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Exploring European Hidden Gems Including Miquel y Costas & Miquel And 2 Other Promising Small Caps

Simply Wall St

As European markets show signs of resilience, with the STOXX Europe 600 Index climbing 3.93% and major stock indexes posting gains amid trade policy developments and ECB rate cuts, investor sentiment is cautiously optimistic. In this environment, identifying small-cap stocks that offer strong fundamentals and growth potential can be particularly rewarding for those looking to diversify their portfolios.

Top 10 Undiscovered Gems With Strong Fundamentals In Europe

NameDebt To EquityRevenue GrowthEarnings GrowthHealth Rating
Caisse Régionale de Crédit Agricole Mutuel Brie Picardie Société coopérative26.90%4.14%7.22%★★★★★★
Intellego Technologies11.59%68.05%72.76%★★★★★★
Decora22.54%13.65%13.80%★★★★★☆
Caisse Regionale de Credit Agricole Mutuel Toulouse 3114.94%0.59%5.95%★★★★★☆
Flügger group20.98%3.24%-29.82%★★★★★☆
Moury Construct2.93%10.42%27.28%★★★★★☆
SpartaNA-5.54%-15.40%★★★★★☆
Alantra Partners3.79%-3.99%-23.83%★★★★★☆
Practic5.21%4.49%7.23%★★★★☆☆
MCH Group124.09%12.40%43.58%★★★★☆☆

Click here to see the full list of 358 stocks from our European Undiscovered Gems With Strong Fundamentals screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Miquel y Costas & Miquel (BME:MCM)

Simply Wall St Value Rating: ★★★★★★

Overview: Miquel y Costas & Miquel, S.A. is a company that manufactures, trades, and sells fine and specialty lightweight papers both in Spain and internationally with a market capitalization of approximately €501.21 million.

Operations: Miquel y Costas & Miquel generates revenue primarily from the tobacco industry and industrial products, with €195.97 million and €89.73 million respectively.

Miquel y Costas & Miquel, a nimble player in the European market, has shown robust financial health with a debt to equity ratio dropping from 25.1% to 14.4% over five years, indicative of prudent management. The company's earnings surged by 14% last year, outperforming the Forestry industry's -20.2%, highlighting its resilience and operational efficiency. Despite a slight dip in sales from €311.56 million to €310.58 million, net income rose to €48.7 million from €42.71 million, showcasing strong profitability with high-quality earnings and an attractive P/E ratio of 10x against Spain's market average of 19x.

BME:MCM Debt to Equity as at Apr 2025

Savencia (ENXTPA:SAVE)

Simply Wall St Value Rating: ★★★★★★

Overview: Savencia SA is a company that specializes in the production, distribution, and marketing of dairy and cheese products across France, Europe, and international markets with a market capitalization of €797.08 million.

Operations: Savencia generates revenue primarily through the production, distribution, and marketing of dairy and cheese products across various regions. The company has a market capitalization of €797.08 million.

Savencia, a notable player in the European food sector, showcases promising financial health with a net debt to equity ratio of 19.6%, deemed satisfactory. Over the past year, earnings grew 10.9%, outpacing the industry average of -3%. The company reported sales of €7.14 billion for 2024, up from €6.79 billion in 2023, and net income rose to €106.97 million from €96.48 million previously. With its earnings well covering interest payments at a ratio of 9.5x EBIT and trading at an attractive value relative to peers, Savencia appears poised for continued growth and profitability in its market segment.

ENXTPA:SAVE Debt to Equity as at Apr 2025

Veidekke (OB:VEI)

Simply Wall St Value Rating: ★★★★★☆

Overview: Veidekke ASA is a construction and property development company operating in Norway, Sweden, and Denmark with a market cap of NOK 20.37 billion.

Operations: Veidekke ASA generates revenue primarily from its construction and infrastructure segments, with Construction Norway contributing NOK 14.91 billion and Infrastructure Norway adding NOK 9.96 billion. The company's operations in Sweden also play a significant role, with Infrastructure Sweden and Construction Sweden (excluding Infrastructure) accounting for NOK 6.17 billion and NOK 7.75 billion, respectively. Denmark's contribution stands at NOK 3.18 billion within the revenue mix.

Veidekke, a notable player in the construction sector, has shown consistent earnings growth of 18.3% annually over the past five years, though it trails behind the industry's 30.9%. The company has successfully reduced its debt to equity ratio from 79% to 19.2%, showcasing prudent financial management. Recent projects include a NOK 980 million contract for Trondheim Station and a SEK 843 million road project in Sweden, reflecting its robust order book and commitment to sustainable building practices like BREEAM certification. With earnings per share rising from NOK 7.9 to NOK 9.3 last year, Veidekke's strategic initiatives seem promising for future prospects.

OB:VEI Earnings and Revenue Growth as at Apr 2025

Summing It All Up

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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.

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