3 UK Penny Stocks With Market Caps Under £200M

The United Kingdom's stock market has been under pressure recently, with the FTSE 100 index experiencing declines due to weak trade data from China, highlighting global economic challenges. Despite these broader market concerns, penny stocks—often associated with smaller or newer companies—remain an intriguing investment area for those seeking potential growth opportunities. While the term "penny stocks" might seem outdated, these investments can still hold value when backed by strong financials and may offer unique prospects for investors aiming to uncover under-the-radar companies with long-term potential.

Top 10 Penny Stocks In The United Kingdom

Name	Share Price	Market Cap	Financial Health Rating
FRP Advisory Group (AIM:FRP)	£1.42	£348.23M	★★★★★★
ME Group International (LSE:MEGP)	£2.14	£806.26M	★★★★★★
Polar Capital Holdings (AIM:POLR)	£4.915	£473.73M	★★★★★★
Next 15 Group (AIM:NFG)	£4.29	£426.67M	★★★★☆☆
Ultimate Products (LSE:ULTP)	£1.42	£121.23M	★★★★★★
Supreme (AIM:SUP)	£1.57	£183.08M	★★★★★★
Tristel (AIM:TSTL)	£4.08	£194.41M	★★★★★★
Luceco (LSE:LUCE)	£1.398	£215.61M	★★★★★☆
Stelrad Group (LSE:SRAD)	£1.48	£188.48M	★★★★★☆
Character Group (AIM:CCT)	£2.74	£51.44M	★★★★★★

Click here to see the full list of 474 stocks from our UK Penny Stocks screener.

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

CML Microsystems (AIM:CML)

Simply Wall St Financial Health Rating: ★★★★★★

Overview: CML Microsystems plc designs, manufactures, and markets semiconductor products for the communications industries globally, with a market cap of £43.02 million.

Operations: The company generates £22.89 million in revenue from its semiconductor components tailored for the communications sector.

Market Cap: £43.02M

CML Microsystems, with a market cap of £43.02 million and revenue of £22.89 million, operates debt-free, which strengthens its financial stability. Its experienced board and management team provide strong governance. However, the company faces challenges with low return on equity at 4% and declining profit margins from 23.3% to 9%. Despite significant earnings growth over the past five years, recent negative earnings growth (-57.2%) highlights volatility in performance compared to industry averages. Recent corporate guidance indicates slightly improved operating results for early 2024, aligning with market expectations while anticipating better customer inventory levels later this year.

• Unlock comprehensive insights into our analysis of CML Microsystems stock in this financial health report.
• Learn about CML Microsystems' historical performance here.

ECO Animal Health Group (AIM:EAH)

Simply Wall St Financial Health Rating: ★★★★★★

Overview: ECO Animal Health Group plc, with a market cap of £50.14 million, develops, registers, and markets pharmaceutical products for animals globally.

Operations: The company's revenue is derived entirely from its Pharmaceuticals segment, amounting to £89.42 million.

Market Cap: £50.14M

ECO Animal Health Group, with a market cap of £50.14 million and revenue of £89.42 million, is debt-free which enhances its financial flexibility. Despite high-quality earnings, the company faces challenges with low return on equity at 2.2% and volatile share prices in recent months. While short-term assets (£74.7M) comfortably cover both short-term (£25.2M) and long-term liabilities (£4.7M), earnings growth has been modest at 4% over the past year compared to a significant decline over five years (-45.6% per year). The experienced board and management team provide stability amidst these financial dynamics.

• Dive into the specifics of ECO Animal Health Group here with our thorough balance sheet health report.
• Explore ECO Animal Health Group's analyst forecasts in our growth report.

Epwin Group (AIM:EPWN)

Simply Wall St Financial Health Rating: ★★★★★☆

Overview: Epwin Group Plc manufactures and sells building products in the United Kingdom, Europe, and internationally with a market cap of £148.75 million.

Operations: The company's revenue is primarily derived from its Extrusion and Moulding segment, which generated £233.3 million, and its Fabrication and Distribution segment, which brought in £130.4 million.

Market Cap: £148.75M

Epwin Group, with a market cap of £148.75 million, has demonstrated solid financial management despite some challenges. The company reported half-year sales of £158 million and net income of £6 million, reflecting stable earnings per share. Recent strategic moves include a completed share buyback and an increased dividend, indicating shareholder value focus. While the debt to equity ratio has improved over five years from 43.4% to 24.2%, short-term assets do not cover long-term liabilities (£113.9M). Earnings growth outpaced the industry at 11% last year, supported by experienced management but constrained by an inexperienced board.

• Get an in-depth perspective on Epwin Group's performance by reading our balance sheet health report here.
• Examine Epwin Group's earnings growth report to understand how analysts expect it to perform.

Turning Ideas Into Actions

• Embark on your investment journey to our 474 UK Penny Stocks selection here.
• Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly.
• Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.

Want To Explore Some Alternatives?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Jump on the AI train with fast growing tech companies forging a new era of innovation.
• Find companies with promising cash flow potential yet trading below their fair value.

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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