Exploring 3 Promising Undervalued Small Caps With Insider Activity In UK
The United Kingdom's market has been experiencing turbulence, with the FTSE 100 and FTSE 250 indices recently closing lower due to weak trade data from China, highlighting ongoing global economic challenges. Amidst this backdrop, identifying promising small-cap stocks can be crucial for investors seeking opportunities in sectors less impacted by international headwinds.
Name
PE
PS
Discount to Fair Value
Value Rating
Bytes Technology Group
20.7x
5.3x
17.69%
★★★★★☆
4imprint Group
17.8x
1.5x
28.99%
★★★★★☆
Stelrad Group
11.7x
0.6x
18.27%
★★★★★☆
Speedy Hire
NA
0.2x
24.81%
★★★★★☆
NCC Group
NA
1.3x
21.02%
★★★★★☆
Telecom Plus
17.9x
0.7x
26.15%
★★★★☆☆
Gamma Communications
22.9x
2.4x
33.35%
★★★★☆☆
CVS Group
29.8x
1.2x
36.03%
★★★★☆☆
Franchise Brands
40.6x
2.1x
22.04%
★★★★☆☆
Optima Health
NA
1.5x
47.04%
★★★★☆☆
Click here to see the full list of 35 stocks from our Undervalued UK Small Caps With Insider Buying screener.
We'll examine a selection from our screener results.
Simply Wall St Value Rating: ★★★☆☆☆
Overview: SThree is a global staffing company specializing in the recruitment of professionals in science, technology, engineering, and mathematics sectors, with a market cap of £1.15 billion.
Operations: SThree's revenue streams are primarily derived from its operations in DACH, the Netherlands (including Spain), and the USA. The company's net profit margin has shown fluctuations, peaking at 3.73% in May 2024 before declining to 3.33% by February 2025. Operating expenses have consistently been a significant component of their cost structure, with general and administrative expenses being a major part of these costs.
PE: 6.8x
SThree, a staffing firm in the UK, reported a decline in sales to £1.49 billion for FY24, down from £1.66 billion the previous year, with net income also slipping to £49.69 million. Despite this challenging environment and an anticipated earnings contraction of 18% annually over the next three years, insider confidence is evident through strategic share repurchase plans worth £20 million initiated in December 2024. The company's stable dividend strategy remains attractive despite a proposed decrease for FY25.
Get an in-depth perspective on SThree's performance by reading our valuation report here.
Gain insights into SThree's historical performance by reviewing our past performance report.
Simply Wall St Value Rating: ★★★★☆☆
Overview: Vp is a specialist rental business providing equipment and services to a diverse range of sectors, with a market cap of approximately £0.25 billion.
Operations: Vp generates revenue primarily from the UK at £339.21 million, with an additional contribution of £43.35 million internationally. The company's cost of goods sold (COGS) was £247.77 million in the latest reported period, impacting its gross profit of £122.46 million and resulting in a gross profit margin of 33.08%. Operating expenses were noted at £54.17 million, alongside significant non-operating expenses amounting to £73.69 million, affecting net income figures which showed a loss in recent periods.
PE: -42.7x
Vp's recent activities highlight its potential as an undervalued investment. The company reported half-year sales of £192.46 million, slightly up from the previous year, while net income saw a slight dip to £14.27 million. Insider confidence is evident with Jeremy F. Pilkington acquiring 113,532 shares for approximately £638,583 between late 2024 and early 2025, signaling belief in future prospects despite high debt levels. Vp Rail's launch aims to streamline operations and enhance customer experience in the rail sector, aligning with its growth-focused strategy amidst a challenging financial landscape.
Unlock comprehensive insights into our analysis of Vp stock in this valuation report.
Explore historical data to track Vp's performance over time in our Past section.
Simply Wall St Value Rating: ★★★★★★
Overview: Zigup operates in the rental and claims services sectors, with a focus on the UK, Ireland, and Spain, and has a market capitalization of £2.75 billion.
