Discover August 2024's Top Undervalued Small Caps In The United Kingdom With Insider Buying

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The United Kingdom's market has been facing headwinds, with the FTSE 100 index closing lower due to weak trade data from China and global economic uncertainties. Despite these challenges, discerning investors often seek opportunities in small-cap stocks that may be undervalued but show potential for growth, especially when there is insider buying indicating confidence in the company's future.

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

Name

PE

PS

Discount to Fair Value

Value Rating

Bytes Technology Group

25.4x

5.7x

9.84%

★★★★★☆

GB Group

NA

3.2x

30.93%

★★★★★☆

Mercia Asset Management

NA

4.9x

48.09%

★★★★☆☆

Harworth Group

14.0x

7.4x

-508.84%

★★★★☆☆

Breedon Group

15.2x

1.0x

43.95%

★★★★☆☆

CVS Group

22.5x

1.2x

45.26%

★★★★☆☆

Hochschild Mining

NA

1.7x

41.00%

★★★★☆☆

Norcros

7.9x

0.5x

-2.13%

★★★☆☆☆

Foxtons Group

27.5x

1.3x

43.23%

★★★☆☆☆

Franchise Brands

114.9x

2.9x

49.58%

★★★☆☆☆

Click here to see the full list of 24 stocks from our Undervalued UK Small Caps With Insider Buying screener.

Let's uncover some gems from our specialized screener.

Breedon Group

Simply Wall St Value Rating: ★★★★☆☆

Overview: Breedon Group is a construction materials company with operations in cement, aggregates, asphalt, and ready-mixed concrete across Great Britain and Ireland, holding a market cap of approximately £1.30 billion.

Operations: Breedon Group generates revenue primarily from its Great Britain and Ireland segments, with significant contributions from Cement. The company's net profit margin has shown a varied trend, reaching 8.04% in Q3 2022 and 7.20% in Q4 2023.

PE: 15.2x

Breedon Group, a small cap in the UK, reported H1 2024 earnings with sales at £764.6 million, up from £742.7 million last year. Despite net income dropping to £34.1 million from £43.9 million, insider confidence is high with recent share purchases in June 2024 indicating belief in future growth prospects. Earnings per share stood at £0.10 compared to last year's £0.13, and revenue is forecasted to grow by 14% annually despite reliance on external borrowing for funding.

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

Hochschild Mining

Simply Wall St Value Rating: ★★★★☆☆

Overview: Hochschild Mining is a precious metals company focused on the exploration, mining, processing, and sale of silver and gold with operations primarily in Peru and Argentina, boasting a market cap of approximately £0.86 billion.

Operations: Hochschild Mining's primary revenue streams are from its San Jose, Inmaculada, and Pallancata segments. The company has faced fluctuating net income margins over recent periods, with the most recent data showing a net income margin of -0.07929% for the period ending December 31, 2023. Gross profit margin has varied as well, reaching up to 42.85% in June 2021 but standing at 26.46% in the latest reported period. Operating expenses and non-operating expenses also significantly impact overall profitability.