The United Kingdom’s stock market has recently faced challenges, with the FTSE 100 and FTSE 250 indices slipping due to weak trade data from China, highlighting concerns about global economic recovery. As broader market sentiment remains cautious, investors might find opportunities in small-cap stocks that demonstrate resilience through strategic insider buying, suggesting potential undervaluation amidst these uncertain conditions.

Name

PE

PS

Discount to Fair Value

Value Rating

Senior

17.8x

0.6x

38.39%

★★★★★★

Bytes Technology Group

22.3x

5.7x

11.28%

★★★★★☆

NWF Group

8.2x

0.1x

38.45%

★★★★★☆

John Wood Group

NA

0.2x

38.70%

★★★★★☆

Genus

169.2x

2.0x

9.32%

★★★★★☆

Headlam Group

NA

0.2x

27.60%

★★★★★☆

Marlowe

NA

0.7x

42.30%

★★★★☆☆

Optima Health

NA

1.3x

38.78%

★★★★☆☆

Robert Walters

42.6x

0.2x

40.79%

★★★☆☆☆

Essentra

722.6x

1.4x

26.93%

★★★☆☆☆

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

Here’s a peek at a few of the choices from the screener.

Simply Wall St Value Rating: ★★★★★☆

Overview: Domino’s Pizza Group operates as a leading pizza delivery and carryout chain, primarily generating income through sales to franchisees, corporate store operations, advertising and ecommerce services, rental income from properties, and franchise-related fees; the company has a market capitalization of approximately £1.5 billion.

Operations: The company generates revenue primarily through sales to franchisees, corporate store income, advertising and ecommerce income, rental income from properties, and royalties and fees. Over recent periods, the gross profit margin has shown a trend of fluctuation but reached 47.48% in June 2024. Operating expenses have been a significant component of costs with general & administrative expenses being notable.

PE: 15.6x

Domino’s Pizza Group, a smaller player in the UK market, is navigating financial complexities with external borrowing as its sole funding source. Despite this, insider confidence is evident through share repurchases authorized in May 2024. The company aims to maintain momentum into late 2024 by boosting order counts and sales despite a dip in net income from £80.2 million to £42.3 million year-over-year for H1 2024. An interim dividend of 3.5p per share reflects ongoing shareholder returns amidst strategic execution challenges and opportunities for growth within the competitive landscape.

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