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The United Kingdom's market has been experiencing fluctuations, with the FTSE 100 and FTSE 250 indices closing lower amid concerns about China's economic recovery and its impact on global trade. As investors navigate these challenging conditions, identifying small-cap stocks with strong fundamentals and potential for growth becomes increasingly important.
Top 10 Undervalued Small Caps With Insider Buying In The United Kingdom
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Senior | 18.2x | 0.6x | 37.42% | ★★★★★★ |
| Bytes Technology Group | 21.9x | 5.6x | 12.39% | ★★★★★☆ |
| NWF Group | 8.3x | 0.1x | 38.24% | ★★★★★☆ |
| John Wood Group | NA | 0.2x | 38.67% | ★★★★★☆ |
| Genus | 175.4x | 2.1x | 6.10% | ★★★★★☆ |
| J D Wetherspoon | 16.0x | 0.4x | 5.93% | ★★★★★☆ |
| Optima Health | NA | 1.3x | 37.58% | ★★★★☆☆ |
| Robert Walters | 43.2x | 0.3x | 40.24% | ★★★☆☆☆ |
| Sabre Insurance Group | 11.8x | 1.5x | 16.33% | ★★★☆☆☆ |
| Marlowe | NA | 0.7x | 42.22% | ★★★☆☆☆ |
We're going to check out a few of the best picks from our screener tool.
Restore
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Restore is a company that specializes in providing secure lifecycle services and digital & information management solutions, with a market cap of £0.52 billion.
Operations: Secure Lifecycle Services and Digital & Information Management are the primary revenue streams, with recent figures showing £104.4 million and £172.5 million respectively. The gross profit margin has shown variation over time, peaking at 44.26% in 2019-12-31 before settling around 42.90% as of 2024-10-30. Operating expenses have consistently been a substantial part of costs, contributing to fluctuations in net income margins observed across different periods.
PE: 94.8x
Restore, a UK-based company, shows insider confidence with Charles Skinner purchasing 100,000 shares for £280,000 in October 2024. This move reflects potential belief in growth prospects as earnings are forecasted to rise by nearly 49% annually. However, the company's reliance on external borrowing poses financial risks. Recent board changes include Patrick Butcher's appointment as a non-executive director. These developments may influence Restore's future trajectory amid its current undervalued status in the market.
YouGov
Simply Wall St Value Rating: ★★★★☆☆
Overview: YouGov is an international research and data analytics group that specializes in online market research, with a market cap of £1.19 billion.
Operations: The company generates revenue primarily through data products, with its gross profit margin showing a notable trend, reaching 85.63% in the latest period. Operating expenses are significant, largely driven by general and administrative costs.