Operations: Zigup generates revenue primarily from UK&I Rental (£575.33 million), Spain Rental (£360.69 million), and Claims & Services (£953.98 million). The company has experienced fluctuations in its gross profit margin, with a recent figure of 21.99% as of October 2024, down from a peak of 29.54% in October 2022. Operating expenses have shown an upward trend, reaching £244.24 million by October 2024, impacting overall profitability despite increasing revenues over time.
PE: 7.6x
Zigup, a UK-based company, is navigating financial challenges with profit margins dipping from 7.7% to 5.1% and earnings projected to grow at 5.38% annually. The company's reliance on external borrowing poses higher risk, yet recent executive changes bring optimism; Rachel Coulson joins as CFO by August 2025, promising digital transformation expertise from her tenure at Pearson and Vodafone. Despite revenue slipping slightly year-on-year to £903 million, Zigup declared an increased interim dividend of £0.088 per share for January 2025 payout, reflecting potential shareholder value appreciation amidst evolving leadership dynamics.
Take a closer look at Zigup's potential here in our valuation report.
Gain insights into Zigup's past trends and performance with our Past report.
Embark on your investment journey to our 35 Undervalued UK Small Caps With Insider Buying selection 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.
Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.
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:STEM LSE:VP. and LSE:ZIG.
Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@simplywallst.com
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
41 minutes ago
- Yahoo
Barclays and Natwest shares jump as conflict sparks inflation fears
Shares in the FTSE 100's top banks were rising on Monday as the intensifying conflict in the Middle East triggered inflation fears. Barclays and Natwest were up nearly two per cent and Lloyds over one per cent during early trading as oil prices crept up another one per cent to $74.90 a barrel. This follows an over nine per cent spike on Friday after Israel began striking Iran's nuclear programme. Meanwhile, Standard Chartered took second place on the index's risers after jumping nearly three per cent. The bank had made gains on the back of easing US and China trade tensions, with rising inflation fears over oil prices proving an extra bump. Richard Hunter, head of interactive investor, said: 'The oil price, which initially spiked by more than seven per cent, could have an almost immediate impact on inflation at a time when rising prices are coming to the fore as a result of the tariff introductions.' The higher inflationary pressure could spark a more hawkish stance from the Bank of England, which has slashed interest rates four times in the last year. Fewer cuts would be welcome news to lenders, who pocketed record profits in 2024 on the back of post-financial crisis high interest rates. The Bank of England's monetary policy committee (MPC) will next decide whether to trim or hold rates on June 19. Economists expect the MPC to keep rates at 4.25 per cent as it maintains a 'gradual and careful approach.' Huw Pill, the bank's chief economist, said last month that he thought rates had been cut too quickly partly due to the risk of 'stubbornly strong' pay growth on overall inflation. Fresh anxieties from the Middle Eastern conflict could be set to add further weight to the MPC's decision, as oil's surge pedals inflation fears. But Hunter said: 'For the Bank of England, there is likely to be some reference to the inflationary potential of the rising oil price, although this will play second fiddle to a labour market which is showing some signs of softening. 'In turn, this could lessen pressure on wage growth inflation, although the central bank's currently measured and cautious approach is likely to leave their stance on monetary policy unaltered for the time being.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
an hour ago
- Yahoo
Are UK investment assets becoming more attractive? Have your say
