In March 2025, the European market has shown resilience with the pan-European STOXX Europe 600 Index ending higher, buoyed by hopes of increased government spending despite concerns over impending U.S. tariffs. As central banks navigate trade-related uncertainties and inflationary pressures, small-cap stocks in Europe are drawing attention for their potential to capitalize on these dynamic conditions. Identifying promising small-cap stocks often involves looking at those with solid fundamentals and strategic insider actions that align well with current economic trends.
Top 10 Undervalued Small Caps With Insider Buying In Europe
Overview: C&C Group is a leading producer, marketer, and distributor of branded cider, beer, wine, spirits, and soft drinks with a market cap of approximately €1.15 billion.
Operations: C&C Group's revenue streams primarily derive from its operations, with recent figures showing a revenue of €1.65 billion and a gross profit of €383.1 million as of August 2024. The company's cost structure includes significant components such as the cost of goods sold (COGS) amounting to €1.27 billion and operating expenses at €334.7 million for the same period. Notably, the gross profit margin has been observed at 23.23%.
PE: -4.8x
C&C Group, a small European company, recently saw insider confidence as Ralph Findlay purchased 66,183 shares valued at £99,003. This move signals potential optimism about the company's prospects. Despite relying entirely on external borrowing for funding—a riskier approach—earnings are projected to grow by 88% annually. Recent leadership changes include Ralph Findlay returning as Non-Executive Chair and Roger White stepping in as CEO. These shifts may influence future strategic direction and operational efficiency.
Overview: Safestore Holdings is a company that provides self-storage accommodation and related services, with a market capitalization of approximately £2.64 billion.
Operations: The company's revenue, primarily from self-storage accommodation and related services, reached £223.4 million recently. The cost of goods sold (COGS) was £73.5 million, contributing to a gross profit of £149.9 million with a gross profit margin of 67.10%. Operating expenses were reported at £16.1 million, while non-operating expenses stood at -£238.5 million, impacting the net income significantly which resulted in a net income margin of 166.65%.
PE: 3.6x
Safestore Holdings, a smaller player in the European market, recently demonstrated insider confidence with Frederic Vecchioli purchasing 65,000 shares for £408K between January and March 2025. Despite a slight dip in annual sales to £223.4 million, net income surged to £372.3 million from the previous year's £200.2 million, reflecting improved profitability. The company declared a final dividend of 20.40 pence per share at its March AGM, indicating steady shareholder returns amidst forecasts of declining earnings over the next three years due to reliance on external borrowing for funding without customer deposits as buffers.
Overview: Diös Fastigheter is a Swedish real estate company focused on owning and managing properties across several regions, with a market capitalization of approximately SEK 8.62 billion.
Operations: The company generates revenue from several regions, with Dalarna and Luleå being significant contributors. Over the periods observed, gross profit margin increased to 69.07%. Operating expenses have been relatively stable compared to non-operating expenses, which show variability and significantly impact net income margins.
PE: 13.5x
Diös Fastigheter, a key player in the European property market, is enhancing its portfolio with strategic acquisitions. Recently, they acquired properties in Umea for SEK 1.6 billion, boosting their commercial presence. Despite earnings not fully covering interest payments and reliance on external funding, Diös shows resilience with a net income of SEK 691 million for 2024 compared to last year's loss. The company plans further growth through asset rotation while maintaining financial stability by managing debt levels strategically.
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.
Companies discussed in this article include LSE:CCR LSE:SAFE and OM:DIOS.
