Alpha Group International And 2 Other Undiscovered Gems In The United Kingdom

The United Kingdom's market has recently faced headwinds, with the FTSE 100 and FTSE 250 indices both closing lower amid weak trade data from China. This downturn highlights the importance of identifying resilient small-cap companies that can thrive despite broader economic challenges. In this article, we explore three such undiscovered gems in the UK market, starting with Alpha Group International.

Top 10 Undiscovered Gems With Strong Fundamentals In The United Kingdom

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Andrews Sykes Group	NA	1.69%	3.16%	★★★★★★
Globaltrans Investment	15.40%	2.68%	16.51%	★★★★★★
Impellam Group	31.12%	-5.43%	-6.86%	★★★★★★
London Security	0.31%	9.47%	7.41%	★★★★★★
M&G Credit Income Investment Trust	NA	-0.35%	1.18%	★★★★★★
Rights and Issues Investment Trust	NA	-3.68%	-4.07%	★★★★★★
FW Thorpe	3.34%	11.37%	9.41%	★★★★★☆
Goodwin	59.96%	9.26%	13.12%	★★★★★☆
BBGI Global Infrastructure	0.02%	6.58%	9.90%	★★★★★☆
Mountview Estates	16.64%	4.50%	-0.59%	★★★★☆☆

Click here to see the full list of 78 stocks from our UK Undiscovered Gems With Strong Fundamentals screener.

Underneath we present a selection of stocks filtered out by our screen.

Alpha Group International (LSE:ALPH)

Simply Wall St Value Rating: ★★★★★★

Overview: Alpha Group International plc offers foreign exchange risk management and alternative banking solutions across the United Kingdom, Europe, Canada, and internationally, with a market cap of £1.07 billion.

Operations: Alpha Group International plc generates revenue primarily from Alpha Pay (£64.30 million), Institutional services (£61.29 million), and Corporate London excluding Corporate Amsterdam (£45.42 million). Other notable segments include Corporate Amsterdam (£8.70 million) and Corporate Toronto (£4.23 million).

Alpha Group International, trading at a P/E ratio of 12.1x compared to the UK market's 16.9x, shows strong value. Earnings surged by 130% last year, outpacing the Capital Markets industry growth of just 0.3%. With no debt on its balance sheet for five years and high-quality non-cash earnings, Alpha stands out in its sector. Recently added to multiple FTSE indices and authorized to repurchase up to 4.32 million shares, Alpha seems poised for further recognition and potential growth.

• Click here and access our complete health analysis report to understand the dynamics of Alpha Group International.

• Review our historical performance report to gain insights into Alpha Group International's's past performance.

Cairn Homes (LSE:CRN)

Simply Wall St Value Rating: ★★★★★★

Overview: Cairn Homes plc is a holding company that operates as a home and community builder in Ireland, with a market cap of £1.02 billion.

Operations: Cairn Homes generates revenue primarily from building and property development, amounting to €666.81 million. The company has a market cap of £1.02 billion.

Cairn Homes, a notable player in the UK housing market, offers an attractive P/E ratio of 14x compared to the broader market's 16.9x. The company's net debt to equity ratio stands at a satisfactory 19.6%, having improved from 26% over five years. Earnings have grown by 5.4% in the past year, outperforming its industry’s -14%. Additionally, EBIT covers interest payments comfortably at 8.4x, indicating robust financial health and high-quality earnings potential for investors.

• Click here to discover the nuances of Cairn Homes with our detailed analytical health report.

• Gain insights into Cairn Homes' historical performance by reviewing our past performance report.

Goodwin (LSE:GDWN)

Simply Wall St Value Rating: ★★★★★☆

Overview: Goodwin PLC, with a market cap of £557.21 million, provides mechanical and refractory engineering solutions primarily in the United Kingdom, Europe, the United States, the Pacific Basin, and internationally.

Operations: Goodwin PLC generates revenue through its Mechanical Engineering (£156.94 million) and Refractory Engineering (£75.86 million) segments.

Goodwin PLC, recently added to the FTSE 250 Index, reported sales of £191.26 million for the full year ending April 2024, up from £185.74 million. Net income rose to £16.9 million compared to £15.9 million previously, with basic earnings per share at £2.25 versus £2.07 a year ago. Despite a volatile share price over the past three months, Goodwin's debt-to-equity ratio increased from 26% to 60% over five years while maintaining satisfactory net debt levels (35%).

• Take a closer look at Goodwin's potential here in our health report.

• Evaluate Goodwin's historical performance by accessing our past performance report.

Turning Ideas Into Actions

• Investigate our full lineup of 78 UK Undiscovered Gems With Strong Fundamentals right here.
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Ready To Venture Into Other Investment Styles?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
• 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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