Discovering Undiscovered Gems in the United Kingdom July 2024

The United Kingdom market has shown a promising uptick, increasing by 1.5% over the last week and climbing 6.2% in the past year, with earnings expected to grow by 13% annually over the next few years. In this favorable environment, identifying stocks with strong growth potential and solid fundamentals can be particularly rewarding for investors seeking undiscovered gems.

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%	★★★★★★
London Security	0.31%	9.47%	7.41%	★★★★★★
Georgia Capital	NA	-27.80%	18.94%	★★★★★★
Impellam Group	31.12%	-5.43%	-6.86%	★★★★★★
M&G Credit Income Investment Trust	NA	-0.35%	1.18%	★★★★★★
Fix Price Group	43.59%	12.53%	23.49%	★★★★★☆
Ros Agro	57.18%	17.80%	18.35%	★★★★★☆
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 76 stocks from our UK Undiscovered Gems With Strong Fundamentals screener.

Here's a peek at a few of the choices 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 UK, Europe, Canada, and internationally, with a market cap of £1.08 billion.

Operations: Alpha Group International plc generates revenue from several segments, including Alpha Pay (£64.30 million), Institutional (£61.29 million), and Corporate London excluding Amsterdam (£45.42 million). Other significant contributions come from Corporate Amsterdam (£8.70 million) and Corporate Toronto (£4.23 million).

Alpha Group International, a promising player in the UK market, has shown impressive growth with earnings surging 130% over the past year. The company trades at a favorable price-to-earnings ratio of 12.2x compared to the UK market's 16.5x and remains debt-free, enhancing its financial stability. Recently added to multiple FTSE indices, Alpha also initiated a share repurchase program authorized to buy back up to 4.32 million shares, reflecting strong shareholder confidence and future growth potential

• Unlock comprehensive insights into our analysis of Alpha Group International stock in this health report.

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

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 segment, specifically closed-end funds, amounting to £48.10 million.

BBGI Global Infrastructure has seen a significant reduction in its debt to equity ratio from 1.8% to 0.02% over the past five years, reflecting strong financial management. Despite struggling with negative earnings growth of -66.2% last year, BBGI's interest payments are well covered by EBIT at 14.8 times coverage, showcasing its ability to handle debt obligations effectively. Additionally, the company commenced a share repurchase program in May 2024 under shareholder mandate, potentially enhancing shareholder value further.

• Dive into the specifics of BBGI Global Infrastructure here with our thorough health report.

• Assess BBGI Global Infrastructure's past performance with our detailed historical performance reports.

Law Debenture (LSE:LWDB)

Simply Wall St Value Rating: ★★★★☆☆

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

Operations: Revenue for Law Debenture comes from its Investment Portfolio (£35.62 million) and Independent Professional Services (£61.55 million).

Law Debenture, a smaller UK financial entity, has shown impressive earnings growth of 340.1% over the past year, outpacing the Capital Markets industry at 0.5%. The net debt to equity ratio stands at a satisfactory 15%, and 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 higher than last year's figures (£44.02 million and £16.54 million respectively).

• Navigate through the intricacies of Law Debenture with our comprehensive health report here.

• Explore historical data to track Law Debenture's performance over time in our Past section.

Make It Happen

• Reveal the 76 hidden gems among our UK Undiscovered Gems With Strong Fundamentals screener with a single click here.
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Searching for a Fresh Perspective?

• 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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