The UK market is facing challenges due to disappointing trade figures from China, resulting in downturns for both the FTSE 100 and FTSE 250 indices. This scenario raises concerns about the global economic recovery. For investors, pinpointing undervalued stocks may present opportunities for resilience and growth, even amidst such uncertainties.
Name |
Current Price |
Fair Value (Est) |
Discount (Est) |
Victrex (LSE:VCT) |
£7.84 |
£15.57 |
49.7% |
SDI Group (AIM:SDI) |
£0.71 |
£1.34 |
47.1% |
Savills (LSE:SVS) |
£9.68 |
£16.74 |
42.2% |
Informa (LSE:INF) |
£7.992 |
£14.45 |
44.7% |
Ibstock (LSE:IBST) |
£1.884 |
£3.29 |
42.7% |
Huddled Group (AIM:HUD) |
£0.0335 |
£0.06 |
43.9% |
GlobalData (AIM:DATA) |
£1.72 |
£3.09 |
44.4% |
Entain (LSE:ENT) |
£7.414 |
£13.63 |
45.6% |
Duke Capital (AIM:DUKE) |
£0.2925 |
£0.54 |
45.7% |
Deliveroo (LSE:ROO) |
£1.755 |
£3.13 |
43.9% |
Let’s take a closer look at some highlighted selections from our screening process.
Overview: Brickability Group Plc, along with its subsidiaries, specializes in the supply and distribution of building materials in the UK, boasting a market cap of £219.05 million.
Operations: The company generates revenue through imports (£90.55 million), contracting (£88.22 million), distribution (£63.21 million), and bricks and building materials (£380.56 million) in the UK.
Estimated Discount To Fair Value: 10.6%
Trading at £0.68 against an estimated fair value of £0.76 indicates potential undervaluation. Anticipated revenue growth stands at 5.8% annually, surpassing the UK market’s growth of 3.8%. Although profit margins have slipped from 4.3% to 1.4%, earnings are expected to rise by 39.58% over the next three years, outpacing the projected market growth of 14.5%.
Overview: The Property Franchise Group PLC operates within the UK, focusing on residential property franchising, licensing, and financial services, with a market cap of £325.14 million.
Operations: Revenue comes from various segments: licensing (£7.21 million), financial services (£19.20 million), and property franchising (£40.90 million).
Estimated Discount To Fair Value: 38.2%
With shares at £5.1 against a fair value of £8.25, there is an indication of undervaluation. Despite declining profit margins, earnings are projected to rise by 26.35%, exceeding market growth of 14.5%. Recent earnings have shown significant sales growth.
Overview: Applied Nutrition Plc is engaged in manufacturing and distributing sports nutrition products, both domestically and internationally, with a market cap of £326.50 million.
Operations: The company’s revenue mainly originates from its Vitamins & Nutrition segment, amounting to £88.35 million.
Estimated Discount To Fair Value: 33.8%
Currently priced at £1.31 with a fair value estimate of £1.97 suggests it is undervalued. Despite a decrease in net income, earnings are expected to grow at 15.7% annually, surpassing the market average. A recent strategic partnership could further contribute to growth.
This article is a general overview by Simply Wall St and is not intended as financial advice. It is based on historical data and does not account for individual financial situations.
Companies mentioned include AIM:BRCK, AIM:TPFG, and LSE:APN.
This piece was originally published by Simply Wall St.
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