In This Article:
The United Kingdom market has remained flat over the past week but has seen a 7.8% increase over the past year, with earnings expected to grow by 15% annually in the coming years. In this context, identifying stocks that are potentially undervalued can be crucial, especially when there is notable insider buying activity suggesting confidence in their future prospects.
Top 10 Undervalued Small Caps With Insider Buying In The United Kingdom
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Headlam Group | NA | 0.2x | 36.66% | ★★★★★☆ |
| Sabre Insurance Group | 11.5x | 1.5x | 10.63% | ★★★★☆☆ |
| iomart Group | 27.5x | 0.7x | 25.91% | ★★★★☆☆ |
| Optima Health | NA | 1.2x | 38.60% | ★★★★☆☆ |
| Dr. Martens | 23.4x | 0.9x | 8.86% | ★★★☆☆☆ |
| Telecom Plus | 18.8x | 0.8x | 27.20% | ★★★☆☆☆ |
| Treatt | 20.0x | 1.9x | 47.27% | ★★★☆☆☆ |
| Gooch & Housego | 38.6x | 0.9x | 35.75% | ★★★☆☆☆ |
| Reach | 6.8x | 0.5x | -136.80% | ★★★☆☆☆ |
| THG | NA | 0.3x | -1021.15% | ★★★☆☆☆ |
We'll examine a selection from our screener results.
Serica Energy
Simply Wall St Value Rating: ★★★★★☆
Overview: Serica Energy is an oil and gas company focused on the exploration, development, and production of energy resources, with a market cap of £1.13 billion.
Operations: The company's revenue primarily comes from oil and gas exploration, development, and production, with recent revenue figures reaching approximately $839.24 million. The gross profit margin has shown fluctuations, most recently recorded at 42.62%. Operating expenses have been a significant cost factor alongside non-operating expenses impacting net income margins, which were last noted at 13.60%.
PE: 5.4x
Serica Energy, a UK-based company in the energy sector, is navigating challenges and opportunities typical of smaller companies. Recent production guidance suggests output could reach 37,000 boe/d for 2024, although current operations are hampered by compressor issues at Triton FPSO. This has temporarily reduced production to around 28,000 boe/d. Despite these setbacks, insider confidence remains evident with share purchases reported earlier this year. Revenue growth is projected at 4.19% annually; however, earnings may decline by an average of 18.3% over the next three years due to reliance on external funding sources and operational vulnerabilities.
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Delve into the full analysis valuation report here for a deeper understanding of Serica Energy.
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Understand Serica Energy's track record by examining our Past report.
Gym Group
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Gym Group operates a chain of health and fitness facilities, providing high-quality services with a market capitalization of approximately £0.23 billion.