Uncovering Cohort And 2 Hidden Small Cap Gems In The UK Market

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As the UK market grapples with global economic challenges, including weak trade data from China impacting major indices like the FTSE 100 and FTSE 250, investors are increasingly turning their attention to small-cap stocks that may offer untapped potential. In this environment, identifying promising companies requires a keen eye for those with robust fundamentals and resilience amidst broader market volatility.

Top 10 Undiscovered Gems With Strong Fundamentals In The United Kingdom

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

M&G Credit Income Investment Trust

NA

17.28%

15.80%

★★★★★★

London Security

0.22%

10.13%

7.75%

★★★★★★

Andrews Sykes Group

NA

2.15%

4.93%

★★★★★★

B.P. Marsh & Partners

NA

29.42%

31.34%

★★★★★★

Impellam Group

31.12%

-5.43%

-6.86%

★★★★★★

VH Global Sustainable Energy Opportunities

NA

18.30%

20.03%

★★★★★★

Rights and Issues Investment Trust

NA

-3.68%

-4.07%

★★★★★★

FW Thorpe

5.89%

11.97%

12.07%

★★★★★☆

BBGI Global Infrastructure

0.02%

3.08%

6.85%

★★★★★☆

Goodwin

52.21%

9.26%

13.12%

★★★★★☆

Click here to see the full list of 70 stocks from our UK Undiscovered Gems With Strong Fundamentals screener.

Let's dive into some prime choices out of from the screener.

Cohort

Simply Wall St Value Rating: ★★★★★★

Overview: Cohort plc is a company that offers a range of products and services in the defense and security sectors across multiple regions including the United Kingdom, Germany, Portugal, Africa, North and South America, the Asia Pacific, and other European countries with a market cap of £417.11 million.

Operations: Revenue primarily comes from two segments: Sensors and Effectors (£120.49 million) and Communications and Intelligence (£83.38 million).

Cohort, a player in the Aerospace & Defense sector, has demonstrated solid financial health with earnings growing at 16.3% annually over the past five years. Its debt-to-equity ratio improved from 32.5% to 29.2%, indicating prudent financial management. Recently, Cohort completed a follow-on equity offering worth £40 million at £8.75 per share, suggesting strategic capital raising efforts for future growth initiatives. The company's interest payments are comfortably covered by EBIT at 17.5 times coverage, reflecting strong operational profitability and high-quality earnings that bolster investor confidence in its ongoing performance and potential value appreciation.

AIM:CHRT Debt to Equity as at Nov 2024
AIM:CHRT Debt to Equity as at Nov 2024

RHI Magnesita

Simply Wall St Value Rating: ★★★★★☆