In August 2025, the European market has shown resilience with the pan-European STOXX Europe 600 Index rising by 1.18%, driven by easing trade tensions and optimism over potential U.S. interest rate cuts. Despite mixed economic indicators, such as a drop in Eurozone industrial production and weakening German investor confidence, small-cap stocks continue to attract attention due to their potential for growth in an environment where insider buying signals confidence from those closest to the companies' operations. Identifying promising small-cap stocks often involves looking for firms with solid fundamentals that can navigate current economic challenges while leveraging insider activity as a positive indicator of future performance.
Top 10 Undervalued Small Caps With Insider Buying In Europe
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Kitwave Group | 11.9x | 0.3x | 49.20% | ★★★★★☆ |
| Foxtons Group | 10.8x | 1.0x | 39.84% | ★★★★★☆ |
| Sabre Insurance Group | 9.3x | 1.7x | -14.58% | ★★★★☆☆ |
| NCC Group | NA | 1.4x | 11.04% | ★★★★☆☆ |
| Renold | 10.6x | 0.7x | 3.07% | ★★★★☆☆ |
| CVS Group | 46.6x | 1.4x | 36.04% | ★★★★☆☆ |
| A.G. BARR | 19.5x | 1.8x | 46.17% | ★★★☆☆☆ |
| Instabank | 11.6x | 3.1x | 19.10% | ★★★☆☆☆ |
| Hoist Finance | 10.5x | 2.1x | 15.68% | ★★★☆☆☆ |
| Oxford Instruments | 40.4x | 2.1x | 18.04% | ★★★☆☆☆ |
Below we spotlight a couple of our favorites from our exclusive screener.
CLS Holdings (LSE:CLI)
Simply Wall St Value Rating: ★★★☆☆☆
Overview: CLS Holdings is a property investment company focusing on commercial real estate in the United Kingdom, Germany, and France, with a market capitalization of £1.07 billion.
Operations: The company's revenue primarily stems from investment properties in the United Kingdom (£73.5 million), Germany (£48.8 million), and France (£17.6 million). Over recent periods, the gross profit margin has shown a declining trend, reaching 74.25% by mid-2025. Operating expenses have remained significant, with general and administrative expenses being a notable component at £17.4 million as of June 2025.
PE: -4.4x
CLS Holdings, a European real estate company, is navigating challenging financial waters with interest payments not fully covered by earnings and reliance on external borrowing. Despite these hurdles, they reported a reduced net loss of £24.4 million for H1 2025 compared to the previous year's £61.1 million loss. Recent lettings in London and Cologne highlight their strategic leasing efforts, securing long-term tenants at competitive rates. Insider confidence is evident from recent share purchases within the past year, suggesting potential optimism about future prospects despite current financial strains.
- Navigate through the intricacies of CLS Holdings with our comprehensive valuation report here.
Explore historical data to track CLS Holdings' performance over time in our Past section.
Stelrad Group (LSE:SRAD)
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Stelrad Group specializes in the manufacture and distribution of radiators, with a market capitalization of approximately £0.17 billion.
Operations: The company generates revenue primarily through the manufacture and distribution of radiators, with recent revenue reported at £283.94 million. The gross profit margin has shown a notable increase, reaching 30.65% by the end of 2024 from previous years' figures. Operating expenses include significant allocations to sales and marketing, which have consistently been above £40 million in recent periods. Non-operating expenses also impact financial outcomes, with amounts exceeding £20 million in some quarters.
PE: 42.4x
Stelrad Group, a smaller player in the European market, recently announced an interim dividend increase to 3.04 pence per share, signaling potential confidence despite challenges. Their H1 2025 results showed sales of £136.48 million but a net loss of £3.45 million compared to last year's profit. Despite high debt levels and reliance on external borrowing, insider confidence is evident with recent stock purchases. Earnings are projected to grow at 37.52% annually, hinting at future opportunities amidst current financial hurdles.
- Dive into the specifics of Stelrad Group here with our thorough valuation report.
Assess Stelrad Group's past performance with our detailed historical performance reports.
Nolato (OM:NOLA B)
Simply Wall St Value Rating: ★★★★★☆
Overview: Nolato is a Swedish company that specializes in developing and manufacturing polymer product systems for medical, automotive, and consumer electronics industries, with a market cap of approximately SEK 8.16 billion.
Operations: The company generates revenue primarily from Medical Solutions and Engineered Solutions, with recent figures showing SEK 5.47 billion and SEK 4.18 billion, respectively. The gross profit margin has shown a notable upward trend, reaching 17.60% by mid-2025 from earlier lower levels in the period analyzed.
PE: 20.8x
Nolato, a European company with potential for growth, is seeing insider confidence as Independent Director Tomas Blomquist purchased 4,000 shares in July 2025, valued at SEK 215,600. Despite relying entirely on external borrowing for funding—a higher-risk strategy—Nolato's earnings are projected to grow by 12% annually. Recent financials show net income increased to SEK 212 million in Q2 from SEK 169 million the previous year. This performance suggests promising prospects amidst its current valuation challenges.
- Get an in-depth perspective on Nolato's performance by reading our valuation report here.
Review our historical performance report to gain insights into Nolato's's past performance.
Summing It All Up
- Access the full spectrum of 46 Undervalued European Small Caps With Insider Buying by clicking on this link.
- Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
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Searching for a Fresh Perspective?
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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.
Valuation is complex, but we're here to simplify it.
Discover if Stelrad Group might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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