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

The United Kingdom market has recently faced headwinds, with the FTSE 100 and FTSE 250 indices closing lower amid weak trade data from China, highlighting broader economic challenges. Despite these uncertainties, identifying undervalued small-cap stocks with insider buying can offer potential opportunities for investors looking to navigate the current landscape.

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

Name	PE	PS	Discount to Fair Value	Value Rating
Bytes Technology Group	23.7x	5.4x	16.17%	★★★★★☆
Domino's Pizza Group	15.5x	1.8x	34.67%	★★★★★☆
Breedon Group	14.8x	0.9x	49.74%	★★★★★☆
Essentra	812.3x	1.6x	47.66%	★★★★★☆
GB Group	NA	3.0x	34.87%	★★★★★☆
NWF Group	9.0x	0.1x	34.00%	★★★★☆☆
Harworth Group	14.1x	7.4x	-513.22%	★★★★☆☆
CVS Group	22.3x	1.2x	41.27%	★★★★☆☆
Norcros	7.8x	0.5x	-0.22%	★★★☆☆☆
Watkin Jones	NA	0.2x	-5.83%	★★★☆☆☆

Click here to see the full list of 27 stocks from our Undervalued UK Small Caps With Insider Buying screener.

Let's explore several standout options from the results in the screener.

LBG Media (AIM:LBG)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: LBG Media operates in the online media publishing industry with a market cap of £0.61 billion.

Operations: LBG Media generates revenue primarily from the online media publishing industry, with recent figures reaching £67.51 million. The company's cost of goods sold (COGS) was £49.7 million, resulting in a gross profit of £17.81 million and a gross profit margin of 26.38%.

PE: 465.4x

LBG Media, a small cap in the UK, has seen insider confidence with notable share purchases by executives over the past six months. Despite profit margins dropping from 8.6% to 0.9% due to large one-off items, earnings are projected to grow at an impressive 43.84% annually. The company relies entirely on external borrowing for funding, which carries higher risk but also potential for high returns if managed well.

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

• Review our historical performance report to gain insights into LBG Media's's past performance.

Assura (LSE:AGR)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Assura is a UK-based real estate investment trust specializing in the development and management of primary care properties, with a market cap of approximately £2.50 billion.

Operations: Assura generates revenue primarily from its core segment, amounting to £157.80 million as of the latest period. The company has experienced fluctuations in net income margins, with a recent decline to -0.18%. Gross profit margin has shown a slight downward trend, currently at 90.81%. Operating expenses and non-operating expenses have also varied over time, impacting overall profitability.

PE: -46.1x

Assura, a healthcare property developer, recently affirmed a quarterly dividend of £0.0084 per share to be paid on 9 October 2024. They acquired a private hospital portfolio in August 2024, signaling growth ambitions. Despite relying solely on external borrowing for funding, their debt is manageable through operating cash flow. Insider confidence is evident with recent share purchases over the past year. Earnings are projected to grow by 41.82% annually, indicating potential for future value appreciation.

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

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

Norcros (LSE:NXR)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Norcros is a company specializing in building products with operations generating £392.10 million in revenue.

Operations: Norcros generates revenue primarily from its Building Products segment, with a significant portion of its costs attributed to operating expenses and non-operating expenses. The company's net income margin has shown variability, reaching 6.83% in the most recent period ending September 2024.

PE: 7.8x

Norcros, a UK-based company in the building materials sector, has recently declared a final dividend of £0.068 per share for the year ended March 31, 2024. Their revenue for Q1 2024 was down by 5.9% compared to the same period in 2023 due to strategic exits from Johnson Tiles UK and Norcros Adhesives. Despite this decline, net income increased to £26.8 million from £16.8 million last year, indicating strong operational efficiency amidst challenging market conditions. Notably, insider confidence is evident with recent purchases made by key executives over the past six months, suggesting optimism about future prospects despite forecasted earnings declines of approximately 0.7% annually over the next three years.

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

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

Key Takeaways

• Access the full spectrum of 27 Undervalued UK Small Caps With Insider Buying by clicking on this link.
• Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools.
• Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.

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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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