Spotlighting Undiscovered Gems in the UK for August 2024

In This Article:

The United Kingdom's FTSE 100 index has recently faced headwinds, closing lower due to weak trade data from China and a broader global economic slowdown. Despite the challenges, discerning investors understand that even in turbulent times, there are opportunities to uncover promising small-cap stocks that may offer growth potential.

Top 10 Undiscovered Gems With Strong Fundamentals In The United Kingdom

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Globaltrans Investment

15.40%

2.68%

16.51%

★★★★★★

Impellam Group

31.12%

-5.43%

-6.86%

★★★★★★

London Security

0.31%

9.47%

7.41%

★★★★★★

Georgia Capital

NA

-27.80%

18.94%

★★★★★★

M&G Credit Income Investment Trust

NA

-0.35%

1.18%

★★★★★★

Fix Price Group

43.59%

12.53%

23.49%

★★★★★☆

Ros Agro

49.06%

17.05%

17.70%

★★★★★☆

Goodwin

59.96%

9.26%

13.12%

★★★★★☆

BBGI Global Infrastructure

0.02%

6.58%

9.90%

★★★★★☆

Mountview Estates

16.64%

4.50%

-0.59%

★★★★☆☆

Click here to see the full list of 81 stocks from our UK Undiscovered Gems With Strong Fundamentals screener.

We're going to check out a few of the best picks from our screener tool.

Law Debenture

Simply Wall St Value Rating: ★★★★☆☆

Overview: The Law Debenture Corporation p.l.c., an investment trust, offers independent professional services to a global clientele and has a market cap of £1.16 billion.

Operations: Law Debenture derives its revenue primarily from its Investment Portfolio (£35.62 million) and Independent Professional Services (£61.55 million).

Law Debenture's recent performance highlights its strong financial health, with earnings growth of 340.1% over the past year, significantly outpacing the Capital Markets industry average of 1.2%. The debt to equity ratio has slightly increased from 15.6% to 17.9% in five years, yet remains satisfactory at a net debt to equity ratio of 15%. The company's P/E ratio stands at an attractive 8.3x compared to the UK market's average of 16.4x.

LSE:LWDB Debt to Equity as at Aug 2024
LSE:LWDB Debt to Equity as at Aug 2024

Seplat Energy

Simply Wall St Value Rating: ★★★★☆☆

Overview: Seplat Energy Plc is involved in oil and gas exploration, production, and gas processing activities across Nigeria, the Bahamas, Italy, Switzerland, Barbados, and England with a market cap of £1.09 billion.

Operations: Seplat Energy generates revenue primarily from oil ($815.03 million) and gas ($120.87 million) segments.

Seplat Energy, a noteworthy player in the UK market, has showcased impressive financial resilience. Over the past year, earnings surged by 208%, significantly outperforming the Oil and Gas sector's -49%. The company's debt to equity ratio rose from 20.6% to 41.5% over five years but remains satisfactory at a net level of 20.6%. Recent results show Q2 sales at US$241.82 million with net income of US$39.72 million, marking a strong turnaround from last year's loss of US$14.63 million.