Exploring Kier Group And Two More Undervalued Small Caps With Insider Buying In The United Kingdom

Amidst a backdrop of fluctuating global markets, with the FTSE 100 poised for losses and broader economic uncertainties influencing investor sentiment, the allure of undervalued small-cap stocks in the United Kingdom becomes particularly compelling. In such an environment, identifying companies with insider buying can signal potential unrecognized value and resilience.

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

Name	PE	PS	Discount to Fair Value	Value Rating
Ultimate Products	9.6x	0.7x	18.26%	★★★★★☆
Robert Walters	18.5x	0.2x	32.88%	★★★★★☆
GB Group	NA	3.2x	21.87%	★★★★★☆
THG	NA	0.4x	41.52%	★★★★★☆
Bytes Technology Group	25.3x	5.7x	-0.25%	★★★★☆☆
CVS Group	21.0x	1.2x	41.46%	★★★★☆☆
M&C Saatchi	NA	0.6x	48.57%	★★★★☆☆
Norcros	7.8x	0.5x	-11.77%	★★★☆☆☆
Harworth Group	14.6x	7.6x	-613.21%	★★★☆☆☆
Hochschild Mining	NA	1.8x	45.30%	★★★☆☆☆

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

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

Kier Group (LSE:KIE)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Kier Group is a construction and infrastructure services provider with operations spanning property development, building, and civil engineering, boasting a market capitalization of approximately £110 million.

Operations: The company generates a substantial portion of its revenue from Construction and Infrastructure Services, with respective contributions of £1.86 billion and £1.87 billion. Over recent periods, it has experienced a gross profit margin averaging approximately 0.09%, indicating the ratio of gross profit relative to total revenue.

PE: 17.7x

Kier Group, characterized by its reliance on external borrowing, demonstrates a financial structure that some might see as risky, yet it's this very nature that underscores its potential in the undervalued small-cap arena in the UK. With earnings expected to grow by 23% annually, the company shows promising prospects. Insider confidence is evident as they recently purchased shares, signaling belief in the company’s trajectory. This action aligns with qualitative assessments of Kier's robust future prospects despite one-off items impacting financial results.

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

• Learn about Kier Group's historical performance.

Mitie Group (LSE:MTO)

Simply Wall St Value Rating: ★★★★★☆

Overview: Mitie Group is a facilities management company that operates across various sectors including technical services, business services, communities, and care & custody.

Operations: The entity has shown a fluctuating gross profit margin over the years, ranging from 10.86% to 18.09%, with recent figures around 11.25%. Its revenue streams are diversified across multiple segments, with significant contributions from Business Services and Technical Services, totaling £1.49 billion and £1.33 billion respectively.

PE: 11.8x

Mitie Group has demonstrated a robust financial performance with a notable 12.7% increase in revenue to £4.45 billion and an uplift in net income to £126.3 million for the fiscal year ending March 2024, reflecting strong operational efficiency and market demand. Highlighting insider confidence, significant share repurchases were initiated recently, underscoring commitment to shareholder value amidst external borrowing as its sole funding source—a higher risk strategy that demands careful monitoring. Additionally, the company's recent dividend hike by 38% signals a positive outlook on sustained profitability and cash flow generation capabilities.

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

• Examine Mitie Group's past performance report to understand how it has performed in the past.

Sirius Real Estate (LSE:SRE)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Sirius Real Estate is a company that specializes in owning and operating business parks, offices, and industrial complexes in Germany, with a market capitalization of approximately €1.30 billion.

Operations: With a gross profit margin of 57.50% in the most recent quarter, the company generated €289.40 million in revenue primarily through property investments. This reflects a consistent pattern of growth from previous years, where gross profit margins and revenues gradually increased despite fluctuating operating expenses and non-operating income streams.

PE: 16.1x

Recently, Sirius Real Estate demonstrated robust financial health by completing a significant equity offering of £152.5 million, signaling strong investor confidence and bolstering its acquisition strategy. This follows an impressive track record of sustained rental growth and dividend increases. Insider confidence is evident as Asset Management Director Craig Hoskins recently acquired 218,283 shares for £216,000, showcasing a substantial commitment to the company's future. With these strategic moves, Sirius is well-positioned to enhance its portfolio across the UK and Germany, promising continued growth in shareholder value.

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

• Evaluate Sirius Real Estate's historical performance by accessing our past performance report.

Seize The Opportunity

• Access the full spectrum of 29 Undervalued UK Small Caps With Insider Buying by clicking on this link.
• 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.
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Interested In Other Possibilities?

• 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.

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