As the pan-European STOXX Europe 600 Index climbs 2.11% on robust corporate earnings and optimism surrounding geopolitical developments, investors are increasingly turning their attention to small-cap opportunities that might have been overlooked in the broader market rally. In this environment, identifying stocks with strong fundamentals and growth potential becomes crucial, as they can offer unique advantages amidst shifting economic conditions and interest rate changes by central banks like the Bank of England.

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Caisse Régionale de Crédit Agricole Mutuel Brie Picardie Société coopérative

26.90%

4.14%

7.22%

★★★★★★

Caisse Regionale de Credit Agricole Mutuel Toulouse 31

19.46%

0.47%

7.14%

★★★★★☆

Zespól Elektrocieplowni Wroclawskich KOGENERACJA

14.04%

21.73%

17.76%

★★★★★☆

Dekpol

63.20%

11.99%

14.08%

★★★★★☆

Viohalco

93.48%

11.98%

14.19%

★★★★☆☆

ABG Sundal Collier Holding

46.02%

-6.02%

-15.62%

★★★★☆☆

Evergent Investments

5.39%

9.41%

21.17%

★★★★☆☆

Inversiones Doalca SOCIMI

15.57%

6.53%

7.16%

★★★★☆☆

Alantra Partners

11.48%

-5.76%

-30.16%

★★★★☆☆

MCH Group

124.09%

12.40%

43.58%

★★★★☆☆

Click here to see the full list of 322 stocks from our European Undiscovered Gems With Strong Fundamentals screener.

Let’s dive into some prime choices out of from the screener.

Simply Wall St Value Rating: ★★★★★★

Overview: Caisse Régionale de Crédit Agricole Mutuel de Normandie-Seine Société coopérative provides a range of banking products and services to individuals, professionals, farmers, associations, and companies in France with a market cap of €701.89 million.

Operations: The primary revenue stream for Crédit Agricole Normandie-Seine comes from its retail banking segment, generating €344.17 million. The company operates with a market cap of €701.89 million.

With total assets of €24.6 billion and equity at €3.1 billion, Caisse Régionale de Crédit Agricole Mutuel de Normandie-Seine stands out for its financial health. The bank’s earnings have grown 2.6% annually over the past five years, supported by a price-to-earnings ratio of 8.9x, which is attractive compared to the French market average of 16.2x. A sufficient allowance for bad loans at 113% and an appropriate level of non-performing loans at 1.2% underscore its risk management strength, while customer deposits as primary funding sources highlight its stability in a competitive banking landscape.

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ENXTPA:CCN Earnings and Revenue Growth as at Aug 2025 ENXTPA:CCN Earnings and Revenue Growth as at Aug 2025

Simply Wall St Value Rating: ★★★★★★

Overview: Pexip Holding ASA is a video technology company offering an end-to-end video conferencing platform and digital infrastructure across various regions including the Americas, Europe, the Middle East, Africa, and the Asia Pacific, with a market capitalization of NOK6.35 billion.

Operations: Pexip generates revenue primarily from the sale of collaboration services, amounting to NOK1.17 billion.

Pexip Holding, with its nimble market presence, has seen a significant turnaround by becoming profitable in the past year. The company reported a notable reduction in its debt to equity ratio from 1.2 to 0.1 over five years, indicating improved financial stability. With net income soaring to NOK 43 million for the recent quarter from NOK 7 million last year, Pexip’s earnings per share also rose to NOK 0.42 from NOK 0.07 previously. Trading at approximately 14% below estimated fair value and boasting high-quality earnings, Pexip seems well-positioned for future growth with projected annual earnings growth of over 26%.

OB:PEXIP Earnings and Revenue Growth as at Aug 2025 OB:PEXIP Earnings and Revenue Growth as at Aug 2025

Simply Wall St Value Rating: ★★★★☆☆

Overview: Bank Ochrony Srodowiska S.A. offers a range of banking products and services in Poland, with a market cap of PLN1.06 billion.

Operations: The bank generates revenue primarily through interest income and fees from its banking services. It incurs significant costs related to interest expenses and provisions for loan losses. The net profit margin has shown variability, reflecting fluctuations in operating efficiency and cost management over different periods.

With total assets of PLN23.5B and equity of PLN2.3B, Bank Ochrony Srodowiska is navigating the financial landscape with a focus on stability. Deposits stand at PLN19.8B, while loans are at PLN10.1B, supported by 94% low-risk funding primarily from customer deposits. Despite a high bad loan ratio of 10.9%, earnings surged by nearly 50% last year, outpacing the industry average growth of 10%. The bank’s price-to-earnings ratio is an attractive 9.7x against the Polish market’s average of 12.9x, hinting at potential value for investors looking beyond typical large-cap options in Europe.

WSE:BOS Earnings and Revenue Growth as at Aug 2025 WSE:BOS Earnings and Revenue Growth as at Aug 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:CCN OB:PEXIP and WSE:BOS.

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