As European markets experience a resurgence, with the STOXX Europe 600 Index climbing 3.44% and economic growth in the eurozone doubling its pace, investor confidence is on the rise despite lingering concerns over tariffs and inflation. In this dynamic landscape, small-cap stocks often present intriguing opportunities due to their potential for growth and unique market positions. Identifying promising small caps involves looking at those with strong fundamentals and recent insider activity, which can signal confidence from within the company amidst current market conditions.
Top 10 Undervalued Small Caps With Insider Buying In Europe
Overview: Corbion is a company specializing in sustainable ingredient solutions, primarily focusing on health and nutrition as well as functional ingredients and solutions, with a market capitalization of approximately €1.98 billion.
Operations: Health & Nutrition and Functional Ingredients & Solutions segments contribute €290.2 million and €997.9 million, respectively, to the company's revenue streams. The gross profit margin has shown fluctuations, reaching 31.47% in late 2019 before declining to around 22.38% by late 2023, indicating variations in cost management or pricing strategies over time.
PE: 24.4x
Corbion, a European company with a market cap under €2 billion, is catching attention for its financial potential despite high debt levels. Their earnings are projected to grow nearly 20% annually. Recent insider confidence was evident in share purchases during March 2025. Although reliant on external borrowing, Corbion's net income surged to €192 million in 2024 from €73 million the previous year. The company announced an increased dividend of €0.64 per share for May 2025, signaling optimism about future performance amidst these challenges.
Overview: MedCap is a company engaged in the support, specialty pharma, and medical technology sectors with a market capitalization of SEK 4.05 billion.
Operations: MedCap generates revenue through its three main segments: Support, Specialty Pharma, and Medical Technology. The company's gross profit margin has shown an upward trend from 28.62% to 58.48% over the analyzed period, indicating changes in cost efficiency or pricing strategies. Operating expenses are primarily driven by general and administrative costs, which reached SEK 720.4 million in the latest period reported.
PE: 32.4x
MedCap, a European small-cap company, is gaining attention for its potential value. Recent insider confidence is evident as Anders Dahlberg acquired 10,000 shares in April 2025 for SEK 3.9 million, increasing their stake by 33%. Despite relying on higher-risk external borrowing without customer deposits, MedCap's forecasted revenue growth of 13% annually suggests promising prospects. The first quarter of 2025 showed increased sales at SEK 493.8 million compared to the previous year, though net income slightly decreased to SEK 50.5 million.
Overview: New Wave Group is a diversified company engaged in the design, acquisition, and development of branded consumer products within the Corporate, Sports & Leisure, and Gifts & Home Furnishings segments with a market cap of SEK 8.52 billion.
Operations: The company generates revenue primarily from its Corporate, Sports & Leisure, and Gifts & Home Furnishings segments. Over recent periods, the gross profit margin has shown a notable trend reaching 50.14% as of March 2023. Operating expenses have been consistently significant, with general and administrative expenses forming a substantial portion of these costs.
PE: 17.3x
New Wave Group, a company with a focus on external borrowing for funding, recently demonstrated insider confidence through significant share purchases by Jens Petersson. They acquired 248,250 shares valued at SEK 24.9 million in April 2025, signaling strong belief in the company's potential. The first quarter of 2025 showed promising growth with sales increasing to SEK 2.18 billion from SEK 1.99 billion year-over-year and net income rising to SEK 144 million from SEK 121 million. Earnings per share improved as well, reflecting positive momentum despite reliance on higher-risk funding sources.
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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.
Companies discussed in this article include ENXTAM:CRBN OM:MCAP and OM:NEWA B.