European Undervalued Small Caps With Insider Action For March 2025

In March 2025, the European market is navigating a complex landscape marked by concerns over U.S. trade tariffs and monetary policy uncertainties, as reflected in the pan-European STOXX Europe 600 Index's recent dip of 1.23%. Despite these challenges, opportunities may arise for small-cap investors who focus on companies with strong fundamentals and potential resilience to macroeconomic pressures.

Top 10 Undervalued Small Caps With Insider Buying In Europe

Click here to see the full list of 59 stocks from our Undervalued European Small Caps With Insider Buying screener.

We'll examine a selection from our screener results.

AMG Critical Materials (ENXTAM:AMG)

Simply Wall St Value Rating: ★★★★★☆

Overview: AMG Critical Materials focuses on the production and supply of specialty metals and materials, with a market capitalization of $1.95 billion.

Operations: AMG Critical Materials generates revenue primarily from its Vanadium and Technologies segments, with a notable contribution from Lithium. The company has experienced fluctuations in its gross profit margin, reaching 29.37% in mid-2023 before declining to 18.02% by early 2025.

PE: -18.3x

AMG Critical Materials, a smaller player in Europe's market, has seen its share price fluctuate significantly over the past three months. Despite this volatility, earnings are projected to grow by 65% annually. Recent Q4 2024 results showed sales at US$361 million with net income jumping to US$7 million from US$2 million year-over-year. The company faces higher risk due to reliance on external borrowing for funding. Insider confidence is evident as they have been purchasing shares consistently since January 2025.

• Unlock comprehensive insights into our analysis of AMG Critical Materials stock in this valuation report.

• Evaluate AMG Critical Materials' historical performance by accessing our past performance report.

Foresight Group Holdings (LSE:FSG)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Foresight Group Holdings is a UK-based investment management firm focusing on infrastructure, private equity, and capital management, with a market cap of approximately £0.58 billion.

Operations: The company's revenue streams primarily include Infrastructure (£87.79 million), Private Equity (£50.78 million), and Foresight Capital Management (£8.10 million). The gross profit margin has shown an upward trend, reaching 94.88% by September 2024, indicating efficient management of production costs relative to revenue generation. Operating expenses are significant, with general and administrative expenses consistently forming a large part of these costs across the periods observed.

PE: 13.9x

Foresight Group Holdings, a European small-cap, is drawing attention with its forecasted earnings growth of 27% annually. Despite large one-off items affecting results, the company shows insider confidence through recent share purchases in February 2025. Its funding structure relies entirely on external borrowing, presenting higher risk without customer deposits. An expanded £17 million buyback plan and new role managing Liontrust Diversified Real Assets fund reflect strategic moves to enhance market presence and operational capabilities.

• Dive into the specifics of Foresight Group Holdings here with our thorough valuation report.

• Learn about Foresight Group Holdings' historical performance.

Sdiptech (OM:SDIP B)

Simply Wall St Value Rating: ★★★★★☆

Overview: Sdiptech is a technology group that focuses on providing infrastructure solutions with operations in resource efficiency and special infrastructure solutions, including property technical services, and has a market cap of approximately SEK 11.46 billion.

Operations: The company's revenue streams are primarily driven by Resource Efficiency and Special Infrastructure Solutions, contributing significantly to its overall sales. Over recent periods, the gross profit margin has shown an upward trend, reaching 32.78% by June 2023. Operating expenses have been increasing alongside revenue growth, with general and administrative expenses being a notable component.

PE: 18.5x

Sdiptech, a European small-cap company, is navigating market uncertainties with strategic acquisitions in sight. Despite its reliance on external borrowing for funding, it maintains a solid financial position and forecasts an 18% annual earnings growth. Recent earnings show steady sales increases to SEK 5.2 billion in 2024 from SEK 4.6 billion the previous year, though net income slightly dipped to SEK 432 million. Insider confidence is evident as executives increase their stakes, signaling potential value recognition within the firm.

• Click here to discover the nuances of Sdiptech with our detailed analytical valuation report.

• Examine Sdiptech's past performance report to understand how it has performed in the past.

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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.

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