As the European markets experience a boost with the STOXX Europe 600 Index climbing 0.90% and major stock indexes across Germany, Italy, France, and the UK showing gains, investors are increasingly optimistic about the potential for small-cap stocks amid easing inflation and supportive monetary policies. In this environment of renewed economic growth and strategic central bank actions, identifying stocks with strong fundamentals and innovative business models can be key to uncovering promising opportunities in Europe’s dynamic market landscape.

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

AB Traction

NA

5.39%

5.24%

★★★★★★

Caisse Régionale de Crédit Agricole Mutuel Brie Picardie Société coopérative

26.90%

4.14%

7.22%

★★★★★★

Martifer SGPS

102.88%

-0.23%

7.16%

★★★★★★

ABG Sundal Collier Holding

8.55%

-4.14%

-12.38%

★★★★★☆

Flügger group

20.98%

3.24%

-29.82%

★★★★★☆

Dekpol

63.20%

11.06%

13.37%

★★★★★☆

Alantra Partners

3.79%

-3.99%

-23.83%

★★★★★☆

Evergent Investments

5.39%

9.41%

21.17%

★★★★☆☆

Castellana Properties Socimi

53.49%

6.64%

21.96%

★★★★☆☆

Darwin

3.03%

84.88%

5.63%

★★★★☆☆

Click here to see the full list of 329 stocks from our European Undiscovered Gems With Strong Fundamentals screener.

Here’s a peek at a few of the choices from the screener.

Simply Wall St Value Rating: ★★★★★★

Overview: CTT Systems AB (publ) specializes in providing humidity control systems for aircraft across various international markets, with a market capitalization of approximately SEK2.88 billion.

Operations: The company generates revenue primarily from its Aerospace & Defense segment, amounting to SEK278 million.

CTT Systems, a small player in the Aerospace & Defense sector, has been navigating some choppy waters recently. Despite having high-quality earnings and being profitable, its recent performance shows a dip with net income at SEK 3.7 million compared to SEK 24.5 million last year. Trading at 43% below its estimated fair value suggests potential upside if it can capitalize on future growth prospects, with earnings forecasted to grow by 34% annually. The company’s debt is well-managed as it holds more cash than total debt and interest payments are covered 18 times by EBIT, indicating solid financial health amidst industry challenges.

OM:CTT Debt to Equity as at Jun 2025

OM:CTT Debt to Equity as at Jun 2025

Simply Wall St Value Rating: ★★★★★★

Overview: Dala Energi AB (publ) is a Swedish company that supplies electricity, heating, and fiber networks with a market cap of SEK2.68 billion.

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