European Penny Stocks To Watch In July 2025

As Europe navigates a landscape of tentative optimism surrounding potential trade deals with the U.S., the pan-European STOXX Europe 600 Index has seen modest gains, reflecting cautious investor sentiment. In this context, penny stocks—though an older term—continue to capture attention for their potential to offer both value and growth. These smaller or emerging companies can provide unique opportunities when they possess strong financials and a clear path forward.

Top 10 Penny Stocks In Europe

Click here to see the full list of 337 stocks from our European Penny Stocks screener.

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

Fermentalg (ENXTPA:ALGAE)

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

Overview: Fermentalg SA develops, produces, and sells active ingredients extracted from microalgae for the food, health, nutrition, and environment sectors in France and internationally with a market cap of €46.56 million.

Operations: The company generates €11.50 million in revenue from its biotechnology segment.

Market Cap: €46.56M

Fermentalg SA, with a market cap of €46.56 million, is focused on leveraging microalgae for various sectors. Despite being unprofitable and having increased losses over the past five years, Fermentalg maintains a strong financial position with short-term assets exceeding both its short- and long-term liabilities. The company holds more cash than debt and has a cash runway exceeding three years based on current free cash flow. Recent sales results show growth, with €7.6 million in sales for the first half of 2025—up 20% from the previous year—amid challenging market conditions like depressed fish oil prices.

• Jump into the full analysis health report here for a deeper understanding of Fermentalg.
• Review our growth performance report to gain insights into Fermentalg's future.

Merus Power Oyj (HLSE:MERUS)

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

Overview: Merus Power Oyj designs, manufactures, and sells battery energy storage systems and power quality solutions in Finland and internationally, with a market cap of €40.42 million.

Operations: The company generates revenue from its Electric Equipment segment, amounting to €38.32 million.

Market Cap: €40.42M

Merus Power Oyj, with a market cap of €40.42 million, remains unprofitable but shows potential in the energy sector. Despite losses increasing by 49.5% annually over five years, the company has improved its debt-to-equity ratio significantly from 118.2% to 18.9%. Short-term assets (€21.8M) cover both short- and long-term liabilities comfortably, and Merus holds more cash than debt with a cash runway exceeding three years due to positive free cash flow growth of 14.8%. Recent developments include a €6 million order for active filters in Egypt and completed equity offerings totaling approximately €4 million in June 2025.

• Get an in-depth perspective on Merus Power Oyj's performance by reading our balance sheet health report here.
• Examine Merus Power Oyj's earnings growth report to understand how analysts expect it to perform.

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 €102.42 million.

Operations: The company generates revenue primarily from its Software Business, which accounted for €22.85 million.

Market Cap: €102.42M

SSH Communications Security Oyj, with a market cap of €102.42 million, is navigating the cybersecurity landscape with its focus on quantum-safe encryption solutions. Despite being unprofitable and reporting a net loss of €0.7 million for Q2 2025, the company remains financially stable due to sufficient cash reserves exceeding liabilities and positive free cash flow growth. Recent strategic partnerships, including one with Leonardo S.p.A., aim to expand SSH's reach in defense and government sectors globally. The company's innovative product releases like NQX 3.1 align with EU's post-quantum cryptography roadmap, enhancing its position amidst evolving cybersecurity threats.

• Unlock comprehensive insights into our analysis of SSH Communications Security Oyj stock in this financial health report.
• Explore SSH Communications Security Oyj's analyst forecasts in our growth report.

Taking Advantage

• Embark on your investment journey to our 337 European Penny Stocks selection 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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