Is this one of the most undervalued stocks on the London Stock Exchange?
With companies on the London Stock Exchange trading at dirt cheap prices, contrarian investors have been doing quite a bit of shopping in 2025. Among them is Alex Wright, the chief manager of Fidelity International's UK-focused funds.
While most investors have been panicking about the impact of tariffs and the general cost-of-living crisis in the UK, Wright has a different view. Instead, he believes the UK's actually far more insulated against the brewing trade war and local economic conditions. So much so, he's started snapping up shares in big-ticket item retailers, including Howden Joinery (LSE:HWDN).
Howden's known for its award-winning fitted kitchens. And with the firm's recent expansion into fitted bedrooms, it's arguably one of Britain's biggest players in the home renovation space. But with tax hikes by local councils, higher bills from energy and water companies, and rising internet and mortgage costs, the home renovation market isn't exactly firing on all cylinders right now.
The impact of this has been reflected in Howden's latest results. While international performance remains robust, sales in the UK are basically flat as per its April trading update. Considering the company has historically posted double-digit growth, the slowdown has understandably spooked some investors. Consequently, around 20% of its market-cap has been wiped out since September.
But could this be a buying opportunity? Wright's thesis is built around an incoming rebound within the home renovation market.
Interest rates have steadily started coming down. That reduces pressure on all British businesses and households, and is expected to translate into more affordable bills, either through salary increases or price dips.
At the same time, weaker competitors, particularly in the private sector, have been being eliminated from the market. Kitchen Love ceased trading in 2024. And both CTD Tiles and Homebase have entered into administration. That means Howden now has fewer rivals to contend with when the renovation cycle starts to ramp back up, creating opportunities to capture more market share. After all, despite the recent challenges, Howden remains a highly cash-generative enterprise.
It's hard to argue with Wright's logic. Even more so considering I actually bought Howden Joinery shares back in August 2022 on a similar thesis. And so far, it's proven correct with my initial investment delivering close to 40% capital gains versus the FTSE 100's 16%.
However, just like in 2022, an investment in Howden Joinery today isn't without its risks. Despite the bankruptcies, there are still plenty of competitors seeking to take advantage of the growing gap in the fitted kitchen market.
At the same time, the company, despite being vertically integrated, is still reliant on a steady supply of timber. Considering an estimated 81% of timber used in the UK is imported, supply chain disruptions from expected trade wars could throw a spanner into the works.
There are plenty of value opportunities on the London Stock Exchange to capitalise on right now. And all things considered, I think Howden Joinery could be one of them. So for investors seeking to snap up shares trading at a discount to their potential, this enterprise is definitely worth considering, in my opinion.
The post Is this one of the most undervalued stocks on the London Stock Exchange? appeared first on The Motley Fool UK.
More reading
5 Stocks For Trying To Build Wealth After 50
One Top Growth Stock from the Motley Fool
Zaven Boyrazian has positions in Howden Joinery Group Plc. The Motley Fool UK has recommended Howden Joinery Group Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
Motley Fool UK 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
25 minutes ago
- Yahoo
European Penny Stocks Spotlight: Sinteza And Two Promising Picks
As the European markets continue to show resilience, with major stock indexes rising and inflation easing, investors are increasingly looking for opportunities in less conventional areas. Penny stocks, often overlooked due to their smaller market presence, can offer unique investment prospects when supported by solid financials. This article will explore three such stocks in Europe that stand out for their potential to deliver value and growth amid evolving economic conditions. Name Share Price Market Cap Financial Health Rating KebNi (OM:KEBNI B) SEK1.86 SEK504.35M ★★★★★★ Angler Gaming (NGM:ANGL) SEK3.67 SEK275.19M ★★★★★★ Cellularline (BIT:CELL) €2.97 €62.64M ★★★★★☆ Fondia Oyj (HLSE:FONDIA) €4.68 €17.5M ★★★★★★ Abak (WSE:ABK) PLN4.20 PLN10.78M ★★★★★★ Bredband2 i Skandinavien (OM:BRE2) SEK2.41 SEK2.31B ★★★★☆☆ Hifab Group (OM:HIFA B) SEK3.54 SEK215.37M ★★★★★★ Euroland Société anonyme (ENXTPA:MLERO) €3.26 €9.49M ★★★★★★ Deceuninck (ENXTBR:DECB) €2.195 €303.05M ★★★★★★ Netgem (ENXTPA:ALNTG) €0.952 €31.88M ★★★★★★ Click here to see the full list of 447 stocks from our European Penny Stocks screener. We'll examine a selection from our screener results. Simply Wall St Financial Health Rating: ★★★★☆☆ Overview: Sinteza S.A. is a Romanian company involved in the production and marketing of basic organic chemical products, with a market cap of RON47.60 million. Operations: The company's revenue is primarily derived from the manufacture of other organic basic chemicals, amounting to RON0.68 million. Market Cap: RON47.6M Sinteza S.A., a Romanian chemical producer, remains pre-revenue with sales of RON0.10 million in Q1 2025, down from RON2.18 million the previous year. Despite its unprofitability and negative return on equity of -34.02%, the company has a satisfactory net debt to equity ratio of 14.7% and a cash runway exceeding three years due to positive free cash flow growth. However, Sinteza faces challenges with short-term assets not covering liabilities and increased losses over five years at 26.3% annually, alongside high share price volatility compared to other Romanian stocks. Click here and access our complete financial health analysis report to understand the dynamics of Sinteza. Learn about Sinteza's historical performance here. Simply Wall St Financial Health Rating: ★★★★★☆ Overview: Broadpeak Société anonyme designs and manufactures video delivery components for content and network service providers deploying video streaming services over various broadband networks worldwide, with a market cap of €19.35 million. Operations: Broadpeak Société anonyme generates revenue through three primary segments: Equipment (€3.55 million), Licenses and Services (€20.26 million), and Maintenance and Service as a Software (SaaS) (€15.57 million). Market Cap: €19.35M Broadpeak Société anonyme, with a market cap of €19.35 million, reported 2024 revenues of €39.38 million, showing slight growth from the previous year. Despite being unprofitable and having a negative return on equity of -19.96%, the company maintains sufficient cash runway for over three years due to positive free cash flow and short-term assets exceeding liabilities (€28.1M vs €21.8M). The firm trades at a significant discount to its estimated fair value and has not experienced meaningful shareholder dilution recently, although it remains highly volatile compared to French stocks with stable weekly volatility at 14%. Dive into the specifics of Broadpeak Société anonyme here with our thorough balance sheet health report. Evaluate Broadpeak Société anonyme's prospects by accessing our earnings growth report. Simply Wall St Financial Health Rating: ★★★★★☆ Overview: Nextedia S.A. operates in France offering cybersecurity, cloud and digital workspace, and customer experience solutions, with a market cap of €23.17 million. Operations: The company generates revenue from its Direct Marketing segment, totaling €64.62 million. Market Cap: €23.17M Nextedia S.A., with a market cap of €23.17 million, demonstrates strong financial health in the penny stock arena. The company reported 2024 revenues of €64.62 million, reflecting growth from the previous year alongside a net income increase to €1.9 million from €0.7 million. Its debt is well covered by operating cash flow and interest payments are comfortably managed by EBIT, indicating robust financial management. Trading at a significant discount to its estimated fair value, Nextedia also benefits from seasoned board leadership and high-quality earnings growth outpacing industry averages, though its return on equity remains low at 6.1%. Jump into the full analysis health report here for a deeper understanding of Nextedia. Understand Nextedia's earnings outlook by examining our growth report. Click through to start exploring the rest of the 444 European Penny Stocks now. Contemplating Other Strategies? Outshine the giants: these 25 early-stage AI stocks could fund your retirement. 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 BVB:STZ ENXTPA:ALBPK and ENXTPA:ALNXT. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ 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
26 minutes ago
- Yahoo
Asian Penny Stock Opportunities: Guangzhou Automobile Group And 2 More Hidden Gems
