Stock Analysis

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

LSE:BBGI
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The market in the United Kingdom has climbed 1.5% over the last week and is up 6.2% over the past 12 months, with earnings forecasted to grow by 13% annually. In this promising environment, identifying stocks with strong growth potential and solid fundamentals can be particularly rewarding; Alpha Group International and two other undiscovered gems stand out as intriguing opportunities in this context.

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 Agro57.18%17.80%18.35%★★★★★☆
BBGI Global Infrastructure0.02%6.58%9.90%★★★★★☆
Mountview Estates16.64%4.50%-0.59%★★★★☆☆

Click here to see the full list of 76 stocks from our UK Undiscovered Gems With Strong Fundamentals screener.

Let's dive into some prime choices out of from the screener.

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 £1.08 billion.

Operations: Alpha Group International plc generates revenue primarily from its Alpha Pay (£64.30 million), Institutional (£61.29 million), and Corporate London (£45.42 million) segments, with smaller contributions from Corporate Amsterdam (£8.70 million), Corporate Toronto (£4.23 million), and Cobase (£0.19 million).

Alpha Group International, trading at a P/E ratio of 12.2x compared to the UK market's 16.5x, shows strong value potential. Its earnings surged by 130% last year, outpacing the industry growth of 0.5%. The company is debt-free and has consistently high-quality non-cash earnings. Recent developments include being added to multiple FTSE indices and commencing a share repurchase program authorized to buy back up to 4.31 million shares, enhancing shareholder value further.

LSE:ALPH Debt to Equity as at Jul 2024
LSE:ALPH Debt to Equity as at Jul 2024

BBGI Global Infrastructure (LSE:BBGI)

Simply Wall St Value Rating: ★★★★★☆

Overview: BBGI Global Infrastructure S.A. is an investment firm specializing in infrastructure investments in operational or near-operational assets, with a market cap of £1.00 billion.

Operations: BBGI Global Infrastructure generates revenue primarily from its Financial Services - Closed End Funds segment, amounting to £48.10 million.

BBGI Global Infrastructure has seen its debt to equity ratio drop from 1.8% to 0.02% over the past five years, demonstrating effective debt management. Interest payments are well covered by EBIT at 14.8 times, indicating strong financial health. However, earnings growth was negative at -66.2% last year compared to the industry average of 0.5%. The company initiated a share repurchase program in May 2024, authorized to buy back up to approximately 107 million shares or about 15% of its issued share capital.

LSE:BBGI Earnings and Revenue Growth as at Jul 2024
LSE:BBGI Earnings and Revenue Growth as at Jul 2024

Law Debenture (LSE:LWDB)

Simply Wall St Value Rating: ★★★★☆☆

Overview: The Law Debenture Corporation p.l.c., with a market cap of £1.19 billion, operates as an investment trust offering independent professional services to companies, agencies, organizations, and individuals globally.

Operations: Law Debenture generates revenue primarily from its Investment Portfolio (£35.62 million) and Independent Professional Services (£61.55 million).

Law Debenture has shown remarkable growth, with earnings surging by 340.1% over the past year, outpacing the Capital Markets industry. The company's net debt to equity ratio stands at a satisfactory 15%, and its interest payments are well covered by EBIT at 21.9x. Recent half-year results revealed revenue of £111.97 million and net income of £82 million, significantly up from last year's figures of £44.02 million and £16.54 million respectively.

LSE:LWDB Earnings and Revenue Growth as at Jul 2024
LSE:LWDB Earnings and Revenue Growth as at Jul 2024

Where To Now?

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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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