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The UK market has recently faced challenges, with the FTSE 100 index experiencing declines due to weak trade data from China and a broader global economic slowdown. As larger indices falter, attention may turn to small-cap stocks on the UK exchange, where insider buying can sometimes indicate potential value opportunities amidst uncertain market conditions.
Top 10 Undervalued Small Caps With Insider Buying In The United Kingdom
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| NCC Group | NA | 1.3x | 26.67% | ★★★★★★ |
| 4imprint Group | 15.7x | 1.3x | 39.66% | ★★★★★☆ |
| Breedon Group | 15.1x | 1.0x | 47.09% | ★★★★★☆ |
| Speedy Hire | NA | 0.3x | 35.29% | ★★★★★☆ |
| Robert Walters | 35.7x | 0.2x | 28.90% | ★★★★☆☆ |
| Sabre Insurance Group | 11.2x | 1.5x | 13.95% | ★★★★☆☆ |
| iomart Group | 24.1x | 0.6x | 33.95% | ★★★★☆☆ |
| Warpaint London | 24.1x | 4.2x | 1.38% | ★★★☆☆☆ |
| Telecom Plus | 17.7x | 0.7x | 31.32% | ★★★☆☆☆ |
| THG | NA | 0.3x | -517.31% | ★★★☆☆☆ |
Below we spotlight a couple of our favorites from our exclusive screener.
Assura
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Assura is a UK-based real estate investment trust specializing in the development and management of primary care properties, with a market cap of £2.19 billion.
Operations: Core revenue reached £164.4 million, with a gross profit margin of 90.75%. Operating expenses were recorded at £14.3 million, while non-operating expenses stood at £68.8 million, impacting net income significantly.
PE: 18.1x
Assura, a player in the UK market, shows potential as an undervalued opportunity. Despite its reliance on external borrowing for funding, which carries higher risk than customer deposits, the company reported a significant turnaround with net income of £77.1 million for the half-year ending September 2024, compared to a loss previously. Insider confidence is evident with recent share purchases throughout 2024. While earnings are expected to grow by nearly 20% annually, investors should consider its financial structure and past shareholder dilution when evaluating future prospects.
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Click to explore a detailed breakdown of our findings in Assura's valuation report.
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Gain insights into Assura's past trends and performance with our Past report.
Ashmore Group
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Ashmore Group is a UK-based investment management company specializing in emerging markets, with a market capitalization of approximately £1.57 billion.
Operations: The company generates revenue primarily from investment management services, with recent figures showing £186.8 million. The cost of goods sold has increased to £85.1 million, impacting the gross profit margin, which is currently at 54.44%. Operating expenses are consistent at £29.8 million, while non-operating activities have resulted in a credit of -£21.8 million for the latest period.