3 Undervalued Small Caps In United Kingdom With Insider Buying
The United Kingdom's stock market has recently been influenced by weak trade data from China, leading to a dip in key indices such as the FTSE 100 and FTSE 250. This broader market sentiment underscores the importance of identifying small-cap stocks that demonstrate resilience and potential value, especially those with insider buying activity which can signal confidence in their future prospects.
Top 10 Undervalued Small Caps With Insider Buying In The United Kingdom
Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
Domino's Pizza Group | 15.0x | 1.7x | 40.31% | ★★★★★☆ |
Bytes Technology Group | 26.3x | 6.0x | 5.92% | ★★★★☆☆ |
NWF Group | 8.8x | 0.1x | 34.69% | ★★★★☆☆ |
C&C Group | NA | 0.4x | 5.20% | ★★★★☆☆ |
CVS Group | 30.7x | 1.2x | 33.86% | ★★★★☆☆ |
Essentra | 718.7x | 1.4x | 38.12% | ★★★★☆☆ |
Genus | 168.9x | 2.0x | -1.49% | ★★★★☆☆ |
Harworth Group | 12.3x | 6.4x | -603.76% | ★★★☆☆☆ |
Oxford Instruments | 23.5x | 2.5x | -31.39% | ★★★☆☆☆ |
Watkin Jones | NA | 0.2x | -1434.35% | ★★★☆☆☆ |
We'll examine a selection from our screener results.
Genus
Simply Wall St Value Rating: ★★★★☆☆
Overview: Genus is a company specializing in animal genetics, focusing on the improvement of livestock breeding through its Genus ABS and Genus PIC segments, with a market cap of £1.89 billion.
Operations: Genus derives its revenue primarily from Genus ABS and Genus PIC, contributing £314.90 million and £352.50 million, respectively. Over recent periods, the gross profit margin has shown significant fluctuations, reaching as high as 68.02% in March 2024 before an unusual spike to 100% in June 2024 due to unspecified costs of goods sold (COGS). The company's operating expenses have varied significantly, with a notable increase to £614.90 million by October 2024.
PE: 168.9x
Genus, a UK-based company, has seen a dip in its financial performance with sales dropping to £668.8 million and net income falling to £7.9 million for the year ending June 30, 2024. Despite this, insider confidence is evident as shares were purchased in recent months, suggesting belief in future growth prospects. The firm maintains a steady dividend of 21.7 pence per share and expects earnings to grow by 39% annually despite current challenges with profit margins at just 1.2%.
Unlock comprehensive insights into our analysis of Genus stock in this valuation report.
Review our historical performance report to gain insights into Genus''s past performance.
Harworth Group
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Harworth Group is a UK-based land and property regeneration company with a focus on income generation and capital growth through activities such as property development and sales, with a market cap of approximately £0.65 billion.
Operations: The company's revenue streams include income generation and capital growth from property activities and development sales. The gross profit margin has shown variability, reaching 54.39% in recent periods, reflecting changes in cost management and pricing strategies. Operating expenses have been consistently rising, impacting the overall profitability.
PE: 12.3x
Harworth Group, recently added to the FTSE 250 and FTSE 350 indices, showcases significant growth potential with a forecasted annual earnings increase of 26.61%. Despite relying on higher-risk external borrowing for funding, its financial results have been bolstered by substantial one-off items. For the half-year ending June 2024, sales soared to £41.31 million from £18.24 million year-on-year, boosting net income to £14.78 million from £2.85 million previously. Insider confidence is evident as Alastair Lyons purchased 50,000 shares in September for approximately £80K, reflecting strong belief in future prospects amidst their recent index inclusions and improved earnings performance.
Click to explore a detailed breakdown of our findings in Harworth Group's valuation report.
Assess Harworth Group's past performance with our detailed historical performance reports.
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 characterization with a market capitalization of £1.43 billion.
Operations: Oxford Instruments generates revenue primarily from three segments: Materials & Characterisation, Research & Discovery, and Service & Healthcare. The company has seen fluctuations in its net income margin, which reached 13.22% as of September 2023 but decreased to 10.78% by March 2024. Operating expenses have been a significant cost factor, with Sales & Marketing and General & Administrative expenses being notable components.
PE: 23.5x
Oxford Instruments, a UK-based company in the scientific instrumentation sector, has been actively engaging with industry peers through recent conferences like the Geotechnologist Symposium and NanoFabUK. Despite relying solely on external borrowing for funding, which poses higher risk, they exhibit insider confidence with notable share purchases over the past year. The company's earnings are projected to grow by 10.67% annually, suggesting potential value as it navigates its financial strategy and market positioning effectively.
Navigate through the intricacies of Oxford Instruments with our comprehensive valuation report here.
Key Takeaways
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include LSE:GNS LSE:HWG and LSE:OXIG.
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