Undervalued Small Caps In United Kingdom With Insider Buying For August 2024

The United Kingdom market has recently faced challenges, with the FTSE 100 and FTSE 250 indices experiencing declines due to weak trade data from China, highlighting broader economic concerns. Despite these headwinds, investors may find opportunities in small-cap stocks that demonstrate resilience and potential for growth through insider buying.

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

Name	PE	PS	Discount to Fair Value	Value Rating
Bytes Technology Group	24.9x	5.6x	11.43%	★★★★★☆
Domino's Pizza Group	15.6x	1.8x	29.65%	★★★★★☆
C&C Group	NA	0.4x	48.12%	★★★★★☆
Essentra	815.4x	1.6x	49.29%	★★★★★☆
GB Group	NA	3.1x	31.98%	★★★★★☆
Norcros	7.5x	0.5x	3.57%	★★★★☆☆
Harworth Group	13.8x	7.2x	-503.79%	★★★★☆☆
CVS Group	22.5x	1.2x	40.63%	★★★★☆☆
Hochschild Mining	NA	1.7x	42.92%	★★★★☆☆
Foxtons Group	27.8x	1.3x	45.70%	★★★☆☆☆

Click here to see the full list of 23 stocks from our Undervalued UK Small Caps With Insider Buying screener.

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

Domino's Pizza Group (LSE:DOM)

Simply Wall St Value Rating: ★★★★★☆

Overview: Domino's Pizza Group operates a network of franchised and corporate stores, generating income from sales to franchisees, advertising, ecommerce, property rentals, and various franchise fees; it has a market cap of approximately £1.50 billion.

Operations: The company generates revenue primarily from sales to franchisees (£461M), royalties and fees (£82.4M), and national advertising and e-commerce income (£85.5M). It has seen variations in its net income margin, peaking at 18.28% in June 2023, while the gross profit margin reached a high of 47.48% in June 2024.

PE: 15.6x

Domino's Pizza Group, a small-cap stock in the UK, has shown insider confidence with recent share repurchases totaling £90.1 million for 25.3 million shares as of August 6, 2024. Despite a drop in net income to £42.3 million from £80.2 million year-over-year and profit margins falling to 11.4%, the company remains optimistic about growth prospects for the second half of 2024, driven by strategic initiatives and increased order count projections.

• Click here to discover the nuances of Domino's Pizza Group with our detailed analytical valuation report.

• Review our historical performance report to gain insights into Domino's Pizza Group's's past performance.

Hammerson (LSE:HMSO)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Hammerson is a property development and investment company focusing on flagship destinations in the UK, France, and Ireland with a market cap of £1.02 billion.

Operations: Hammerson generates revenue primarily from its flagship destinations in the UK, France, and Ireland. The company has experienced fluctuations in net income margins, with recent figures showing a net income margin of -0.18356% as of 2024-06-30.

PE: -33.7x

Hammerson has been making significant strides, highlighted by a recent EUR 350 million non-recourse term loan secured on Dundrum Town Centre, extending their average maturity from 2.2 to 2.9 years. The company reported H1 sales of £40.1 million but faced a net loss of £516.7 million, showing room for improvement in profitability. Insider confidence is evident with purchases made within the past year, signaling potential optimism about future performance despite current challenges in revenue growth and earnings stability.

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

• Learn about Hammerson's historical performance.

SSP Group (LSE:SSPG)

Simply Wall St Value Rating: ★★★★☆☆

Overview: SSP Group operates in the food and beverage travel sector, primarily serving airports and railway stations, with a market cap of approximately £2.50 billion.

Operations: SSP Group generates revenue primarily from the food and beverage travel sector, mainly at airports and railway stations, with recent revenue reaching £3.21 billion. The gross profit margin has shown an upward trend, reaching 28.84% as of March 2024. Operating expenses include significant costs such as D&A expense (£333.70 million) and general & administrative expenses (£373.80 million).

PE: 181.7x

SSP Group, a UK-based company, saw significant insider confidence with share purchases in the past quarter. Recent financials show mixed results: third-quarter sales increased by 16%, driven by like-for-like growth and acquisitions, yet profit margins remain thin at 0.2%. The firm declared an interim dividend of £0.012 per share after a period of no payouts. Despite external borrowing risks, earnings are expected to grow annually by 50.74%, indicating potential for future value appreciation.

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

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

Summing It All Up

• Investigate our full lineup of 23 Undervalued UK Small Caps With Insider Buying right 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.
• Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage.

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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