UK Stocks That May Be Undervalued In June 2025

As the UK market grapples with challenges from weak trade data in China, the FTSE 100 and FTSE 250 indices have experienced declines, reflecting broader concerns about global economic recovery. In such an environment, identifying undervalued stocks can offer potential opportunities for investors seeking resilience and growth despite prevailing uncertainties.

Top 10 Undervalued Stocks Based On Cash Flows In The United Kingdom

Click here to see the full list of 51 stocks from our Undervalued UK Stocks Based On Cash Flows screener.

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

Brickability Group (AIM:BRCK)

Overview: Brickability Group Plc, along with its subsidiaries, is involved in the supply, distribution, and importation of building products within the United Kingdom and has a market capitalization of £219.05 million.

Operations: The company's revenue segments include £90.55 million from importing, £88.22 million from contracting, £63.21 million from distribution, and £380.56 million from bricks and building materials within the UK market.

Estimated Discount To Fair Value: 10.6%

Brickability Group is trading at £0.68, slightly below the estimated fair value of £0.76, indicating it might be undervalued based on cash flows. Despite a forecasted revenue growth of 5.8% per year, which outpaces the UK market's 3.8%, profit margins have decreased from last year’s 4.3% to 1.4%. However, earnings are expected to grow significantly by 39.58% annually over the next three years, outperforming the market's anticipated growth rate of 14.5%.

• Insights from our recent growth report point to a promising forecast for Brickability Group's business outlook.
• Get an in-depth perspective on Brickability Group's balance sheet by reading our health report here.

Property Franchise Group (AIM:TPFG)

Overview: The Property Franchise Group PLC operates in the United Kingdom, focusing on residential property franchising, licensing, and financial services, with a market cap of £325.14 million.

Operations: The company's revenue is derived from three main segments: £7.21 million from licensing, £19.20 million from financial services, and £40.90 million from property franchising in the United Kingdom.

Estimated Discount To Fair Value: 38.2%

Property Franchise Group is trading at £5.1, below its fair value estimate of £8.25, suggesting it might be undervalued based on cash flows. Despite a drop in profit margins from 27.1% to 15.1%, earnings are expected to grow significantly by 26.35% annually, outpacing the UK market's growth rate of 14.5%. Recent earnings showed sales increased to £67.31 million from £27.28 million last year, though dividends remain poorly covered by earnings.

• The growth report we've compiled suggests that Property Franchise Group's future prospects could be on the up.
• Take a closer look at Property Franchise Group's balance sheet health here in our report.

Applied Nutrition (LSE:APN)

Overview: Applied Nutrition Plc is involved in the manufacture, wholesale, and retail of sports nutritional products both in the United Kingdom and internationally, with a market cap of £326.50 million.

Operations: The company's revenue primarily comes from its Vitamins & Nutrition Products segment, which generated £88.35 million.

Estimated Discount To Fair Value: 33.8%

Applied Nutrition is trading at £1.31, below its estimated fair value of £1.97, indicating undervaluation based on cash flows. Despite a decrease in net income to £8.9 million from £12.3 million, earnings are forecast to grow annually by 15.7%, surpassing the UK market average of 14.5%. The recent strategic partnership with TANG® could enhance revenue streams, supporting the projected revenue growth rate of 11.8% per year above market expectations.

• Our earnings growth report unveils the potential for significant increases in Applied Nutrition's future results.
• Click to explore a detailed breakdown of our findings in Applied Nutrition's balance sheet health report.

Where To Now?

• Reveal the 51 hidden gems among our Undervalued UK Stocks Based On Cash Flows screener with a single click here.
• Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools.
• Take control of your financial future using Simply Wall St, offering free, in-depth knowledge of international markets to every investor.

Interested In Other Possibilities?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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