The UK market has faced challenges recently, with the FTSE 100 and FTSE 250 indices slipping amid concerns over weak trade data from China, impacting companies tied to global economic performance. As investors navigate these turbulent waters, identifying small-cap stocks that may be undervalued and demonstrate insider confidence can be an intriguing strategy.
Top 10 Undervalued Small Caps With Insider Buying In The United Kingdom
Overview: Great Portland Estates is a UK-based property investment and development company focusing on real estate in central London, with a market cap of £1.52 billion.
Operations: The company generates revenue primarily from its operations, with costs of goods sold (COGS) and operating expenses impacting its financial performance. Notably, the gross profit margin has shown variability, reaching up to 77.28% in recent periods. The company also experiences significant non-operating expenses that influence net income results.
PE: -48.8x
Great Portland Estates, a UK-based property company, shows potential as an undervalued investment. Recent earnings reveal a turnaround with net income of £29.7 million for the half-year ending September 2024, contrasting with a previous loss. Insider confidence is evident through share purchases in the past year. The company's strategic moves include leasing prime office space to HEINEKEN UK and acquiring properties in Fitzrovia for expansion into Fully Managed spaces. GPE's new £150 million ESG-linked credit facility enhances financial flexibility and sustainability focus, supporting future growth prospects amidst evolving market dynamics.
Overview: NCC Group is a global cyber security and risk mitigation company with operations focused on providing services such as escrow and cyber security, and it has a market cap of approximately £0.58 billion.
Operations: The company generates revenue primarily from Cyber Security (£256.58 million) and Escode (£65.55 million). Over recent periods, the gross profit margin has shown an upward trend, reaching 41.61% in September 2024. Operating expenses and non-operating expenses have been significant cost components, with general and administrative expenses consistently contributing to overall costs.
PE: -18.6x
NCC Group, a UK-based company recently added to the FTSE indices, reported sales of £429.5 million for the sixteen months ended September 2024 but faced a net loss of £32.5 million. Despite these financial challenges, insider confidence is evident with recent share purchases. The company proposed a dividend of 1.5p per share and secured a significant SEK 450 million contract in Sweden to enhance water infrastructure, showcasing its strategic focus on essential services and potential growth areas amidst higher-risk funding reliance through external borrowing.
Overview: Supermarket Income REIT is a real estate investment trust focused on acquiring and managing grocery store properties in the UK, with a market capitalization of approximately £1.03 billion.
Operations: The company generates revenue primarily through real estate investments, with a gross profit margin consistently at 100%. Operating expenses have shown a gradual increase, reaching £5.75 million in the latest period. The net income margin has experienced significant fluctuations, recently recording negative figures due to rising non-operating expenses.
PE: -40.9x
Supermarket Income REIT, a UK-based company focusing on grocery property investment, recently declared a dividend of £0.0153 per share for the quarter ending September 2024. Despite reporting a net loss of £21.18 million for the year ending June 2024, this is an improvement from last year's larger loss of £144.87 million, indicating potential recovery. Insiders have shown confidence by purchasing shares over recent months, suggesting belief in future growth prospects as earnings are projected to increase annually by 48%.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include LSE:GPE LSE:NCC and LSE:SUPR.
