The United Kingdom's market has recently faced headwinds, with the FTSE 100 closing lower due to weak trade data from China, highlighting global economic uncertainties. Despite these challenges, small-cap stocks can present unique opportunities for investors, particularly those with insider buying which may indicate confidence in their potential.

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

Click here to see the full list of 21 stocks from our Undervalued UK Small Caps With Insider Buying screener.

We'll examine a selection from our screener results.

Genus

Simply Wall St Value Rating: ★★★★★☆

Overview: Genus is a biotechnology company specializing in animal genetics, with operations primarily in the bovine and porcine sectors, and has a market cap of approximately £2.40 billion.

Operations: Genus generates revenue primarily from its Genus ABS and Genus PIC segments, with recent quarterly revenues reaching £668.80 million. The company's gross profit margin has shown variability, peaking at 68.02% in Q1 2024 but also experiencing lower margins such as 36.25% in Q4 2023. Operating expenses have fluctuated significantly, impacting net income margins which ranged from a high of 14.05% to lows around the single digits over the periods reviewed

PE: 160.2x

Genus plc, a smaller player in the UK market, recently reported a drop in sales to £668.8 million for the year ending June 30, 2024, down from £689.7 million the previous year. Net income also fell to £7.9 million from £33.3 million last year. Despite these declines, insider confidence remains strong with recent share purchases indicating potential value recognition within the company. The board proposed a final dividend of 21.7 pence per share, consistent with last year's payout.

• Unlock comprehensive insights into our analysis of Genus stock in this valuation report.

• Understand Genus' track record by examining our Past report.

Hammerson

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Hammerson is a property development and investment company focusing on flagship retail destinations in the UK, France, and Ireland with a market cap of £1.23 billion.

Operations: Flagship Destinations in the UK, France, and Ireland are the primary revenue streams, contributing £88.7 million, £53.2 million, and £39.5 million respectively. The company has experienced varying net income margins over recent periods with a notable margin of -0.18356% as of September 2024. Gross profit margins have fluctuated but were recorded at 80.90% for Q1 2024 and 79.90% for Q2 2024.

PE: -35.0x

Hammerson, a notable player in the UK retail property sector, has recently secured a EUR 175 million share of a non-recourse term loan with PIMCO Prime Real Estate to refinance Dundrum Town Centre's existing facility. This move extends their average debt maturity from 2.2 to 2.9 years and maintains their LTV ratio. Despite reporting H1 sales of £40.1 million and net losses of £516.7 million, insider confidence is evident with recent share purchases by key executives throughout July 2024, suggesting belief in future growth potential amid current undervaluation concerns.

• Navigate through the intricacies of Hammerson with our comprehensive valuation report here.

• Examine Hammerson's past performance report to understand how it has performed in the past.

Sirius Real Estate

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Sirius Real Estate is a property investment company specializing in owning and managing business parks, industrial complexes, and office spaces with a market cap of €1.35 billion.

Operations: The company generates revenue primarily from property investment, with the most recent reported revenue at €289.40 million. Gross profit margin has shown variability, reaching 57.50% in the latest period. Operating expenses and non-operating expenses have also impacted net income margins, which were 37.25% in the most recent report.

PE: 16.4x

Sirius Real Estate has recently raised £152.5 million through a follow-on equity offering, pricing shares at £0.94 each. This capital will support their acquisition strategy in Germany and the UK, aiming to grow annual FFO to €150 million. Despite having no customer deposits and relying entirely on external borrowing, insider confidence is evident with significant share purchases over the past year. Their operational track record includes ten years of consistent rental growth above 5% and dividend increases.

• Get an in-depth perspective on Sirius Real Estate's performance by reading our valuation report here.

• Review our historical performance report to gain insights into Sirius Real Estate's's past performance.

Key Takeaways

• Reveal the 21 hidden gems among our Undervalued UK Small Caps With Insider Buying screener with a single click here.

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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:GNS LSE:HMSO and LSE:SRE.

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