Yahoo

Top 3 Undervalued European Small Caps With Insider Action In January 2026

As European markets face renewed trade and geopolitical uncertainties, with the STOXX Europe 600 Index dipping 0.98%, small-cap stocks have become a focal point for investors seeking opportunities amid broader market volatility. In this environment, identifying promising small-cap stocks often involves looking at companies with strong fundamentals and insider activities that may suggest confidence in their future prospects.

Top 10 Undervalued Small Caps With Insider Buying In Europe

Name

PE

PS

Discount to Fair Value

Value Rating

Gamma Communications

12.7x

1.4x

46.24%

★★★★★★

Speedy Hire

NA

0.3x

40.35%

★★★★★☆

Tokmanni Group Oyj

13.1x

0.3x

42.05%

★★★★★☆

Norcros

15.7x

0.8x

33.02%

★★★★☆☆

A.G. BARR

14.5x

1.6x

48.06%

★★★★☆☆

M&C Saatchi

22.6x

0.4x

47.27%

★★★★☆☆

Eastnine

12.2x

7.7x

48.06%

★★★★☆☆

Young's Brewery

46.0x

1.1x

33.52%

★★★☆☆☆

Senior

32.9x

1.0x

11.74%

★★★☆☆☆

Linc

NA

NA

4.72%

★★★☆☆☆

Click here to see the full list of 63 stocks from our Undervalued European Small Caps With Insider Buying screener.

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

Breedon Group

Simply Wall St Value Rating:★★★★★★

Overview:Breedon Group is a construction materials company operating primarily in Great Britain, Ireland, and the United States with a market cap of £1.72 billion.

Operations:Breedon Group generates revenue primarily from its operations in Great Britain, Ireland, and the United States, with cement being a significant contributor. The company's cost of goods sold (COGS) has shown variability, impacting its gross profit margins over time. Notably, the gross profit margin reached 82.31% in late 2024 but was at 59.42% earlier that year. Operating expenses have consistently been a substantial part of costs, with general and administrative expenses being a notable component.

PE:13.2x

Breedon Group, a construction materials producer, is catching attention in the European market for its potential value. Despite carrying high debt levels due to reliance on external borrowing, insider confidence is evident with share purchases made consistently from mid-2025. The company anticipates earnings growth of 11% annually, reflecting optimism about future performance. Recent trading statements indicate steady operations up to October 2025, suggesting resilience in a competitive industry landscape.

LSE:BREE Share price vs Value as at Jan 2026
LSE:BREE Share price vs Value as at Jan 2026

FirstGroup

Simply Wall St Value Rating:★★★★☆☆

Overview:FirstGroup is a UK-based transport company operating in the bus and rail sectors, with a market cap of approximately £0.81 billion.

Operations:The company generates revenue primarily through its First Bus and First Rail segments, with the latter contributing significantly more. Over recent periods, the gross profit margin has shown a positive trend, reaching 62.57% in September 2025. Operating expenses have been substantial but remained relatively stable in recent quarters.

PE:7.9x

FirstGroup's recent acquisition of RATP Développement SA's UK sightseeing bus operations for approximately £17 million highlights their strategic expansion in key markets like London and Bath. Insider confidence is evident, with notable share purchases within the last six months. Despite a slight dip in half-year sales to £2.3 billion, earnings per share improved from the previous year. The company was also named as the preferred operator for London's Overground network starting May 2026, indicating potential growth opportunities despite forecasted earnings decline over the next three years due to reliance on external borrowing for funding.

LSE:FGP Ownership Breakdown as at Jan 2026
LSE:FGP Ownership Breakdown as at Jan 2026

Workspace Group

Simply Wall St Value Rating:★★★★★☆

Overview:Workspace Group is a UK-based company specializing in providing business accommodation for rent, with a market cap of approximately £1.15 billion.

Operations:The primary revenue stream is from providing business accommodation for rent, with the most recent reported revenue at £182.9 million. The cost of goods sold (COGS) was £62.6 million, leading to a gross profit of £120.3 million and a gross profit margin of 65.77%. Operating expenses were recorded at £26 million, while non-operating expenses reached £170.2 million, significantly impacting net income figures over time.

PE:-10.5x

Workspace Group, a flexible workspace provider, is navigating a challenging period with significant leadership changes as Lawrence Hutchings steps down and Charlie Green takes over as CEO in February 2026. Despite recent financial hurdles, including a net loss of £71.1 million for the half-year ending September 2025, Workspace's strategic initiatives highlight its potential. The company has secured key leases and invested in Qube to enhance its offerings for creative industries. Saba Capital's call for asset sales underscores investor pressure but also indicates potential value realization opportunities.

LSE:WKP Share price vs Value as at Jan 2026
LSE:WKP Share price vs Value as at Jan 2026

Next Steps

Curious About Other Options?

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:BREE LSE:FGP and LSE:WKP.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Mobilize your Website
View Site in Mobile | Classic
Share by: