AIM shares: 3 value stocks I’d buy to own for 10 years

The best value stocks are not always to be found FTSE 100 or in FTSE 250. Smaller UK stocks can often be a risk for investors. But tomorrow’s growth heroes can also be found in other London stock indexes.

Here is the collection AIM Share I might be too cheap to miss. I think we can produce incredible results over the next decade.

Agronomy

The growing popularity of animal-free diets provides excellent investment potential. A report by Acumen Research suggests that the Lab-grown meat market will be worth $517m by 2030. This will represent a compound annual growth rate north of 16%.

I will buy shares in it Agronomy (LSE:ANIC) to exploit this theme. The company invests in producers of cultured meat and other products developed through animal cells. These include laboratory chicken producer SuperMeat, artificial beef producer Mosa Meat and processed leather producer VitroLabs.

Last year, the company made 15 investments. It also formed two companies of its own, including the cultural pet food manufacturer Good Dog Food.

Agronomy currently trades at a forward P/E ratio of just 7.1 times. Competition in the processed meat sector could grow rapidly as multinational food manufacturers are also spending heavily here. But I still think this AIM stock is worth considering at the current price.

The Strix Group

Manufacturer of safety equipment The Strix Group offering low earnings multiples and bulging dividend yield. For 2023, the P/E ratio is 7.3 times and the yield is 7.8%.

The business is best known for manufacturing safety controls on kettles. This is the most defensive market where the company has a 56% share. It also operates in the fast-growing water filtration market and has significant liquidity that can be used for revenue-enhancing acquisitions.

Near-term profits may suffer if the Covid-19 crisis in China continues. The new key fob has reached production at two of the five largest customers. But for the cash, I’d still buy the Strix for my portfolio.

Keyword Studios

I already have it Keyword Studios (LSE:KWS) shares. I bought a software development services business to expand the video game market. It provides assistance to the world’s largest technology businesses such as Microsoft, Electronic Arts and Nintendo.

At the current price, I’m also thinking of adding to my holdings. It is trading at a forward price-to-earnings growth (PEG) ratio of just 0.2. Any reading below 1 indicates an undervalued stock.

Keywords make games run smoothly, match local markets and provide artwork and audio services. The latest financials in November indicated that it will increase profit and profit before tax by around 32% and 28% in 2022.

Like Strix, the business is looking to increase future earnings through acquisitions (buying in the US and Italy just last month). Be warned, acquisition-led growth strategies can cause problems. Unexpected costs and disappointing profits are common with M&A.