In This Article:
As the United Kingdom's FTSE 100 index faces challenges from weak trade data out of China and global economic uncertainties, investors are keenly observing market movements for potential opportunities. In such an environment, identifying undervalued stocks becomes crucial, as these hidden value gems can offer resilience and potential growth despite broader market pressures.
Top 10 Undervalued Stocks Based On Cash Flows In The United Kingdom
Name | Current Price | Fair Value (Est) | Discount (Est) |
Gooch & Housego (AIM:GHH) | £3.75 | £7.19 | 47.8% |
Aptitude Software Group (LSE:APTD) | £2.92 | £5.20 | 43.9% |
NIOX Group (AIM:NIOX) | £0.62 | £1.10 | 43.8% |
On the Beach Group (LSE:OTB) | £2.645 | £4.82 | 45.1% |
Trainline (LSE:TRN) | £2.848 | £5.21 | 45.4% |
Franchise Brands (AIM:FRAN) | £1.36 | £2.46 | 44.8% |
Deliveroo (LSE:ROO) | £1.36 | £2.69 | 49.4% |
Kromek Group (AIM:KMK) | £0.052 | £0.10 | 49.1% |
Ibstock (LSE:IBST) | £1.752 | £3.27 | 46.4% |
CVS Group (AIM:CVSG) | £10.06 | £18.67 | 46.1% |
We'll examine a selection from our screener results.
Victorian Plumbing Group
Overview: Victorian Plumbing Group plc is an online retailer specializing in bathroom products and accessories for both B2C and trade customers in the United Kingdom, with a market cap of £322.66 million.
Operations: The company's revenue comes from its online retail operations, generating £295.70 million by selling bathroom products and accessories to both B2C and trade customers in the UK.
Estimated Discount To Fair Value: 25.7%
Victorian Plumbing Group is trading at £0.99, significantly below its estimated fair value of £1.33, indicating potential undervaluation based on cash flows. The company expects robust earnings growth of 35.8% annually, outpacing the UK market's 13.7%. However, profit margins have declined to 1.9% from last year's 4.1%. Analysts agree on a potential price increase of 22.1%, and a final dividend of 1.09 pence per share has been declared for fiscal year-end September 2024.
Trainline
Overview: Trainline plc operates an independent platform for selling rail and coach tickets in the United Kingdom and internationally, with a market cap of £1.20 billion.
Operations: The company's revenue segments include Trainline Solutions at £146.08 million, International Consumer at £58.28 million, and United Kingdom Consumer at £224.53 million.
Estimated Discount To Fair Value: 45.4%