European Penny Stocks To Watch In December 2025

As the pan-European STOXX Europe 600 Index edges closer to record highs, optimism about future earnings and economic growth is fueling positive sentiment across the continent. Penny stocks, though an older term, still capture attention by offering potential growth opportunities at lower price points. When these smaller or newer companies are supported by strong financial health and solid fundamentals, they present intriguing prospects for investors seeking hidden gems in the market.

Click here to see the full list of 294 stocks from our European Penny Stocks screener.

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

Simply Wall St Financial Health Rating: ★★★★★★

Overview: Fermentalg SA develops biosolutions using aquatic micro-organisms, serving markets in Europe, North America, Asia, and internationally with a market cap of €38.31 million.

Operations: The company generates revenue of €12.78 million from its biotechnology segment.

Market Cap: €38.31M

Fermentalg SA, with a market cap of €38.31 million and revenue of €12.78 million, is navigating the penny stock landscape with a focus on biosolutions. Despite being unprofitable and not expected to achieve profitability in the next three years, it benefits from stable weekly volatility (5%) and no significant shareholder dilution recently. The company has more cash than debt, covering both short-term (€12.2M) and long-term liabilities (€4.5M) with its assets (€22.9M). While losses have increased over five years by 8.8% annually, its cash runway extends over three years if free cash flow continues to grow historically by 8.2%. Revenue growth is forecasted at nearly 50% per year despite current challenges in profitability comparison within the Chemicals industry due to negative returns on equity (-38%).

ENXTPA:ALGAE Financial Position Analysis as at Dec 2025

Simply Wall St Financial Health Rating: ★★★★★★

Overview: Forever Entertainment S.A. is a Polish company that develops and publishes computer games for consoles and other platforms, with a market capitalization of PLN67.46 million.

Operations: The company generates revenue primarily from its Software & Programming segment, totaling PLN27.82 million.

Market Cap: PLN67.46M

Forever Entertainment S.A., with a market cap of PLN67.46 million, shows promising attributes in the penny stock arena. The company reported third-quarter revenue of PLN9.11 million, up from PLN7.06 million a year ago, and net income rose to PLN2.35 million from PLN1.03 million. Its Return on Equity is high at 20.4%, and it boasts strong profit margins of 30.4%. The board has extensive experience with an average tenure of 10 years, contributing to stable operations without debt concerns or shareholder dilution issues recently, making it a potentially attractive option for risk-tolerant investors seeking growth opportunities in the gaming sector.

WSE:FOR Financial Position Analysis as at Dec 2025

Simply Wall St Financial Health Rating: ★★★★☆☆

Overview: PCC Exol S.A. manufactures and distributes surfactants both in Poland and internationally, with a market cap of PLN386.58 million.

Operations: The company’s revenue from the Specialty Chemicals segment is PLN1.08 billion.

Market Cap: PLN386.58M

PCC Exol S.A., with a market cap of PLN386.58 million, presents mixed prospects in the penny stock landscape. Recent earnings reports show sales growth to PLN270.94 million in Q3 2025, with net income rising to PLN10.19 million from the previous year. Despite high debt levels and a low Return on Equity of 8.5%, the company has reduced its debt-to-equity ratio over five years and maintains well-covered interest payments by EBIT at 3.9 times coverage. While earnings grew significantly by 53.5% last year, challenges include unstable dividends and operating cash flow not adequately covering debt obligations.

WSE:PCX Debt to Equity History and Analysis as at Dec 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 ENXTPA:ALGAE WSE:FOR and WSE:PCX.

This article was originally published by Simply Wall St.

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