Exploring Three Undervalued Small Caps With Insider Action In The United Kingdom

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Amidst a backdrop where the FTSE 100 is poised to break a three-month winning streak and broader market indices show mixed signals, investors are navigating through an environment filled with both caution and opportunity. In such a landscape, identifying undervalued small-cap stocks with insider buying can be particularly compelling, as these actions may signal unrecognized value or upcoming positive developments within these companies.

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

Name

PE

PS

Discount to Fair Value

Value Rating

Norcros

7.5x

0.5x

43.15%

★★★★★☆

John Wood Group

NA

0.3x

49.07%

★★★★★☆

THG

NA

0.4x

33.18%

★★★★★☆

Bytes Technology Group

28.7x

6.5x

12.37%

★★★★☆☆

CVS Group

20.5x

1.1x

41.88%

★★★★☆☆

M&C Saatchi

NA

0.5x

49.15%

★★★★☆☆

Savills

36.4x

0.7x

25.21%

★★★☆☆☆

Robert Walters

20.6x

0.3x

35.50%

★★★☆☆☆

J D Wetherspoon

21.4x

0.4x

-63.93%

★★★☆☆☆

Hochschild Mining

NA

1.6x

38.95%

★★★☆☆☆

Click here to see the full list of 36 stocks from our Undervalued Small Caps With Insider Buying screener.

Here's a peek at a few of the choices from the screener.

M&C Saatchi

Simply Wall St Value Rating: ★★★★☆☆

Overview: M&C Saatchi is a global advertising and marketing services company with a market capitalization of approximately £76 million.

Operations: The company has experienced fluctuations in gross profit margin over the observed periods, ranging from a high of 73.22% to a low of -30.69%. In recent entries, the gross profit margin was recorded at 15.87%, reflecting variability in its cost management and revenue generation efficiency.

PE: -70.0x

With a strategic shift in executive roles and a recent dividend increase, M&C Saatchi demonstrates operational dynamism amid challenging financials, reporting a net loss despite robust sales of £453.91 million last year. Insider confidence is evident as they recently purchased shares, signaling belief in the company's recovery and growth prospects. This activity, coupled with forecasted earnings growth of 43.75% annually, positions M&C Saatchi as an intriguing entity within the undervalued UK market sector.

AIM:SAA Share price vs Value as at Jun 2024
AIM:SAA Share price vs Value as at Jun 2024

Assura

Simply Wall St Value Rating: ★★★★☆☆

Overview: Assura is a UK-based healthcare real estate investment trust (REIT) specializing in the development, investment, and management of primary care facilities across the United Kingdom.

Operations: The entity generates revenue primarily through its core operations, with a recent figure reported at £157.8 million. It has demonstrated a consistent gross profit margin averaging approximately 92% over the last few reporting periods, reflecting efficient cost management relative to its revenue generation.