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The United Kingdom market has shown positive momentum, rising 1.1% over the last week with a notable 4.6% increase in the Materials sector. Over the past year, the market has grown by 6.9%, and earnings are projected to grow by 14% annually. In this context, identifying undervalued small-cap stocks with insider buying can present attractive opportunities for investors looking to capitalize on current market conditions.
Top 10 Undervalued Small Caps With Insider Buying In The United Kingdom
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| C&C Group | NA | 0.4x | 45.44% | ★★★★★☆ |
| Genus | 158.4x | 1.9x | 3.11% | ★★★★★☆ |
| GB Group | NA | 2.9x | 35.63% | ★★★★★☆ |
| Bytes Technology Group | 26.3x | 6.0x | 6.59% | ★★★★☆☆ |
| CVS Group | 24.2x | 1.3x | 36.84% | ★★★★☆☆ |
| Essentra | 695.2x | 1.3x | 41.51% | ★★★★☆☆ |
| NWF Group | 8.8x | 0.1x | 34.76% | ★★★☆☆☆ |
| Franchise Brands | 43.0x | 2.2x | 39.02% | ★★★☆☆☆ |
| Alpha Group International | 10.2x | 4.7x | -26.26% | ★★★☆☆☆ |
| Watkin Jones | NA | 0.2x | -1454.83% | ★★★☆☆☆ |
Let's take a closer look at a couple of our picks from the screened companies.
CVS Group
Simply Wall St Value Rating: ★★★★☆☆
Overview: CVS Group operates veterinary practices, laboratories, a crematorium, and an online retail business with a market cap of approximately £1.32 billion.
Operations: CVS Group generates revenue primarily from Veterinary Practices (£573 million), Online Retail Business (£49.6 million), Laboratories (£31.4 million), and Crematorium services (£11.6 million). The company has seen fluctuations in its gross profit margin, with the most recent figure being 43.11%.
PE: 24.2x
CVS Group, a key player in the veterinary services sector, has shown insider confidence with David Wilton purchasing 2,500 shares worth £26,300 on 20 Sep 2024. Despite carrying high debt levels and relying solely on external borrowing for funding, the company is forecasted to grow earnings by 12.07% annually. This growth potential makes it an intriguing candidate among undervalued UK stocks.
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Delve into the full analysis valuation report here for a deeper understanding of CVS Group.
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Review our historical performance report to gain insights into CVS Group's's past performance.
Bytes Technology Group
Simply Wall St Value Rating: ★★★★☆☆
Overview: Bytes Technology Group is an IT solutions provider with a market cap of £1.20 billion.
Operations: The company generated revenue of £207.02 million, with a net income of £46.85 million and a gross profit margin of 70.42%. Operating expenses were £89.07 million, while non-operating expenses amounted to £9.86 million.
PE: 26.3x
Bytes Technology Group, a UK-based small-cap, has recently attracted attention due to insider confidence demonstrated by significant share purchases over the past six months. The company’s earnings are projected to grow at 9.25% annually, indicating strong future prospects. Additionally, Bytes declared both a final and special dividend in July 2024, totaling 14.7 pence per share payable in August. Despite relying solely on external borrowing for funding, Bytes remains focused on growth and shareholder returns through strategic dividends and participation in industry events like Smarter Working Live 2024.