Exploring Kier Group And Two More Undervalued Small Caps With Insider Buying In The United Kingdom

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Amidst a backdrop of fluctuating global markets, with the FTSE 100 poised for losses and broader economic uncertainties influencing investor sentiment, the allure of undervalued small-cap stocks in the United Kingdom becomes particularly compelling. In such an environment, identifying companies with insider buying can signal potential unrecognized value and resilience.

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

Name

PE

PS

Discount to Fair Value

Value Rating

Ultimate Products

9.6x

0.7x

18.26%

★★★★★☆

Robert Walters

18.5x

0.2x

32.88%

★★★★★☆

GB Group

NA

3.2x

21.87%

★★★★★☆

THG

NA

0.4x

41.52%

★★★★★☆

Bytes Technology Group

25.3x

5.7x

-0.25%

★★★★☆☆

CVS Group

21.0x

1.2x

41.46%

★★★★☆☆

M&C Saatchi

NA

0.6x

48.57%

★★★★☆☆

Norcros

7.8x

0.5x

-11.77%

★★★☆☆☆

Harworth Group

14.6x

7.6x

-613.21%

★★★☆☆☆

Hochschild Mining

NA

1.8x

45.30%

★★★☆☆☆

Click here to see the full list of 29 stocks from our Undervalued UK Small Caps With Insider Buying screener.

Let's review some notable picks from our screened stocks.

Kier Group

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Kier Group is a construction and infrastructure services provider with operations spanning property development, building, and civil engineering, boasting a market capitalization of approximately £110 million.

Operations: The company generates a substantial portion of its revenue from Construction and Infrastructure Services, with respective contributions of £1.86 billion and £1.87 billion. Over recent periods, it has experienced a gross profit margin averaging approximately 0.09%, indicating the ratio of gross profit relative to total revenue.

PE: 17.7x

Kier Group, characterized by its reliance on external borrowing, demonstrates a financial structure that some might see as risky, yet it's this very nature that underscores its potential in the undervalued small-cap arena in the UK. With earnings expected to grow by 23% annually, the company shows promising prospects. Insider confidence is evident as they recently purchased shares, signaling belief in the company’s trajectory. This action aligns with qualitative assessments of Kier's robust future prospects despite one-off items impacting financial results.

LSE:KIE Share price vs Value as at Jul 2024
LSE:KIE Share price vs Value as at Jul 2024

Mitie Group

Simply Wall St Value Rating: ★★★★★☆

Overview: Mitie Group is a facilities management company that operates across various sectors including technical services, business services, communities, and care & custody.

Operations: The entity has shown a fluctuating gross profit margin over the years, ranging from 10.86% to 18.09%, with recent figures around 11.25%. Its revenue streams are diversified across multiple segments, with significant contributions from Business Services and Technical Services, totaling £1.49 billion and £1.33 billion respectively.