<div id="readability-page-1"><div><p>Amid renewed trade and geopolitical uncertainty, the pan-European STOXX Europe 600 Index recently ended 0.98% lower, reflecting a cautious sentiment in major European markets. Despite these challenges, business activity in the eurozone has shown modest expansion with an optimistic outlook reaching a 20-month high, providing a backdrop for potential opportunities in small-cap stocks. In this environment, identifying promising small caps may involve looking at companies that demonstrate resilience and adaptability to shifting market dynamics and economic conditions.</p><h3>Top 10 Undervalued Small Caps With Insider Buying In Europe</h3><table><tbody><tr><th>Name</th><th>PE</th><th>PS</th><th>Discount to Fair Value</th><th>Value Rating</th></tr><tr><td>Gamma Communications</td><td>12.6x</td><td>1.4x</td><td>46.53%</td><td>★★★★★★</td></tr><tr><td>Speedy Hire</td><td>NA</td><td>0.3x</td><td>41.40%</td><td>★★★★★☆</td></tr><tr><td>Tokmanni Group Oyj</td><td>13.1x</td><td>0.3x</td><td>42.34%</td><td>★★★★★☆</td></tr><tr><td>A.G. BARR</td><td>14.6x</td><td>1.7x</td><td>47.41%</td><td>★★★★☆☆</td></tr><tr><td>Eurocell</td><td>16.1x</td><td>0.3x</td><td>35.44%</td><td>★★★★☆☆</td></tr><tr><td>M&amp;C Saatchi</td><td>22.8x</td><td>0.4x</td><td>47.18%</td><td>★★★★☆☆</td></tr><tr><td>Hargreaves Services</td><td>16.0x</td><td>0.9x</td><td>23.38%</td><td>★★★☆☆☆</td></tr><tr><td>Young's Brewery</td><td>45.7x</td><td>1.1x</td><td>33.60%</td><td>★★★☆☆☆</td></tr><tr><td>Senior</td><td>32.9x</td><td>1.0x</td><td>11.31%</td><td>★★★☆☆☆</td></tr><tr><td>Linc</td><td>NA</td><td>NA</td><td>5.55%</td><td>★★★☆☆☆</td></tr></tbody></table><p> Click here to see the full list of 63 stocks from our Undervalued European Small Caps With Insider Buying screener.     </p><p>Let's dive into some prime choices out of from the screener.</p><h2>Hargreaves Services (AIM:HSP)</h2><p><strong>Simply Wall St Value Rating:</strong> ★★★☆☆☆</p><p><strong>Overview:</strong> Hargreaves Services operates in sectors including industrial services and property development, with a market cap of £1.38 billion.</p><p><strong>Operations:</strong> The company generates revenue primarily from its Services segment (£247.69 million) and Hargreaves Land (£20.08 million). Over recent periods, the gross profit margin has shown an upward trend, reaching 20.74% by May 2025, reflecting effective cost management relative to revenue growth.</p><p><strong>PE:</strong> 16.0x</p><p>Hargreaves Services, a smaller European company, has caught attention with its recent insider confidence as insiders purchased shares between October and December 2025. Despite relying entirely on external borrowing for funding, which carries higher risk than customer deposits, the company anticipates strong revenue and profit growth for the six months ending November 2025. This potential growth could enhance its appeal among investors seeking opportunities in smaller companies across Europe.</p><ul><li>Click here and access our complete valuation analysis report to understand the dynamics of Hargreaves Services.</li><li>Review our historical performance report to gain insights into Hargreaves Services''s past performance.</li></ul><figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/5af40395-eb41-4835-a99a-264161a245f0/chart/dcf?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/5af40395-eb41-4835-a99a-264161a245f0/chart/dcf?"/><figcaption>AIM:HSP Share price vs Value as at Jan 2026</figcaption></figure><h2>Kainos Group (LSE:KNOS)</h2><p><strong>Simply Wall St Value Rating:</strong> ★★★☆☆☆</p><p><strong>Overview:</strong> Kainos Group is a UK-based company specializing in digital services and products, including Workday-related offerings, with a market capitalization of £1.85 billion.</p><p><strong>Operations:</strong> The company's revenue is primarily derived from Digital Services (£203.43 million), Workday Products (£76.28 million), and Workday Services (£100.56 million). Over time, the gross profit margin has fluctuated, with a recent figure of 47.91% as of September 2025. Operating expenses have consistently grown alongside revenue increases, with general and administrative expenses being a significant component.