In This Article:
As European markets experience a positive shift, with the STOXX Europe 600 Index rising by 2.77% amid easing trade tensions and stable economic indicators, small-cap stocks are drawing attention from investors looking for growth opportunities. In this environment, identifying promising small-cap stocks involves focusing on companies that demonstrate resilience and potential for expansion despite broader market challenges.
Top 10 Undervalued Small Caps With Insider Buying In Europe
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Morgan Advanced Materials | 10.8x | 0.5x | 41.94% | ★★★★★★ |
| Tristel | 28.0x | 3.9x | 25.84% | ★★★★★★ |
| J D Wetherspoon | 12.2x | 0.4x | 31.27% | ★★★★★☆ |
| Eastnine | 17.2x | 8.3x | 42.27% | ★★★★★☆ |
| Savills | 23.5x | 0.5x | 43.67% | ★★★★☆☆ |
| Norcros | 24.5x | 0.6x | 27.32% | ★★★☆☆☆ |
| FRP Advisory Group | 12.8x | 2.3x | 13.49% | ★★★☆☆☆ |
| Italmobiliare | 11.1x | 1.5x | -264.08% | ★★★☆☆☆ |
| Speedy Hire | NA | 0.2x | -9.12% | ★★★☆☆☆ |
| Arendals Fossekompani | NA | 1.6x | 42.74% | ★★★☆☆☆ |
We'll examine a selection from our screener results.
DFDS
Simply Wall St Value Rating: ★★★☆☆☆
Overview: DFDS operates a comprehensive ferry and logistics network, with a market capitalization of approximately DKK 27.32 billion.
Operations: The company generates revenue primarily from its Ferry and Logistics divisions, with the Ferry Division contributing DKK 17.86 billion and the Logistics Division adding DKK 13.35 billion. Over recent periods, there has been a notable trend in gross profit margin, peaking at 26.08% in Q4 2019 before declining to 19.71% by Q4 2024.
PE: 9.5x
DFDS, a European transport and logistics company, has seen its net profit margin decrease from 5.6% to 1.8% over the past year, while sales increased to DKK 29.75 billion from DKK 27.30 billion. Despite lower earnings per share (DKK 9.68) and no dividend for the last financial year, insider confidence is highlighted by executive purchases in early February 2025. The company's restructuring efforts aim to enhance asset utilization and volume growth amid challenging market conditions, with projected revenue growth of around 5% for the year ahead.
Social Housing REIT
Simply Wall St Value Rating: ★★★★☆☆
Overview: Social Housing REIT focuses on investing in residential properties for social housing purposes, with a market cap of £0.25 billion.
Operations: The company's revenue primarily stems from its residential REIT segment, with a recent reported figure of £39.18 million. The gross profit margin has shown fluctuations, reaching 88.59% in March 2024 before declining to 80.06% by December 2024. Operating expenses and non-operating expenses have significantly impacted net income, leading to a negative net income margin of -92.88% as of the latest data point in December 2024.