3 Top Undervalued Small Caps In United Kingdom With Insider Buying

The United Kingdom market has recently faced challenges, with the FTSE 100 and FTSE 250 indices closing lower due to weak trade data from China, indicating broader economic pressures. Despite these headwinds, investors often look for opportunities in undervalued small-cap stocks that show potential for growth and resilience.

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

Name	PE	PS	Discount to Fair Value	Value Rating
Bytes Technology Group	24.3x	5.5x	13.68%	★★★★★☆
Essentra	849.8x	1.6x	47.14%	★★★★★☆
GB Group	NA	3.1x	32.18%	★★★★★☆
Norcros	7.5x	0.5x	2.25%	★★★★☆☆
NWF Group	9.1x	0.1x	32.28%	★★★★☆☆
CVS Group	22.8x	1.3x	39.69%	★★★★☆☆
Foxtons Group	27.2x	1.3x	45.91%	★★★☆☆☆
Franchise Brands	115.8x	2.9x	49.21%	★★★☆☆☆
Watkin Jones	NA	0.2x	-10.78%	★★★☆☆☆
Hochschild Mining	NA	1.9x	35.49%	★★★☆☆☆

Click here to see the full list of 30 stocks from our Undervalued UK Small Caps With Insider Buying screener.

Let's review some notable picks from our screened stocks.

Hochschild Mining (LSE:HOC)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Hochschild Mining is a precious metals company engaged in the exploration, mining, processing, and sale of silver and gold with a market cap of £0.58 billion.

Operations: Hochschild Mining generates revenue primarily from its San Jose, Inmaculada, and Pallancata segments. The company has seen fluctuations in its net income margin, with a recent value of -0.07929%. Gross profit margin also varies, reaching 0.26462% in the latest period.

PE: -24.1x

Hochschild Mining, a smaller player in the UK market, recently reported mixed results for Q2 2024. Silver production dropped to 2,589 koz from 2,955 koz year-over-year, while gold output rose to 66.37 koz from 54.12 koz. Notably, Eduardo Navarro showed insider confidence by purchasing 148,000 shares worth £235K in July 2024. The company maintains its annual production guidance of up to 360K gold equivalent ounces and forecasts earnings growth of nearly 54% annually.

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

• Review our historical performance report to gain insights into Hochschild Mining's's past performance.

Sirius Real Estate (LSE:SRE)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Sirius Real Estate is a property investment company specializing in owning and managing business parks, industrial complexes, and offices across Germany and the UK with a market cap of approximately €1.11 billion.

Operations: Sirius Real Estate generates revenue primarily from property investments, with a recent gross profit margin of 57.50%. The company incurs costs of goods sold (COGS) amounting to €123 million and operating expenses totaling €47.90 million.

PE: 16.4x

Sirius Real Estate, a small cap in the UK, has shown promising signs of being undervalued. The company reported earnings growth with net income rising to €107.8 million for the year ending March 31, 2024, up from €79.6 million the previous year. They completed a £152.5 million equity offering in July 2024 to fuel acquisitions in Germany and the UK, demonstrating investor confidence in their strategy. Notably, insider confidence is evident with recent share purchases by executives within this period.

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

• Understand Sirius Real Estate's track record by examining our Past report.

Wizz Air Holdings (LSE:WIZZ)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Wizz Air Holdings is a low-cost airline operating primarily in Central and Eastern Europe with a market cap of approximately €3.50 billion.

Operations: Wizz Air Holdings generates revenue primarily from its entire route network, amounting to €5095.80 million. The company's cost of goods sold (COGS) stands at €3949.80 million, resulting in a gross profit of €1146.00 million and a gross profit margin of 22.49%. Net income for the period is reported at €319.60 million with a net income margin of 6.27%.

PE: 5.1x

Wizz Air Holdings has shown significant insider confidence with recent share purchases, indicating a belief in the company's potential despite its current challenges. Over the past year, Wizz Air's capacity and passenger numbers have increased to 68.9 million seats and 62 million passengers respectively. However, net income dropped to €5.8 million from €62.8 million a year ago due to higher operational costs. The company anticipates a stronger fiscal year 2025 with projected load factors of 92% and net income between €350-450 million.

• Click here to discover the nuances of Wizz Air Holdings with our detailed analytical valuation report.

• Explore historical data to track Wizz Air Holdings' performance over time in our Past section.

Summing It All Up

• Click here to access our complete index of 30 Undervalued UK Small Caps With Insider Buying.
• Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly.
• Join a community of smart investors by using Simply Wall St. It's free and delivers expert-level analysis on worldwide markets.

Searching for a Fresh Perspective?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
• Find companies with promising cash flow potential yet trading below their fair value.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com