Top 3 Undervalued Small Caps With Insider Buys In United Kingdom For September 2024
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The UK market has recently faced challenges, with the FTSE 100 and FTSE 250 indices slipping due to weak trade data from China, which continues to struggle in its post-pandemic recovery. This broader market sentiment has created opportunities for discerning investors to identify undervalued small-cap stocks that show potential for growth. In this context, we explore three small-cap companies in the United Kingdom that have garnered insider buying interest, indicating confidence from those closest to the business.
Top 10 Undervalued Small Caps With Insider Buying In The United Kingdom
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Dr. Martens | 7.9x | 0.6x | 39.82% | ★★★★★★ |
| Domino's Pizza Group | 15.4x | 1.8x | 38.60% | ★★★★★☆ |
| C&C Group | NA | 0.4x | 45.20% | ★★★★★☆ |
| Bytes Technology Group | 26.8x | 6.1x | 4.39% | ★★★★☆☆ |
| CVS Group | 30.4x | 1.2x | 42.29% | ★★★★☆☆ |
| Essentra | 735.9x | 1.4x | 36.76% | ★★★★☆☆ |
| Genus | 167.2x | 2.0x | -0.97% | ★★★★☆☆ |
| NWF Group | 8.8x | 0.1x | 34.98% | ★★★☆☆☆ |
| Alpha Group International | 10.1x | 4.7x | -26.46% | ★★★☆☆☆ |
| Harworth Group | 12.5x | 6.5x | -618.99% | ★★★☆☆☆ |
Let's explore several standout options from the results in the screener.
Dr. Martens
Simply Wall St Value Rating: ★★★★★★
Overview: Dr. Martens is a British footwear company known for its iconic boots and shoes, with a market cap of approximately ￡2.50 billion.
Operations: Dr. Martens generates revenue primarily from footwear sales, with a recent gross profit margin of 65.58%. The company incurs costs including COGS (￡301.90 million), operating expenses (￡448.80 million), and non-operating expenses (￡57.20 million).
PE: 7.9x
Dr. Martens, a prominent player in the UK market, has seen insider confidence with share purchases between January and March 2024. Despite high debt levels and reliance on external borrowing, their profit margins have improved from 7.9% to 12.9% over the past year. However, the company's stock remains highly volatile over recent months. Following an investor activism campaign that concluded in July 2024 without further discussions, future growth is projected at a modest 5.88% annually.
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Navigate through the intricacies of Dr. Martens with our comprehensive valuation report here.
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Review our historical performance report to gain insights into Dr. Martens''s past performance.
Genus
Simply Wall St Value Rating: ★★★★☆☆
Overview: Genus is a biotechnology company specializing in animal genetics, with operations focused on improving livestock breeding and a market cap of approximately ￡2.50 billion.
Operations: The company generates revenue primarily from Genus ABS (￡314.90 million) and Genus PIC (￡352.50 million). Over the periods, net income margins have fluctuated, reaching as high as 14.05% and dropping to -1.40%.