Undiscovered Gems And 2 Other Promising European Stocks To Watch

Operations: Viohalco generates revenue primarily from the sale of aluminium, copper, cables, and steel and steel pipe products. The company’s cost structure includes expenses related to raw materials, manufacturing processes, and distribution. Notably, its net profit margin has shown variability over recent periods.

Viohalco, a notable player in the metals and mining sector, has shown impressive earnings growth of 336.9% over the past year, significantly outpacing industry averages. Trading at 51.4% below its estimated fair value, it presents a compelling valuation case. Despite this growth trajectory, Viohalco’s interest payments are not adequately covered by EBIT with only 2.8x coverage; ideally, this should be at least 3x for comfort. The debt profile shows improvement with a reduction in the debt to equity ratio from 139.5% to 93.5% over five years; however, net debt remains high at 63.9%.

ENXTBR:VIO Debt to Equity as at Sep 2025

Simply Wall St Value Rating: ★★★★★☆

Overview: Neurones S.A. is an IT services company offering infrastructure, application, and consulting services both in France and internationally, with a market cap of €996.06 million.

Operations: Neurones generates revenue primarily from infrastructure services (€499.74 million), application services (€257.51 million), and consulting (€53.10 million).

Neurones, a dynamic player in the European IT sector, demonstrates robust financial health with earnings growth of 6.4% over the past year, outpacing the industry average of 2.1%. Despite a rise in its debt to equity ratio from 0.05% to 1.6% over five years, it holds more cash than total debt and trades at approximately 30.8% below estimated fair value. Recent announcements show half-year sales reaching €424.3 million, up from €402.4 million last year, although net income dipped slightly to €22.7 million from €24.5 million previously, suggesting potential for strategic adjustments moving forward.

ENXTPA:NRO Debt to Equity as at Sep 2025

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:NWL ENXTBR:VIO and ENXTPA:NRO.

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