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In recent months, the UK market has faced challenges as evidenced by the FTSE 100's decline following weak trade data from China, highlighting global economic uncertainties that have impacted investor sentiment. As larger indices grapple with these pressures, small-cap stocks present unique opportunities for investors seeking potential growth amidst broader market volatility. Identifying promising small-cap stocks often involves examining those with insider activity and strong fundamentals, which can indicate confidence in their potential despite current economic headwinds.
Top 10 Undervalued Small Caps With Insider Buying In The United Kingdom
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| 4imprint Group | 15.0x | 1.2x | 42.00% | ★★★★★☆ |
| Speedy Hire | NA | 0.3x | 35.17% | ★★★★★☆ |
| NCC Group | NA | 1.4x | 23.20% | ★★★★★☆ |
| Sabre Insurance Group | 11.9x | 1.6x | 8.33% | ★★★★☆☆ |
| iomart Group | 25.3x | 0.7x | 30.72% | ★★★★☆☆ |
| Optima Health | NA | 1.2x | 49.92% | ★★★★☆☆ |
| Warpaint London | 24.2x | 4.2x | 1.21% | ★★★☆☆☆ |
| Telecom Plus | 18.3x | 0.7x | 29.29% | ★★★☆☆☆ |
| Breedon Group | 15.7x | 1.0x | 45.01% | ★★★☆☆☆ |
| THG | NA | 0.3x | -613.63% | ★★★☆☆☆ |
Below we spotlight a couple of our favorites from our exclusive screener.
Gym Group
Simply Wall St Value Rating: ★★★★☆☆
Overview: Gym Group operates a network of high-quality health and fitness facilities, with a market capitalization of £0.15 billion.
Operations: The company's revenue primarily comes from providing high-quality health and fitness facilities, totaling £216.3 million in the latest period. Cost of goods sold is minimal at £2.9 million, leading to a gross profit margin of 98.66%. Operating expenses are significant, with general and administrative expenses alone reaching £133.6 million, contributing to a net income loss of £2.1 million for the same period.
PE: -133.1x
Gym Group, a UK-based fitness chain with 241 locations, is expanding rapidly under new leadership. Recently appointing Hamish Latchem as chief property officer in December 2024, they plan to open four more gyms by year-end and target an additional 50 by 2026. Despite relying solely on external borrowing for funding, earnings are projected to grow at an impressive rate of 113% annually. This growth potential positions Gym Group as a compelling opportunity within the small-cap sector.
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Click here to discover the nuances of Gym Group with our detailed analytical valuation report.
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Assess Gym Group's past performance with our detailed historical performance reports.
Pinewood Technologies Group
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Pinewood Technologies Group is a company that specializes in software solutions, with operations focused on providing innovative technology services.