In recent weeks, the European market has faced challenges as major indices like the STOXX Europe 600 and Germany’s DAX have declined amid trade uncertainties and a stagnant economic environment. Despite these headwinds, opportunities may exist within small-cap stocks, particularly those with insider buying activity that can indicate potential confidence in their future prospects.

Top 10 Undervalued Small Caps With Insider Buying In Europe

Name PE PS Discount to Fair Value Value Rating Stelrad Group 13.1x 0.7x 36.95% ★★★★★☆ Instabank 10.2x 2.9x 23.48% ★★★★★☆ Lords Group Trading NA 0.2x 4.74% ★★★★☆☆ CVS Group 45.1x 1.3x 38.07% ★★★★☆☆ Yubico 33.6x 4.8x -33.06% ★★★☆☆☆ Oxford Instruments 40.1x 2.1x 18.51% ★★★☆☆☆ A.G. BARR 19.6x 1.9x 45.78% ★★★☆☆☆ SmartCraft 43.4x 7.8x 35.36% ★★★☆☆☆ Sabre Insurance Group 9.4x 1.7x -15.64% ★★★☆☆☆ Seeing Machines NA 2.8x 47.84% ★★★☆☆☆

Click here to see the full list of 51 stocks from our Undervalued European Small Caps With Insider Buying screener.

Let's dive into some prime choices out of from the screener.

Hollywood Bowl Group

Simply Wall St Value Rating: ★★★★★★

Overview: Hollywood Bowl Group operates a chain of ten-pin bowling centers in the UK, focusing on providing family-friendly entertainment, with a market capitalization of approximately £0.60 billion.

Operations: The company's revenue primarily stems from recreational activities, with the latest reported figure at £240.46 million. Over time, it has experienced fluctuations in its gross profit margin, which was 62.73% as of March 2025. Operating expenses and non-operating expenses are significant components of its cost structure, impacting net income margins that reached 11.89% in the same period.

PE: 14.9x

Hollywood Bowl Group, a small cap stock in Europe, shows potential for growth with earnings forecasted to rise 14% annually. Despite relying on more risky external borrowing for funding, the company reported sales of £129 million for H1 2025, up from £119 million the previous year. Net income slightly decreased to £20.6 million from £21.9 million. Insider confidence is evident with recent share purchases by executives in June 2025, reflecting optimism about future prospects amidst leadership changes and strategic initiatives.

Get an in-depth perspective on Hollywood Bowl Group's performance by reading our valuation report here. Explore historical data to track Hollywood Bowl Group's performance over time in our Past section.LSE:BOWL Share price vs Value as at Aug 2025

Supermarket Income REIT

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Supermarket Income REIT focuses on investing in supermarket property assets and has a market capitalization of approximately £1.41 billion.

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Operations: Supermarket Income REIT generates revenue primarily from its investment in supermarket property assets, with a gross profit margin consistently at 100%. Despite fluctuations in net income, the company has experienced periods of negative net income margins due to significant non-operating expenses. Operating expenses are relatively low compared to revenue, with general and administrative expenses being a notable component.

PE: 14.3x

Supermarket Income REIT, a player in the European small-cap scene, recently completed a £250 million fixed-income offering with 5.125% senior unsecured bonds due in 2031. This move aligns with their strategy to bolster liquidity and manage debt efficiently. Insider confidence is evident as insiders have been purchasing shares over recent months, suggesting potential value recognition. Despite debt not being well covered by operating cash flow, earnings are projected to grow annually by 11.54%, indicating possible future growth opportunities for investors seeking undervalued prospects in the property sector.

Click here to discover the nuances of Supermarket Income REIT with our detailed analytical valuation report. Examine Supermarket Income REIT's past performance report to understand how it has performed in the past.LSE:SUPR Share price vs Value as at Aug 2025

NCC

Simply Wall St Value Rating: ★★★★★☆

Overview: NCC is a construction and property development company with operations in industry, infrastructure, building in Sweden and the Nordics, and property development; it has a market capitalization of approximately SEK 20.67 billion.

Operations: NCC generates revenue primarily from its Industry, Infrastructure, Building Sweden, Building Nordics, and Property Development segments. The company's cost of goods sold (COGS) significantly impacts its gross profit margin, which has shown fluctuations over time with a recent figure of 8.78%. Operating expenses are consistently a notable component of the financial structure.

PE: 12.5x

NCC's recent activities highlight its dynamic role in construction across the Nordics, with projects like the SEK 400 million Stockholm building extension and a SEK 440 million police station in Sweden. The company's earnings for Q2 2025 showed sales of SEK 14.54 billion, slightly down from last year. Despite external borrowing risks, insider confidence is evident through recent share purchases. With projects like fossil-free steel production and infrastructure upgrades underway, NCC's growth prospects remain promising amidst its financial challenges.

Dive into the specifics of NCC here with our thorough valuation report. Learn about NCC's historical performance.OM:NCC B Share price vs Value as at Aug 2025

Next Steps

Discover the full array of 51 Undervalued European Small Caps With Insider Buying right here. Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools. Streamline your investment strategy with Simply Wall St's app for free and benefit from extensive research on stocks across all corners of the world.

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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.

Companies discussed in this article include LSE:BOWL LSE:SUPR and OM:NCC B.

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