Top 3 Undervalued Small Caps With Insider Action In United Kingdom August 2024

In This Article:

As the United Kingdom's FTSE 100 index falters amid weak trade data from China, investors are increasingly looking towards small-cap stocks for potential opportunities. With broader market sentiment impacted by global economic uncertainties, identifying undervalued small caps with insider action can be a strategic move in navigating these challenging times.

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

Name

PE

PS

Discount to Fair Value

Value Rating

Bytes Technology Group

24.5x

5.5x

12.70%

★★★★★☆

Domino's Pizza Group

15.5x

1.8x

34.86%

★★★★★☆

Essentra

817.3x

1.6x

49.06%

★★★★★☆

GB Group

NA

3.0x

33.04%

★★★★★☆

Norcros

7.5x

0.5x

3.48%

★★★★☆☆

NWF Group

9.2x

0.1x

31.55%

★★★★☆☆

CVS Group

22.4x

1.2x

40.83%

★★★★☆☆

Hochschild Mining

NA

1.7x

41.24%

★★★★☆☆

Foxtons Group

27.6x

1.3x

45.88%

★★★☆☆☆

Franchise Brands

117.4x

2.9x

48.77%

★★★☆☆☆

Click here to see the full list of 26 stocks from our Undervalued UK Small Caps With Insider Buying screener.

Let's explore several standout options from the results in the screener.

Hammerson

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Hammerson is a real estate investment company that focuses on owning, managing, and developing flagship retail destinations in the UK, France, and Ireland with a market cap of approximately £1.30 billion.

Operations: Hammerson's revenue primarily comes from its flagship destinations in the UK (£88.7 million), France (£53.2 million), and Ireland (£39.5 million). The company's gross profit margin was 81.85% as of December 2023, with operating expenses amounting to £51.1 million for the same period.

PE: -33.2x

Hammerson, a UK-based company primarily focused on retail property, has recently secured a €350 million non-recourse term loan with PIMCO Prime Real Estate to refinance existing debt maturing in September 2024. The new loan extends the average maturity of their debt from 2.2 to 2.9 years at an all-in interest cost of about 5.5%. Despite reporting a net loss of £516.7 million for H1 2024, insider confidence is evident with recent share purchases by executives over the past six months.

LSE:HMSO Share price vs Value as at Aug 2024
LSE:HMSO Share price vs Value as at Aug 2024

Hochschild Mining

Simply Wall St Value Rating: ★★★★☆☆

Overview: Hochschild Mining is a precious metals company focused on the exploration, mining, processing, and sale of silver and gold from its operations in Peru and Argentina with a market cap of approximately £0.55 billion.

Operations: Hochschild Mining's revenue streams are primarily derived from its Inmaculada, San Jose, and Pallancata operations, totaling $693.72 million. The company reported a gross profit margin of 26.46% for the period ending December 31, 2023. Operating expenses amounted to $100.89 million while non-operating expenses were $137.69 million for the same period.