As European markets experience a boost from easing inflation and supportive monetary policies, small-cap stocks are garnering attention due to their potential for growth in this favorable economic climate. In such an environment, identifying companies with strong fundamentals and strategic insider activity can be key to uncovering promising investment opportunities within the small-cap segment.

Name

PE

PS

Discount to Fair Value

Value Rating

Morgan Advanced Materials

12.0x

0.5x

33.67%

★★★★★☆

Tristel

29.5x

4.2x

8.08%

★★★★☆☆

AKVA group

17.3x

0.8x

42.85%

★★★★☆☆

Close Brothers Group

NA

0.6x

39.28%

★★★★☆☆

Absolent Air Care Group

22.2x

1.8x

49.51%

★★★☆☆☆

Italmobiliare

11.9x

1.6x

-218.55%

★★★☆☆☆

Fuller Smith & Turner

12.0x

0.9x

-55.70%

★★★☆☆☆

SmartCraft

44.0x

7.9x

29.91%

★★★☆☆☆

H+H International

32.8x

0.8x

45.83%

★★★☆☆☆

Seeing Machines

NA

2.2x

47.54%

★★★☆☆☆

Click here to see the full list of 80 stocks from our Undervalued European Small Caps With Insider Buying screener.

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

Simply Wall St Value Rating: ★★★★★☆

Overview: Science Group is a company engaged in providing consultancy services, developing audio chips and modules, and managing submarine atmospheres, with a market capitalization of approximately £0.19 billion.

Operations: Science Group’s primary revenue streams include consultancy services and systems related to audio chips and submarine atmosphere management. Over recent periods, the company has experienced fluctuations in its gross profit margin, reaching 44.89% at its peak before declining to 40.82%. Operating expenses have been a significant component of costs, with general and administrative expenses forming a substantial part of these outlays.

PE: 19.1x

Science Group, a European company with external borrowing as its sole funding source, recently saw insider confidence through share purchases between July and December 2024. They repurchased over 1 million shares for £4.69 million, indicating potential value recognition despite forecasted earnings decline of 0.9% annually over the next three years. For 2024, sales slightly dipped to £110.67 million from the previous year, yet net income more than doubled to £12.02 million, suggesting improved profitability amidst challenging conditions.

AIM:SAG Share price vs Value as at Jun 2025

AIM:SAG Share price vs Value as at Jun 2025

Simply Wall St Value Rating: ★★★★★★

Overview: Sanlorenzo is a luxury yacht manufacturer specializing in the production of custom yachts and superyachts, with a market capitalization of €1.32 billion.

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