3 European Penny Stocks With Market Caps Under €40M

The European markets have seen a positive shift, with the STOXX Europe 600 Index rising by 3.92% amid hopes of a shorter-than-expected Middle East conflict. As investors navigate this evolving landscape, penny stocks—despite their somewhat outdated moniker—remain an intriguing segment for those seeking potential growth opportunities at lower price points. These smaller or newer companies often offer unique value propositions, and when supported by strong financials, they can present compelling prospects for long-term success.

Top 10 Penny Stocks In Europe

Click here to see the full list of 277 stocks from our European Penny Stocks screener.

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

Libertas 7 (BME:LIB)

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

Overview: Libertas 7, S.A. operates in the real estate development sector in Spain with a market cap of €70.60 million.

Operations: The company's revenue is derived from three primary segments: Investments (€3.02 million), Touristic Area (€3.41 million), and Real Estate Area (€15.16 million).

Market Cap: €70.6M

Libertas 7, S.A. has demonstrated strong earnings growth with a net income increase from €1.75 million to €4.09 million in the past year, reflecting a positive trend in profitability over five years. Despite its low return on equity (4.3%), the company's price-to-earnings ratio of 15.5x is favorable compared to the Spanish market average of 17.2x, suggesting it may be undervalued relative to peers. The company benefits from strong asset coverage for both short and long-term liabilities and satisfactory debt levels; however, its profit margins have decreased due to significant one-off gains impacting financial results recently reported for December 2025.

• Click to explore a detailed breakdown of our findings in Libertas 7's financial health report.
• Gain insights into Libertas 7's outlook and expected performance with our report on the company's earnings estimates.

HKFoods Oyj (HLSE:HKFOODS)

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

Overview: HKFoods Oyj is a food company operating in Finland and Poland with a market capitalization of €167.60 million.

Operations: HKFoods Oyj has not reported any specific revenue segments.

Market Cap: €167.6M

HKFoods Oyj, with a market cap of €167.60 million, has recently turned profitable, reporting a net income of €1.7 million for Q4 2025 compared to a loss the previous year. Despite low return on equity (7.3%), its debt management is satisfactory with reduced debt levels and operating cash flow covering 46.5% of its debt. The company’s short-term assets exceed liabilities, but long-term liabilities remain uncovered by current assets. Recent board changes and dividend decreases highlight ongoing strategic adjustments as HKFoods aims for EBIT growth in 2026 amidst stable earnings per share improvements from continuing operations.

• Navigate through the intricacies of HKFoods Oyj with our comprehensive balance sheet health report here.
• Assess HKFoods Oyj's future earnings estimates with our detailed growth reports.

Acarix (OM:ACARIX)

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

Overview: Acarix AB (publ) is a medical device company that develops AI-based solutions for the rapid rule-out of coronary artery disease, with a market cap of SEK352.90 million.

Operations: The company generates revenue primarily from its Diagnostic Kits and Equipment segment, totaling SEK7.36 million.

Market Cap: SEK352.9M

Acarix AB, with a market cap of SEK352.90 million, remains pre-revenue with sales of SEK7.36 million for 2025 and continues to operate at a loss, reporting a net loss of SEK48.09 million for the year. Despite its unprofitability and less than one year of cash runway, Acarix's strategic partnership in Saudi Arabia could bolster future revenue streams if regulatory approvals are secured. The company's CADScor System aligns well with Saudi Arabia's focus on cardiovascular health, potentially leading to significant product orders post-approval. Acarix is debt-free but faces challenges due to an inexperienced board and limited financial runway.

• Click here to discover the nuances of Acarix with our detailed analytical financial health report.
• Explore Acarix's analyst forecasts in our growth report.

Make It Happen

• Jump into our full catalog of 277 European Penny Stocks here.
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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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