Discovering Undiscovered Gems in the United Kingdom September 2024

The United Kingdom's market has recently faced challenges, with the FTSE 100 and FTSE 250 indices closing lower amid weak trade data from China and broader global economic concerns. Despite these headwinds, there are still opportunities to uncover promising small-cap stocks that may offer resilience and growth potential in uncertain times. In this article, we will explore three such undiscovered gems in the UK market that could stand out due to their strong fundamentals and strategic positioning.

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%	★★★★★★
London Security	0.22%	10.13%	7.75%	★★★★★★
Globaltrans Investment	15.40%	2.68%	16.51%	★★★★★★
Impellam Group	31.12%	-5.43%	-6.86%	★★★★★★
M&G Credit Income Investment Trust	NA	-0.35%	1.18%	★★★★★★
Kodal Minerals	NA	nan	72.74%	★★★★★★
VH Global Sustainable Energy Opportunities	NA	18.30%	20.03%	★★★★★★
BBGI Global Infrastructure	0.02%	3.08%	6.85%	★★★★★☆
Goodwin	52.21%	9.26%	13.12%	★★★★★☆
Mountview Estates	16.64%	4.50%	-0.59%	★★★★☆☆

Click here to see the full list of 81 stocks from our UK Undiscovered Gems With Strong Fundamentals screener.

Let's uncover some gems from our specialized 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 other international markets, with a market cap of £947.42 million.

Operations: Alpha Group International plc generates revenue primarily from its Alpha Pay (£72.30 million), Institutional (£67.47 million), Corporate London excluding Amsterdam (£46.92 million), Corporate Amsterdam (£9.57 million), and Corporate Toronto (£3.72 million) segments, with a total market cap of £947.42 million.

Alpha Group International, a promising player in the UK market, reported half-year sales of £64.33 million and net income of £44.84 million. The company has no debt and boasts a price-to-earnings ratio of 10.1x, below the UK market average of 16.7x. Recent executive changes include Morgan Tillbrook stepping down as CEO by year-end, to be succeeded by Clive Kahn in January 2025. Earnings grew 46% last year, outpacing industry growth significantly.

• Click here to discover the nuances of Alpha Group International with our detailed analytical health report.

• Assess Alpha Group International's past performance with our detailed historical performance reports.

Octopus Renewables Infrastructure Trust (LSE:ORIT)

Simply Wall St Value Rating: ★★★★★★

Overview: Octopus Renewables Infrastructure Trust plc is a closed-end investment company focused on renewable energy assets in Europe and Australia, with a market cap of £446.97 million.

Operations: Octopus Renewables Infrastructure Trust generates revenue primarily from its investments in renewable energy assets across Europe and Australia. The company has a market capitalization of £446.97 million.

Octopus Renewables Infrastructure Trust has demonstrated robust financial health, being debt-free for the past five years. Earnings grew by 66.6% over the last year, significantly outpacing the Capital Markets industry’s 1.2%. Recently, ORIT reported half-year revenue of £14.62 million and net income of £11.3 million, both up from the previous year’s figures (£9.04 million and £5.53 million respectively). Additionally, a share buyback program was initiated in July 2024 to repurchase up to 84,682,637 shares.

• Unlock comprehensive insights into our analysis of Octopus Renewables Infrastructure Trust stock in this health report.

• Understand Octopus Renewables Infrastructure Trust's track record by examining our Past report.

Seplat Energy (LSE:SEPL)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Seplat Energy Plc engages in oil and gas exploration, production, and gas processing activities across Nigeria, the Bahamas, Italy, Switzerland, Barbados, and England with a market cap of £1.15 billion.

Operations: Seplat Energy generates revenue primarily from oil ($815.03 million) and gas ($120.87 million). The company's net profit margin is 14.5%.

Seplat Energy has shown remarkable performance with earnings growth of 207.6% over the past year, significantly outpacing the Oil and Gas industry’s -55.3%. The company’s net debt to equity ratio stands at a satisfactory 20.6%, while EBIT covers interest payments 5.8 times over, indicating strong financial health. Despite a slight dip in production to an average of 48,407 boepd for H1 2024, Seplat reported Q2 sales of US$241.82 million and net income of US$39.72 million compared to a net loss last year, reflecting its resilience and profitability in challenging market conditions.

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

• Gain insights into Seplat Energy's past trends and performance with our Past report.

Key Takeaways

• Take a closer look at our UK Undiscovered Gems With Strong Fundamentals list of 81 companies by clicking here.
• Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools.
• Join a community of smart investors by using Simply Wall St. It's free and delivers expert-level analysis on worldwide markets.

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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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