Undervalued Small Caps With Insider Action In The United Kingdom For August 2024

In This Article:

The United Kingdom market has been experiencing turbulence, with the FTSE 100 and FTSE 250 indices closing lower amid weak trade data from China and falling commodity prices. This climate of uncertainty highlights the importance of identifying small-cap stocks that demonstrate resilience and potential for growth, particularly those with significant insider action signaling confidence in their future prospects.

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

Name

PE

PS

Discount to Fair Value

Value Rating

Bytes Technology Group

23.9x

5.4x

15.25%

★★★★★☆

Domino's Pizza Group

14.5x

1.7x

31.71%

★★★★★☆

C&C Group

NA

0.4x

47.28%

★★★★★☆

GB Group

NA

3.0x

33.99%

★★★★★☆

Norcros

7.6x

0.5x

2.74%

★★★★☆☆

Harworth Group

14.0x

7.4x

-504.78%

★★★★☆☆

Foxtons Group

26.9x

1.3x

45.02%

★★★★☆☆

Picton Property Income

NA

7.3x

27.31%

★★★★☆☆

CVS Group

22.2x

1.2x

40.36%

★★★★☆☆

Hochschild Mining

NA

1.6x

45.50%

★★★★☆☆

Click here to see the full list of 24 stocks from our Undervalued UK Small Caps With Insider Buying screener.

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

Harworth Group

Simply Wall St Value Rating: ★★★★☆☆

Overview: Harworth Group is a UK-based company specializing in the regeneration of brownfield land and property development, with a market cap of approximately £0.57 billion.

Operations: The company's revenue streams include Income Generation (£23.41 million), Capital Growth from Other Property Activities (£2.29 million), and the Sale of Development Properties (£46.73 million). The gross profit margin has fluctuated, reaching 54.39% in June 2023 before dropping to 17.05% by December 2023.

PE: 14.0x

Harworth Group, a notable player in the UK industrial and logistics development sector, is expanding its portfolio with strategic moves like securing planning permission for a major rail-connected hub in Leeds. This project could deliver up to £190 million gross development value. Insider confidence is evident with Alastair Lyons purchasing 50,000 shares worth approximately £80,000 in June 2024. Earnings are forecasted to grow by nearly 26% annually, despite reliance on external borrowing for funding.

LSE:HWG Ownership Breakdown as at Aug 2024
LSE:HWG Ownership Breakdown as at Aug 2024

International Personal Finance

Simply Wall St Value Rating: ★★★★★★

Overview: International Personal Finance provides consumer credit services through its digital platform and home credit operations in Mexico and Europe, with a market cap of approximately £0.24 billion.

Operations: International Personal Finance generates revenue primarily from its European Home Credit, Mexico Home Credit, and Digital segments. The company's gross profit margin has shown a range between 62.47% and 89.76%. Operating expenses have consistently been substantial, with General & Administrative Expenses being a significant component.