The European market has shown resilience, with the STOXX Europe 600 Index rising for a fourth consecutive week amid easing trade tensions between China and the U.S. This positive sentiment comes as small-cap stocks in Europe continue to capture investor interest, particularly those demonstrating strong fundamentals and potential value opportunities. In this context, identifying stocks with compelling valuations and insider buying can be a strategic approach for investors looking to navigate the current economic landscape.
Top 10 Undervalued Small Caps With Insider Buying In Europe
Overview: Italmobiliare is a diversified investment holding company with operations spanning various sectors, including renewable energy, food and beverage, and luxury goods, boasting a market capitalization of approximately €1.58 billion.
Operations: The company generates revenue through its diverse portfolio, with significant contributions from Caffè Borbone (€334.53 million) and Italmobiliare (€140.15 million). Over recent periods, the gross profit margin has shown an upward trend, reaching 45.30% by the end of 2024. Cost of goods sold (COGS) represents a substantial portion of expenses, impacting profitability alongside operating and non-operating expenses.
PE: 11.2x
Italmobiliare, a European company with a smaller market cap, is drawing attention due to its potential for value. Insider confidence is evident as Carlo Pesenti recently purchased 10,000 shares worth €221,084 in April 2025. The company forecasts a revenue growth of 5.91% annually despite relying entirely on external borrowing for funding. Recently announcing an annual dividend of €0.90 per share payable in May 2025 further highlights their commitment to shareholder returns.
Overview: Domino's Pizza Group operates as a leading pizza delivery and carryout chain, primarily generating income through sales to franchisees, corporate stores, advertising and ecommerce, property leases, and various franchise fees, with a market capitalization of approximately £1.54 billion.
Operations: The company's revenue model is primarily driven by sales to franchisees, supplemented by corporate store income and royalties. Over the analyzed period, the gross profit margin showed an upward trend, reaching 47.99% by the end of 2024. Operating expenses consistently formed a significant portion of costs, with general and administrative expenses being a major component.
PE: 11.8x
Domino's Pizza Group, a prominent player in the European market, reported Q1 2025 sales of £393.3 million, slightly up from £385.2 million the previous year. Despite a dip in net income to £90.2 million for FY 2024 from £115 million, insider confidence is evident with recent share purchases by key figures within the company. The group also proposed an increased final dividend of 7.5 pence per share for FY 2024, reflecting financial resilience amidst strategic leadership changes and amendments to its Articles of Association in April 2025.
Overview: Electrolux Professional operates in the commercial kitchen and laundry equipment sectors, with a market cap of SEK 16.43 billion.
Operations: Electrolux Professional generates revenue primarily from its Food & Beverage and Laundry segments, with the former contributing a larger share. The company's gross profit margin has shown fluctuations, reaching 34.71% by March 2025. Operating expenses are significant, driven mainly by sales and marketing costs, which stood at SEK 2.10 billion in the latest period.
PE: 22.0x
Electrolux Professional, a European company in the food equipment industry, has been making strides with its innovative electric steamers showcased at NAFEM 2025. The firm's focus on sustainability aligns with market trends towards energy efficiency and carbon reduction. Recent financials reveal Q1 sales of SEK 3.07 billion and net income of SEK 199 million, reflecting growth from the previous year. Despite reliance on external borrowing for funding, insider confidence is evident through share purchases earlier this year.
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 BIT:ITM LSE:DOM and OM:EPRO B.
