Stock Analysis

Exploring Assura And Two Other Undervalued Small Caps With Insider Actions In The United Kingdom

Published

In the United Kingdom, market sentiment is cautiously optimistic as investors digest the implications of recent political changes and economic indicators. With a new government in place and fewer businesses planning price increases, there may be subtle shifts in market dynamics that could highlight opportunities among undervalued small-cap stocks like Assura. Understanding what makes a good stock involves considering how well-positioned a company is to navigate current economic conditions, including its ability to adapt to political and economic shifts within the UK.

Top 10 Undervalued Small Caps With Insider Buying In The United Kingdom

NamePEPSDiscount to Fair ValueValue Rating
Ultimate Products9.5x0.7x19.85%★★★★★☆
Norcros7.9x0.5x43.59%★★★★★☆
THGNA0.4x41.80%★★★★★☆
CVS Group21.0x1.2x41.78%★★★★☆☆
M&C SaatchiNA0.5x49.04%★★★★☆☆
Bytes Technology Group28.4x6.4x-12.42%★★★☆☆☆
Robert Walters20.3x0.3x38.84%★★★☆☆☆
TrifastNA0.4x-46.32%★★★☆☆☆
GB GroupNA3.3x19.93%★★★☆☆☆
Hochschild MiningNA1.8x37.72%★★★☆☆☆

Click here to see the full list of 33 stocks from our Undervalued Small Caps With Insider Buying screener.

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

Assura (LSE:AGR)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Assura is a healthcare real estate investment trust that focuses on the acquisition, development, and management of primary care facilities across the UK, with a market capitalization of approximately £1.74 billion.

Operations: The entity has demonstrated a consistently high gross profit margin, averaging approximately 92.4% over recent periods, with the latest figure at 90.81%. This reflects efficient cost management relative to its revenue generation, which stood at £157.8 million in the most recent reporting period.

PE: -43.8x

Assura, a specialist in healthcare property investment, recently showcased significant insider confidence with purchases made by executives. This move underscores a robust belief in the company's prospects amidst its strategic expansion into essential NHS infrastructure. With earnings forecasted to grow 40.91% annually and a notable reduction in net loss from GBP 119.2 million to GBP 28.8 million year-over-year, Assura's financial recovery appears well underway. The firm also announced a dividend increase and has entered into a GBP 250 million joint venture to enhance NHS community healthcare facilities, reflecting its commitment to long-term growth in this sector.

LSE:AGR Share price vs Value as at Jul 2024

Kier Group (LSE:KIE)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Kier Group is a construction and infrastructure services provider with operations primarily in building and civil engineering, supporting a market capitalization of approximately £241 million.

Operations: The company generates substantial revenue from Construction and Infrastructure Services, with respective segments contributing £1.86 billion and £1.87 billion. Gross profit margin has shown variability over recent periods, trending at approximately 0.087% as of the latest reported quarter.

PE: 16.7x

Kier Group, often overlooked, demonstrates a compelling narrative through its financial maneuvers and strategic market positioning. Recently, insiders have shown their confidence by purchasing shares, signaling strong belief in the company's prospects. With earnings expected to grow by 22% annually, this highlights not just recovery but potential underappreciated growth avenues. Despite relying solely on external borrowing—a riskier strategy—its ability to maintain high-quality earnings amidst significant one-off items suggests resilience and adaptability in challenging environments.

LSE:KIE Share price vs Value as at Jul 2024

MONY Group (LSE:MONY)

Simply Wall St Value Rating: ★★★★★★

Overview: MONY Group operates in diverse sectors including insurance, money services, travel, cashback programs, and home services, boasting a market capitalization of approximately £1.5 billion.

Operations: The company generates its highest revenue from the Insurance segment at £220 million, followed by Money services which contribute £100.2 million. Gross profit margins have shown a consistent trend, with the most recent figure reported at approximately 67.67%.

PE: 17.5x

MONY Group, formerly known as Moneysupermarket.com, recently showcased a revenue increase to £115 million in Q1 2024 from £106 million the previous year, signaling robust operational momentum. With earnings expected to grow by over 10% annually, the company's financial health appears solid. Insider confidence is evident as they have recently purchased shares, underscoring a belief in the firm’s potential despite its reliance on external borrowing. Set to rebrand on May 20, MONY Group's evolution could further unlock value for investors looking at promising yet undervalued entities within the UK market.

LSE:MONY Share price vs Value as at Jul 2024

Taking Advantage

Ready To Venture Into Other Investment Styles?

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.

New: Manage All Your Stock Portfolios in One Place

We've created the ultimate portfolio companion for stock investors, and it's free.

• Connect an unlimited number of Portfolios and see your total in one currency
• Be alerted to new Warning Signs or Risks via email or mobile
• Track the Fair Value of your stocks

Try a Demo Portfolio for Free

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com