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Undiscovered Gems in the UK to Watch This August 2024

The market in the United Kingdom has climbed by 2.7% over the past week, with every sector up, and it has seen an 8.8% increase over the last year. In this positive environment, identifying stocks with strong growth potential and solid fundamentals can be particularly rewarding for investors looking to capitalize on these trends.

Top 10 Undiscovered Gems With Strong Fundamentals In The United Kingdom

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Andrews Sykes Group

NA

1.69%

3.16%

★★★★★★

Globaltrans Investment

15.40%

2.68%

16.51%

★★★★★★

London Security

0.31%

9.47%

7.41%

★★★★★★

Georgia Capital

NA

-27.80%

18.94%

★★★★★★

Impellam Group

31.12%

-5.43%

-6.86%

★★★★★★

M&G Credit Income Investment Trust

NA

-0.35%

1.18%

★★★★★★

Fix Price Group

43.59%

12.53%

23.49%

★★★★★☆

Ros Agro

57.18%

17.80%

18.35%

★★★★★☆

BBGI Global Infrastructure

0.02%

6.58%

9.90%

★★★★★☆

Mountview Estates

16.64%

4.50%

-0.59%

★★★★☆☆

Click here to see the full list of 78 stocks from our UK Undiscovered Gems With Strong Fundamentals screener.

Here we highlight a subset of our preferred stocks from the screener.

Yellow Cake

Simply Wall St Value Rating: ★★★★★★

Overview: Yellow Cake plc operates in the uranium sector with a market cap of £1.21 billion.

Operations: Yellow Cake plc generates revenue primarily from holding U3O8 for long-term capital appreciation, amounting to $735.02 million.

Yellow Cake, a niche player in the uranium market, has shown impressive financial turnaround. For the fiscal year ending March 31, 2024, revenues soared to US$735.02 million from negative US$96.9 million previously. Net income also surged to US$727.01 million compared to a net loss of US$102.94 million last year, reflecting its profitable status this year with basic earnings per share at US$3.51 versus a loss of US$0.56 previously. The company’s debt-free status and low Price-to-Earnings ratio (2x) relative to the UK market (17x) indicate solid value potential despite forecasted declines in earnings over the next three years by an average of 104%.

AIM:YCA Debt to Equity as at Aug 2024
AIM:YCA Debt to Equity as at Aug 2024

Law Debenture

Simply Wall St Value Rating: ★★★★☆☆

Overview: The Law Debenture Corporation p.l.c., an investment trust with a market cap of £1.21 billion, offers independent professional services to companies, agencies, organizations, and individuals globally.

Operations: Law Debenture generates revenue primarily from its Investment Portfolio (£35.62 million) and Independent Professional Services (£61.55 million).

Law Debenture has shown impressive financial growth, with earnings increasing by 340.1% over the past year, significantly outpacing the Capital Markets industry. Its net debt to equity ratio stands at a satisfactory 15%, and interest payments are well covered by EBIT at 21.9x coverage. The company reported half-year revenue of £111.97 million and net income of £82 million, reflecting strong performance and potential for future growth in the UK market.

LSE:LWDB Debt to Equity as at Aug 2024
LSE:LWDB Debt to Equity as at Aug 2024

Seplat Energy

Simply Wall St Value Rating: ★★★★☆☆

Overview: Seplat Energy Plc is involved in oil and gas exploration, production, and gas processing across Nigeria, the Bahamas, Italy, Switzerland, Barbados, and England with a market cap of £1.16 billion.

Operations: Seplat Energy generates revenue primarily from oil and gas exploration, production, and gas processing activities. The company's net profit margin is 15.23%, reflecting its profitability after accounting for all expenses.

Seplat Energy has shown impressive earnings growth of 207.6% over the past year, surpassing the Oil and Gas industry average. The company reported net income of US$40.76 million for H1 2024, compared to US$43.51 million a year ago, with basic earnings per share stable at US$0.07. Additionally, Seplat's debt to equity ratio increased from 20.6% to 41.5% over five years, while interest payments are well covered by EBIT at a multiple of 5.4x.

LSE:SEPL Earnings and Revenue Growth as at Aug 2024
LSE:SEPL Earnings and Revenue Growth as at Aug 2024

Turning Ideas Into Actions

Curious About Other Options?

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 AIM:YCA LSE:LWDB and LSE:SEPL.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com