European Penny Stocks To Watch In May 2025

Simply Wall St

As European markets experience a lift, with the STOXX Europe 600 Index rising by 3.44% amid easing tariff concerns, investor sentiment appears cautiously optimistic. This economic backdrop provides an intriguing setting for exploring investment opportunities beyond the traditional market leaders. Penny stocks, often smaller or newer companies, continue to hold potential for growth and resilience; despite being a term from earlier market trends, their relevance endures as investors seek affordable entry points into promising sectors.

Top 10 Penny Stocks In Europe

NameShare PriceMarket CapRewards & Risks
Transferator (NGM:TRAN A)SEK2.68SEK252.93M✅ 2 ⚠️ 3 View Analysis >
Angler Gaming (NGM:ANGL)SEK3.84SEK287.94M✅ 4 ⚠️ 3 View Analysis >
Hifab Group (OM:HIFA B)SEK3.50SEK212.94M✅ 2 ⚠️ 2 View Analysis >
IMS (WSE:IMS)PLN3.71PLN125.75M✅ 4 ⚠️ 2 View Analysis >
FAE Technology (BIT:FAE)€2.47€49.46M✅ 4 ⚠️ 3 View Analysis >
Cellularline (BIT:CELL)€2.54€53.57M✅ 4 ⚠️ 2 View Analysis >
Netgem (ENXTPA:ALNTG)€0.9651€32.32M✅ 3 ⚠️ 2 View Analysis >
Arcure (ENXTPA:ALCUR)€4.1005€23.74M✅ 3 ⚠️ 3 View Analysis >
Fondia Oyj (HLSE:FONDIA)€4.64€17.35M✅ 2 ⚠️ 3 View Analysis >
Deceuninck (ENXTBR:DECB)€2.205€304.43M✅ 3 ⚠️ 1 View Analysis >

Click here to see the full list of 435 stocks from our European Penny Stocks screener.

Let's review some notable picks from our screened stocks.

genOway Société anonyme (ENXTPA:ALGEN)

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

Overview: genOway Société anonyme is a biotechnology company that develops and commercializes custom genetically modified mouse, rat, and cell line models globally, with a market cap of €28.81 million.

Operations: The company generates its revenue from the biotechnology segment, amounting to €22.06 million.

Market Cap: €28.81M

genOway Société anonyme, with a market cap of €28.81 million, has shown significant earnings growth over the past five years, averaging 67.1% annually, although recent growth of 16.8% lags behind its historical performance and industry average. Its debt management is commendable with a net debt to equity ratio at a satisfactory 8.5%, supported by short-term assets exceeding both short-term and long-term liabilities. The company maintains high-quality earnings and improved profit margins year-on-year from 5.9% to 8.3%. With a price-to-earnings ratio of 15.7x below the industry average, it presents as potentially undervalued in the biotech sector.

ENXTPA:ALGEN Financial Position Analysis as at May 2025

Bredband2 i Skandinavien (OM:BRE2)

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

Overview: Bredband2 i Skandinavien AB (publ) offers data communication and security solutions to individuals and companies in Sweden, with a market cap of SEK2.13 billion.

Operations: The company's revenue is primarily derived from its National Broadband Service, which generated SEK1.73 billion.

Market Cap: SEK2.13B

Bredband2 i Skandinavien AB, with a market cap of SEK2.13 billion, demonstrates robust financial health and growth potential. Its earnings have grown by 28.1% over the past year, surpassing both its five-year average and the telecom industry growth rate. The company trades at 70.5% below estimated fair value, indicating potential undervaluation. Despite short-term liabilities exceeding short-term assets, Bredband2's debt is well covered by operating cash flow and interest payments are comfortably managed by EBIT. Additionally, it offers a high dividend yield of 4.48%, supported by improved profit margins from 5.4% to 6.3%.

OM:BRE2 Financial Position Analysis as at May 2025

Polska Grupa Militarna Spólka Akcyjna (WSE:PMG)

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

Overview: Polska Grupa Militarna Spólka Akcyjna specializes in developing video games for digital distribution both in Poland and internationally, with a market cap of PLN47.39 million.

Operations: There are no specific revenue segments reported for Polska Grupa Militarna Spólka Akcyjna.

Market Cap: PLN47.39M

Polska Grupa Militarna Spólka Akcyjna, with a market cap of PLN47.39 million, is pre-revenue with sales under US$1 million. Despite recent earnings growth to PLN1.08 million net income for Q4 2024, it remains unprofitable and has less than a year of cash runway if current cash flow trends persist. The company’s financial position shows short-term assets exceeding liabilities and more cash than debt, indicating some stability despite high share price volatility and negative return on equity (-5.02%). Shareholders have not faced significant dilution recently, but the company's earnings have declined significantly over the past five years.

WSE:PMG 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.

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