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The United Kingdom's market landscape has been influenced by global economic challenges, with the FTSE 100 and FTSE 250 indices experiencing declines amid weak trade data from China, highlighting the interconnectedness of international economies. In such a climate, discerning investors often look for small-cap stocks that demonstrate resilience and potential value, especially those with notable insider activity which can signal confidence in their future prospects.
Top 10 Undervalued Small Caps With Insider Buying In The United Kingdom
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Senior | 19.3x | 0.6x | 33.25% | ★★★★★★ |
| NWF Group | 8.1x | 0.1x | 38.87% | ★★★★★☆ |
| Genus | 159.7x | 1.9x | 18.80% | ★★★★★☆ |
| J D Wetherspoon | 15.5x | 0.4x | 18.58% | ★★★★★☆ |
| Headlam Group | NA | 0.2x | 24.66% | ★★★★★☆ |
| Marlowe | NA | 0.8x | 44.66% | ★★★★☆☆ |
| Optima Health | NA | 1.3x | 36.38% | ★★★★☆☆ |
| Sabre Insurance Group | 11.3x | 1.5x | 12.47% | ★★★☆☆☆ |
| Alpha Group International | 10.5x | 4.9x | -34.13% | ★★★☆☆☆ |
| THG | NA | 0.3x | -263.98% | ★★★☆☆☆ |
We're going to check out a few of the best picks from our screener tool.
Hammerson
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Hammerson is a real estate investment company focused on managing and developing flagship retail destinations in the UK, France, and Ireland, with a market capitalization of approximately £1.26 billion.
Operations: The company's revenue primarily comes from its flagship destinations in the UK, France, and Ireland, with significant costs associated with COGS and operating expenses. Gross profit margin has shown a declining trend from 87.53% in December 2013 to 79.90% by June 2024.
PE: -34.1x
Hammerson, a small company in the UK, recently issued a £400 million bond with a 5.875% coupon, extending its debt maturity from 2.9 to 5.2 years and reducing interest costs by £3.6 million annually. The bond was highly subscribed, indicating strong market confidence in their strategy to refinance existing debts and support growth plans. Insider confidence is evident through share purchases made over the past year, reflecting potential value as earnings are projected to grow significantly at 59% annually.
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Get an in-depth perspective on Hammerson's performance by reading our valuation report here.
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Examine Hammerson's past performance report to understand how it has performed in the past.
J D Wetherspoon
Simply Wall St Value Rating: ★★★★★☆
Overview: J D Wetherspoon is a UK-based pub and restaurant chain known for its affordable food and drink offerings, with a market capitalization of approximately £1.03 billion.
Operations: Revenue is primarily generated from pubs, with the cost of goods sold (COGS) being a significant expense. The gross profit margin has shown fluctuations, reaching 0.11698% in recent periods. Operating expenses and non-operating expenses also impact net income margins, which have varied over time but were at 0.02397% recently.