Stock Analysis

James Halstead And 2 Other Undiscovered Gems in the United Kingdom

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The United Kingdom's market has recently experienced some turbulence, with the FTSE 100 closing lower due to weak trade data from China and broader global economic concerns. Despite this backdrop, there remain promising opportunities within the small-cap sector for investors willing to explore beyond the well-trodden paths of blue-chip stocks. In this article, we will highlight three lesser-known companies that have shown resilience and potential in these challenging times: James Halstead and two other undiscovered gems in the United Kingdom.

Top 10 Undiscovered Gems With Strong Fundamentals In The United Kingdom

NameDebt To EquityRevenue GrowthEarnings GrowthHealth Rating
Andrews Sykes GroupNA1.69%3.16%★★★★★★
Globaltrans Investment15.40%2.68%16.51%★★★★★★
London Security0.31%9.47%7.41%★★★★★★
Georgia CapitalNA-27.80%18.94%★★★★★★
Impellam Group31.12%-5.43%-6.86%★★★★★★
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%★★★★★☆
BBGI Global Infrastructure0.02%6.58%9.90%★★★★★☆
Mountview Estates16.64%4.50%-0.59%★★★★☆☆

Click here to see the full list of 81 stocks from our UK Undiscovered Gems With Strong Fundamentals screener.

Let's uncover some gems from our specialized screener.

James Halstead (AIM:JHD)

Simply Wall St Value Rating: ★★★★★★

Overview: James Halstead plc manufactures and supplies flooring products for commercial and domestic uses across the United Kingdom, Europe, Scandinavia, Australasia, Asia, and internationally with a market cap of £754.38 million.

Operations: James Halstead generates £290.38 million in revenue from the manufacture and distribution of flooring products. The company has a market cap of £754.38 million.

James Halstead, a flooring manufacturer, has demonstrated robust financial health and growth. Earnings have grown by 15% over the past year, outpacing the building industry’s 8.1%. The company’s debt to equity ratio has improved from 0.2 to 0.1 in five years, indicating prudent financial management. Additionally, James Halstead is forecasted to grow revenue by 4.31% annually and boasts more cash than total debt, ensuring stability and potential for future expansion.

AIM:JHD Debt to Equity as at Aug 2024

London Security (AIM:LSC)

Simply Wall St Value Rating: ★★★★★★

Overview: London Security plc, with a market cap of £478.14 million, is an investment holding company that manufactures, sells, and rents fire protection equipment across several European countries including the United Kingdom, Belgium, the Netherlands, Austria, France, Germany, Denmark, and Luxembourg.

Operations: London Security generates £219.71 million in revenue from the provision and maintenance of fire protection and security equipment across several European countries.

London Security has shown robust financial health, with its debt to equity ratio dropping from 8.6% to 0.3% over the last five years. The company’s earnings growth of 15.1% in the past year outpaced the Machinery industry, which saw a -10.1% decline during the same period. Additionally, London Security's interest payments are well covered by EBIT at a staggering 717.9x coverage, reflecting strong operational efficiency and profitability.

AIM:LSC Earnings and Revenue Growth as at Aug 2024

Property Franchise Group (AIM:TPFG)

Simply Wall St Value Rating: ★★★★★★

Overview: The Property Franchise Group PLC, with a market cap of £282.97 million, manages and leases residential real estate properties in the United Kingdom.

Operations: Revenue streams for The Property Franchise Group PLC include £25.78 million from property franchising and £1.50 million from financial services.

Property Franchise Group (TPFG) has shown robust financial health, with earnings growing at 20.6% annually over the past five years and trading at 61% below its estimated fair value. The company’s debt to equity ratio improved from 10.2 to 6.1 in five years, and it boasts more cash than total debt. Interest payments are well covered by EBIT at a multiple of 26.6x, ensuring financial stability for future growth prospects.

AIM:TPFG Debt to Equity as at Aug 2024

Summing It All Up

Interested In Other Possibilities?

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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