The United Kingdom's market has been under pressure recently, with the FTSE 100 and FTSE 250 indices closing lower amid weak trade data from China, highlighting global economic uncertainties. In this environment, identifying undervalued small-cap stocks with insider action can provide unique investment opportunities that may offer resilience and growth potential despite broader market challenges.

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

Click here to see the full list of 28 stocks from our Undervalued UK Small Caps With Insider Buying screener.

Let's explore several standout options from the results in the screener.

GB Group

Simply Wall St Value Rating: ★★★★★☆

Overview: GB Group specializes in providing identity verification, fraud prevention, and location intelligence services with a market cap of approximately £1.08 billion.

Operations: The company generates revenue from three primary segments: Fraud (£40.20 million), Identity (£156.06 million), and Location (£81.07 million). The gross profit margin has shown a trend, reaching 0.70142% as of the most recent period ending September 2024. Operating expenses have increased significantly over time, impacting net income, which was -£48.58 million in the same period.

PE: -17.8x

GB Group, a small cap in the UK, recently declared a final dividend of 4.20 pence per share at its AGM on July 23, 2024. Despite reporting a net loss of £48.58 million for the year ended March 31, 2024, compared to £119.79 million the previous year, they expect mid-single-digit revenue growth and high single-digit adjusted operating profit growth for FY25 due to operational efficiencies. Insider confidence is evident with recent share purchases by executives in June and July 2024.

• Delve into the full analysis valuation report here for a deeper understanding of GB Group.

• Evaluate GB Group's historical performance by accessing our past performance report.

Assura

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Assura is a UK-based real estate investment trust specializing in the development, acquisition, and management of primary care properties with a market cap of approximately £2.20 billion.

Operations: Assura's revenue primarily comes from its core segment, generating £157.8 million. The company has experienced fluctuations in net income margins, with a recent trend showing negative figures, such as -0.18% for the period ending 2024-03-31. Gross profit margins have shown slight variations, with the latest being 90.81%. Operating expenses and non-operating expenses significantly impact net income outcomes.

PE: -46.8x

Assura, a healthcare real estate investment trust, is gaining traction as an undervalued small cap in the UK. Recent insider confidence was evident with multiple share purchases over the past quarter. They announced a 0.84 pence per share dividend to be paid on October 9, 2024. The company acquired a private hospital portfolio in August 2024 and amended its Articles of Association in July 2024. Forecasted earnings growth of 42% annually highlights potential for future value appreciation despite past shareholder dilution and reliance on external borrowing for funding.

• Click here to discover the nuances of Assura with our detailed analytical valuation report.

• Gain insights into Assura's historical performance by reviewing our past performance report.

Wizz Air Holdings

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Wizz Air Holdings is a low-cost airline operating across Europe and parts of the Middle East, with a market cap of approximately £2.50 billion.

Operations: Wizz Air Holdings generates revenue primarily from its entire route network, with recent figures reaching €5095.8 million. The company has seen fluctuations in its gross profit margin, which was 22.49% as of June 30, 2024. Operating expenses and non-operating expenses also play significant roles in the financial performance, impacting net income margins that have varied over time.

PE: 5.1x

Wizz Air Holdings, a smaller UK-based airline, shows potential for value. Despite recent challenges, including a dip in first-quarter net income to €5.8 million from €62.8 million and slightly lower load factors in July 2024 compared to last year, the company forecasts improved load factors and revenue growth for fiscal 2025. Notably, insider confidence is evident with significant share purchases over the past few months. Leadership changes aim to bolster operational efficiency and commercial strategy moving forward.

• Dive into the specifics of Wizz Air Holdings here with our thorough valuation report.

• Explore historical data to track Wizz Air Holdings' performance over time in our Past section.

Turning Ideas Into Actions

• Embark on your investment journey to our 28 Undervalued UK Small Caps With Insider Buying selection here.

• Hold shares in these firms? Setup your portfolio in Simply Wall St to seamlessly track your investments and receive personalized updates on your portfolio's performance.

• Streamline your investment strategy with Simply Wall St's app for free and benefit from extensive research on stocks across all corners of the world.

Want To Explore Some Alternatives?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.

• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

• Find companies with promising cash flow potential yet trading below their fair value.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include AIM:GBG LSE:AGR and LSE:WIZZ.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com