Undiscovered European Gems With Strong Fundamentals July 2025

Simply Wall St · 07/02 05:02

As European markets show signs of resilience, with the STOXX Europe 600 Index climbing 1.32% amidst easing trade tensions and potential economic stimulus from Germany, investors are increasingly turning their attention to small-cap stocks that may not yet be on the radar. In this environment, identifying companies with robust fundamentals—such as strong balance sheets and sustainable growth prospects—can provide valuable opportunities for those looking to navigate the complexities of today's market landscape.

Top 10 Undiscovered Gems With Strong Fundamentals In Europe

Name Debt To Equity Revenue Growth Earnings Growth Health Rating
AB Traction NA 5.39% 5.24% ★★★★★★
Caisse Régionale de Crédit Agricole Mutuel Brie Picardie Société coopérative 26.90% 4.14% 7.22% ★★★★★★
Martifer SGPS 102.88% -0.23% 7.16% ★★★★★★
La Forestière Equatoriale NA -65.30% 37.55% ★★★★★★
ABG Sundal Collier Holding 8.55% -4.14% -12.38% ★★★★★☆
Evergent Investments 5.39% 9.41% 21.17% ★★★★☆☆
Darwin 3.03% 84.88% 5.63% ★★★★☆☆
Practic 5.21% 4.49% 7.23% ★★★★☆☆
Inversiones Doalca SOCIMI 15.57% 6.53% 7.16% ★★★★☆☆
MCH Group 124.09% 12.40% 43.58% ★★★★☆☆

Click here to see the full list of 326 stocks from our European Undiscovered Gems With Strong Fundamentals screener.

Here we highlight a subset of our preferred stocks from the screener.

Caisse Régionale de Crédit Agricole Mutuel Loire Haute-Loire Société coopérative (ENXTPA:CRLO)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Caisse Régionale de Crédit Agricole Mutuel Loire Haute-Loire Société coopérative offers a range of banking products and services to diverse customer segments in France, with a market capitalization of approximately €579.37 million.

Operations: CRLO generates revenue primarily from local banking in France (€234.80 million) and leasing activities (€151.14 million), with a smaller contribution from land-related operations (€1.13 million).

With total assets of €15.2B and equity at €2.8B, Crédit Agricole Loire Haute-Loire stands out with its earnings growth of 14.9% over the past year, surpassing the industry average of 3.2%. The bank's liabilities are primarily low-risk customer deposits, making up 95% of its funding sources. However, it faces a challenge with a high level of bad loans at 3.2%, despite having a low allowance for these loans (82%). Trading at 29.1% below estimated fair value suggests potential upside if risks are managed effectively in this burgeoning financial landscape.

ENXTPA:CRLO Earnings and Revenue Growth as at Jul 2025
ENXTPA:CRLO Earnings and Revenue Growth as at Jul 2025

Olvi Oyj (HLSE:OLVAS)

Simply Wall St Value Rating: ★★★★★☆

Overview: Olvi Oyj is a beverage company that manufactures and sells alcoholic and non-alcoholic beverages across Finland, Estonia, Latvia, Lithuania, Denmark, and Belarus with a market cap of €700.73 million.

Operations: Olvi Oyj generates revenue primarily from its alcoholic beverages segment, which accounts for €659.34 million. The company's financial performance is highlighted by a notable net profit margin trend, reflecting efficiency in managing costs relative to its revenue streams.

Olvi, a Finnish beverage company, has shown impressive earnings growth of 14.8% over the past year, outpacing the broader beverage industry's 0.7%. The firm is trading at an attractive value, estimated to be 73.6% below its fair value compared to peers and industry standards. While Olvi's debt-to-equity ratio rose from 4.8% to 7.1% in five years, it remains financially robust with more cash than total debt and positive free cash flow of €48.51 million as of September 2024. Additionally, recent board changes include Nora Hortling as Chair and Lasse Heinonen as Vice Chair, enhancing governance dynamics.

HLSE:OLVAS Earnings and Revenue Growth as at Jul 2025
HLSE:OLVAS Earnings and Revenue Growth as at Jul 2025

Norion Bank (OM:NORION)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Norion Bank AB (publ) offers financial solutions to medium-sized corporates, real estate companies, merchants, and private individuals across Sweden, Germany, Norway, Denmark, Finland, and internationally with a market cap of SEK10.45 billion.

Operations: Norion Bank's primary revenue streams are derived from real estate (SEK1.22 billion), consumer (SEK930 million), corporate (SEK827 million), and payments (SEK501 million) segments.

Norion Bank, with total assets of SEK67.6B and equity of SEK9.5B, operates primarily on low-risk funding from customer deposits, which make up 93% of its liabilities. Despite a high level of bad loans at 21.2%, the bank's earnings grew by 7.2% over the past year, surpassing the industry average decline of -1.5%. Trading at a substantial discount to its estimated fair value by 70.1%, Norion offers good relative value compared to peers in the industry while maintaining high-quality earnings despite challenges such as a low allowance for bad loans at only 49%.

OM:NORION Earnings and Revenue Growth as at Jul 2025
OM:NORION Earnings and Revenue Growth as at Jul 2025

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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.