Celebrus Technologies (LSE:CLBS) and Yü Group (LSE:YU) are two cheap stocks with very different trajectories. The former’s trading at a five-year low after failing to truly capture the interest of investors. The latter’s surged 1,540% over five years but actually remains flat over the past two months.
However, they’re both constituents of the Alternative Investment Market (AIM) and I believe they’re both looking pretty cheap at the moment.
Celebrus is cash-rich
Celebrus appears to offer strong value at current levels. The forward price-to-earnings (P/E) ratio’s just 8.2 times, and the forward EV-to-EBITDA’s five times, both of which are attractive compared to typical software sector multiples. Notably, net cash represents about half of the company’s market capitalisation, providing a significant margin of safety and financial flexibility.
While the most recent results disappointed on revenue, earnings held up well, demonstrating operational resilience and cost control. This combination of low valuation multiples, a robust balance sheet, and earnings stability — even in the face of softer top-line growth —suggests the market may be undervaluing Celebrus’ long-term potential.
The company’s ability to generate solid EBITDA and maintain profitability, alongside a healthy dividend yield, currently at 2.1%, further supports the view that Celebrus is good value for investors seeking both growth and downside protection.
Risks? Well, the company’s pointed to increasing uncertainty in geopolitics as a reason for slowing sales. This trend will need to reverse in order to regain investor confidence.
More cash at Yü Group
Yü Group potentially has an even more compelling valuation. The forward P/E ratios for 2025 and 2026 are 7.39 times and 6.96 times respectively. That’s well below sector averages.
Dividend per share is forecast to rise from 71.3p in 2024 to 83.6p in 2025, 89.4p in 2026, and 94p in 2027, with yields climbing from 3.3% to 5.1% during the period. This demonstrates a clear commitment to shareholder returns.
Crucially, Yü Group’s net cash position’s exceptional. Net cash is expected to reach £116.5m in 2025, £141.9m in 2026, and £165.3m in 2027. With a market-cap of £261m, it’s worth recognising quite how large these figures are. It also provides some protection against any depreciation.
While the company’s valuation has grown rapidly, the forward EV-to-EBITDA multiple falls from 4.7 times in 2024 to just 3.3 times in 2025 and 2.7 times in 2026, reflecting both earnings growth and the rising cash pile.
Of course, there are risks. This includes the company’s exposure to energy price volatility. While the company employs hedging and derivative instruments to manage this risk, adverse movements or ineffective hedging could impact profitability.
However, strong free cash flow yields and a proven growth trajectory, Yü Group stands out as a high-quality, cash-rich growth stock. It also appears to be trading at a discount to its fundamentals.
Personally, I think both are worthy of consideration. Celebrus is now part of my portfolio. I may look to add Yü Group as well.
