Undervalued Small Caps With Insider Action In United Kingdom September 2024
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The United Kingdom's market has faced recent turbulence, with the FTSE 100 and FTSE 250 indices closing lower amid weak trade data from China, highlighting global economic uncertainties. Despite these challenges, small-cap stocks can offer unique opportunities for investors seeking to navigate the current market landscape. In this article, we will explore three undervalued small-cap stocks in the UK that have seen notable insider action, potentially signaling 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 | 24.5x | 5.5x | 13.10% | ★★★★★☆ |
| Domino's Pizza Group | 14.9x | 1.7x | 36.19% | ★★★★★☆ |
| Genus | 157.7x | 1.9x | 3.88% | ★★★★★☆ |
| GB Group | NA | 2.8x | 36.86% | ★★★★★☆ |
| CVS Group | 23.2x | 1.3x | 39.14% | ★★★★☆☆ |
| Essentra | 679.9x | 1.3x | 42.59% | ★★★★☆☆ |
| Norcros | 7.9x | 0.5x | -1.48% | ★★★☆☆☆ |
| NWF Group | 8.8x | 0.1x | 35.51% | ★★★☆☆☆ |
| Franchise Brands | 43.1x | 2.2x | 38.94% | ★★★☆☆☆ |
| Watkin Jones | NA | 0.2x | -1447.86% | ★★★☆☆☆ |
Let's dive into some prime choices out of from the screener.
Bytes Technology Group
Simply Wall St Value Rating: ★★★★★☆
Overview: Bytes Technology Group is an IT solutions provider with a market cap of approximately ￡1.02 billion.
Operations: The company generates revenue primarily from IT solutions, with the latest reported revenue at ￡207.02 million. The net income margin has shown an upward trend, reaching 22.63% as of February 2024. Operating expenses have been a significant part of the cost structure, amounting to ￡89.07 million in the same period.
PE: 24.5x
Bytes Technology Group, a small cap in the UK, recently announced a special dividend of 8.7 pence per share and increased its final dividend to 6.0 pence per share at their AGM on July 11, 2024. This indicates strong cash flow management despite relying entirely on external borrowing for funding. Earnings are forecasted to grow by 9.57% annually, reflecting potential for future growth. Insider confidence is evident from recent share purchases within the last quarter, suggesting optimism about the company's prospects.
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Dive into the specifics of Bytes Technology Group here with our thorough valuation report.
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Evaluate Bytes Technology Group's historical performance by accessing our past performance report.
Hays
Simply Wall St Value Rating: ★★★★★☆
Overview: Hays is a global recruitment company specializing in qualified, professional, and skilled recruitment services with a market cap of ￡1.50 billion.
Operations: Hays generates revenue primarily through its Qualified, Professional and Skilled Recruitment segment, with a recent gross profit margin of 4.21%. The company incurs costs mainly in COGS (￡6656.5m) and operating expenses (￡225.8m).