Investment bank Peel Hunt (PEEL.L) has highlighted that it is seeing more positivity from institutional investors towards the UK market. In its full-year results, published on Monday, Peel Hunt said: "Following the challenging market conditions of February and March, FY26 has started more positively, with the Trump administration agreeing a number of trade deals, including with the UK, and with interest rates having been cut by the Bank of England. "We are seeing a rotation out of US assets into Europe and greater institutional positivity towards the UK." The investment bank said that equity capital market (ECM) activity in the UK "remains generally subdued but could gain traction should macroeconomic conditions continue to stabilise." The UK's FTSE 100 (^FTSE) closed at a fresh high of 8,884 points on Thursday and is now up 8.8% year-to-date. Meanwhile, the S&P 500 (^GSPC) is up just 1.6% so far this year, with concerns about the economic impact of US president Donald Trump's tariffs weighing on investor sentiment. Read more: What to watch this week: Inflation, Bank of England interest rates, Accenture, Berkeley and Whitbread On the back of the FTSE's latest record close, Saxo Markets UK investor strategist Neil Wilson said that the UK blue-chip index has "rallied somewhat against the odds with broad-based gains among its diverse membership". For example, Wilson pointed out that the surge in gold and silver prices has boosted miner Fresnillo (FRES.L), while government pledges to spending more on defence have boosted BAE Systems (BA.L) and Rolls-Royce (RR.L). In addition, he said the FTSE's global footprint has also helped and that there had been strong progress among financial stocks, such as Lloyds (LLOY.L) and Prudential (PRU.L). "I think we have clearly seen a rotation in global equity markets as investors have for the first time in years questioned the TINATA — there is no alternative to America," Wilson said. "Investors are looking elsewhere and consistently conversations with clients revolve around geographic diversification and reducing exposure to the US." Do you think UK investment assets are becoming more attractive? Vote in the poll below. Yahoo UK's poll of the week lets you vote and indicate your strength of feeling on one of the week's hot topics. After the poll closes, we'll publish and analyse the results each Friday, giving readers the chance to see how polarising a topic has become and if their view chimes with other Yahoo UK readers. Read more: Average UK house asking price drops by more than £1,000 Why you can trust an 18-year old with their junior ISA – and how to create one What you need to know about UK's private stock market Pisces
Yahoo
an hour ago
- Yahoo
Are UK investment assets becoming more attractive? Have your say
Investment bank Peel Hunt (PEEL.L) has highlighted that it is seeing more positivity from institutional investors towards the UK market. In its full-year results, published on Monday, Peel Hunt said: "Following the challenging market conditions of February and March, FY26 has started more positively, with the Trump administration agreeing a number of trade deals, including with the UK, and with interest rates having been cut by the Bank of England. "We are seeing a rotation out of US assets into Europe and greater institutional positivity towards the UK." The investment bank said that equity capital market (ECM) activity in the UK "remains generally subdued but could gain traction should macroeconomic conditions continue to stabilise." The UK's FTSE 100 (^FTSE) closed at a fresh high of 8,884 points on Thursday and is now up 8.8% year-to-date. Meanwhile, the S&P 500 (^GSPC) is up just 1.6% so far this year, with concerns about the economic impact of US president Donald Trump's tariffs weighing on investor sentiment. Read more: What to watch this week: Inflation, Bank of England interest rates, Accenture, Berkeley and Whitbread On the back of the FTSE's latest record close, Saxo Markets UK investor strategist Neil Wilson said that the UK blue-chip index has "rallied somewhat against the odds with broad-based gains among its diverse membership". For example, Wilson pointed out that the surge in gold and silver prices has boosted miner Fresnillo (FRES.L), while government pledges to spending more on defence have boosted BAE Systems (BA.L) and Rolls-Royce (RR.L). In addition, he said the FTSE's global footprint has also helped and that there had been strong progress among financial stocks, such as Lloyds (LLOY.L) and Prudential (PRU.L). "I think we have clearly seen a rotation in global equity markets as investors have for the first time in years questioned the TINATA — there is no alternative to America," Wilson said. "Investors are looking elsewhere and consistently conversations with clients revolve around geographic diversification and reducing exposure to the US." Do you think UK investment assets are becoming more attractive? Vote in the poll below. Yahoo UK's poll of the week lets you vote and indicate your strength of feeling on one of the week's hot topics. After the poll closes, we'll publish and analyse the results each Friday, giving readers the chance to see how polarising a topic has become and if their view chimes with other Yahoo UK readers. Read more: Average UK house asking price drops by more than £1,000 Why you can trust an 18-year old with their junior ISA – and how to create one What you need to know about UK's private stock market PiscesSign in to access your portfolio
