Spotlight On European Penny Stocks With Market Caps Under €40M

Simply Wall St

The European market recently experienced a downturn, with the pan-European STOXX Europe 600 Index ending 0.75% lower, influenced by trade tensions and economic uncertainties. Despite these challenges, investors continue to seek opportunities in less conventional areas of the market. Penny stocks, though an older term, still highlight smaller or newer companies that can present unique growth opportunities when backed by strong financials and fundamentals.

Top 10 Penny Stocks In Europe

NameShare PriceMarket CapRewards & Risks
Bredband2 i Skandinavien (OM:BRE2)SEK2.295SEK2.2B✅ 4 ⚠️ 1 View Analysis >
Transferator (NGM:TRAN A)SEK2.16SEK205.35M✅ 2 ⚠️ 3 View Analysis >
Angler Gaming (NGM:ANGL)SEK3.79SEK284.19M✅ 4 ⚠️ 2 View Analysis >
Hifab Group (OM:HIFA B)SEK3.54SEK215.37M✅ 2 ⚠️ 2 View Analysis >
IMS (WSE:IMS)PLN4.09PLN138.63M✅ 3 ⚠️ 2 View Analysis >
Cellularline (BIT:CELL)€2.91€61.38M✅ 3 ⚠️ 2 View Analysis >
Netgem (ENXTPA:ALNTG)€0.946€31.68M✅ 3 ⚠️ 2 View Analysis >
Fondia Oyj (HLSE:FONDIA)€4.69€17.54M✅ 2 ⚠️ 3 View Analysis >
Mistral Iberia Real Estate SOCIMI (BME:YMIB)€1.01€22M✅ 2 ⚠️ 4 View Analysis >
Deceuninck (ENXTBR:DECB)€2.15€296.84M✅ 3 ⚠️ 1 View Analysis >

Click here to see the full list of 446 stocks from our European Penny Stocks screener.

We'll examine a selection from our screener results.

SSH Communications Security Oyj (HLSE:SSH1V)

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

Overview: SSH Communications Security Oyj is a cybersecurity company that provides solutions for humans, systems, and networks across the Americas, Asia Pacific, Europe, the Middle East, and Africa with a market cap of €45.06 million.

Operations: The company's revenue is primarily derived from its Software Business, which generated €22.55 million.

Market Cap: €45.06M

SSH Communications Security Oyj, with a market cap of €45.06 million, is navigating the challenges typical of penny stocks by leveraging strategic partnerships and product innovations. Despite being unprofitable and facing increased losses over five years, it maintains a cash runway exceeding three years due to positive free cash flow growth. Recent collaborations with Cinia and Loihde have expanded its customer base in high-security systems and privileged access management solutions. The company reported Q1 2025 sales of €5.4 million but incurred a net loss of €1.4 million, highlighting ongoing financial hurdles amidst efforts for revenue growth through new projects like SalaX Secure Messaging.

HLSE:SSH1V Debt to Equity History and Analysis as at May 2025

RomReal (OB:ROM)

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

Overview: RomReal Limited, with a market cap of NOK111.69 million, operates in property investment and development through its subsidiaries in Romania.

Operations: The company generates its revenue of €0.77 million from property investments and development activities in Romania.

Market Cap: NOK111.69M

RomReal Limited, with a market cap of NOK111.69 million, operates in property investment and development in Romania but remains pre-revenue with €0.77 million annually. The company is unprofitable, reporting a net loss of €1.35 million for 2024 despite reducing losses over five years by 30.2% annually. While RomReal's share price has been highly volatile recently, it benefits from experienced management and board members averaging nine years of tenure each. It maintains a strong financial position with short-term assets exceeding liabilities and no debt burden, offering a cash runway exceeding one year based on current free cash flow levels.

OB:ROM Financial Position Analysis as at May 2025

Francotyp-Postalia Holding (XTRA:FPH)

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

Overview: Francotyp-Postalia Holding AG offers business mail and digital solutions to companies and authorities in Germany and internationally, with a market cap of €42.65 million.

Operations: The company generates revenue from two main segments: Digital Business Solutions, which contributed €27.20 million, and Mailing, Shipping & Office Solutions, which accounted for €143.12 million.

Market Cap: €42.65M

Francotyp-Postalia Holding AG, with a market cap of €42.65 million, operates in the business mail and digital solutions sectors. The company reported 2024 revenues of €174.72 million, with net income rising to €14.57 million from the previous year. Its strong financial position is highlighted by short-term assets exceeding liabilities and cash surpassing total debt. Despite high return on equity at 20.1%, earnings are projected to decline by 26% annually over three years amidst challenging macroeconomic conditions, particularly in its largest market, the USA. A share buyback program aims to delist from the stock exchange pending shareholder approval in June 2025.

XTRA:FPH Revenue & Expenses Breakdown as at May 2025

Where To Now?

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.

Valuation is complex, but we're here to simplify it.

Discover if SSH Communications Security Oyj might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

Access Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com