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The United Kingdom market has recently faced challenges, with the FTSE 100 and FTSE 250 indices experiencing declines due to weak trade data from China, highlighting broader economic concerns. Despite these headwinds, investors may find opportunities in small-cap stocks that demonstrate resilience and potential for growth through insider buying.
Top 10 Undervalued Small Caps With Insider Buying In The United Kingdom
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Bytes Technology Group | 24.9x | 5.6x | 11.43% | ★★★★★☆ |
| Domino's Pizza Group | 15.6x | 1.8x | 29.65% | ★★★★★☆ |
| C&C Group | NA | 0.4x | 48.12% | ★★★★★☆ |
| Essentra | 815.4x | 1.6x | 49.29% | ★★★★★☆ |
| GB Group | NA | 3.1x | 31.98% | ★★★★★☆ |
| Norcros | 7.5x | 0.5x | 3.57% | ★★★★☆☆ |
| Harworth Group | 13.8x | 7.2x | -503.79% | ★★★★☆☆ |
| CVS Group | 22.5x | 1.2x | 40.63% | ★★★★☆☆ |
| Hochschild Mining | NA | 1.7x | 42.92% | ★★★★☆☆ |
| Foxtons Group | 27.8x | 1.3x | 45.70% | ★★★☆☆☆ |
Let's review some notable picks from our screened stocks.
Domino's Pizza Group
Simply Wall St Value Rating: ★★★★★☆
Overview: Domino's Pizza Group operates a network of franchised and corporate stores, generating income from sales to franchisees, advertising, ecommerce, property rentals, and various franchise fees; it has a market cap of approximately £1.50 billion.
Operations: The company generates revenue primarily from sales to franchisees (£461M), royalties and fees (£82.4M), and national advertising and e-commerce income (£85.5M). It has seen variations in its net income margin, peaking at 18.28% in June 2023, while the gross profit margin reached a high of 47.48% in June 2024.
PE: 15.6x
Domino's Pizza Group, a small-cap stock in the UK, has shown insider confidence with recent share repurchases totaling £90.1 million for 25.3 million shares as of August 6, 2024. Despite a drop in net income to £42.3 million from £80.2 million year-over-year and profit margins falling to 11.4%, the company remains optimistic about growth prospects for the second half of 2024, driven by strategic initiatives and increased order count projections.
Hammerson
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Hammerson is a property development and investment company focusing on flagship destinations in the UK, France, and Ireland with a market cap of £1.02 billion.
Operations: Hammerson generates revenue primarily from its flagship destinations in the UK, France, and Ireland. The company has experienced fluctuations in net income margins, with recent figures showing a net income margin of -0.18356% as of 2024-06-30.