Insider Buying Highlights Restore And Two Other Undervalued Small Caps In United Kingdom

The United Kingdom's market has been experiencing fluctuations, with the FTSE 100 and FTSE 250 indices closing lower amid concerns about China's economic recovery and its impact on global trade. As investors navigate these challenging conditions, identifying small-cap stocks with strong fundamentals and potential for growth becomes increasingly important.

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

Name	PE	PS	Discount to Fair Value	Value Rating
Senior	18.2x	0.6x	37.42%	★★★★★★
Bytes Technology Group	21.9x	5.6x	12.39%	★★★★★☆
NWF Group	8.3x	0.1x	38.24%	★★★★★☆
John Wood Group	NA	0.2x	38.67%	★★★★★☆
Genus	175.4x	2.1x	6.10%	★★★★★☆
J D Wetherspoon	16.0x	0.4x	5.93%	★★★★★☆
Optima Health	NA	1.3x	37.58%	★★★★☆☆
Robert Walters	43.2x	0.3x	40.24%	★★★☆☆☆
Sabre Insurance Group	11.8x	1.5x	16.33%	★★★☆☆☆
Marlowe	NA	0.7x	42.22%	★★★☆☆☆

Click here to see the full list of 29 stocks from our Undervalued UK Small Caps With Insider Buying screener.

We're going to check out a few of the best picks from our screener tool.

Restore (AIM:RST)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Restore is a company that specializes in providing secure lifecycle services and digital & information management solutions, with a market cap of £0.52 billion.

Operations: Secure Lifecycle Services and Digital & Information Management are the primary revenue streams, with recent figures showing £104.4 million and £172.5 million respectively. The gross profit margin has shown variation over time, peaking at 44.26% in 2019-12-31 before settling around 42.90% as of 2024-10-30. Operating expenses have consistently been a substantial part of costs, contributing to fluctuations in net income margins observed across different periods.

PE: 94.8x

Restore, a UK-based company, shows insider confidence with Charles Skinner purchasing 100,000 shares for £280,000 in October 2024. This move reflects potential belief in growth prospects as earnings are forecasted to rise by nearly 49% annually. However, the company's reliance on external borrowing poses financial risks. Recent board changes include Patrick Butcher's appointment as a non-executive director. These developments may influence Restore's future trajectory amid its current undervalued status in the market.

• Click to explore a detailed breakdown of our findings in Restore's valuation report.

• Learn about Restore's historical performance.

YouGov (AIM:YOU)

Simply Wall St Value Rating: ★★★★☆☆

Overview: YouGov is an international research and data analytics group that specializes in online market research, with a market cap of £1.19 billion.

Operations: The company generates revenue primarily through data products, with its gross profit margin showing a notable trend, reaching 85.63% in the latest period. Operating expenses are significant, largely driven by general and administrative costs.

PE: 25.0x

YouGov, a UK-based company known for audience intelligence and brand tracking, recently reported annual sales of £335.3 million, up from £258.3 million the previous year. Despite this growth, they faced a net loss of £2.4 million compared to a previous net income of £34.5 million, reflecting challenges in profitability amidst high debt levels and volatile share prices over the past three months. Insider confidence has been evident with recent share purchases by key figures within the company, suggesting belief in its future potential despite current financial hurdles.

• Navigate through the intricacies of YouGov with our comprehensive valuation report here.

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

Genus (LSE:GNS)

Simply Wall St Value Rating: ★★★★★☆

Overview: Genus is a biotechnology company focused on animal genetics, with operations in the Genus ABS and Genus PIC segments, and has a market capitalization of approximately £1.73 billion.

Operations: Genus derives its revenue primarily from Genus ABS and Genus PIC segments, with notable contributions from both. The company has experienced fluctuations in its gross profit margin, reaching a high of 53.78% and a low of -4.86%. Operating expenses include significant allocations to R&D and general & administrative expenses.

PE: 175.4x

Genus, a UK-based company, has seen insider confidence with recent share purchases by executives. Despite a dip in sales to £668.8 million and net income dropping to £7.9 million for the year ending June 2024, insiders show faith in its potential. The company's profit margins have decreased from 4.8% to 1.2%, but earnings are forecasted to grow annually by 37%. Executive changes include CFO Alison Henriksen's planned retirement in July 2025, ensuring strategic continuity during transition periods.

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

• Assess Genus' past performance with our detailed historical performance reports.

Make It Happen

• Take a closer look at our Undervalued UK Small Caps With Insider Buying list of 29 companies by clicking here.
• Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks.
• Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.

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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