Top Undervalued Small Caps With Insider Buying In United Kingdom September 2024

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The United Kingdom market has faced headwinds recently, with the FTSE 100 closing lower due to weak trade data from China and broader global economic concerns. Despite these challenges, small-cap stocks can present unique opportunities for investors, particularly those with insider buying which may signal confidence in their future prospects.

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

Name

PE

PS

Discount to Fair Value

Value Rating

Bytes Technology Group

23.4x

5.3x

16.97%

★★★★★☆

Essentra

768.2x

1.5x

42.90%

★★★★★☆

GB Group

NA

2.8x

38.44%

★★★★★☆

Genus

153.5x

1.8x

6.18%

★★★★★☆

NWF Group

8.4x

0.1x

37.55%

★★★★☆☆

CVS Group

22.9x

1.3x

39.98%

★★★★☆☆

Norcros

7.8x

0.5x

-0.41%

★★★☆☆☆

Foxtons Group

26.1x

1.2x

48.32%

★★★☆☆☆

Harworth Group

14.3x

7.5x

-524.44%

★★★☆☆☆

Watkin Jones

NA

0.2x

-3.79%

★★★☆☆☆

Click here to see the full list of 32 stocks from our Undervalued UK Small Caps With Insider Buying screener.

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

Hammerson

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Hammerson is a real estate investment company focused on developing, managing, and investing in flagship retail destinations across the UK, France, and Ireland with a market cap of approximately £1.04 billion.

Operations: The company's revenue streams primarily include its flagship destinations in the UK (£88.70 million), France (£53.20 million), and Ireland (£39.50 million). Gross profit margin has shown notable fluctuations, reaching as high as 87.12% and as low as 79.80% over the observed periods.

PE: -35.5x

Hammerson, a UK-based small cap, recently secured EUR 350 million in debt financing for Dundrum Town Centre, extending average debt maturity to 2.9 years. Despite reporting a GBP 516.7 million net loss for H1 2024, insider confidence is evident with recent share purchases by executives in July and August. The company declared an interim dividend of £0.00756 per share payable on September 30, indicating potential resilience and commitment to shareholder returns amidst challenging financials.

LSE:HMSO Share price vs Value as at Sep 2024
LSE:HMSO Share price vs Value as at Sep 2024

Rank Group

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Rank Group operates gaming and betting services through its Mecca bingo halls, Grosvenor Casinos, Enracha venues in Spain, and various digital platforms with a market cap of approximately £0.57 billion.

Operations: Rank Group's revenue streams include Mecca (£138.90M), Digital (£226M), Enracha Venues (£38.50M), and Grosvenor Casinos (£331.30M). The company's gross profit margin has shown variability, with recent figures around 42.05% to 43.08%. Operating expenses have typically ranged between £207M to £276.8M over the periods analyzed, impacting net income margins which have fluctuated significantly from -29.43% to 9.85%.