Stock Analysis

Undiscovered Gems In The United Kingdom Featuring Andrews Sykes Group And 2 Other Promising Stocks

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Over the last 7 days, the United Kingdom market has dropped 2.0%, but it remains up 5.0% over the past year with earnings forecast to grow by 14% annually. In such a dynamic environment, identifying promising stocks like Andrews Sykes Group and two other lesser-known companies can offer unique opportunities for investors seeking growth potential in an evolving market.

Top 10 Undiscovered Gems With Strong Fundamentals In The United Kingdom

NameDebt To EquityRevenue GrowthEarnings GrowthHealth Rating
Globaltrans Investment15.40%2.68%16.51%★★★★★★
Impellam Group31.12%-5.43%-6.86%★★★★★★
London Security0.31%9.47%7.41%★★★★★★
Georgia CapitalNA-27.80%18.94%★★★★★★
M&G Credit Income Investment TrustNA-0.35%1.18%★★★★★★
Fix Price Group43.59%12.53%23.49%★★★★★☆
Ros Agro49.06%17.05%17.70%★★★★★☆
Goodwin59.96%9.26%13.12%★★★★★☆
BBGI Global Infrastructure0.02%6.58%9.90%★★★★★☆
Mountview Estates16.64%4.50%-0.59%★★★★☆☆

Click here to see the full list of 80 stocks from our UK Undiscovered Gems With Strong Fundamentals screener.

We're going to check out a few of the best picks from our screener tool.

Andrews Sykes Group (AIM:ASY)

Simply Wall St Value Rating: ★★★★★★

Overview: Andrews Sykes Group plc is an investment holding company that specializes in the hire, sale, and installation of environmental control equipment across the United Kingdom, Europe, the Middle East, Africa, and internationally with a market cap of £229.18 million.

Operations: Andrews Sykes Group generates revenue primarily from the hire and sale of environmental control equipment, with significant contributions from the UK (£44.61 million) and Europe (£27.59 million). The Middle East adds £5.71 million, while installation and maintenance services contribute £2.11 million.

Andrews Sykes Group, a small cap in the UK, has shown robust financial health with no debt compared to five years ago when its debt-to-equity ratio was 7.6%. The company reported earnings growth of 4.3% over the past year, outpacing the Trade Distributors industry which saw a -6.5% change. Trading at 33.2% below estimated fair value and reporting net income of £17.76 million for 2023, ASY appears undervalued with high-quality earnings and positive free cash flow.

AIM:ASY Earnings and Revenue Growth as at Aug 2024

FW Thorpe (AIM:TFW)

Simply Wall St Value Rating: ★★★★★☆

Overview: FW Thorpe Plc, with a market cap of £422.43 million, designs, manufactures, and supplies professional lighting equipment in the United Kingdom, the Netherlands, Germany, rest of Europe, and internationally.

Operations: FW Thorpe generates revenue primarily from its Thorlux segment (£104.65 million) and Netherlands companies (£37.80 million). The Zemper Group and other companies contribute £19.62 million and £23.10 million, respectively.

FW Thorpe, a small cap in the UK lighting industry, has seen its earnings grow by 2.6% over the past year, outpacing the broader electrical sector's -3.9%. The company is trading at 51.3% below estimated fair value and has a debt to equity ratio of 3.3%, up from zero five years ago. With interest payments well covered by EBIT (2805x), FW Thorpe boasts high-quality earnings and remains cash flow positive despite recent executive changes effective July 2024.

AIM:TFW Earnings and Revenue Growth as at Aug 2024

Property Franchise Group (AIM:TPFG)

Simply Wall St Value Rating: ★★★★★★

Overview: The Property Franchise Group PLC manages and leases residential real estate properties in the United Kingdom, with a market cap of £288.58 million.

Operations: The Property Franchise Group PLC generates revenue primarily from property franchising (£25.78 million) and financial services (£1.50 million).

Property Franchise Group, a smaller player in the UK real estate sector, has seen its debt to equity ratio decrease from 10.2% to 6.1% over five years while maintaining an impressive EBIT coverage of interest payments at 26.6x. Trading at 60.4% below its estimated fair value, it shows potential for growth with earnings forecasted to increase by 36.71% annually and a solid history of growing profits by 20.6% per year over the past half-decade.

AIM:TPFG Earnings and Revenue Growth as at Aug 2024

Key Takeaways

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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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