As European markets experience a mixed sentiment with the pan-European STOXX Europe 600 Index rising by 1.77% amidst relief from the U.S. government reopening, cooling enthusiasm around artificial intelligence has tempered gains across major indices like Germany’s DAX and France’s CAC 40. In this environment of fluctuating economic indicators and shifting investor confidence, identifying small-cap stocks that exhibit strong fundamentals or insider activity could present unique opportunities for investors seeking value in a volatile market landscape.
Top 10 Undervalued Small Caps With Insider Buying In Europe
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Cairn Homes | 12.2x | 1.6x | 29.29% | ★★★★★★ |
| Eurocell | 16.5x | 0.3x | 39.95% | ★★★★★☆ |
| Bytes Technology Group | 15.8x | 3.8x | 26.48% | ★★★★★☆ |
| Foxtons Group | 10.3x | 0.9x | 41.07% | ★★★★★☆ |
| Speedy Hire | NA | 0.3x | 27.56% | ★★★★★☆ |
| Senior | 24.4x | 0.8x | 26.94% | ★★★★★☆ |
| Eastnine | 11.8x | 7.4x | 49.73% | ★★★★☆☆ |
| Pexip Holding | 29.9x | 4.8x | 29.31% | ★★★☆☆☆ |
| Kid | 18.5x | 1.4x | 2.66% | ★★★☆☆☆ |
| Fiskars Oyj Abp | 40.9x | 1.0x | 22.79% | ★★★☆☆☆ |
Here we highlight a subset of our preferred stocks from the screener.
dotdigital Group (AIM:DOTD)
Simply Wall St Value Rating: ★★★★★★
Overview: Dotdigital Group is a company that specializes in providing data-driven omni-channel marketing automation services, with a market capitalization of approximately £0.34 billion.
Operations: The primary revenue stream is from data-driven omni-channel marketing automation services, generating £83.92 million. Over time, the gross profit margin has shown a slight decline to 79.30% by June 2025. Operating expenses, primarily general and administrative costs, have increased to £51.52 million in the same period, impacting net income margins which stand at 13.36%.
PE: 18.6x
Dotdigital Group, a European tech company, shows potential for growth with reported sales of £83.92 million for the year ending June 2025, up from £78.97 million previously. Insider confidence is evident as they engaged in share purchases over the past year. The proposed dividend increase to 1.21 pence per share reflects alignment with EBITDA growth. Despite relying on higher-risk external borrowing, projected earnings growth of 10.6% annually suggests promising future prospects in the digital marketing sector.
- Delve into the full analysis valuation report here for a deeper understanding of dotdigital Group.
Evaluate dotdigital Group's historical performance by accessing our past performance report.
Domino's Pizza Group (LSE:DOM)
Simply Wall St Value Rating: ★★★★★☆
Overview: Domino's Pizza Group operates as a leading pizza delivery and carryout chain, generating income through sales to franchisees, corporate stores, and national advertising and e-commerce activities with a market cap of approximately £1.56 billion.
Operations: The primary revenue streams include sales to franchisees and corporate store income, with significant contributions from national advertising and ecommerce. Over recent periods, the gross profit margin has shown a trend of reaching up to 47.99%. Operating expenses are primarily driven by general and administrative costs along with sales and marketing expenses.
PE: 8.6x
Domino's Pizza Group, a prominent player in the European market, is navigating a transformative phase. Recent board changes signal strategic shifts as they aim to expand their market share. The launch of CHICK 'N' DIP highlights their innovative edge in casual dining, targeting growth with minimal investment. Despite carrying high-risk external debt without customer deposits, the company initiated a £20 million share buyback amid activist calls for larger returns and potential privatization discussions.
Pets at Home Group (LSE:PETS)
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Pets at Home Group operates as a leading UK-based pet care business with retail and veterinary services, boasting a market cap of approximately £1.47 billion.
Operations: Retail and Vet Group are key revenue streams, contributing £1.31 billion and £175.3 million respectively. Over recent periods, the net income margin has shown a decreasing trend, reaching 5.95% by March 2025 from a peak of 9.45% in March 2022, indicating rising costs or other financial pressures affecting profitability.
PE: 10.4x
Pets at Home Group, a European stock, is drawing attention for its potential value. Recent executive changes include the appointment of Sarah Pollard as CFO, bringing extensive consumer experience from firms like PZ Cussons and Unilever. Despite challenges such as a forecasted 7.8% annual earnings decline over the next three years and reliance on external borrowing, insider confidence remains high with recent share purchases signaling belief in future prospects. The search for a new CEO is ongoing following Lyssa McGowan's departure in September 2025.
- Dive into the specifics of Pets at Home Group here with our thorough valuation report.
Understand Pets at Home Group's track record by examining our Past report.
Next Steps
- Gain an insight into the universe of 61 Undervalued European Small Caps With Insider Buying by clicking 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.
Valuation is complex, but we're here to simplify it.
Discover if dotdigital 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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