As global markets continue to navigate economic uncertainties, the Asian market presents intriguing opportunities for investors seeking growth at lower price points. Penny stocks, often associated with smaller or newer companies, offer a unique chance for substantial returns when backed by strong financials and robust fundamentals. Despite being a somewhat outdated term, these stocks remain relevant as potential hidden gems in the investment landscape. Name Share Price Market Cap Financial Health Rating YKGI (Catalist:YK9) SGD0.10 SGD42.5M ★★★★★★ Lever Style (SEHK:1346) HK$1.15 HK$725.59M ★★★★★★ TK Group (Holdings) (SEHK:2283) HK$2.10 HK$1.75B ★★★★★★ CNMC Goldmine Holdings (Catalist:5TP) SGD0.425 SGD172.25M ★★★★★☆ Goodbaby International Holdings (SEHK:1086) HK$1.18 HK$1.97B ★★★★★★ Halcyon Technology (SET:HTECH) THB2.64 THB792M ★★★★★★ Yangzijiang Shipbuilding (Holdings) (SGX:BS6) SGD2.28 SGD8.97B ★★★★★☆ Beng Kuang Marine (SGX:BEZ) SGD0.179 SGD35.66M ★★★★★★ BRC Asia (SGX:BEC) SGD3.12 SGD855.97M ★★★★★★ Bosideng International Holdings (SEHK:3998) HK$4.52 HK$51.78B ★★★★★★ Click here to see the full list of 1,147 stocks from our Asian Penny Stocks screener. Let's uncover some gems from our specialized screener. Simply Wall St Financial Health Rating: ★★★★☆☆ Overview: Guangzhou Automobile Group Co., Ltd. is involved in the research, development, manufacture, and sale of vehicles, motorcycles, and related parts both in Mainland China and internationally, with a market cap of approximately HK$69.37 billion. Operations: Revenue Segments: No specific revenue segments have been reported for Guangzhou Automobile Group Co., Ltd. Market Cap: HK$69.37B Guangzhou Automobile Group is navigating challenges as a penny stock with its recent strategic initiatives and financial performance. The company has launched a Brazil Action Plan, marking significant expansion efforts in Latin America, which may enhance its global footprint. Despite these strategic moves, the company reported a net loss of CNY 731.61 million for Q1 2025 amid declining sales and production volumes. However, Guangzhou Automobile maintains strong liquidity with short-term assets exceeding both long-term and short-term liabilities. Additionally, its management team is experienced, which could be beneficial in steering through current financial difficulties while focusing on future growth opportunities. Unlock comprehensive insights into our analysis of Guangzhou Automobile Group stock in this financial health report. Examine Guangzhou Automobile Group's earnings growth report to understand how analysts expect it to perform. Simply Wall St Financial Health Rating: ★★★★★★ Overview: Greentown Service Group Co. Ltd. offers residential property management services in China and internationally, with a market cap of HK$13.17 billion. Operations: The company's revenue is primarily derived from Property Services (CN¥12.40 billion), followed by Community Living Services excluding Technology Services (CN¥2.74 billion), Consulting Services (CN¥2.41 billion), and Technology Services (CN¥341.19 million). Market Cap: HK$13.17B Greentown Service Group demonstrates a mix of strengths and challenges as an investment in the penny stock category. The company has shown significant revenue growth, reaching CN¥17.89 billion for 2024, with net income also rising to CN¥785.08 million. Its earnings growth over the past year outpaced both its five-year average and industry performance, indicating potential resilience in a volatile market. Despite this progress, Greentown's Return on Equity remains low at 8.8%. However, its financial stability is underscored by short-term assets exceeding liabilities and debt being well-covered by operating cash flow, suggesting prudent fiscal management amidst market fluctuations. Dive into the specifics of Greentown Service Group here with our thorough balance sheet health report. Learn about Greentown Service Group's future growth trajectory here. Simply Wall St Financial Health Rating: ★★★★★☆ Overview: Xinyi Solar Holdings Limited is an investment holding company that produces, sells, and trades solar glass products across Mainland China, Asia, North America, Europe, and internationally with a market cap of HK$22.51 billion. Operations: The company generates revenue primarily from the sale of solar glass, amounting to CN¥18.82 billion, and its solar farm business, including EPC services, which contributes CN¥3.02 billion. Market Cap: HK$22.51B Xinyi Solar Holdings presents a complex picture in the realm of penny stocks. The company has faced challenges with declining profit margins, currently at 4.6% compared to last year's 15.9%, and negative earnings growth over the past year. Despite