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Exploring 3 Undervalued Small Caps In United Kingdom With Insider Action

The United Kingdom's stock market has recently experienced turbulence, with the FTSE 100 and FTSE 250 indices closing lower amid concerns over weak trade data from China, highlighting global economic uncertainties. In this challenging environment, small-cap stocks in the UK may present unique opportunities for investors seeking value, particularly those exhibiting insider activity that could signal confidence in their potential despite broader market headwinds.

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

Name

PE

PS

Discount to Fair Value

Value Rating

Senior

18.1x

0.6x

37.60%

★★★★★★

Bytes Technology Group

21.7x

5.5x

13.18%

★★★★★☆

NWF Group

8.1x

0.1x

39.24%

★★★★★☆

John Wood Group

NA

0.2x

39.93%

★★★★★☆

Genus

175.9x

2.1x

5.98%

★★★★★☆

J D Wetherspoon

16.0x

0.4x

5.93%

★★★★★☆

Headlam Group

NA

0.2x

27.48%

★★★★★☆

Marlowe

NA

0.7x

41.86%

★★★★☆☆

Optima Health

NA

1.3x

37.42%

★★★★☆☆

Robert Walters

43.8x

0.3x

39.56%

★★★☆☆☆

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

Here we highlight a subset of our preferred stocks from the screener.

Dr. Martens

Simply Wall St Value Rating: ★★★★★★

Overview: Dr. Martens is a renowned British footwear brand known for its iconic boots and shoes, with a market capitalization of approximately £2.47 billion.

Operations: Revenue primarily stems from the footwear segment, with recent figures showing £877.10 million. The gross profit margin has shown a notable upward trend, reaching 65.58%. Operating expenses are significant, with general and administrative costs being a major component at £377.70 million.

PE: 7.9x

Dr. Martens, a notable player in the UK market, has seen its share price fluctuate significantly over the past three months. Despite carrying a high debt load and relying solely on external borrowing, the company is projected to grow earnings by 5.68% annually. Profit margins have decreased from 12.9% to 7.9%, yet insider confidence is evident with recent share purchases this year, suggesting belief in future potential amidst current challenges.

LSE:DOCS Share price vs Value as at Oct 2024
LSE:DOCS Share price vs Value as at Oct 2024

Genus

Simply Wall St Value Rating: ★★★★★☆

Overview: Genus is a biotechnology company specializing in animal genetics, with operations focused on providing advanced breeding services and products for livestock, and has a market cap of approximately £1.80 billion.

Operations: Genus generates revenue primarily from its Genus ABS and Genus PIC segments, with the latter contributing slightly more. The company's gross profit margin has fluctuated over recent periods, reaching a high of 53.78% in December 2019 before settling at 38.17% in June 2024. Key expenses include research and development, which has consistently been significant, indicating an ongoing investment focus in this area.