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3 European Undervalued Small Caps With Insider Buying To Consider

Simply Wall St · 3d ago

In recent weeks, the European market has shown mixed performance, with Germany's DAX and Italy's FTSE MIB gaining while France's CAC 40 and the UK's FTSE 100 experienced slight declines. Amidst these fluctuations, small-cap stocks in Europe present intriguing opportunities for investors seeking to navigate a dynamic economic landscape. Identifying promising small-cap stocks often involves looking at companies with solid fundamentals and insider confidence, especially in markets where economic indicators suggest potential shifts in growth trajectories.

Top 10 Undervalued Small Caps With Insider Buying In Europe

Name PE PS Discount to Fair Value Value Rating
Norcros 13.7x 0.7x 41.21% ★★★★★☆
Tokmanni Group Oyj 12.1x 0.2x 42.67% ★★★★★☆
Eastnine 11.9x 7.5x 48.83% ★★★★★☆
Senior 24.9x 0.8x 27.00% ★★★★★☆
A.G. BARR 14.5x 1.6x 48.06% ★★★★☆☆
Tristel 29.5x 4.2x 20.23% ★★★☆☆☆
Gooch & Housego 47.5x 1.1x 21.30% ★★★☆☆☆
Kendrion 29.1x 0.7x 42.37% ★★★☆☆☆
CVS Group 46.6x 1.3x 25.32% ★★★☆☆☆
Linc NA NA 0.43% ★★★☆☆☆

Click here to see the full list of 77 stocks from our Undervalued European Small Caps With Insider Buying screener.

Let's take a closer look at a couple of our picks from the screened companies.

Domino's Pizza Group (LSE:DOM)

Simply Wall St Value Rating: ★★★★★☆

Overview: Domino's Pizza Group operates as a leading pizza delivery company with various revenue streams including sales to franchisees, corporate stores income, and national advertising and ecommerce income, with a market cap of approximately £2.5 billion.

Operations: Sales to franchisees contribute significantly to revenue, alongside income from corporate stores and national advertising and ecommerce. The gross profit margin has shown fluctuations, reaching 47.18% in June 2025. Operating expenses have steadily increased over time, with general and administrative expenses being a major component.

PE: 8.5x

Domino's Pizza Group, a European small cap, presents an intriguing opportunity for investors seeking undervalued stocks. Despite recent executive shake-ups and a challenging year marked by a halved share price, insider confidence is reflected in key appointments like Annie Murphy and interim CEO Nicola Frampton. The company's ambitious strategy aims to capitalize on its growing UK market share. However, high debt levels and reliance on external borrowing present risks that should be considered alongside growth prospects.

LSE:DOM Share price vs Value as at Dec 2025
LSE:DOM Share price vs Value as at Dec 2025

Hemnet Group (OM:HEM)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Hemnet Group operates as an internet information provider, focusing on real estate listings and related services, with a market capitalization of SEK 10.78 billion.

Operations: Hemnet Group's primary revenue stream comes from its operations as an Internet Information Provider, with recent revenues reaching SEK 1.54 billion. The company has shown a notable trend in its gross profit margin, which increased to 86.96% by the end of September 2025. Operating expenses and non-operating expenses are significant components of their cost structure, impacting net income margins that have reached up to 34.95%.

PE: 32.2x

Hemnet Group, a key player in Europe's property portal sector, demonstrates potential as an undervalued stock. Despite a slight dip in Q3 2025 earnings with sales at SEK 366.7 million and net income of SEK 132.4 million, insider confidence is evident from Anders Nilsson's purchase of 5,000 shares for approximately SEK 1.2 million. Furthermore, the company completed a buyback of 812,500 shares worth SEK 223.2 million by September end. Earnings are projected to grow by over 20% annually despite reliance on external borrowing for funding.

OM:HEM Share price vs Value as at Dec 2025
OM:HEM Share price vs Value as at Dec 2025

Inwido (OM:INWI)

Simply Wall St Value Rating: ★★★★★★

Overview: Inwido is a company that specializes in the design, manufacture, and sale of windows and doors across various regions including Scandinavia, Eastern Europe, and Western Europe with a market cap of SEK 8.75 billion.

Operations: Inwido generates revenue primarily from its operations in Scandinavia, Eastern Europe, Western Europe, and E-Commerce. Over recent periods, the company's gross profit margin has shown variability, reaching 25.86% as of September 2025. Operating expenses include significant allocations to sales and marketing as well as general and administrative functions.

PE: 17.2x

Inwido, a European player in the window and door industry, is positioning itself for growth through strategic acquisitions. Despite a dip in Q3 2025 sales to SEK 2.22 billion from SEK 2.27 billion last year, they are pursuing mergers and acquisitions to offset limited organic growth prospects. Their commitment is evident as they target a compound annual growth rate of 15% by 2030, with significant contributions expected from M&A activities. This proactive approach reflects insider confidence in potential future value creation within the company’s market segment.

OM:INWI Share price vs Value as at Dec 2025
OM:INWI Share price vs Value as at Dec 2025

Key Takeaways

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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.