these setbacks, it maintains a satisfactory net debt to equity ratio of 30.7% and covers its interest payments well with EBIT coverage at 6.2 times. The board's seasoned experience, averaging an impressive tenure of 11.8 years, adds stability amidst recent changes like appointing Ernst & Young as auditors and amending corporate bylaws during its latest AGM on May 30, 2025. Click to explore a detailed breakdown of our findings in Xinyi Solar Holdings' financial health report. Review our growth performance report to gain insights into Xinyi Solar Holdings' future. Embark on your investment journey to our 1,147 Asian Penny Stocks selection here. Ready For A Different Approach? We've found 17 US stocks that are forecast to pay a dividend yeild of over 6% next year. See the full list for free. 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 SEHK:2238 SEHK:2869 and SEHK:968. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ 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
30 minutes ago
- Yahoo
ANGLE plc Announces Novel Discoveries Into the Biology of Cancer
PARSORTIX SYSTEM enableS novel DISCOVERIES into the biology of cancer Academic and translational research is the driving force behind the pipeline of next generation cancer therapeutics GUILDFORD, SURREY / / June 10, 2025 / ANGLE plc (AIM:AGL)(OTCQX:ANPCY), a world-leading liquid biopsy company with innovative circulating tumour cell (CTC) solutions for use in research, drug development and clinical oncology, is pleased to announce the publication of three new peer-reviewed publications reporting first-in-class research into the biology of cancer and potential therapeutic targets using the Company's Parsortix system. Tumour cell release during surgery for prostate cancer1Professor Klaus Pantel and researchers from the University Medical Center Hamburg-Eppendorf published an article in the Journal of Experimental & Clinical Cancer Research, investigating tumour cell release into the local tumour vein and peripheral veins during surgery in early-stage prostate cancer patients. The study provides first evidence for substantial release of healthy and cancerous cells into the blood during prostatectomy surgery. This research opens a new avenue for the Parsortix system to study the important and under-investigated biology of tumour cell release during surgery to understand the risk they pose to patients, and for the development of strategies to minimise the spread of cancer. Tumour cell release during surgery for ovarian cancer2Professor John O'Leary and researchers from Trinity College Dublin have published similar findings in the European Journal of Surgical Oncology, investigating CTC enrichment from the local tumour vein and peripheral veins during surgery in rare epithelial ovarian carcinomas. They reported higher yields of CTCs and CTC clusters in the local tumour vein when compared to peripheral veins. The study also reported that CTCs were detected in early-stage patients, highlighting the risk of early tumour cell dissemination driving cancer progression even in the initial stages of disease. Overall, the authors state that assessing tumour cell release during surgery is a novel strategy to study the biology of this rare disease. Mechanical conditioning & metastatic implications3Professor Julie Lang and researchers from the Cleveland Clinic have published an article in Cancers, investigating biomechanical adaptions of cells that are associated with increased metastatic potential in breast cancer patients. They studied the expression of 1004 genes via RNA-sequencing that reflect how cancer cells respond to a stiff extracellular matrix described as a mechanical conditioning score. The Parsortix system was utilised to enrich and harvest CTCs from a metastatic cohort of breast cancer patients for analysis and compared these to primary and metastatic tissue. The study analysed RNA from CTCs rather than ctDNA to provide insight into gene expression. They state that: 'When analyzing shed ctDNA, there is no insight into gene expression, but rather only the presence of tumor-specific mutations, which is not directly reflective of dynamic tumor gene expression. In fact, only a very small percentage of DNA mutations are expressed, which is why circulating tumor DNA and RNA from CTCs are not parallel assays'. The study reported that the mechanical conditioning score increases progressively through the metastatic cascade (from the primary tumour to CTCs to the metastatic site) and is associated with increased metastatic potential. These are new insights into the biology of metastatic