Warpaint London And 2 Other Undervalued Small Caps On UK With Insider Activity

The United Kingdom's financial markets have been experiencing turbulence, with the FTSE 100 and FTSE 250 indices both slipping amid concerns over weak trade data from China, which has impacted global sentiment. In this challenging environment, identifying promising small-cap stocks can offer potential opportunities for investors seeking to capitalize on undervalued assets with insider activity that may indicate confidence in future growth.

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

Name	PE	PS	Discount to Fair Value	Value Rating
Warpaint London	19.1x	3.3x	31.18%	★★★★★☆
Bytes Technology Group	20.8x	5.3x	17.31%	★★★★★☆
4imprint Group	17.4x	1.4x	31.16%	★★★★★☆
Stelrad Group	11.6x	0.6x	18.83%	★★★★★☆
Speedy Hire	NA	0.2x	25.96%	★★★★★☆
Telecom Plus	17.9x	0.7x	26.41%	★★★★☆☆
Gamma Communications	23.1x	2.4x	32.85%	★★★★☆☆
CVS Group	29.6x	1.2x	36.38%	★★★★☆☆
Franchise Brands	40.6x	2.1x	22.03%	★★★★☆☆
Optima Health	NA	1.5x	45.52%	★★★★☆☆

Click here to see the full list of 35 stocks from our Undervalued UK Small Caps With Insider Buying screener.

Let's uncover some gems from our specialized screener.

Warpaint London (AIM:W7L)

Simply Wall St Value Rating: ★★★★★☆

Overview: Warpaint London is a cosmetics company specializing in the production and sale of its own brand products, with a market cap of approximately £0.28 billion.

Operations: The company's revenue primarily comes from its Own Brand segment, contributing £96.72 million, while Close-Out sales add £2.12 million. Over recent periods, the net income margin has shown a positive trend, reaching 17.35% by mid-2024. Operating expenses have steadily increased to £19.00 million as of June 2024, with general and administrative expenses being a significant component at £16.97 million during the same period.

PE: 19.1x

Warpaint London, a small UK-based cosmetics company, is drawing attention with its earnings projected to grow 15% annually. Despite a volatile share price recently, the firm anticipates £102 million in revenue for 2024. Recent equity offerings raised approximately £15 million at £5.1 per share, suggesting strategic capital allocation. Insider confidence is evident from purchases over the last year. While reliant on external borrowing for funding, Warpaint's high-quality earnings and growth prospects present an intriguing opportunity in its sector.

• Click here and access our complete valuation analysis report to understand the dynamics of Warpaint London.

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

Coats Group (LSE:COA)

Simply Wall St Value Rating: ★★★★★★

Overview: Coats Group is a global leader in industrial thread manufacturing, primarily serving the apparel, footwear, and performance materials sectors with a market capitalization of approximately £1.32 billion.

Operations: Coats Group generates revenue primarily from Apparel, Footwear, and Performance Materials segments. The company's gross profit margin has shown fluctuations, reaching 36.28% as of the latest data point. Operating expenses are significant, with general and administrative expenses consistently being a major component.

PE: 17.9x

Coats Group, a player in the UK market, is gaining attention with its projected annual earnings growth of 17%. Despite its high debt levels and reliance on external borrowing, the company showcases resilience through an 11% sales increase from July to October 2024. Recent insider confidence is evident as they purchased shares over the past year. The upcoming CFO transition in May 2025 could bring fresh perspectives to Coats' financial strategies, potentially enhancing future performance.

• Delve into the full analysis valuation report here for a deeper understanding of Coats Group.

• Learn about Coats Group's historical performance.

On the Beach Group (LSE:OTB)

Simply Wall St Value Rating: ★★★★★☆

Overview: On the Beach Group is a UK-based online retailer specializing in affordable beach holidays, with operations primarily through its websites Onthebeach.co.uk and Sunshine.co.uk, and a market cap of approximately £0.31 billion.

Operations: OTB generates revenue primarily from its online platforms, Onthebeach.Co.Uk and Sunshine.Co.Uk, with a smaller contribution from Classic Collection. The company's net income margin has experienced fluctuations, reaching 15.76% in the latest period after recovering from negative margins in prior years. Operating expenses are significant, driven mainly by sales and marketing costs and general & administrative expenses.

PE: 18.8x

On the Beach Group, a UK-based travel company, shows potential as an undervalued investment with insider confidence. Simon Cooper, Founder & Non-Executive Director, purchased 3 million shares valued at £6.8 million in December 2024, indicating strong belief in the company's prospects. Despite recent share price volatility and reliance on external borrowing for funding, earnings are forecasted to grow by 20.7% annually. Recent board changes and a final dividend of 2.1 pence per share further highlight strategic shifts aimed at enhancing value.

• Get an in-depth perspective on On the Beach Group's performance by reading our valuation report here.

• Understand On the Beach Group's track record by examining our Past report.

Key Takeaways

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Looking For Alternative Opportunities?

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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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