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3 European Undervalued Small Caps With Recent Insider Buying

Simply Wall St·12/26/2025 05:09:30
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As the European market experiences a positive shift, with the pan-European STOXX Europe 600 Index rising by 1.60% due to signs of steady economic growth and looser monetary policies, investors are increasingly interested in exploring opportunities within small-cap stocks. In this environment, identifying companies that demonstrate strong fundamentals and potential for growth can be particularly appealing, especially when there is evidence of insider buying which may indicate confidence in the company's future prospects.

Top 10 Undervalued Small Caps With Insider Buying In Europe

Name PE PS Discount to Fair Value Value Rating
Norcros 13.4x 0.7x 42.31% ★★★★★☆
A.G. BARR 14.3x 1.6x 48.80% ★★★★★☆
Speedy Hire NA 0.3x 42.69% ★★★★★☆
Tokmanni Group Oyj 12.5x 0.3x 40.62% ★★★★★☆
Eurocell 16.3x 0.3x 39.96% ★★★★☆☆
Senior 25.2x 0.8x 24.95% ★★★★☆☆
Tristel 29.3x 4.2x 20.43% ★★★☆☆☆
Gooch & Housego 46.8x 1.1x 22.13% ★★★☆☆☆
Kendrion 29.2x 0.7x 41.84% ★★★☆☆☆
CVS Group 47.6x 1.3x 23.76% ★★★☆☆☆

Click here to see the full list of 73 stocks from our Undervalued European Small Caps With Insider Buying screener.

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

Kendrion (ENXTAM:KENDR)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Kendrion is a company that specializes in developing, manufacturing, and marketing electromagnetic systems and components for industrial and automotive applications, with a market capitalization of approximately €0.29 billion.

Operations: Kendrion's revenue primarily stems from its operations, with significant costs attributed to COGS and operating expenses. The company's gross profit margin has shown variability, reaching as high as 50.32% in recent periods. Non-operating expenses also impact the financial outcomes, contributing to fluctuations in net income margins over time.

PE: 29.2x

Kendrion, a European company with a market presence in the industrial sector, recently reported an impressive turnaround in its financials. For Q3 2025, they posted a net income of €3.9 million compared to last year's €7 million loss. Insider confidence is evident as executives have shown interest by purchasing shares over recent months. Despite relying on external borrowing for funding, their earnings are projected to grow by 35.87% annually, indicating potential growth opportunities ahead.

ENXTAM:KENDR Share price vs Value as at Dec 2025
ENXTAM:KENDR Share price vs Value as at Dec 2025

FirstGroup (LSE:FGP)

Simply Wall St Value Rating: ★★★★☆☆

Overview: FirstGroup is a leading UK-based transport company operating in the bus and rail sectors, with a market capitalization of approximately £0.97 billion.

Operations: First Bus and First Rail are the primary revenue segments, contributing £1.27 billion and £3.75 billion respectively. The gross profit margin has seen fluctuations, peaking at 77.56% in September 2020 before stabilizing around the mid-60% range in recent periods. Operating expenses have been a significant cost factor, with depreciation and amortization consistently high over time.

PE: 8.1x

FirstGroup, a smaller European transport company, has seen insider confidence with recent share purchases. From June to October 2025, they repurchased 22.4 million shares for £50 million, indicating management's belief in the company's potential. Despite a slight dip in sales to £2.3 billion for H1 2025 compared to last year, earnings per share rose from GBP 0.092 to GBP 0.099, reflecting operational efficiency improvements. The proposed interim dividend increase aligns with their policy and suggests stable cash flow management amid anticipated earnings decline over the next three years.

LSE:FGP Ownership Breakdown as at Dec 2025
LSE:FGP Ownership Breakdown as at Dec 2025

Fagerhult Group (OM:FAG)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Fagerhult Group is a company that specializes in providing lighting solutions across various segments, including premium, professional, and infrastructure, with a market capitalization of SEK 9.5 billion.

Operations: The company's revenue is primarily driven by segments such as Collection, Premium, and Professional. The gross profit margin has shown a trend of gradual increase over time, reaching 39.92% in the latest period. Operating expenses are significant, with sales and marketing being the largest component. Non-operating expenses also impact financial results significantly.

PE: 27.7x

Fagerhult Group's recent performance highlights its potential as an undervalued European stock. In Q3 2025, sales rose to SEK 2,026.5 million from SEK 1,918.9 million a year prior, while net income climbed to SEK 85.6 million from SEK 54 million. Despite the improvement in earnings per share to SEK 0.49 from SEK 0.31, profit margins have decreased compared to last year at just over three percent now versus nearly five percent previously. The company's reliance on external borrowing poses some risk; however, insider confidence is evident with significant share purchases throughout the past year indicating optimism about future growth prospects despite current financial challenges.

OM:FAG Share price vs Value as at Dec 2025
OM:FAG Share price vs Value as at Dec 2025

Key Takeaways

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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.