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The United Kingdom's stock market has recently faced turbulence, with the FTSE 100 index closing lower due to weak trade data from China and broader global economic concerns. Despite these challenges, certain small-cap stocks in the UK present intriguing opportunities, particularly those that are undervalued and have seen insider buying. Identifying such stocks can be advantageous in a volatile market environment where insider confidence may signal potential resilience or growth 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 | 24.4x | 5.5x | 13.33% | ★★★★★☆ |
Essentra | 848.9x | 1.6x | 47.21% | ★★★★★☆ |
GB Group | NA | 3.1x | 32.72% | ★★★★★☆ |
Norcros | 7.4x | 0.5x | 3.23% | ★★★★☆☆ |
NWF Group | 9.1x | 0.1x | 32.36% | ★★★★☆☆ |
CVS Group | 22.5x | 1.2x | 40.33% | ★★★★☆☆ |
Hochschild Mining | NA | 1.8x | 37.68% | ★★★★☆☆ |
Foxtons Group | 27.2x | 1.3x | 46.10% | ★★★☆☆☆ |
Franchise Brands | 115.2x | 2.9x | 49.48% | ★★★☆☆☆ |
Watkin Jones | NA | 0.2x | -10.21% | ★★★☆☆☆ |
Let's take a closer look at a couple of our picks from the screened companies.
Breedon Group
Simply Wall St Value Rating: ★★★★★☆
Overview: Breedon Group is a construction materials company with operations in cement, aggregates, asphalt, ready-mixed concrete, and contracting services across Great Britain and Ireland, holding a market cap of approximately £1.40 billion.
Operations: Breedon Group generates revenue primarily from its Cement (£311.30 million), Ireland (£237.60 million), and Great Britain (£1006.60 million) segments, with total revenue reaching £1509.4 million as of August 2024. The company's gross profit margin has varied, with a recent value of 0.10819% in June 2024, reflecting changes in cost structures and operational efficiencies over time.
PE: 15.1x
Breedon Group, a small cap stock in the UK, has shown insider confidence with share purchases over the past six months. For H1 2024, they reported sales of £764.6 million and net income of £34.1 million, down from £43.9 million last year. Despite this dip, earnings are forecasted to grow 14% annually. The company relies entirely on external borrowing for funding but continues to show potential for future growth given its revenue trajectory and insider activity.
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Click to explore a detailed breakdown of our findings in Breedon Group's valuation report.
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Review our historical performance report to gain insights into Breedon Group's's past performance.
Domino's Pizza Group
Simply Wall St Value Rating: ★★★★★☆
Overview: Domino's Pizza Group operates a network of franchise and corporate pizza stores, generating income from sales to franchisees, corporate store operations, advertising and e-commerce, property rentals, and various fees, with a market cap of approximately £1.50 billion.