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Undiscovered European Gems With Strong Fundamentals For May 2025

Undiscovered European Gems With Strong Fundamentals For May 2025

Yahoo26-05-2025

Amidst recent market turbulence, European equities have faced challenges, with the pan-European STOXX Europe 600 Index snapping a five-week winning streak due to renewed tariff threats from the U.S. and unexpected contractions in eurozone business activity. In this environment, identifying stocks with strong fundamentals becomes crucial for investors seeking resilience and potential growth opportunities; these undiscovered gems often exhibit robust financial health and strategic positioning that can withstand broader market pressures.
Name
Debt To Equity
Revenue Growth
Earnings Growth
Health Rating
Linc
NA
101.28%
29.81%
★★★★★★
Intellego Technologies
11.59%
68.05%
72.76%
★★★★★★
ABG Sundal Collier Holding
8.55%
-4.14%
-12.38%
★★★★★☆
Alantra Partners
3.79%
-3.99%
-23.83%
★★★★★☆
Practic
5.21%
4.49%
7.23%
★★★★☆☆
Evergent Investments
5.39%
8.97%
21.29%
★★★★☆☆
Inversiones Doalca SOCIMI
15.57%
6.53%
7.16%
★★★★☆☆
Castellana Properties Socimi
53.49%
6.64%
21.96%
★★★★☆☆
Grenobloise d'Electronique et d'Automatismes Société Anonyme
0.01%
5.17%
-13.11%
★★★★☆☆
Eurofins-Cerep
0.46%
6.80%
6.93%
★★★★☆☆
Click here to see the full list of 331 stocks from our European Undiscovered Gems With Strong Fundamentals screener.
We're going to check out a few of the best picks from our screener tool.
Simply Wall St Value Rating: ★★★★★★
Overview: Wilh. Wilhelmsen Holding ASA is a global provider of maritime products and services, with a market capitalization of NOK17.55 billion.
Operations: The company's revenue streams are primarily from Maritime Services, generating $849 million, followed by New Energy at $315 million, and Strategic Holdings & Investments contributing $15 million. The net profit margin is not specified in the provided data.
Wilh. Wilhelmsen Holding, a notable player in the shipping industry, has demonstrated robust financial health with a net debt to equity ratio of 1.2%, which is considered satisfactory. The company's earnings have grown by 9.2% over the past year, surpassing the industry average of 9.1%. With interest payments well covered at 4.9 times EBIT, its financial stability is further reinforced by strategic expansions in Maritime Services and New Energy sectors. Recent earnings for Q1 2025 showed sales of US$297 million and net income of US$132 million, reflecting strong operational performance compared to last year's figures.
Wilh. Wilhelmsen Holding's strategic expansion in Maritime Services and New Energy is key for potential revenue growth; click here to explore the full narrative on the company's prospects.
Simply Wall St Value Rating: ★★★★★☆
Overview: PlayWay S.A. is a company that produces and publishes PC and mobile games globally, with a market capitalization of PLN2.11 billion.
Operations: PlayWay generates revenue primarily through the production and publishing of PC and mobile games. The company's net profit margin has shown a notable trend, reflecting its ability to manage costs effectively in relation to its revenues.
PlayWay, a promising player in the European market, reported net income of PLN 170.2 million for 2024, up from PLN 106.73 million the previous year. The company's basic earnings per share rose to PLN 25.79 from PLN 19.14, indicating robust financial health. Over the past five years, its debt-to-equity ratio has slightly increased to 0.07%, yet it remains well-covered by profits with more cash than total debt on hand. With earnings growth of 59% last year outpacing industry averages and trading at nearly a tenth below estimated fair value, PlayWay appears poised for continued success in its sector.
Click to explore a detailed breakdown of our findings in PlayWay's health report.
Assess PlayWay's past performance with our detailed historical performance reports.
Simply Wall St Value Rating: ★★★★★★
Overview: Shoper SA offers Software as a Service solutions for e-commerce in Poland with a market capitalization of PLN1.31 billion.
Operations: Shoper SA generates revenue primarily through its Software as a Service solutions tailored for e-commerce businesses in Poland. The company's financial performance is characterized by a net profit margin, which reflects its profitability after accounting for all expenses.
Shoper, a rising player in the European market, has demonstrated notable financial strength with a debt-free balance sheet and high-quality earnings. In recent years, Shoper's levered free cash flow jumped from PLN 5.26 million in 2018 to an impressive PLN 47.08 million by March 2025. The company reported first-quarter revenue of PLN 51.73 million for 2025, up from PLN 44.19 million the previous year, while net income rose to PLN 9.84 million from PLN 7.76 million over the same period last year. Earnings per share also increased to PLN 0.35 from PLN 0.28 a year ago, reflecting robust growth prospects ahead.
Unlock comprehensive insights into our analysis of Shoper stock in this health report.
Learn about Shoper's historical performance.
Gain an insight into the universe of 331 European Undiscovered Gems With Strong Fundamentals by clicking here.
Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports.
Maximize your investment potential with Simply Wall St, the comprehensive app that offers global market insights for free.
Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
Find companies with promising cash flow potential yet trading below their fair value.
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 OB:WWI WSE:PLW and WSE:SHO.
Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@simplywallst.com

