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As European markets show signs of recovery, with the STOXX Europe 600 Index gaining 3.93% over a recent week, investor sentiment has been buoyed by the European Central Bank's rate cuts and easing trade tensions. In this environment, small-cap stocks in Europe may present intriguing opportunities for investors seeking potential value plays amidst broader market optimism.
Top 10 Undervalued Small Caps With Insider Buying In Europe
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Morgan Advanced Materials | 10.2x | 0.5x | 44.52% | ★★★★★★ |
| Tristel | 27.2x | 3.8x | 28.24% | ★★★★★☆ |
| Stelrad Group | 10.6x | 0.6x | 40.58% | ★★★★★☆ |
| Savills | 23.4x | 0.5x | 43.72% | ★★★★☆☆ |
| Seeing Machines | NA | 1.8x | 48.38% | ★★★★☆☆ |
| Norcros | 23.9x | 0.6x | 29.15% | ★★★☆☆☆ |
| FRP Advisory Group | 12.4x | 2.2x | 10.21% | ★★★☆☆☆ |
| Italmobiliare | 10.7x | 1.4x | -251.44% | ★★★☆☆☆ |
| Arendals Fossekompani | 20.7x | 1.6x | 48.63% | ★★★☆☆☆ |
| Speedy Hire | NA | 0.2x | -6.83% | ★★★☆☆☆ |
Below we spotlight a couple of our favorites from our exclusive screener.
B.P. Marsh & Partners
Simply Wall St Value Rating: ★★★☆☆☆
Overview: B.P. Marsh & Partners is a specialist private equity investor focusing on early-stage financial services businesses, with a market capitalization of £0.14 billion.
Operations: The company generates revenue primarily from consultancy services and trading investments in financial services, with recent revenue reaching £64.99 million. Over time, the net income margin has shown an upward trend, reaching 82.47%.
PE: 4.7x
B.P. Marsh & Partners, a European small cap, is gaining attention for its potential value. The company has embarked on a £2 million share repurchase program to optimize capital structure, indicating strategic financial management. Insider confidence is evident with recent purchases in 2025. Although the firm relies solely on external borrowing—considered higher risk than customer deposits—it maintains a commitment to shareholder returns with an annual £5 million dividend plan through 2028, signaling potential stability and growth prospects.
CLS Holdings
Simply Wall St Value Rating: ★★★☆☆☆
Overview: CLS Holdings is a property investment company focusing on commercial real estate, primarily in the United Kingdom, Germany, and France, with a market capitalization of £1.17 billion.
Operations: The company's revenue is primarily derived from investment properties in the United Kingdom (£76.10 million), Germany (£51.60 million), and France (£18.10 million). Over recent periods, the gross profit margin has shown a declining trend, reaching 75.05% by December 2024 from 80.76% in June 2014. Operating expenses have remained relatively stable, with general and administrative expenses being a significant component of these costs.