Undiscovered Gems in United Kingdom for September 2024

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 interconnectedness of global economies and underscores the importance of identifying resilient stocks that can weather such fluctuations. In this environment, finding undiscovered gems—stocks with strong fundamentals and growth potential—is crucial for investors looking to diversify their portfolios.

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%	★★★★★★
BBGI Global Infrastructure	0.02%	3.08%	6.85%	★★★★★☆
FW Thorpe	3.34%	11.37%	9.41%	★★★★★☆
Goodwin	52.21%	9.26%	13.12%	★★★★★☆
Mountview Estates	16.64%	4.50%	-0.59%	★★★★☆☆

Click here to see the full list of 82 stocks from our UK Undiscovered Gems With Strong Fundamentals screener.

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

Alfa Financial Software Holdings (LSE:ALFA)

Simply Wall St Value Rating: ★★★★★★

Overview: Alfa Financial Software Holdings PLC, with a market cap of £658.11 million, offers software and consultancy services to the auto and equipment finance industry across the UK, US, Europe, Middle East, Africa, and globally.

Operations: Alfa Financial Software Holdings PLC generated £101.40 million from the sale of software and related services. The company's net profit margin stands at 25%.

Alfa Financial Software Holdings, a UK-based software company, recently announced a special dividend of 4.2 pence per share. For the first half of 2024, sales reached £52.3 million with net income at £11.9 million compared to last year's £13.3 million. Despite negative earnings growth (-15.6%) over the past year, Alfa remains debt-free and boasts high-quality earnings with a price-to-earnings ratio of 29.8x below the industry average (37.4x).

• Take a closer look at Alfa Financial Software Holdings' potential here in our health report.

• Evaluate Alfa Financial Software Holdings' historical performance by accessing our past performance report.

Goodwin (LSE:GDWN)

Simply Wall St Value Rating: ★★★★★☆

Overview: Goodwin PLC, with a market cap of £569.23 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 (£156.94 million) and Refractory Engineering (£75.86 million) segments.

Goodwin, a notable player in the UK machinery sector, has shown resilience with earnings growth of 6.3% over the past year, outperforming the industry average of -4.7%. The company's net debt to equity ratio is satisfactory at 25.9%, and its interest payments are well covered by EBIT at 9.8x coverage. Recently added to multiple FTSE indices, Goodwin reported full-year sales of GBP 191.26 million and net income of GBP 16.9 million for April 2024.

• Unlock comprehensive insights into our analysis of Goodwin stock in this health report.

• Gain insights into Goodwin's historical performance by reviewing our past performance report.

Raspberry Pi Holdings (LSE:RPI)

Simply Wall St Value Rating: ★★★★★★

Overview: Raspberry Pi Holdings plc designs and develops single-board computers and compute modules worldwide, with a market cap of £658.77 million.

Operations: Raspberry Pi Holdings generates revenue primarily from its computer hardware segment, amounting to $265.80 million.

Raspberry Pi Holdings, a small tech company, has seen earnings growth of 85% over the past year, outpacing the Tech industry’s 45.1%. Debt-free for five years and boasting high-quality non-cash earnings, RPI's revenue is forecast to grow 11.36% annually. Recently launched Raspberry Pi Pico 2 enhances their product line with faster processors and better security features. The appointment of Sherry Coutu as Senior Independent Director strengthens their leadership team.

• Delve into the full analysis health report here for a deeper understanding of Raspberry Pi Holdings.

• Gain insights into Raspberry Pi Holdings' past trends and performance with our Past report.

Turning Ideas Into Actions

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Looking For Alternative Opportunities?

• 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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