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Essentra And 2 Other Top Undervalued Small Caps In United Kingdom With Insider Buying

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The United Kingdom's stock market has recently experienced a downturn, with the FTSE 100 and FTSE 250 indices closing lower amid weak trade data from China, highlighting ongoing global economic challenges. In this environment, identifying undervalued small-cap stocks with insider buying can offer potential opportunities for investors looking to navigate these turbulent times.

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

Name

PE

PS

Discount to Fair Value

Value Rating

Bytes Technology Group

24.8x

5.6x

11.55%

★★★★★☆

Essentra

827.8x

1.6x

48.46%

★★★★★☆

GB Group

NA

3.0x

32.99%

★★★★★☆

Norcros

7.5x

0.5x

2.69%

★★★★☆☆

NWF Group

9.2x

0.1x

31.56%

★★★★☆☆

CVS Group

22.3x

1.2x

41.00%

★★★★☆☆

Hochschild Mining

NA

1.8x

39.26%

★★★★☆☆

H&T Group

8.0x

0.8x

-2.49%

★★★☆☆☆

Foxtons Group

27.8x

1.3x

45.42%

★★★☆☆☆

Franchise Brands

115.2x

2.9x

49.58%

★★★☆☆☆

Click here to see the full list of 28 stocks from our Undervalued UK Small Caps With Insider Buying screener.

Let's dive into some prime choices out of from the screener.

Essentra

Simply Wall St Value Rating: ★★★★★☆

Overview: Essentra is a global provider of essential components and solutions, specializing in the manufacture and distribution of plastic and fiber products, with a market cap of approximately £0.98 billion.

Operations: Essentra generates revenue primarily from its core business operations, with recent quarterly revenues around £309.70 million. The company's gross profit margin has shown an upward trend, reaching 46.14% in the latest period ending August 2024.

PE: 827.8x

Essentra, a UK-based company, reported half-year sales of £159.7 million in 2024, down from £166.3 million the previous year. Net income dropped to £1.3 million from £6.9 million in the same period. Despite lower earnings per share (EPS), Essentra announced a slight interim dividend increase to 1.25 pence per share, reflecting their commitment to a progressive dividend policy. Insider confidence is evident with recent purchases by executives within the last six months, indicating potential growth and stability despite current financial challenges.

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

Hammerson

Simply Wall St Value Rating: ★★★★☆☆

Overview: Hammerson is a property development and investment company focused on flagship destinations in the UK, France, and Ireland with a market cap of approximately £1.25 billion.

Operations: Revenue is primarily derived from flagship destinations in the UK, France, and Ireland, with notable contributions from developments. The company's gross profit margin fluctuated between 71.12% and 87.52% over recent periods.