Amidst renewed concerns over inflated AI stock valuations, European markets have experienced a downturn, with the STOXX Europe 600 Index falling by 2.21%. Despite this challenging environment, small-cap stocks in Europe may present unique opportunities for investors who focus on companies with strong fundamentals and insider buying activity that could signal confidence in their future prospects.
Top 10 Undervalued Small Caps With Insider Buying In Europe
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Norcros | 13.3x | 0.7x | 44.07% | ★★★★★☆ |
| Foxtons Group | 10.5x | 1.0x | 39.65% | ★★★★★☆ |
| Senior | 23.1x | 0.7x | 32.06% | ★★★★★☆ |
| Eurocell | 16.2x | 0.3x | 40.67% | ★★★★☆☆ |
| Pexip Holding | 30.4x | 4.9x | 28.21% | ★★★☆☆☆ |
| Kendrion | 29.2x | 0.7x | 40.90% | ★★★☆☆☆ |
| Fiskars Oyj Abp | 37.6x | 0.9x | 29.76% | ★★★☆☆☆ |
| Eastnine | 11.8x | 7.5x | 49.03% | ★★★☆☆☆ |
| J D Wetherspoon | 10.9x | 0.3x | -1.44% | ★★★☆☆☆ |
| CVS Group | 45.0x | 1.3x | 27.93% | ★★★☆☆☆ |
We'll examine a selection from our screener results.
SThree (LSE:STEM)
Simply Wall St Value Rating: ★★★★☆☆
Overview: SThree is a global staffing company specializing in science, technology, engineering, and mathematics (STEM) sectors with a market capitalization of approximately £1.14 billion.
Operations: SThree generates revenue primarily from its operations across various regions, with the DACH region contributing significantly. The company's cost of goods sold (COGS) has been increasing over time, impacting its gross profit margin, which was 24.62% in May 2025. Operating expenses are a substantial part of the cost structure and have shown fluctuations, affecting net income margins as well.
PE: 7.2x
SThree, a European staffing company, is navigating a challenging environment with declining earnings projected over the next three years. Despite this, insider confidence remains strong as they have engaged in share purchases recently. The company's Q3 2025 net fees fell to £81.5 million from £92.7 million the previous year, reflecting market pressures. Recent board changes bring seasoned expertise with Rosie Shapland's appointment as an Independent Non-Executive Director, potentially strengthening governance and oversight amidst financial volatility.
- Click here to discover the nuances of SThree with our detailed analytical valuation report.
Evaluate SThree's historical performance by accessing our past performance report.
Wilmington (LSE:WIL)
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Wilmington is a company that provides information, education, and networking services across sectors such as legal, financial services, and health, safety and environment (HSE), with a market cap of £0.27 billion.
Operations: Wilmington derives its revenue primarily from financial services (£67.96 million), legal (£15.14 million), and health, safety, and environment (£16.43 million) segments. The company's cost of goods sold has been a significant expense, impacting its gross profit margin, which has seen fluctuations over time but reached 23.50% by mid-2025. Operating expenses have generally remained low compared to revenue, contributing to varying net income margins across periods analyzed.
PE: 23.2x
Wilmington, a smaller European company, is navigating its financial landscape with strategic changes. They are divesting their U.S. events business to enhance earnings quality, aligning with a digital-first approach. Despite an improved net profit margin from last year, profits fell significantly to £11.56 million from £41.21 million previously due to large one-off items and higher-risk funding sources. Insider confidence remains stable as leadership transitions occur, reflecting ongoing commitment amid evolving market strategies and potential growth opportunities in the digital sector.
- Navigate through the intricacies of Wilmington with our comprehensive valuation report here.
Examine Wilmington's past performance report to understand how it has performed in the past.
Fagerhult Group (OM:FAG)
Simply Wall St Value Rating: ★★★★☆☆
Overview: Fagerhult Group operates in the lighting industry, offering a range of products across segments such as Premium, Collection, Professional, Infrastructure, and Smart Solutions with a market capitalization of SEK 9.45 billion.
Operations: The Group generates revenue primarily from its Collection and Premium segments, with Collection contributing SEK 3.63 billion and Premium SEK 2.62 billion. The gross profit margin has shown a notable increase, reaching 39.92% in the most recent period. Operating expenses are largely driven by sales and marketing costs, which amounted to SEK 1.79 billion in the latest quarter.
PE: 28.4x
Fagerhult Group, a European lighting company, is experiencing a growth phase with earnings expected to rise by 33.69% annually. However, its financial stability is challenged as debt isn't well-covered by operating cash flow and all liabilities stem from external borrowing. Recent insider confidence was shown through share purchases in Q3 2025, suggesting optimism about future prospects. Despite improved net income of SEK 85.6 million for Q3 compared to SEK 54 million last year, profit margins have decreased from the previous year’s figures.
- Click to explore a detailed breakdown of our findings in Fagerhult Group's valuation report.
Gain insights into Fagerhult Group's past trends and performance with our Past report.
Seize The Opportunity
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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 SThree 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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