As the UK market grapples with challenges from weak trade data in China, the FTSE 100 and FTSE 250 indices have experienced declines, reflecting broader concerns about global economic recovery. In such an environment, identifying undervalued stocks can offer potential opportunities for investors seeking resilience and growth despite prevailing 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%

Click here to see the full list of 51 stocks from our Undervalued UK Stocks Based On Cash Flows screener.

Let’s review some notable picks from our screened stocks.

Overview: Brickability Group Plc, along with its subsidiaries, is involved in the supply, distribution, and importation of building products within the United Kingdom and has a market capitalization of £219.05 million.

Operations: The company’s revenue segments include £90.55 million from importing, £88.22 million from contracting, £63.21 million from distribution, and £380.56 million from bricks and building materials within the UK market.

Estimated Discount To Fair Value: 10.6%

Brickability Group is trading at £0.68, slightly below the estimated fair value of £0.76, indicating it might be undervalued based on cash flows. Despite a forecasted revenue growth of 5.8% per year, which outpaces the UK market’s 3.8%, profit margins have decreased from last year’s 4.3% to 1.4%. However, earnings are expected to grow significantly by 39.58% annually over the next three years, outperforming the market’s anticipated growth rate of 14.5%.

AIM:BRCK Discounted Cash Flow as at Jun 2025 AIM:BRCK Discounted Cash Flow as at Jun 2025

Overview: The Property Franchise Group PLC operates in the United Kingdom, focusing on residential property franchising, licensing, and financial services, with a market cap of £325.14 million.

Operations: The company’s revenue is derived from three main segments: £7.21 million from licensing, £19.20 million from financial services, and £40.90 million from property franchising in the United Kingdom.

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Estimated Discount To Fair Value: 38.2%

Property Franchise Group is trading at £5.1, below its fair value estimate of £8.25, suggesting it might be undervalued based on cash flows. Despite a drop in profit margins from 27.1% to 15.1%, earnings are expected to grow significantly by 26.35% annually, outpacing the UK market’s growth rate of 14.5%. Recent earnings showed sales increased to £67.31 million from £27.28 million last year, though dividends remain poorly covered by earnings.

AIM:TPFG Discounted Cash Flow as at Jun 2025 AIM:TPFG Discounted Cash Flow as at Jun 2025

Overview: Applied Nutrition Plc is involved in the manufacture, wholesale, and retail of sports nutritional products both in the United Kingdom and internationally, with a market cap of £326.50 million.

Operations: The company’s revenue primarily comes from its Vitamins & Nutrition Products segment, which generated £88.35 million.

Estimated Discount To Fair Value: 33.8%

Applied Nutrition is trading at £1.31, below its estimated fair value of £1.97, indicating undervaluation based on cash flows. Despite a decrease in net income to £8.9 million from £12.3 million, earnings are forecast to grow annually by 15.7%, surpassing the UK market average of 14.5%. The recent strategic partnership with TANG® could enhance revenue streams, supporting the projected revenue growth rate of 11.8% per year above market expectations.

LSE:APN Discounted Cash Flow as at Jun 2025 LSE:APN Discounted Cash Flow as at Jun 2025

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:BRCK AIM:TPFG and LSE:APN.

This article was originally published by Simply Wall St.

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