Exploring 3 Promising Undervalued Small Caps With Insider Activity In UK
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.
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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
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Dividend flags to watch for While it's understandable to be on the lookout for high yields, it's not always a good sign. Jemma Slingo, of Fidelity, said: 'Although it sounds counterintuitive, investors shouldn't get too obsessed with big dividend yields. A yield that is too high can actually be a red flag, as it suggests the market is braced for a cut.' In some cases, a company may have seen its dividend pushed up by a declining share price. This is because yield is calculated as the annual dividends per share divided by the share price. A falling share price could signal that earnings are expected to fall and a dividend cut is on the horizon. For example, advertiser WPP offers a tantalising yield of about 9pc, but its share price is at its lowest level in 15 years. It recently halved its interim dividend and announced a 48pc drop in operating profits for the first half of the year. Housebuilder Taylor Wimpey is another high-yielding stock whose share price has slumped this year. It plunged to a pre-tax loss in the first half after taking a £20m charge to fix poor workmanship at an old development. Ms Streeter said: 'Given that Taylor Wimpey cut its interim dividend, it could continue the trend for the full year.' She went on: 'There has been another interest rate cut this month, but further reductions in borrowing costs are looking less likely by the end of the year, so the company may well be a bit more cautious about shareholder returns going forward.'' Dividend cover can help you work out whether a company's payout is sustainable. This shows you how many times a firm can afford to pay its dividend out of available profits. It can be calculated as prospective earnings per share (EPS) divided by prospective dividend per share (DPS). Anything below one could be cause for concern, with anything above two generally considered healthy. You may also want to check the company's operating free cash flow and debt levels. This will tell you whether the company is making enough money to comfortably pay its dividend. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. 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
