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- LSE:CRN
Exploring Three Undiscovered Gems In The United Kingdom
Reviewed by Simply Wall St
The UK market has recently faced headwinds, with the FTSE 100 and FTSE 250 indices both closing lower amid weak trade data from China, highlighting concerns about global economic recovery. Despite these challenges, there remain opportunities to uncover promising small-cap stocks that are well-positioned to thrive even in uncertain times.
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% | ★★★★☆☆ |
Let's review some notable picks from our screened stocks.
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 Amsterdam (£45.42 million). Additional revenue streams include Corporate Amsterdam (£8.70 million), Corporate Toronto (£4.23 million), and Cobase (£0.19 million).
Alpha Group International has shown impressive earnings growth of 130% over the past year, significantly outpacing the Capital Markets industry's 0.3%. With a Price-To-Earnings ratio of 12.1x, it trades at a good value compared to peers and the broader UK market (16.9x). The company is debt-free and has been for five years, ensuring no concerns about interest payments. Recent additions to several FTSE indices highlight its growing prominence in the market.
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: Revenue for Cairn Homes primarily comes from building and property development, totaling €666.81 million. The net profit margin stands at 12.5%.
Cairn Homes, a promising player in the UK market, has shown impressive earnings growth of 5.4% over the past year, outpacing the Consumer Durables industry average of -14%. With a price-to-earnings ratio of 14x, it trades below the UK market's 16.9x, indicating good value. The net debt to equity ratio stands at a satisfactory 19.6%, and interest payments are well covered by EBIT at 8.4x coverage. With high-quality earnings and robust free cash flow positivity, Cairn Homes appears well-positioned for future growth.
- Click to explore a detailed breakdown of our findings in Cairn Homes' health report.
Understand Cairn Homes' track record by examining our Past 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 primarily from its Mechanical Engineering segment (£156.94 million) and Refractory Engineering segment (£75.86 million).
Goodwin PLC, recently added to the FTSE 250 and FTSE All-Share Indexes, reported sales of £191.26 million for the year ending April 2024, up from £185.74 million previously. Net income rose to £16.9 million from £15.9 million a year ago. The company's net debt to equity ratio stands at a satisfactory 35.7%. Earnings grew by 6.3%, outpacing the Machinery industry's -4.7%. Interest payments are well covered by EBIT at 9.8x coverage, reflecting robust financial health despite high volatility in share price over the last three months.
Summing It All Up
- Click here to access our complete index of 78 UK Undiscovered Gems With Strong Fundamentals.
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Ready To Venture Into Other Investment Styles?
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- 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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About LSE:CRN
Cairn Homes
A holding company, operates as a home and community builder in Ireland.
Flawless balance sheet and fair value.