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In recent months, the UK market has faced challenges as the FTSE 100 index experienced declines, influenced by weak trade data from China and global economic uncertainties. Amidst these conditions, identifying stocks that are priced below their estimated value can offer potential opportunities for investors seeking to capitalize on market inefficiencies.
Top 10 Undervalued Stocks Based On Cash Flows In The United Kingdom
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Begbies Traynor Group (AIM:BEG) | £0.924 | £1.68 | 45.1% |
| Aptitude Software Group (LSE:APTD) | £2.78 | £5.12 | 45.7% |
| Gooch & Housego (AIM:GHH) | £3.95 | £7.18 | 45% |
| On the Beach Group (LSE:OTB) | £2.645 | £4.96 | 46.6% |
| Trainline (LSE:TRN) | £3.02 | £5.39 | 44% |
| Entain (LSE:ENT) | £6.53 | £12.69 | 48.5% |
| ECO Animal Health Group (AIM:EAH) | £0.695 | £1.28 | 45.6% |
| Mpac Group (AIM:MPAC) | £3.75 | £7.38 | 49.2% |
| Kromek Group (AIM:KMK) | £0.051 | £0.10 | 49.7% |
| Crest Nicholson Holdings (LSE:CRST) | £1.853 | £3.66 | 49.3% |
Let's review some notable picks from our screened stocks.
Fintel
Overview: Fintel Plc provides intermediary services and distribution channels to the retail financial services sector in the United Kingdom, with a market cap of £251.11 million.
Operations: The company's revenue is derived from three primary segments: Research & Fintech (£25.40 million), Distribution Channels (£23.80 million), and Intermediary Services (£29.10 million).
Estimated Discount To Fair Value: 42.8%
Fintel is trading at £2.41, significantly below its estimated fair value of £4.21, suggesting it may be undervalued based on cash flows. Despite a decrease in net profit margin from 10.9% to 7.5%, earnings are forecast to grow substantially at 30.2% annually, outpacing the UK market's 14%. Revenue growth is expected at 7% per year, faster than the UK's average of 3.7%. Recent executive changes include Matt Timmins assuming sole CEO responsibilities post-AGM in May 2025.
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Our growth report here indicates Fintel may be poised for an improving outlook.
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Navigate through the intricacies of Fintel with our comprehensive financial health report here.
NIOX Group
Overview: NIOX Group Plc focuses on designing, developing, and commercializing medical devices for asthma diagnosis, monitoring, and management globally with a market cap of £258.92 million.
Operations: The company generates revenue of £41.80 million from its NIOX® segment, which involves medical devices for asthma-related applications.
Estimated Discount To Fair Value: 40.8%
NIOX Group, trading at £0.65, is priced significantly below its estimated fair value of £1.1, indicating potential undervaluation based on cash flows. Despite a decline in net profit margin from 25.8% to 8.1%, earnings are forecast to grow substantially at 36.8% annually, surpassing the UK market's growth rate of 14%. However, revenue growth is slower at 10.7% per year compared to a higher benchmark of 20%. Recent acquisition talks with Keensight Capital were canceled due to macroeconomic conditions.