The United Kingdom's stock market has recently faced challenges, with the FTSE 100 and FTSE 250 indices experiencing declines due to weak trade data from China, highlighting the global interconnectedness of economies. Despite these broader market pressures, small-cap stocks often present unique opportunities for investors seeking growth potential in less-explored areas. In this context, identifying promising small-cap companies can be particularly rewarding as they may offer resilience and innovation amidst fluctuating economic conditions.
Top 10 Undiscovered Gems With Strong Fundamentals In The United Kingdom
| Name | Debt To Equity | Revenue Growth | Earnings Growth | Health Rating |
|---|---|---|---|---|
| B.P. Marsh & Partners | NA | 38.21% | 41.39% | ★★★★★★ |
| BioPharma Credit | NA | 7.22% | 7.91% | ★★★★★★ |
| Anglo-Eastern Plantations | NA | 8.55% | 11.10% | ★★★★★★ |
| Rights and Issues Investment Trust | NA | -7.87% | -8.41% | ★★★★★★ |
| Andrews Sykes Group | NA | 2.08% | 5.03% | ★★★★★★ |
| Nationwide Building Society | 277.32% | 10.61% | 23.42% | ★★★★★☆ |
| FW Thorpe | 2.95% | 11.79% | 13.49% | ★★★★★☆ |
| Goodwin | 37.02% | 9.75% | 15.68% | ★★★★★☆ |
| AltynGold | 73.21% | 26.90% | 31.85% | ★★★★☆☆ |
| Law Debenture | 17.80% | 11.81% | 7.59% | ★★★★☆☆ |
Let's uncover some gems from our specialized screener.
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 UK, Europe, the Middle East, Africa, and internationally with a market capitalization of £213.48 million.
Operations: The company generates revenue primarily from its Hire & Sales UK segment (£43.13 million) and Hire & Sales Europe (excluding UK) segment (£24.09 million). The Middle East contributes £7.68 million, while Installation and Maintenance add £1.57 million to the revenue stream.
With no debt on its books, Andrews Sykes Group stands out in the Trade Distributors sector, boasting a price-to-earnings ratio of 12.7x, which is below the UK market average of 16.2x. Despite a net income dip to £16.8 million from £17.76 million last year and earnings per share at GBP 0.4013 compared to GBP 0.4224 previously, it remains profitable with positive free cash flow at £19.44 million as of June 2024 and high-quality past earnings noted by analysts. The company proposes a final dividend of 14 pence per share totaling £5.9 million if approved in June's AGM.
- Click to explore a detailed breakdown of our findings in Andrews Sykes Group's health report.
Evaluate Andrews Sykes Group's historical performance by accessing our past performance report.
Hargreaves Services (AIM:HSP)
Simply Wall St Value Rating: ★★★★★★
Overview: Hargreaves Services Plc offers environmental and industrial services across the United Kingdom, Europe, Hong Kong, and internationally with a market capitalization of approximately £219.14 million.
Operations: Hargreaves Services generates revenue primarily from its services segment, amounting to £219.11 million, with an additional contribution from Hargreaves Land at £10.54 million. The company's net profit margin is a crucial metric to consider when evaluating its financial performance.
Hargreaves Services, a UK-based entity, stands out with its debt-free status and noteworthy earnings growth of 15% over the past year, surpassing the Oil and Gas industry. Trading at 55.8% below its estimated fair value suggests potential for investors seeking undervalued opportunities. The company experienced a significant one-off gain of £6.2M in recent financial results, which may have skewed perceptions of profitability but highlights robust performance despite such anomalies. With earnings forecasted to grow by 25% annually, Hargreaves seems poised for continued expansion under new leadership from Simon Hicks as COO from June 2025.
- Navigate through the intricacies of Hargreaves Services with our comprehensive health report here.
Explore historical data to track Hargreaves Services' performance over time in our Past section.
Supreme (AIM:SUP)
Simply Wall St Value Rating: ★★★★★★
Overview: Supreme Plc is a company that owns, manufactures, and distributes a variety of products including batteries, lighting, vaping, sports nutrition and wellness items, as well as branded household consumer goods across the UK and internationally, with a market cap of £232.87 million.
Operations: Supreme's primary revenue streams are derived from its vaping segment (£77.29 million) and branded household consumer goods (£67.25 million), followed by batteries (£42.00 million). The company also generates income from sports nutrition & wellness (£18.52 million) and lighting (£17.13 million).
Supreme's strategic acquisition of Clearly Drinks seems poised to bolster its foothold in the Soft Drinks sector, with anticipated revenue growth and improved profit margins through synergies. Despite a forecasted 9% annual decline in earnings over three years, recent earnings grew by an impressive 33%, outpacing industry norms. Trading at 45% below estimated fair value, Supreme appears undervalued. With no debt and a robust cash position, the company is well-equipped for future acquisitions. However, regulatory challenges in vaping and reliance on M&A for growth present potential hurdles that investors should weigh against projected modest revenue increases to £235 million this fiscal year.
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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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Discover if Supreme might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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