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Amidst a challenging backdrop for the United Kingdom's market, with the FTSE 100 and FTSE 250 indices reflecting pressures from weak trade data out of China, small-cap stocks are drawing attention as potential pockets of opportunity. In such an environment, discerning investors often seek companies with strong fundamentals and insider activity as indicators of confidence in their resilience and growth potential.
Top 10 Undervalued Small Caps With Insider Buying In The United Kingdom
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| NCC Group | NA | 1.3x | 28.04% | ★★★★★★ |
| 4imprint Group | 15.6x | 1.3x | 39.53% | ★★★★★☆ |
| Speedy Hire | NA | 0.3x | 33.44% | ★★★★★☆ |
| XPS Pensions Group | 11.2x | 3.2x | 6.54% | ★★★★☆☆ |
| Robert Walters | 36.3x | 0.2x | 27.72% | ★★★★☆☆ |
| Sabre Insurance Group | 11.3x | 1.5x | 12.78% | ★★★★☆☆ |
| iomart Group | 24.2x | 0.6x | 33.77% | ★★★★☆☆ |
| Telecom Plus | 17.9x | 0.7x | 30.62% | ★★★☆☆☆ |
| Warpaint London | 24.2x | 4.2x | 0.73% | ★★★☆☆☆ |
| THG | NA | 0.3x | -514.81% | ★★★☆☆☆ |
Below we spotlight a couple of our favorites from our exclusive screener.
Coats Group
Simply Wall St Value Rating: ★★★★★☆
Overview: Coats Group is a global industrial thread manufacturer with operations in apparel, footwear, and performance materials, boasting a market cap of approximately £1.07 billion.
Operations: The company's revenue primarily comes from its Apparel, Footwear, and Performance Materials segments. Over the observed periods, the net income margin shows fluctuations, with a notable increase to 6.90% by mid-2024. The cost of goods sold (COGS) significantly impacts gross profit margins, which reached 36.28% in mid-2024. Operating expenses are consistently driven by sales and marketing as well as general and administrative costs.
PE: 18.5x
Coats, a UK company with small market capitalization, has shown promising sales growth of 11% from July to October 2024, driven by Footwear and Apparel segments. Despite high debt levels and reliance on external borrowing, the company is forecasted to grow earnings by 15.79% annually. Recent insider confidence was demonstrated through share purchases in the past year. An executive transition will occur as Hannah Nichols steps in as CFO post-May 2025 AGM, potentially steering future financial strategies positively for Coats.
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Delve into the full analysis valuation report here for a deeper understanding of Coats Group.
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Evaluate Coats Group's historical performance by accessing our past performance report.
Workspace Group
Simply Wall St Value Rating: ★★★★★★
Overview: Workspace Group is a company focused on providing business accommodation for rent, with a market capitalization of approximately £1.18 billion.