</p><p><strong>PE:</strong> 35.7x</p><p>Kainos Group, a tech-focused company, is attracting attention for its potential as an undervalued stock. Despite a drop in net profit margin from 14% to 8.1%, earnings are forecasted to grow by over 23% annually. The company recently initiated a £30 million share repurchase program, demonstrating confidence in its future prospects. With no customer deposits and reliance on external borrowing, Kainos maintains a cautious approach towards acquisitions while continuing to pay dividends, recently increasing the interim dividend to 9.8 pence per share.</p><ul><li>Take a closer look at Kainos Group's potential here in our valuation report.</li><li>Examine Kainos Group's past performance report to understand how it has performed in the past.</li></ul><figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/8bf63a10-4dd2-47b9-abf0-27e8c49aa0cf/chart/dcf?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/8bf63a10-4dd2-47b9-abf0-27e8c49aa0cf/chart/dcf?"/><figcaption>LSE:KNOS Share price vs Value as at Jan 2026</figcaption></figure><h2>Sdiptech (OM:SDIP B)</h2><p><strong>Simply Wall St Value Rating:</strong> ★★★★☆☆</p><p><strong>Overview:</strong> Sdiptech is a technology group focused on providing infrastructure solutions for urban environments, with a market capitalization of approximately SEK 11.25 billion.</p><p><strong>Operations:</strong> The company generates revenue primarily from its core operations, with a recent gross profit margin of 32.13%. Operating expenses and non-operating expenses significantly impact the net income, which recently showed a negative trend with a net income margin of -3.11%.</p><p><strong>PE:</strong> -42.1x</p><p>Sdiptech, a European infrastructure-focused company, is capturing attention in the small cap sector with its strategic M&amp;A pursuits and insider confidence. Recently, their CFO purchased 4,000 shares for approximately €750K, indicating strong belief in the company's potential. Despite high debt levels due to external borrowing, Sdiptech's earnings are projected to grow over 100% annually. The recent appointment of Nico van der Merwe as Head of Energy &amp; Electrification strengthens their leadership team and aligns with their expansion strategy across new geographies.</p><ul><li>Click here to discover the nuances of Sdiptech with our detailed analytical valuation report.</li><li>Gain insights into Sdiptech's past trends and performance with our Past report.</li></ul><figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/087f171a-1bc7-42f1-8527-d29f5f936469/chart/dcf?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/087f171a-1bc7-42f1-8527-d29f5f936469/chart/dcf?"/><figcaption>OM:SDIP B Share price vs Value as at Jan 2026</figcaption></figure><h2>Next Steps</h2><ul><li>Unlock more gems!  Our Undervalued European Small Caps With Insider Buying screener has unearthed 60 more companies for you to explore.Click here to unveil our expertly curated list of 63 Undervalued European Small Caps With Insider Buying.</li><li>Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks.</li><li>Maximize your investment potential with Simply Wall St, the comprehensive app that offers global market insights for free.</li></ul><h2>Searching for a Fresh Perspective?</h2><ul><li>Explore high-performing small cap companies that haven't yet garnered significant analyst attention.</li><li>Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.</li><li>Find companies with promising cash flow potential yet trading below their fair value.</li></ul> <p><em> This article by Simply Wall St is general in nature. <strong>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.</strong> 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.</em></p></div></div>

<p>The pan-European STOXX Europe 600 Index recently fell 0.98%, reflecting cautious sentiment amid trade and geopolitical uncertainty. However, business activity in the eurozone shows modest expansion, with a 20-month high outlook, presenting opportunities in small-cap stocks. Notable undervalued small caps with insider buying include Hargreaves Services, Kainos Group, and Sdiptech, each demonstrating resilience and potential for growth despite challenges. Investors are encouraged to explore these companies for potential investment opportunities in the current market environment.</p>

European Small Caps With Insider Action To Watch In January 2026