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The United Kingdom's market landscape has been impacted by weak trade data from China, leading to declines in the FTSE 100 and FTSE 250 indices as global economic concerns weigh heavily on investor sentiment. Despite these challenges, small-cap stocks can present unique opportunities for investors seeking potential growth, particularly when there is notable insider action indicating confidence in the company's future prospects.
Top 10 Undervalued Small Caps With Insider Buying In The United Kingdom
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| 4imprint Group | 15.4x | 1.3x | 41.21% | ★★★★★☆ |
| Tracsis | 311.0x | 1.9x | 48.97% | ★★★★★☆ |
| Speedy Hire | NA | 0.3x | 36.12% | ★★★★★☆ |
| Sabre Insurance Group | 11.7x | 1.5x | 10.28% | ★★★★☆☆ |
| iomart Group | 24.8x | 0.7x | 32.09% | ★★★★☆☆ |
| NCC Group | NA | 1.4x | 20.70% | ★★★★☆☆ |
| Optima Health | NA | 1.2x | 49.73% | ★★★★☆☆ |
| Telecom Plus | 18.1x | 0.7x | 30.13% | ★★★☆☆☆ |
| Alpha Group International | 10.5x | 4.9x | -35.83% | ★★★☆☆☆ |
| THG | NA | 0.3x | -604.88% | ★★★☆☆☆ |
Let's explore several standout options from the results in the screener.
Restore
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Restore is a company that provides secure lifecycle services and digital & information management solutions, with a market capitalization of £0.52 billion.
Operations: Secure Lifecycle Services and Digital & Information Management are the primary revenue streams, contributing £104.4 million and £172.5 million, respectively. The gross profit margin has shown fluctuations, reaching 42.90% in June 2024 after peaking at 45.75% in December 2021. Operating expenses have been a significant cost factor, consistently exceeding £88 million in recent periods.
PE: 86.8x
Restore, a company in the UK market, has shown insider confidence with Charles Skinner purchasing 100,000 shares for £280K. Despite flat revenue expectations for FY24 due to market uncertainty before the Autumn Budget, earnings are forecasted to grow by 48% annually. The company's financial position is stable but relies on external borrowing. Recent board changes include appointing Patrick Butcher as a non-executive director, potentially strengthening governance with his extensive CFO experience.
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Click here to discover the nuances of Restore with our detailed analytical valuation report.
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Understand Restore's track record by examining our Past report.
Mears Group
Simply Wall St Value Rating: ★★★★☆☆
Overview: Mears Group is a UK-based company specializing in providing management and maintenance services, with a market cap of approximately £0.36 billion.
Operations: The company generates revenue primarily from management (£591.63 million) and maintenance (£551.73 million) services. Over recent periods, the gross profit margin has shown an upward trend, reaching 21.68% as of June 2024, indicating improved efficiency in managing costs relative to revenue growth. Operating expenses are a significant component of the cost structure, with general and administrative expenses consistently forming a large portion of these costs.