Exploring 3 Undervalued Small Caps With Insider Activity In United Kingdom

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Over the last 7 days, the United Kingdom market has remained flat, but it is up 5.3% over the past year with earnings expected to grow by 14% per annum over the next few years. In this context, identifying undervalued small caps with notable insider activity can offer promising opportunities for investors seeking to capitalize on potential growth and market resilience.

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

Name

PE

PS

Discount to Fair Value

Value Rating

Bytes Technology Group

24.4x

5.5x

13.33%

★★★★★☆

C&C Group

NA

0.4x

46.77%

★★★★★☆

Genus

154.5x

1.8x

5.44%

★★★★★☆

GB Group

NA

2.8x

37.92%

★★★★★☆

CVS Group

23.8x

1.3x

37.90%

★★★★☆☆

Essentra

685.6x

1.3x

42.16%

★★★★☆☆

NWF Group

8.8x

0.1x

34.75%

★★★☆☆☆

Franchise Brands

43.0x

2.2x

39.03%

★★★☆☆☆

Alpha Group International

9.9x

4.6x

-22.84%

★★★☆☆☆

Watkin Jones

NA

0.2x

-1454.39%

★★★☆☆☆

Click here to see the full list of 25 stocks from our Undervalued UK Small Caps With Insider Buying screener.

Underneath we present a selection of stocks filtered out by our screen.

Bytes Technology Group

Simply Wall St Value Rating: ★★★★★☆

Overview: Bytes Technology Group is an IT solutions provider with a market cap of approximately £1.13 billion.

Operations: The company generates revenue primarily from IT Solutions, with a recent figure of £207.02 million. Its net income margin has shown variability, reaching 22.63% as of the latest period. Operating expenses have been significant, amounting to £89.07 million in the most recent data set provided.

PE: 24.4x

Bytes Technology Group, a small cap in the UK, recently approved a final dividend of 6.0 pence per share and a special dividend of 8.7 pence per share at its AGM on July 11, 2024. These dividends will be payable on August 2, 2024. Insider confidence is evident with significant share purchases over the past year. Earnings are projected to grow by approximately 9.57% annually despite relying entirely on external borrowing for funding, which adds some risk to their financial structure.

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

Hays

Simply Wall St Value Rating: ★★★★★☆

Overview: Hays is a global recruitment company specializing in qualified, professional, and skilled recruitment with a market cap of £1.95 billion.

Operations: The company generates revenue primarily from qualified, professional, and skilled recruitment services. Over the observed periods, net income margin has varied significantly, peaking at 2.90% and dropping to -0.07%. Gross profit margin also fluctuated between 4.21% and 14.34%, reflecting changes in cost structures and operating expenses.