Top Undervalued Small Caps With Insider Action In United Kingdom For September 2024

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The United Kingdom's FTSE 100 index recently experienced a downturn, influenced by weak trade data from China and declining commodity prices. Despite these broader market challenges, there are still opportunities to find value in the small-cap sector, particularly those with notable insider activity.

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

Name

PE

PS

Discount to Fair Value

Value Rating

C&C Group

NA

0.4x

46.20%

★★★★★☆

GB Group

NA

2.9x

36.06%

★★★★★☆

Genus

153.2x

1.8x

5.90%

★★★★★☆

Bytes Technology Group

26.4x

6.0x

6.15%

★★★★☆☆

NWF Group

8.7x

0.1x

35.43%

★★★★☆☆

CVS Group

24.2x

1.3x

36.74%

★★★★☆☆

Essentra

713.5x

1.4x

40.16%

★★★★☆☆

Alpha Group International

10.0x

4.6x

-24.40%

★★★☆☆☆

Rank Group

30.5x

0.5x

40.20%

★★★☆☆☆

Watkin Jones

NA

0.2x

-1473.16%

★★★☆☆☆

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

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

CVS Group

Simply Wall St Value Rating: ★★★★☆☆

Overview: CVS Group operates veterinary practices, laboratories, crematorium services, and an online retail business with a market cap of approximately £1.22 billion.

Operations: The company generates revenue primarily from Veterinary Practices (£573 million) and Online Retail Business (£49.6 million), with additional contributions from Laboratories (£31.4 million) and Crematorium services (£11.6 million). The gross profit margin has shown a consistent trend, reaching 43.11% as of the latest period ending September 30, 2023.

PE: 24.2x

CVS Group, a small UK-based veterinary services provider, has recently attracted attention due to insider confidence. David Wilton purchased 2,500 shares valued at £26,300 in the past year, reflecting a 38% increase in their holdings. Despite high debt levels and reliance on external borrowing for funding, the company forecasts annual earnings growth of 12.07%. This combination of insider buying and projected revenue growth positions CVS as an intriguing prospect within its sector.

AIM:CVSG Share price vs Value as at Sep 2024
AIM:CVSG Share price vs Value as at Sep 2024

Bytes Technology Group

Simply Wall St Value Rating: ★★★★☆☆

Overview: Bytes Technology Group is an IT solutions provider with a market cap of £1.25 billion.

Operations: The company generates revenue from IT solutions, with the latest reported revenue at £207.02 million and a net income of £46.85 million as of February 2024. The gross profit margin stands at 70.42%, reflecting the difference between its revenue and cost of goods sold (COGS), which is £61.24 million for the same period. Operating expenses amount to £89.07 million, impacting overall profitability.