January 2025's Undervalued Small Caps With Insider Action On UK Markets

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Amidst the backdrop of a faltering FTSE 100 and sluggish global cues, particularly from China, the UK market is navigating through a period of uncertainty with key indices reflecting these challenges. As larger companies grapple with external pressures, small-cap stocks may present unique opportunities for investors seeking potential growth in undervalued segments. In this environment, identifying small-cap stocks that exhibit strong fundamentals and insider activity can be crucial for those looking to capitalize on potential market inefficiencies.

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

Name

PE

PS

Discount to Fair Value

Value Rating

NCC Group

NA

1.3x

27.76%

★★★★★★

4imprint Group

15.9x

1.3x

38.51%

★★★★★☆

Speedy Hire

NA

0.3x

35.04%

★★★★★☆

Robert Walters

34.5x

0.2x

30.71%

★★★★☆☆

Sabre Insurance Group

11.3x

1.5x

12.65%

★★★★☆☆

iomart Group

24.2x

0.6x

33.77%

★★★★☆☆

XPS Pensions Group

11.3x

3.2x

6.02%

★★★☆☆☆

Telecom Plus

18.0x

0.7x

30.43%

★★★☆☆☆

Warpaint London

24.2x

4.2x

0.88%

★★★☆☆☆

THG

NA

0.3x

-519.29%

★★★☆☆☆

Click here to see the full list of 36 stocks from our Undervalued UK Small Caps With Insider Buying screener.

We'll examine a selection from our screener results.

Card Factory

Simply Wall St Value Rating: ★★★★★★

Overview: Card Factory is a UK-based retailer specializing in greeting cards, gifts, and party products through its extensive network of physical stores and online platforms, with a market cap of approximately £0.40 billion.

Operations: The primary revenue stream is from Cardfactory Stores, generating £491.90 million, followed by smaller contributions from Cardfactory Online and Partnerships. The gross profit margin has shown a notable trend, peaking at 37.98% in early 2019 before fluctuating and settling around 36.22% by late 2023.

PE: 8.2x

Card Factory, a smaller company in the UK market, is attracting attention due to insider confidence with notable share purchases over the past year. Their total sales reached £506.6 million for the eleven months ending December 2024, marking a 6.2% increase from the previous year despite tough conditions in non-food retail. With earnings projected to grow at 13% annually, Card Factory's reliance on external borrowing poses some risk but also underscores its potential for growth amidst industry challenges.

LSE:CARD Share price vs Value as at Jan 2025
LSE:CARD Share price vs Value as at Jan 2025

Mitie Group

Simply Wall St Value Rating: ★★★★★★

Overview: Mitie Group is a UK-based facilities management and professional services company with operations spanning communities, business services, and technical services, holding a market capitalization of £1.22 billion.