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CVS Group And 2 Other Top Undervalued Small Caps With Insider Action In The United Kingdom

Amidst a backdrop of global economic uncertainty, as evidenced by recent declines in the FTSE 100 and FTSE 250 indices following disappointing trade data from China, investors might find potential opportunities in undervalued small-cap stocks. In such market conditions, identifying companies with strong fundamentals and insider buying can signal resilience and potential for growth.

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

Name

PE

PS

Discount to Fair Value

Value Rating

Breedon Group

12.8x

0.9x

48.96%

★★★★★★

Ultimate Products

9.7x

0.7x

17.37%

★★★★★☆

GB Group

NA

3.2x

22.20%

★★★★★☆

THG

NA

0.4x

43.40%

★★★★★☆

Bytes Technology Group

25.3x

5.7x

-0.31%

★★★★☆☆

Tracsis

45.7x

2.7x

30.65%

★★★★☆☆

CVS Group

21.3x

1.2x

40.82%

★★★★☆☆

Hochschild Mining

NA

1.8x

37.01%

★★★★☆☆

Norcros

7.7x

0.5x

-11.02%

★★★☆☆☆

H&T Group

7.9x

0.8x

-12.02%

★★★☆☆☆

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

Let's uncover some gems from our specialized screener.

CVS Group

Simply Wall St Value Rating: ★★★★☆☆

Overview: CVS Group operates veterinary practices, laboratories, crematoria, and an online retail business, with a focus on the veterinary sector.

Operations: The gross profit margin of CVS Group has shown a trend of fluctuation over the years, ranging from approximately 33.71% to 52.31%. Key revenue streams include veterinary practices generating £573 million, followed by online retail business at £49.6 million and laboratories contributing £31.4 million, while the crematorium adds another £11.6 million to the total revenue.

PE: 21.3x

Recently appointed Chair David Wilton demonstrated insider confidence in CVS Group by purchasing 2,500 shares, a notable 38% increase in their holdings. This move aligns with the company's strategic push into technology under Wilton's leadership, aiming to leverage his extensive experience. Despite a high debt level, CVS is poised for potential growth with earnings expected to rise annually by 12.61%. The recent executive reshuffling further underscores a commitment to robust governance and strategic focus.

AIM:CVSG Share price vs Value as at Jul 2024
AIM:CVSG Share price vs Value as at Jul 2024

GB Group

Simply Wall St Value Rating: ★★★★★☆

Overview: GB Group is a company specializing in fraud prevention, identity verification, and location services with a market capitalization of approximately £1.24 billion.

Operations: The company generates its revenue from three primary segments: Fraud, Identity, and Location, contributing £40.20 million, £156.06 million, and £81.07 million respectively. Over recent periods, it has experienced a gross profit margin of approximately 70%, reflecting the cost-effectiveness of its operations relative to revenue generated.

PE: -18.0x

GB Group, reflecting a compelling narrative of recovery and potential, recently declared an increased dividend of 4.20 pence, signaling financial resilience and commitment to shareholder returns. With earnings forecasted to surge by 92.89% annually, this firm exemplifies the traits often sought in undervalued entities within the UK market. Insider confidence is evident from recent strategic board changes aimed at bolstering governance and oversight—further aligning with operational efficiencies projected to drive significant profit growth in FY25.

AIM:GBG Share price vs Value as at Jul 2024
AIM:GBG Share price vs Value as at Jul 2024

LBG Media

Simply Wall St Value Rating: ★★★☆☆☆

Overview: LBG Media operates in the online media publishing industry with a market capitalization of approximately £67.51 million.

Operations: In its latest financial period, the company reported a revenue of £67.51 million and a gross profit of £17.81 million, reflecting a gross profit margin of 26.38%. This performance indicates an increase in cost efficiency compared to earlier years where the gross profit margin was notably lower, such as 23.69% in 2020 and 24.09% in 2021.

PE: 424.2x

LBG Media, a lesser-known entity in the UK market, has recently seen insider confidence bolstered by share purchases, signaling potential underappreciation. Despite a challenging year with profit margins dipping to 0.9% from 8.6%, forecasts suggest earnings could surge by approximately 44% annually. This growth is set against a backdrop of high share price volatility and reliance on external borrowing for funding—factors that might concern some but also underscore the company's dynamic market position and possible upside for discerning investors looking beyond conventional metrics.

AIM:LBG Share price vs Value as at Jul 2024
AIM:LBG Share price vs Value as at Jul 2024

Seize The Opportunity

Contemplating Other Strategies?

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 AIM:CVSG AIM:GBG and AIM:LBG.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com