Top 3 Undervalued Small Caps With Insider Buying In United Kingdom September 2024

The United Kingdom market has been experiencing turbulence, with the FTSE 100 and FTSE 250 indices both closing lower following weak trade data from China, indicating ongoing economic struggles. Amid this backdrop, identifying undervalued small-cap stocks with insider buying can be a promising strategy for investors looking to navigate current market conditions.

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

Name	PE	PS	Discount to Fair Value	Value Rating
Domino's Pizza Group	15.1x	1.7x	38.95%	★★★★★☆
C&C Group	NA	0.4x	45.60%	★★★★★☆
GB Group	NA	2.9x	36.36%	★★★★★☆
Genus	164.3x	1.9x	0.49%	★★★★★☆
Bytes Technology Group	26.8x	6.1x	4.34%	★★★★☆☆
NWF Group	8.7x	0.1x	35.48%	★★★★☆☆
CVS Group	32.2x	1.3x	39.32%	★★★★☆☆
Essentra	716.8x	1.4x	38.36%	★★★★☆☆
Alpha Group International	10.4x	4.8x	-29.64%	★★★☆☆☆
Harworth Group	12.0x	6.3x	-591.48%	★★★☆☆☆

Click here to see the full list of 23 stocks from our Undervalued UK Small Caps With Insider Buying screener.

Here we highlight a subset of our preferred stocks from the screener.

Bytes Technology Group (LSE:BYIT)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Bytes Technology Group is an IT solutions provider with a market cap of £1.20 billion.

Operations: The company generates revenue primarily from its IT solutions segment, with a reported revenue of £207.02 million as of 2024-09-26. The cost of goods sold (COGS) was £61.24 million, resulting in a gross profit margin of 70.42%. Net income stood at £46.85 million, yielding a net income margin of 22.63%. Operating expenses were recorded at £89.07 million, including non-operating expenses amounting to £9.86 million.

PE: 26.8x

Bytes Technology Group, a small-cap stock in the UK, recently announced a 6.0 pence per share final dividend and an 8.7 pence special dividend at their July AGM, payable on August 2, 2024. Insider confidence is evident with notable purchases by executives over the past six months. Despite relying solely on external borrowing for funding, Bytes forecasts an annual earnings growth of 8.97%. Their participation in Smarter Working Live 2024 underscores their commitment to innovation and industry leadership.

• Navigate through the intricacies of Bytes Technology Group with our comprehensive valuation report here.

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

Essentra (LSE:ESNT)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Essentra is a global provider of essential components and solutions, specializing in plastic and fiber products, with a market cap of approximately £0.83 billion.

Operations: Essentra's revenue streams are primarily driven by its sales, with recent figures showing a gross profit margin of 46.14% as of September 2024. The company's cost structure includes significant operating expenses and non-operating expenses, impacting its net income margins.

PE: 716.8x

Essentra, a UK-based company, recently appointed Rowan Baker as CFO effective November 5, 2024. For the half-year ending June 30, 2024, Essentra's sales were £159.7 million with net income at £1.3 million compared to last year’s £6.9 million. The Board declared an interim dividend of 1.25 pence per share for 2024, slightly higher than last year's interim dividend of 1.20 pence per share. Notably, insider confidence is evident with recent purchases in July and August this year by key executives.

• Click here to discover the nuances of Essentra with our detailed analytical valuation report.

• Learn about Essentra's historical performance.

Genus (LSE:GNS)

Simply Wall St Value Rating: ★★★★★☆

Overview: Genus is a biotechnology company specializing in animal genetics, with a market cap of approximately £1.89 billion.

Operations: Genus generates revenue primarily from its Genus ABS and Genus PIC segments, with a notable gross profit margin trend peaking at 0.6802% in March 2024. Operating expenses have shown variability, reaching £403.05 million in March 2024. The company's net income margin has fluctuated, most recently recording 0.0489% in September 2023 and dropping to 0.0118% by June and September of the following year due to significant operating expenses and non-operating costs impacting profitability.

PE: 164.3x

Genus, a prominent player in the animal genetics industry, reported full-year sales of £668.8 million for the period ending June 30, 2024, down from £689.7 million the previous year. Net income dropped to £7.9 million from £33.3 million, with basic earnings per share falling to £0.12 from £0.508. Despite these challenges, insider confidence remains high with notable share purchases over recent months indicating potential optimism about future growth prospects and recovery in profitability margins.

• Dive into the specifics of Genus here with our thorough valuation report.

• Evaluate Genus' historical performance by accessing our past performance report.

Turning Ideas Into Actions

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Ready To Venture Into Other Investment Styles?

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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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