Undervalued Small Caps With Insider Action In United Kingdom For September 2024

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The United Kingdom's market has been under pressure recently, with the FTSE 100 and FTSE 250 indices closing lower amid weak trade data from China, highlighting global economic uncertainties. In this environment, identifying undervalued small-cap stocks with insider action can provide unique investment opportunities that may offer resilience and growth potential despite broader market challenges.

Top 10 Undervalued Small Caps With Insider Buying In The United Kingdom

Name

PE

PS

Discount to Fair Value

Value Rating

Bytes Technology Group

24.5x

5.5x

13.23%

★★★★★☆

Domino's Pizza Group

15.6x

1.8x

33.95%

★★★★★☆

C&C Group

NA

0.4x

47.53%

★★★★★☆

Essentra

845.0x

1.6x

45.59%

★★★★★☆

GB Group

NA

3.1x

31.37%

★★★★★☆

Norcros

7.6x

0.5x

2.02%

★★★★☆☆

NWF Group

9.1x

0.1x

32.44%

★★★★☆☆

CVS Group

23.0x

1.3x

39.19%

★★★★☆☆

Watkin Jones

NA

0.2x

1.66%

★★★★☆☆

Franchise Brands

117.7x

2.9x

48.45%

★★★☆☆☆

Click here to see the full list of 28 stocks from our Undervalued UK Small Caps With Insider Buying screener.

Let's explore several standout options from the results in the screener.

GB Group

Simply Wall St Value Rating: ★★★★★☆

Overview: GB Group specializes in providing identity verification, fraud prevention, and location intelligence services with a market cap of approximately £1.08 billion.

Operations: The company generates revenue from three primary segments: Fraud (£40.20 million), Identity (£156.06 million), and Location (£81.07 million). The gross profit margin has shown a trend, reaching 0.70142% as of the most recent period ending September 2024. Operating expenses have increased significantly over time, impacting net income, which was -£48.58 million in the same period.

PE: -17.8x

GB Group, a small cap in the UK, recently declared a final dividend of 4.20 pence per share at its AGM on July 23, 2024. Despite reporting a net loss of £48.58 million for the year ended March 31, 2024, compared to £119.79 million the previous year, they expect mid-single-digit revenue growth and high single-digit adjusted operating profit growth for FY25 due to operational efficiencies. Insider confidence is evident with recent share purchases by executives in June and July 2024.

AIM:GBG Share price vs Value as at Sep 2024
AIM:GBG Share price vs Value as at Sep 2024

Assura

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Assura is a UK-based real estate investment trust specializing in the development, acquisition, and management of primary care properties with a market cap of approximately £2.20 billion.

Operations: Assura's revenue primarily comes from its core segment, generating £157.8 million. The company has experienced fluctuations in net income margins, with a recent trend showing negative figures, such as -0.18% for the period ending 2024-03-31. Gross profit margins have shown slight variations, with the latest being 90.81%. Operating expenses and non-operating expenses significantly impact net income outcomes.