progression and may guide treatment selection with anti-fibrotic drugs. Overall, these publications further underscore the role of the Parsortix system in helping to advance our understanding of the biology of cancer which will ultimately advance oncology drug discovery and development. Already ANGLE's technology has enabled breakthrough research in a number of areas including the metastatic potential of CTC clusters, new potential biomarkers and a novel drug class. Academic and translational research discoveries made possible by the Parsortix system, have the potential to feed the pipeline of next generation personalised cancer diagnostics and therapeutics, as pharma companies increasingly collaborate with academia4. ANGLE's Chief Scientific Officer, Karen Miller, commented:"We are proud to see ANGLE's technology increasingly being exploited to make novel discoveries into the biology of cancer, which may eventually result in new treatment strategies. With advancing analytical capabilities beginning to realise the vast potential of the circulating tumour cell for its wealth of multiomic information, this contribution to the oncology pipeline will continue to grow. We congratulate these key opinion leaders on their outstanding work, and we look forward to more exciting discoveries in the future." 1. Emurlai, G. et al. Comparative analysis of circulating tumor cells in prostatic plexus and peripheral blood of patients undergoing prostatectomy. J. Exp. Clin. Cancer Res. 44, 143 (2025). 2. Lewis, F. et al. A pilot study evaluating the feasibility of enriching and detecting circulating tumour cells from peripheral and ovarian veins in rare epithelial ovarian carcinomas. Eur. J. Surg. Oncol. 51, (2025). 3. Mouneimne, G. et al. Mechanical Conditioning (MeCo) Score Progressively Increases Through the Metastatic Cascade in Breast Cancer via Circulating Tumor Cells. Cancers 17, 1632 (2025). 4. For further information: ANGLE plc +44 (0) 1483 343434 Andrew Newland, Chief Executive Ian Griffiths, Finance Director Berenberg (NOMAD and Broker) Toby Flaux, Ciaran Walsh, Milo Bonser +44 (0) 20 3207 7800 FTI Consulting Simon Conway, Ciara Martin Matthew Ventimiglia (US) +44 (0) 203 727 1000 +1 (212) 850 5624 For Research Use Only. Not for use in diagnostic procedures. For Frequently Used Terms, please see the Company's website on Notes for editors About ANGLE plc ANGLE is a world-leading liquid biopsy company with innovative circulating tumour cell (CTC) solutions for use in research, drug development and clinical oncology using a simple blood sample. ANGLE's FDA cleared and patent protected CTC harvesting technology known as the Parsortix® PC1 System enables complete downstream analysis of the sample including whole cell imaging and proteomic analysis and full genomic and transcriptomic molecular analysis. ANGLE's commercial businesses are focusing on clinical services and diagnostic products. The clinical services business is offered through ANGLE's GCLP-compliant laboratories. Services include custom made assay development and clinical trial testing for pharma. Products include the Parsortix system, associated consumables and assays. Over 100 peer-reviewed publications have demonstrated the performance of the Parsortix system. For more information, visit Any reference to regulatory authorisations such as FDA clearance, CE marking or UK MHRA registration shall be read in conjunction with the full intended use of the product: The Parsortix® PC1 system is an in vitro diagnostic device intended to enrich circulating tumor cells (CTCs) from peripheral blood collected in K2EDTA tubes from patients diagnosed with metastatic breast cancer. The system employs a microfluidic chamber (a Parsortix cell separation cassette) to capture cells of a certain size and deformability from the population of cells present in blood. The cells retained in the cassette are harvested by the Parsortix PC1 system for use in subsequent downstream assays. The end user is responsible for the validation of any downstream assay. The standalone device, as indicated, does not identify, enumerate or characterize CTCs and cannot be used to make any diagnostic/prognostic claims for CTCs, including monitoring indications or as an aid in any disease management and/or treatment decisions. This information is provided by Reach, the non-regulatory press release distribution service of RNS, part of the London Stock Exchange. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@ or visit SOURCE: ANGLE plc View the original press release on ACCESS Newswire 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
