Discovering Yellow Cake And 2 Other Hidden UK Small Caps with Solid Fundamentals

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In the last week, the United Kingdom market has been flat, but over the past 12 months, it has risen by 6.7%, with earnings forecast to grow by 15% annually. In this context, discovering stocks with solid fundamentals can be particularly rewarding; Yellow Cake and two other hidden UK small caps stand out as promising opportunities.

Top 10 Undiscovered Gems With Strong Fundamentals In The United Kingdom

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Andrews Sykes Group

NA

1.69%

3.16%

★★★★★★

M&G Credit Income Investment Trust

NA

17.28%

15.80%

★★★★★★

London Security

0.22%

10.13%

7.75%

★★★★★★

Globaltrans Investment

15.40%

2.68%

16.51%

★★★★★★

Impellam Group

31.12%

-5.43%

-6.86%

★★★★★★

Kodal Minerals

NA

nan

72.74%

★★★★★★

VH Global Sustainable Energy Opportunities

NA

18.30%

20.03%

★★★★★★

BBGI Global Infrastructure

0.02%

3.08%

6.85%

★★★★★☆

Goodwin

52.21%

9.26%

13.12%

★★★★★☆

Mountview Estates

16.64%

4.50%

-0.59%

★★★★☆☆

Click here to see the full list of 81 stocks from our UK Undiscovered Gems With Strong Fundamentals screener.

Let's uncover some gems from our specialized screener.

Yellow Cake

Simply Wall St Value Rating: ★★★★★★

Overview: Yellow Cake plc operates in the uranium sector with a market cap of £1.21 billion.

Operations: Yellow Cake plc generates revenue primarily through holding U3O8 for long-term capital appreciation, amounting to $735.02 million.

Yellow Cake, a small cap in the UK market, reported significant revenue of US$735.02 million for the year ending March 31, 2024, compared to negative revenue of US$96.9 million previously. Net income surged to US$727.01 million from a net loss of US$102.94 million last year. With a price-to-earnings ratio of 2.2x versus the UK market's 16.9x and no debt for five years, Yellow Cake appears undervalued despite recent shareholder dilution and forecasted earnings decline by an average of 78% annually over the next three years.

AIM:YCA Debt to Equity as at Sep 2024
AIM:YCA Debt to Equity as at Sep 2024

Cairn Homes

Simply Wall St Value Rating: ★★★★★☆

Overview: Cairn Homes plc, a holding company with a market cap of £1.01 billion, operates as a home and community builder in Ireland.

Operations: Cairn Homes generates revenue primarily from building and property development, amounting to €813.40 million. The company's net profit margin is %.

Cairn Homes has demonstrated robust performance, with earnings surging 49.5% over the past year, outpacing the Consumer Durables industry’s -14.6%. The company is trading at a favorable price-to-earnings ratio of 10.8x compared to the UK market average of 16.9x, suggesting good relative value. Cairn also repurchased 56 million shares for €70 million in recent buybacks and reported net income of €46.89 million for H1 2024, up from €20.7 million a year ago.