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The United Kingdom market has been experiencing turbulence, with the FTSE 100 index closing lower after weak trade data from China indicated ongoing struggles in global economic recovery. Amidst this backdrop, identifying undervalued small-cap stocks with insider buying can offer potential opportunities for investors looking to navigate the current market conditions.
Top 10 Undervalued Small Caps With Insider Buying In The United Kingdom
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Bytes Technology Group | 23.2x | 5.2x | 17.62% | ★★★★★☆ |
| Domino's Pizza Group | 14.6x | 1.7x | 37.30% | ★★★★★☆ |
| Essentra | 782.6x | 1.5x | 41.88% | ★★★★★☆ |
| GB Group | NA | 2.8x | 37.83% | ★★★★★☆ |
| Genus | 159.3x | 1.9x | 2.78% | ★★★★★☆ |
| NWF Group | 8.4x | 0.1x | 37.64% | ★★★★☆☆ |
| CVS Group | 22.8x | 1.3x | 40.25% | ★★★★☆☆ |
| Norcros | 7.9x | 0.5x | -0.95% | ★★★☆☆☆ |
| Harworth Group | 14.9x | 7.8x | -552.51% | ★★★☆☆☆ |
| Watkin Jones | NA | 0.2x | -1376.88% | ★★★☆☆☆ |
Let's take a closer look at a couple of our picks from the screened companies.
Genus
Simply Wall St Value Rating: ★★★★★☆
Overview: Genus is a biotechnology company focused on animal genetics, with operations in bovine and porcine breeding, and a market cap of approximately £2.50 billion.
Operations: Genus generates revenue primarily from its Genus ABS and Genus PIC segments, with recent revenues reaching £668.80 million. The company has shown fluctuations in its gross profit margin, peaking at 68.02% as of March 31, 2024. Operating expenses have varied significantly, impacting net income margins which have ranged from -1.40% to a high of 14.05%.
PE: 159.3x
Genus, a UK-based small cap, reported full-year sales of £668.8 million and net income of £7.9 million for the year ending June 30, 2024. Despite a decline from last year's figures (£689.7 million in sales and £33.3 million in net income), the company remains attractive due to insider confidence with recent share purchases between July and September 2024. Earnings are forecasted to grow by 39.4% annually, though profit margins have decreased from 4.8% to 1.2%.
Hammerson
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Hammerson is a property development and investment company focusing on flagship destinations in the UK, France, and Ireland with a market cap of £1.07 billion.
Operations: Hammerson's revenue streams include flagship destinations in the UK, France, and Ireland, alongside developments. The company has experienced significant fluctuations in net income margin over recent periods, with a notable decline to -0.18356% as of 2024-06-30. Gross profit margins have shown variability but were recorded at 79.90% for the same period.