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How Europe could go ‘Mega' by 2027

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How Europe could go ‘Mega' by 2027

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Trump says Xi agreed to restart flow of crucial minerals, but analysts say China won't give up its ‘rare earth card'
Trump says Xi agreed to restart flow of crucial minerals, but analysts say China won't give up its ‘rare earth card'

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Trump says Xi agreed to restart flow of crucial minerals, but analysts say China won't give up its ‘rare earth card'

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Are these the best American stocks for my ISA?
Are these the best American stocks for my ISA?

Yahoo

time22 minutes ago

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Are these the best American stocks for my ISA?

At the moment, US-listed stocks account for also exactly half of my ISA holdings. To be precise, around 42% of my Stocks and Shares ISA is in cash — I'm a little wary at the moment — and 29% in both international (all North American) and UK-listed stocks. So, why am I a little wary? Well, I'm being more selective about US stocks because the sharp rise in tariffs this year has fundamentally changed the investment landscape. Between January and April 2025, the average effective US tariff rate soared from 2.5% to 27%. These are levels not seen in over a century. It had settled slightly at 17.8% in May, but negotiations are ongoing. Such high tariffs are likely to be raising input costs, squeezing corporate profit margins, and dampening earnings growth. I'm focusing on the metrics because, in today's environment, growth alone isn't enough—valuations must be justifiable. With the S&P 500's forward price-to-earnings (P/E) ratio at 21.3 — above both 5- and 10-year averages — it's crucial to find companies where earnings multiples make sense relative to their growth prospects. As always I'm prioritising growth-adjusted ratios like the P/E-to-growth (PEG) ratio, which help identify stocks offering genuine value for their expected growth, but being even more selective than usual. So, who are they? Well, Pinterest (NYSE:PINS) stands out as fundamentally cheap by most metrics, while Alphabet (NASDAQ:GOOGL) trades at lower multiples than its peers despite similar growth trajectories. In my view, this makes both attractive, non-speculative picks in a market where speculation is increasingly risky. Pinterest currently trades at a forward P/E of 17.7 times and a PEG ratio of 0.53, reflecting strong expected earnings growth at a reasonable valuation. The company's AI-powered ad tools and a growing international user base have driven double-digit revenue growth, with Q1 2025 revenue up 16% year on year and global monthly active users reaching 570m. Despite these strengths, Pinterest remains heavily dependent on digital advertising, making it sensitive to shifts in advertiser budgets and broader economic cycles. It's also very geographically reliant on North America for revenues, and this represents a risk as well as an opportunity. The region represents less than one-fifth of total users but nearly 80% of sales. However, there's plenty to be positive about. Al really seems to be a game changer, and has contributed to the company's improving profitability and attractive growth profile. Alphabet trades at a forward P/E of 17.3 times. That's above the communications sector median of 13.6 but about 30% below its own five-year average, signalling a more attractive entry point relative to its history. The PEG ratio stands at 1.16, lower than the sector's 1.43, indicating solid expected earnings growth for its valuation. I'd also add that Alphabet is more than just a communications stock, which makes its valuation so attractive. Recent performance has been strong. In Q1 2025, Alphabet reported 12% revenue growth to $90.2bn, with Google Cloud up 28% and operating margin expanding to 34%. Risks? There are always risks even with some of the largest companies in the world. One here is Alphabet potentially being forced to divest Chrome in an anti-trust trial. However, for me, its wide economic moat and diversified growth engines underpin long-term appeal. I've recently bought both these stocks. The post Are these the best American stocks for my ISA? appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. James Fox has positions in Alphabet and Pinterest. The Motley Fool UK has recommended Alphabet and Pinterest. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Sign in to access your portfolio

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