Amid recent fluctuations in the United Kingdom’s market, driven by weak trade data from China impacting the FTSE 100, investors are keenly observing opportunities that may arise from these shifts. In such an environment, identifying stocks that might be priced below their estimated worth becomes crucial for those looking to capitalize on potential value investments.
Name
Current Price
Fair Value (Est)
Discount (Est)
Gooch & Housego (AIM:GHH)
£3.76
£7.20
47.7%
Aptitude Software Group (LSE:APTD)
£2.80
£5.21
46.3%
NIOX Group (AIM:NIOX)
£0.602
£1.09
44.7%
On the Beach Group (LSE:OTB)
£2.655
£4.85
45.2%
Trainline (LSE:TRN)
£2.836
£5.24
45.9%
Franchise Brands (AIM:FRAN)
£1.36
£2.47
44.9%
Kromek Group (AIM:KMK)
£0.052
£0.10
49.1%
Northcoders Group (AIM:CODE)
£1.08
£1.94
44.4%
Ibstock (LSE:IBST)
£1.746
£3.29
46.9%
CVS Group (AIM:CVSG)
£9.94
£18.68
46.8%
Let’s review some notable picks from our screened stocks.
Overview: Warpaint London PLC, along with its subsidiaries, is engaged in the production and sale of cosmetics and has a market cap of £286.79 million.
Operations: The company’s revenue is primarily derived from its Own Brand segment, which accounts for £96.72 million, and the Close-Out segment, contributing £2.12 million.
Estimated Discount To Fair Value: 36.7%
Warpaint London is trading at £3.55, significantly below its estimated fair value of £5.61, highlighting its potential as an undervalued stock based on cash flows. The company forecasts revenue growth of 16.4% annually, surpassing the UK market average of 4%, with earnings expected to grow at 15.3% per year. Despite recent share price volatility and an unstable dividend track record, analysts agree on a potential price increase of nearly 88%.
AIM:W7L Discounted Cash Flow as at Apr 2025
Overview: NewRiver REIT plc is a leading UK Real Estate Investment Trust focused on acquiring, managing, and developing resilient retail assets, with a market cap of £347.07 million.
Operations: NewRiver REIT generates revenue primarily from its expertise in the acquisition, management, and development of durable retail properties across the UK.
Estimated Discount To Fair Value: 36.3%
NewRiver REIT is trading at £0.73, well below its estimated fair value of £1.15, indicating it may be undervalued based on cash flows. Despite a dividend yield of 8.49% not being well covered by free cash flows and recent shareholder dilution, the company’s earnings are forecast to grow significantly at 48.2% per year, outpacing the UK market average of 13.7%. Recent partnerships like Royal Mail’s parcel locker rollout could enhance revenue streams and footfall in retail spaces.
Story Continues
LSE:NRR Discounted Cash Flow as at Apr 2025
Overview: On the Beach Group plc is an online retailer specializing in short haul beach holidays in the United Kingdom, with a market capitalization of £415.44 million.
Operations: The company generates revenue from its Classic Collection segment, amounting to £9 million, and the OTB segment, which includes Onthebeach.Co.Uk and Sunshine.Co.Uk, contributing £119.20 million.
Estimated Discount To Fair Value: 45.2%
On the Beach Group is trading at £2.66, significantly below its estimated fair value of £4.85, highlighting potential undervaluation based on cash flows. Despite revenue growth forecasted at 10.4% per year—slower than desired—earnings are expected to grow robustly at 20.7% annually, surpassing the UK market average of 13.7%. Recent board changes with Ms. Victoria Ann Self’s appointment as Non-Executive Director may influence strategic direction positively.
LSE:OTB Discounted Cash Flow as at Apr 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:W7L LSE:NRR and LSE:OTB.
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