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Amidst a challenging economic backdrop, the United Kingdom's market has been grappling with global pressures, as evidenced by the recent declines in both the FTSE 100 and FTSE 250 indices. With weak trade data from China impacting commodity prices and broader market sentiment, investors are increasingly seeking opportunities that may be overlooked within the small-cap sector. In this environment, identifying stocks with strong fundamentals and potential insider confidence can offer intriguing prospects for those looking to navigate these turbulent times.
Top 10 Undervalued Small Caps With Insider Buying In The United Kingdom
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Senior | 17.6x | 0.5x | 38.57% | ★★★★★★ |
| Bytes Technology Group | 22.5x | 5.7x | 10.41% | ★★★★★☆ |
| Genus | 173.8x | 2.1x | 6.97% | ★★★★★☆ |
| Headlam Group | NA | 0.2x | 27.09% | ★★★★★☆ |
| Essentra | 723.0x | 1.4x | 26.65% | ★★★★☆☆ |
| Marlowe | NA | 0.7x | 41.48% | ★★★★☆☆ |
| Optima Health | NA | 1.3x | 36.99% | ★★★★☆☆ |
| Robert Walters | 41.5x | 0.2x | 41.89% | ★★★☆☆☆ |
| Oxford Instruments | 23.7x | 2.6x | -32.92% | ★★★☆☆☆ |
| Petra Diamonds | NA | 0.2x | -36.01% | ★★★☆☆☆ |
Below we spotlight a couple of our favorites from our exclusive screener.
Genus
Simply Wall St Value Rating: ★★★★★☆
Overview: Genus is a biotechnology company focused on animal genetics and breeding, with a market capitalization of approximately £1.76 billion.
Operations: Genus generates revenue primarily through its Genus ABS and Genus PIC segments, with the latter contributing slightly more. The company has experienced fluctuations in its gross profit margin, reaching as high as 53.78% and recently recorded at 38.17%. Operating expenses include significant allocations for research and development, which have shown a gradual increase over time.
PE: 173.8x
Genus, a UK-based company, has seen insider confidence with share purchases in recent months. Despite a challenging year with net income dropping to £7.9 million from £33.3 million and profit margins shrinking to 1.2%, the company remains attractive due to its forecasted earnings growth of 37% annually. Although reliant on higher-risk external borrowing, Genus maintains steady dividends at 21.7 pence per share, suggesting potential for future stability and growth within its sector.
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Dive into the specifics of Genus here with our thorough valuation report.
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Examine Genus' past performance report to understand how it has performed in the past.
Oxford Instruments
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Oxford Instruments is a company that specializes in providing high-technology tools and systems for research, discovery, service, healthcare, and materials characterisation, with a market cap of £1.38 billion.