In This Article:
The United Kingdom's market has been experiencing turbulence, with the FTSE 100 and FTSE 250 indices recently closing lower due to weak trade data from China, highlighting ongoing global economic challenges. Amidst this backdrop, identifying promising small-cap stocks can be crucial for investors seeking opportunities in sectors less impacted by international headwinds.
Top 10 Undervalued Small Caps With Insider Buying In The United Kingdom
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Bytes Technology Group | 20.7x | 5.3x | 17.69% | ★★★★★☆ |
| 4imprint Group | 17.8x | 1.5x | 28.99% | ★★★★★☆ |
| Stelrad Group | 11.7x | 0.6x | 18.27% | ★★★★★☆ |
| Speedy Hire | NA | 0.2x | 24.81% | ★★★★★☆ |
| NCC Group | NA | 1.3x | 21.02% | ★★★★★☆ |
| Telecom Plus | 17.9x | 0.7x | 26.15% | ★★★★☆☆ |
| Gamma Communications | 22.9x | 2.4x | 33.35% | ★★★★☆☆ |
| CVS Group | 29.8x | 1.2x | 36.03% | ★★★★☆☆ |
| Franchise Brands | 40.6x | 2.1x | 22.04% | ★★★★☆☆ |
| Optima Health | NA | 1.5x | 47.04% | ★★★★☆☆ |
We'll examine a selection from our screener results.
SThree
Simply Wall St Value Rating: ★★★☆☆☆
Overview: SThree is a global staffing company specializing in the recruitment of professionals in science, technology, engineering, and mathematics sectors, with a market cap of £1.15 billion.
Operations: SThree's revenue streams are primarily derived from its operations in DACH, the Netherlands (including Spain), and the USA. The company's net profit margin has shown fluctuations, peaking at 3.73% in May 2024 before declining to 3.33% by February 2025. Operating expenses have consistently been a significant component of their cost structure, with general and administrative expenses being a major part of these costs.
PE: 6.8x
SThree, a staffing firm in the UK, reported a decline in sales to £1.49 billion for FY24, down from £1.66 billion the previous year, with net income also slipping to £49.69 million. Despite this challenging environment and an anticipated earnings contraction of 18% annually over the next three years, insider confidence is evident through strategic share repurchase plans worth £20 million initiated in December 2024. The company’s stable dividend strategy remains attractive despite a proposed decrease for FY25.
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Get an in-depth perspective on SThree's performance by reading our valuation report here.
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Gain insights into SThree's historical performance by reviewing our past performance report.
Vp
Simply Wall St Value Rating: ★★★★☆☆
Overview: Vp is a specialist rental business providing equipment and services to a diverse range of sectors, with a market cap of approximately £0.25 billion.
Operations: Vp generates revenue primarily from the UK at £339.21 million, with an additional contribution of £43.35 million internationally. The company's cost of goods sold (COGS) was £247.77 million in the latest reported period, impacting its gross profit of £122.46 million and resulting in a gross profit margin of 33.08%. Operating expenses were noted at £54.17 million, alongside significant non-operating expenses amounting to £73.69 million, affecting net income figures which showed a loss in recent periods.