The United Kingdom's market has faced recent turbulence, with the FTSE 100 and FTSE 250 indices both closing lower amid weak trade data from China. This downturn highlights the broader economic challenges impacting global markets, including those for small-cap stocks. In such a volatile environment, identifying undervalued small-cap stocks with insider activity can be particularly appealing to investors seeking opportunities that may offer resilience and potential growth despite broader market headwinds.
Top 10 Undervalued Small Caps With Insider Buying In The United Kingdom
Overview: Assura is a UK-based real estate investment trust specializing in the development and management of primary care properties, with a market cap of approximately ￡2.52 billion.
Operations: Assura generates revenue primarily from its core segment, with operating expenses and non-operating expenses impacting net income. The company has seen fluctuations in its net income margin, which was -0.18% as of the latest period ending 2024-09-02. Gross profit margins have been around 90%, reflecting a relatively high efficiency in managing cost of goods sold (COGS).
PE: -46.8x
Assura, a UK-based healthcare real estate investment trust, has shown insider confidence with significant share purchases by executives in the past six months. Despite recent shareholder dilution and reliance on external borrowing for funding, the company remains in a good financial position. Recent acquisitions of private hospital portfolios indicate strategic growth moves. Additionally, Assura's earnings are projected to grow 41.82% annually. A quarterly dividend of ￡0.0084 per share will be paid on October 9, 2024.
Overview: Harworth Group is a property regeneration company focused on the development and management of industrial, commercial, and residential sites with a market cap of ￡0.43 billion.
Operations: Harworth Group generates revenue primarily through income generation (￡23.41 million), capital growth from other property activities (￡2.29 million), and the sale of development properties (￡46.73 million). The company's gross profit margin has varied, reaching 54.39% in recent periods, while net income margins have shown significant fluctuations over time, with a notable decline to -39.57% as of June 2023.
PE: 14.1x
Harworth Group, a UK-based property development and investment company, is gaining attention for its undervalued stock status. Recent insider confidence is evident with Alastair Lyons purchasing 50,000 shares worth ￡80,000 in June 2024. The company's strategic growth includes appointing Gareth Thomas as Midlands Development Director and securing planning permission for a major industrial hub at Gascoigne Interchange. Earnings are forecast to grow by 25.94% annually despite reliance on external borrowing for funding.
Overview: Wizz Air Holdings is a European low-cost airline operating an extensive route network with a market capitalization of approximately €2.50 billion.
Operations: Wizz Air Holdings generates revenue primarily from its entire route network, totaling €5.10 billion as of the latest period. The company's gross profit margin has shown variability, reaching 22.49% recently. Operating expenses and non-operating expenses significantly impact net income, which was €319.6 million in the most recent period with a net income margin of 6.27%.
PE: 4.9x
Wizz Air Holdings, a UK-based airline, has shown mixed performance recently. For the first quarter of 2024, revenue increased slightly to €1.26 billion from €1.24 billion year-on-year, but net income dropped significantly to €5.8 million from €62.8 million. Passenger numbers and load factors have seen minor declines for July 2024 compared to last year, with capacity also slightly down for the month but up over a rolling 12-month period. Insider confidence is indicated by recent share purchases in June and July 2024, suggesting potential undervaluation amidst operational challenges and leadership changes within the company’s senior team structure set to take effect in October 2024.
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:AGR LSE:HWG and LSE:WIZZ.
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