Discovering Alpha Group International And 2 Other Hidden UK Small Caps with Strong Potential

The United Kingdom market has climbed 1.4% in the last 7 days and is up 10% over the past 12 months, with earnings forecasted to grow by 14% annually. In this promising environment, identifying small-cap stocks with strong potential can offer significant opportunities for investors seeking growth and value.

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%	★★★★★★
Fix Price Group	43.59%	12.53%	23.49%	★★★★★☆
Goodwin	59.96%	9.26%	13.12%	★★★★★☆
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 79 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 UK, Europe, Canada, and internationally, with a market cap of approximately £1.07 billion.

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

Earnings for Alpha Group International surged by 130% over the past year, far outpacing the Capital Markets industry average of 1.2%. Trading at a P/E ratio of 12x, it offers good value compared to the UK market's 16.4x. The company repurchased shares starting June 28, 2024, under a shareholder mandate allowing up to 4.32 million shares to be bought back. Recently added to multiple FTSE indices, Alpha is poised for increased visibility and potential growth prospects.

• Click here and access our complete health analysis report to understand the dynamics of Alpha Group International.

• Gain insights into Alpha Group International's past trends and performance with our Past report.

Seplat Energy (LSE:SEPL)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Seplat Energy Plc is involved in oil and gas exploration, production, and gas processing across Nigeria, the Bahamas, Italy, Switzerland, Barbados, and England with a market cap of £1.12 billion.

Operations: Seplat Energy generates revenue primarily from oil ($815.03 million) and gas ($120.87 million). The company has a market cap of £1.12 billion.

Seplat Energy has shown impressive earnings growth of 207.6% over the past year, far outpacing the Oil and Gas industry’s -49%. Despite a volatile share price recently, its debt to equity ratio increased from 20.6% to 41.5% in five years, though still satisfactory at a net debt to equity ratio of 20.6%. The company reported second-quarter sales of US$241.82 million and net income of US$39.72 million compared to last year's loss of US$14.63 million.

• Click to explore a detailed breakdown of our findings in Seplat Energy's health report.

• Evaluate Seplat Energy's historical performance by accessing our past performance report.

Senior (LSE:SNR)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Senior plc designs, manufactures, and sells high-technology components and systems for major original equipment manufacturers in the aerospace, defense, land vehicle, and power and energy markets globally; its market cap is approximately £675.37 million.

Operations: Senior plc generates revenue primarily from its Aerospace segment (£651.10 million) and Flexonics segment (£333 million).

Senior has shown notable progress, with earnings growing by 40.1% over the past year and forecasted to rise by 26.52% annually. The debt to equity ratio increased from 35.5% to 42.4% over five years, but the net debt to equity ratio remains satisfactory at 34.4%. Recent contracts include a $80 million deal with Collins Aerospace and a life of programme agreement with Deutsche Aircraft GmbH, highlighting its strong industry position and growth potential in aerospace components manufacturing.

• Get an in-depth perspective on Senior's performance by reading our health report here.

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

Next Steps

• Unlock more gems! Our UK Undiscovered Gems With Strong Fundamentals screener has unearthed 76 more companies for you to explore.Click here to unveil our expertly curated list of 79 UK Undiscovered Gems With Strong Fundamentals.
• Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.
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Ready To Venture Into Other Investment Styles?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
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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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