Exploring 3 Premier Undervalued Small Caps With Insider Buying In The United Kingdom
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The United Kingdom's FTSE 100 index has recently faced downward pressure, influenced by weak trade data from China and a broader global economic slowdown. Despite these challenges, the small-cap segment offers unique opportunities for investors seeking growth potential in undervalued stocks with insider buying. In this article, we will explore three premier undervalued small-cap stocks in the United Kingdom that have garnered attention due to recent insider purchases.
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 | 13.17% | ★★★★★☆ |
| Breedon Group | 14.9x | 0.9x | 49.74% | ★★★★★☆ |
| Essentra | 846.0x | 1.6x | 47.42% | ★★★★★☆ |
| GB Group | NA | 3.0x | 33.48% | ★★★★★☆ |
| Norcros | 7.4x | 0.5x | 4.29% | ★★★★☆☆ |
| NWF Group | 9.1x | 0.1x | 32.51% | ★★★★☆☆ |
| CVS Group | 22.5x | 1.2x | 40.50% | ★★★★☆☆ |
| Hochschild Mining | NA | 1.8x | 38.28% | ★★★★☆☆ |
| Foxtons Group | 27.6x | 1.3x | 45.80% | ★★★☆☆☆ |
| Franchise Brands | 115.2x | 2.9x | 49.53% | ★★★☆☆☆ |
Let's take a closer look at a couple of our picks from the screened companies.
Essentra
Simply Wall St Value Rating: ★★★★★☆
Overview: Essentra is a global provider of essential components and solutions, specializing in three main divisions: Components, Packaging, and Filters, with a market cap of approximately ￡0.65 billion.
Operations: Essentra's revenue streams are primarily derived from its core operations, with a notable gross profit margin trend peaking at 46.14% in the most recent period. The company's cost of goods sold (COGS) and operating expenses have fluctuated, impacting net income margins which have varied significantly over the observed periods.
PE: 846.0x
Essentra, a UK-based company, reported half-year sales of ￡159.7 million as of June 30, 2024, down from ￡166.3 million the previous year. Net income dropped to ￡1.3 million from ￡6.9 million in the same period last year. Despite this dip in earnings, Essentra declared an interim dividend increase to 1.25 pence per share and has shown insider confidence with recent purchases by executives over the past six months. The company relies entirely on external borrowing for funding and forecasts a modest annual earnings growth of 2%.
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Take a closer look at Essentra's potential here in our valuation report.
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Examine Essentra's past performance report to understand how it has performed in the past.
Hochschild Mining
Simply Wall St Value Rating: ★★★★☆☆
Overview: Hochschild Mining is a precious metals company primarily engaged in the exploration, mining, processing, and sale of silver and gold with a market cap of approximately ￡0.58 billion.