Stock Analysis

Elixirr International And 2 Other Promising UK Small Caps To Watch

AIM:VLX
Source: Shutterstock

The United Kingdom market has experienced a flat performance over the last week, yet it has shown a notable 7.5% increase over the past year with earnings anticipated to grow by 14% annually in the coming years. In such an environment, identifying promising small-cap stocks like Elixirr International can offer unique opportunities for investors seeking growth potential and innovation.

Top 10 Undiscovered Gems With Strong Fundamentals In The United Kingdom

NameDebt To EquityRevenue GrowthEarnings GrowthHealth Rating
Andrews Sykes GroupNA2.15%4.93%★★★★★★
M&G Credit Income Investment TrustNA17.28%15.80%★★★★★★
Metals ExplorationNA12.92%73.62%★★★★★★
London Security0.22%10.13%7.75%★★★★★★
Globaltrans Investment15.40%2.68%16.51%★★★★★★
Impellam Group31.12%-5.43%-6.86%★★★★★★
Kodal MineralsNAnan72.74%★★★★★★
VH Global Sustainable Energy OpportunitiesNA18.30%20.03%★★★★★★
BBGI Global Infrastructure0.02%3.08%6.85%★★★★★☆
Goodwin52.21%9.26%13.12%★★★★★☆

Click here to see the full list of 82 stocks from our UK Undiscovered Gems With Strong Fundamentals screener.

Here we highlight a subset of our preferred stocks from the screener.

Elixirr International (AIM:ELIX)

Simply Wall St Value Rating: ★★★★★★

Overview: Elixirr International plc, with a market cap of £323.46 million, offers management consultancy services through its subsidiaries in the United Kingdom, the United States, and internationally.

Operations: Elixirr generates revenue primarily from management consulting services, amounting to £97.37 million. The company's financial performance includes a focus on optimizing its cost structure to enhance profitability.

Elixirr, a nimble player in the professional services sector, has seen earnings leap 32.8% over the past year, outpacing industry trends. The company reported half-year sales of £53.03 million and net income of £8.84 million, showcasing robust growth compared to previous figures. With no debt on its books and trading at 55.5% below estimated fair value, Elixirr offers promising potential for investors seeking undervalued opportunities in the market.

AIM:ELIX Debt to Equity as at Oct 2024
AIM:ELIX Debt to Equity as at Oct 2024

Volex (AIM:VLX)

Simply Wall St Value Rating: ★★★★★☆

Overview: Volex plc manufactures and sells power and data cables across North America, Europe, and Asia, with a market cap of £582.79 million.

Operations: Volex generates revenue primarily from North America ($372.30 million), Europe ($355.40 million), and Asia ($185.10 million).

Volex, a nimble player in the electrical sector, has demonstrated robust financial health with a net debt to equity ratio of 34.7%, deemed satisfactory. The company's interest payments are well covered by EBIT at 4.7 times, showcasing solid earnings quality. Over the past year, Volex's earnings grew by 7%, outpacing industry growth of 1.6%. Despite shareholder dilution recently, Volex remains profitable with positive free cash flow and is forecasting revenue growth at nearly 9% annually.

AIM:VLX Debt to Equity as at Oct 2024
AIM:VLX Debt to Equity as at Oct 2024

Yü Group (AIM:YU.)

Simply Wall St Value Rating: ★★★★★☆

Overview: Yü Group PLC, with a market cap of £268.55 million, supplies energy and utility solutions primarily in the United Kingdom through its subsidiaries.

Operations: Yü Group generates revenue from supplying energy and utility solutions in the UK. The company's financial performance is highlighted by its net profit margin, which has shown fluctuations over recent periods.

Yü Group, a smaller player in the energy sector, has shown impressive growth with earnings surging by 400% over the past year, outpacing the industry average. Trading at 63.6% below its estimated fair value, it offers good relative value compared to peers. The firm reported half-year sales of £312.68 million and net income of £14.69 million, both significantly up from last year. Recently, Yü repurchased shares worth £3.99 million, enhancing shareholder value amidst a volatile share price environment.

AIM:YU. Debt to Equity as at Oct 2024
AIM:YU. Debt to Equity as at Oct 2024

Summing It All Up

Interested In Other Possibilities?

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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