★★★☆

Overview: Genus is a biotechnology company specializing in animal genetics, with operations primarily in the bovine and porcine sectors, and has a market cap of approximately £2.40 billion.

Operations: Genus generates revenue primarily from its Genus ABS and Genus PIC segments, with recent quarterly revenues reaching £668.80 million. The company's gross profit margin has shown variability, peaking at 68.02% in Q1 2024 but also experiencing lower margins such as 36.25% in Q4 2023. Operating expenses have fluctuated significantly, impacting net income margins which ranged from a high of 14.05% to lows around the single digits over the periods reviewed

PE: 160.2x

Genus plc, a smaller player in the UK market, recently reported a drop in sales to £668.8 million for the year ending June 30, 2024, down from £689.7 million the previous year. Net income also fell to £7.9 million from £33.3 million last year. Despite these declines, insider confidence remains strong with recent share purchases indicating potential value recognition within the company. The board proposed a final dividend of 21.7 pence per share, consistent with last year's payout.

LSE:GNS Share price vs Value as at Sep 2024
LSE:GNS Share price vs Value as at Sep 2024

Hammerson

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Hammerson is a property development and investment company focusing on flagship retail destinations in the UK, France, and Ireland with a market cap of £1.23 billion.

Operations: Flagship Destinations in the UK, France, and Ireland are the primary revenue streams, contributing £88.7 million, £53.2 million, and £39.5 million respectively. The company has experienced varying net income margins over recent periods with a notable margin of -0.18356% as of September 2024. Gross profit margins have fluctuated but were recorded at 80.90% for Q1 2024 and 79.90% for Q2 2024.