Exploring Undervalued Small Caps With Insider Actions In The United Kingdom July 2024

As the United Kingdom's financial markets show signs of resilience, with the FTSE 100 poised to break a two-day losing streak and broader positive sentiment reflected in global indices, investors are closely monitoring shifts that could influence market dynamics. In this context, understanding what constitutes a good undervalued small-cap stock becomes crucial, especially when insider actions suggest potential unrecognized value amidst these evolving economic conditions.

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

Name	PE	PS	Discount to Fair Value	Value Rating
Ultimate Products	9.5x	0.7x	19.05%	★★★★★☆
GB Group	NA	3.1x	22.56%	★★★★★☆
THG	NA	0.4x	41.49%	★★★★★☆
Bytes Technology Group	25.9x	5.9x	-2.93%	★★★★☆☆
Tracsis	46.7x	2.7x	29.17%	★★★★☆☆
Robert Walters	19.8x	0.2x	28.82%	★★★★☆☆
CVS Group	20.6x	1.1x	42.45%	★★★★☆☆
M&C Saatchi	NA	0.6x	48.49%	★★★★☆☆
Norcros	7.9x	0.5x	-12.54%	★★★☆☆☆
Hochschild Mining	NA	1.8x	44.95%	★★★☆☆☆

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

Here's a peek at a few of the choices from the screener.

Just Group (LSE:JUST)

Simply Wall St Value Rating: ★★★★★★

Overview: Just Group is a financial services company specializing in retirement products and services, with a market capitalization of approximately £0.60 billion.

Operations: The company's gross profit margin has seen fluctuations, ranging from a low of 0.03% to a high of 54.28%, indicating variability in the cost efficiency of its revenue generation over time. Notably, net income has also varied significantly, with margins ranging from -25.37% to 11.62%, reflecting challenges and successes in overall profitability after accounting for all expenses.

PE: 10.0x

Just Group, a notable player among undervalued UK entities, recently declared a dividend increase, signaling strong financial health and management confidence. With earnings expected to rise annually by 9.58%, their reliance on external borrowing does introduce higher risk, yet this is tempered by insider confidence as evidenced by recent share purchases. Such actions underscore a robust outlook for Just Group, enhancing its appeal to those eyeing potential in less conspicuous markets.

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

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

Kier Group (LSE:KIE)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Kier Group is a construction and infrastructure services provider, operating primarily in sectors including property, corporate, and infrastructure services with a market capitalization of approximately £241 million.

Operations: In recent financial periods, the company reported a gross profit margin of approximately 8.68% to 9.06%, reflecting its ability to manage production costs relative to revenue, which ranged from £3.22 billion to £3.72 billion in the latest fiscal year. Notably, operating expenses have consistently been managed alongside fluctuations in gross profit, indicating a focus on operational efficiency amidst varying market conditions.

PE: 18.0x

Kier Group, a notable player within the UK's undervalued market segment, has recently demonstrated insider confidence through substantial share purchases. With earnings forecasted to grow by 23% annually, the company’s financial health is bolstered by high-quality earnings despite being impacted by one-off items. This strategic insider buying suggests a strong belief in the firm's future prospects among those with intimate knowledge of its operations. Their funding strategy relies entirely on external borrowing, indicating a higher risk yet potentially rewarding profile.

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

• Understand Kier Group's track record by examining our Past report.

Sirius Real Estate (LSE:SRE)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Sirius Real Estate operates in the property investment sector, managing a portfolio of business parks across Germany, with a market capitalization of approximately €1.37 billion.

Operations: From the provided financial data, Property Investment generates €289.40 million in revenue. The company's gross profit margin stands at 57.50%, reflecting the proportion of revenue remaining after accounting for the cost of goods sold (COGS).

PE: 16.3x

Sirius Real Estate, a notable player in the UK's real estate sector, recently bolstered its financial agility through a £152.5 million equity offering, underscoring its strategic acquisition pursuits across Germany and the UK. With a recent increase in dividends reflecting a solid operational track record, Sirius also saw significant insider confidence; Asset Management Director Craig Hoskins recently acquired 218,283 shares for £216 thousand. These moves highlight Sirius's proactive stance in enhancing shareholder value amidst challenging market conditions and signal robust growth prospects as they continue to expand their asset base.

• Click here to discover the nuances of Sirius Real Estate with our detailed analytical valuation report.

• Assess Sirius Real Estate's past performance with our detailed historical performance reports.

Turning Ideas Into Actions

• Get an in-depth perspective on all 29 Undervalued UK Small Caps With Insider Buying by using our screener here.
• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
• Maximize your investment potential with Simply Wall St, the comprehensive app that offers global market insights for free.

Curious About Other Options?

• 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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