As European markets experience a resurgence, with the STOXX Europe 600 Index climbing 3.44% amid easing tariff concerns and economic growth in the eurozone doubling its previous rate, investor interest in small-cap stocks is gaining momentum. In this environment, identifying promising small-cap opportunities involves looking at companies that demonstrate resilience and potential for growth, especially those with insider buying activity as a possible indicator of confidence from within.
Top 10 Undervalued Small Caps With Insider Buying In Europe
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Tristel | 28.4x | 4.0x | 24.32% | ★★★★★★ |
| Morgan Advanced Materials | 11.0x | 0.5x | 41.44% | ★★★★★☆ |
| IAR Systems Group | 16.0x | 2.5x | 43.59% | ★★★★★☆ |
| J D Wetherspoon | 12.3x | 0.4x | 30.71% | ★★★★★☆ |
| Eastnine | 17.4x | 8.4x | 42.01% | ★★★★★☆ |
| Savills | 24.5x | 0.5x | 42.10% | ★★★★☆☆ |
| FRP Advisory Group | 12.8x | 2.3x | 13.47% | ★★★☆☆☆ |
| Italmobiliare | 11.4x | 1.5x | -275.29% | ★★★☆☆☆ |
| Speedy Hire | NA | 0.2x | -3.53% | ★★★☆☆☆ |
| Arendals Fossekompani | NA | 1.6x | 42.97% | ★★★☆☆☆ |
Let's review some notable picks from our screened stocks.
Polar Capital Holdings (AIM:POLR)
Simply Wall St Value Rating: ★★★★★☆
Overview: Polar Capital Holdings is an investment management company with a market cap of £0.61 billion, focusing on offering a range of specialist, actively managed funds.
Operations: Polar Capital Holdings generates revenue primarily from its investment management business, which reached £212.74 million in the latest period. The company has seen fluctuations in its gross profit margin, with a recent figure of 88.16%. Operating expenses, including general and administrative costs, significantly impact net income margins, which currently stand at 19.65%.
PE: 9.3x
Polar Capital Holdings, a niche player in the investment management sector, is currently trading at a level that suggests it might be undervalued. Insider confidence is evident with purchases made over the past year, indicating belief in its potential despite forecasted earnings declines of 6.5% annually for the next three years. Notably, Polar Capital operates without customer deposits and relies entirely on external borrowing for funding. This financial structure adds risk but also flexibility in capital allocation strategies.
- Dive into the specifics of Polar Capital Holdings here with our thorough valuation report.
Gain insights into Polar Capital Holdings' past trends and performance with our Past report.
Dampskibsselskabet Norden (CPSE:DNORD)
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Dampskibsselskabet Norden is a Danish shipping company specializing in dry cargo and tanker operations, with a market cap of approximately DKK 24.50 billion.
Operations: Norden's revenue streams primarily derive from its operations, with recent figures indicating a revenue of $3.92 billion for the quarter ending March 2025. The cost of goods sold (COGS) was noted at $3.41 billion, leading to a gross profit margin of 13.16%. Operating expenses were reported at $379.9 million, while non-operating expenses stood at $3.4 million for the same period.
PE: 6.4x
Norden, a shipping company, has seen insider confidence with recent purchases reflecting optimism despite a challenging first quarter. The company reported sales of US$799 million and net income of US$32.5 million, both down from the previous year. Nevertheless, they raised their full-year earnings guidance to US$50-130 million. A new dividend of DKK 2 per share was announced alongside a share buy-back program worth US$7 million to adjust capital structure and support employee incentives, indicating strategic financial management amidst fluctuating profit margins.
Wereldhave (ENXTAM:WHA)
Simply Wall St Value Rating: ★★★★★☆
Overview: Wereldhave is a real estate investment company focused on managing and developing shopping centers, with a market cap of approximately €0.72 billion.
Operations: Revenue primarily comes from shopping centres, contributing €159.34 million, with offices adding €7.56 million. The gross profit margin has shown variations, reaching 75.26% as of December 2024. Operating expenses have been consistently managed within a range of approximately €20 to €28 million in recent periods, impacting net income outcomes alongside non-operating expenses which have fluctuated significantly over time.
PE: 6.7x
Wereldhave's financials reveal a mixed picture. Despite relying entirely on external borrowing, which carries higher risk, they maintain strong earnings quality with significant one-off items. Recent results showed revenue climbing to €192 million from €184 million and net income jumping to €116 million from €79 million year-on-year. Insider confidence is evident with recent share purchases, signaling belief in future potential despite projected earnings decline of 6.5% annually over the next three years.
- Get an in-depth perspective on Wereldhave's performance by reading our valuation report here.
Explore historical data to track Wereldhave's performance over time in our Past section.
Next Steps
- Navigate through the entire inventory of 65 Undervalued European Small Caps With Insider Buying here.
- Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks.
- Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets.
Ready To Venture Into Other Investment Styles?
- Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
- Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
- Find companies with promising cash flow potential yet trading below their fair value.
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 Wereldhave might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com