The market in the United Kingdom has climbed by 2.7% over the past week, with every sector up, and is up 8.8% over the last 12 months. In this favorable environment, identifying undervalued small-cap stocks with notable insider activity can present intriguing opportunities for investors seeking potential growth aligned with forecasted earnings increases of 13% annually.

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

Name PE PS Discount to Fair Value Value Rating GB Group NA 3.2x 21.67% ★★★★★☆ THG NA 0.4x 42.29% ★★★★★☆ Bytes Technology Group 26.1x 5.9x -3.86% ★★★★☆☆ Harworth Group 14.2x 7.4x -594.15% ★★★★☆☆ Breedon Group 15.4x 1.0x 36.28% ★★★★☆☆ CVS Group 23.1x 1.3x 37.08% ★★★★☆☆ Hochschild Mining NA 1.7x 35.84% ★★★★☆☆ Norcros 7.7x 0.5x -11.36% ★★★☆☆☆ H&T Group 7.9x 0.8x -11.77% ★★★☆☆☆ Foxtons Group 28.0x 1.3x 31.92% ★★★☆☆☆

Click here to see the full list of 26 stocks from our Undervalued UK Small Caps With Insider Buying screener.

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

Breedon Group

Simply Wall St Value Rating: ★★★★☆☆

Overview: Breedon Group is a leading construction materials company operating primarily in Great Britain and Ireland, with a market cap of approximately £1.50 billion.

Operations: The company generates revenue primarily from its Great Britain and Ireland segments, with additional contributions from its Cement segment. For the period ending June 30, 2023, it reported a gross profit margin of 36.23%.

PE: 15.4x

Breedon Group, a small cap in the UK, reported H1 2024 sales of £764.6 million, up from £742.7 million the previous year. Net income dipped to £34.1 million from £43.9 million last year; EPS fell to £0.10 from £0.13. Despite relying solely on external borrowing for funding, earnings are projected to grow by 14% annually. Insider confidence is evident with recent share purchases in June 2024, signaling potential growth and value recognition within the market.

Get an in-depth perspective on Breedon Group's performance by reading our valuation report here. Gain insights into Breedon Group's past trends and performance with our Past report. LSE:BREE Share price vs Value as at Aug 2024

Just Group

Simply Wall St Value Rating: ★★★★☆☆

Overview: Just Group is a financial services company specializing in retirement income products and services, with a market cap of approximately £0.96 billion.

Operations: Just Group's revenue streams primarily come from its core business operations. The company has seen fluctuations in its gross profit margin, with recent figures showing a significant increase to 54.28% as of December 2023. Operating expenses have remained relatively stable, while non-operating expenses have varied significantly over the periods analyzed.



PE: 10.4x

Just Group, a small cap in the UK, has caught attention due to its growth potential and recent insider confidence. Insiders have been buying shares consistently over the past six months, signaling strong belief in the company's future. Earnings are projected to grow by 9.18% annually, indicating solid prospects ahead. Despite relying entirely on external borrowing for funding, Just Group declared a final dividend of £0.015 per share in May 2024, reflecting financial stability and shareholder value focus.

Click here and access our complete valuation analysis report to understand the dynamics of Just Group. Understand Just Group's track record by examining our Past report. LSE:JUST Ownership Breakdown as at Aug 2024

SSP Group

Simply Wall St Value Rating: ★★★★☆☆

Overview: SSP Group operates food and beverage outlets primarily in travel locations such as airports and railway stations, with a market cap of approximately £3.12 billion.

Operations: SSP Group generates revenue primarily from the food and beverage travel sector, with a notable gross profit margin of 28.84% as of March 31, 2024. The company's cost structure includes significant operating expenses and non-operating expenses, such as depreciation and amortization (£333.70 million) and general & administrative expenses (£373.80 million).

PE: 191.7x

SSP Group, a UK-based small cap, has shown promising signs of being undervalued. Recent insider confidence is evident with significant share purchases in June 2024. Financially, the company reported third-quarter sales up 16% year-on-year and total group revenues for the nine-month period increased by 18%. However, net profit margins remain slim at 0.2%, down from last year’s 0.5%. Despite a half-year net loss of £10.5 million, SSP declared an interim dividend of £0.012 per share in May 2024, signaling potential future growth and stability.

Navigate through the intricacies of SSP Group with our comprehensive valuation report here. Explore historical data to track SSP Group's performance over time in our Past section. LSE:SSPG Share price vs Value as at Aug 2024

Summing It All Up

Reveal the 26 hidden gems among our Undervalued UK Small Caps With Insider Buying screener with a single click here. Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive. Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

Ready For A Different Approach?

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.

Companies discussed in this article include LSE:BREE LSE:JUST and LSE:SSPG.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]