Restore And 2 Other Undervalued Small Caps In United Kingdom With Insider Buying

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Over the last 7 days, the United Kingdom market has remained flat, yet it has seen a 7.5% increase over the past year with earnings forecasted to grow by 14% annually. In such a dynamic environment, identifying small-cap stocks that are potentially undervalued and exhibit insider buying can be an intriguing strategy for investors seeking opportunities in this space.

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

Name

PE

PS

Discount to Fair Value

Value Rating

Senior

17.9x

0.6x

37.84%

★★★★★★

Bytes Technology Group

25.1x

5.7x

9.61%

★★★★★☆

NWF Group

8.5x

0.1x

36.18%

★★★★★☆

Headlam Group

NA

0.2x

26.24%

★★★★★☆

Essentra

721.2x

1.4x

26.84%

★★★★☆☆

Genus

170.1x

2.0x

-1.50%

★★★★☆☆

Marlowe

NA

0.7x

40.05%

★★★★☆☆

Optima Health

NA

1.2x

39.19%

★★★★☆☆

Oxford Instruments

22.6x

2.4x

-26.71%

★★★☆☆☆

Petra Diamonds

NA

0.3x

-42.95%

★★★☆☆☆

Click here to see the full list of 27 stocks from our Undervalued UK Small Caps With Insider Buying screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Restore

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Restore is a company specializing in secure lifecycle services and digital & information management, with a market cap of £0.65 billion.

Operations: Secure Lifecycle Services and Digital & Information Management are the primary revenue streams, contributing £104.4 million and £172.5 million respectively. The company experienced fluctuations in its net income margin, with recent figures showing a decline to -11.08% as of December 2023, before improving to 1.37% by June 2024. Operating expenses and non-operating expenses have been significant cost factors impacting overall profitability.

PE: 90.1x

Restore has demonstrated insider confidence with Charles Skinner purchasing 100,000 shares for £280,000 in a transaction reflecting a 6% increase in their stake. Recent earnings results show improvement, with net income at £6.4 million compared to a loss last year. The company declared an increased interim dividend of 2 pence per share. Despite higher-risk funding and interest coverage concerns, the forecasted annual earnings growth of nearly 49% suggests potential for future value appreciation.

AIM:RST Share price vs Value as at Oct 2024
AIM:RST Share price vs Value as at Oct 2024

Genel Energy

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Genel Energy is an independent oil and gas exploration and production company with a market cap of £0.32 billion, primarily focused on operations in the Kurdistan Region of Iraq.

Operations: Genel Energy's primary revenue stream is derived from production activities, with a recent gross profit margin of 80.11%. The company incurs costs including cost of goods sold (COGS) at $14.8 million and operating expenses totaling $68.3 million, which contribute to its net income loss of $33.5 million as of the latest period ending in October 2024.