#94 Worlds best Stocks - Ep.8
10 Under-the-Radar European Small-Cap Stocks to Watch
When it comes to finding long-term winners in the stock market, small-cap companies often offer the most compelling opportunities. They tend to be more agile, under-the-radar, and, when chosen carefullycapable of delivering outsized returns over time. In this post, I’ve handpicked 10 promising small-cap stocks from across Europe, focusing on companies with strong return on capital, sound business models, and significant long-term potential. These aren’t the usual names you see headlining major investment reports, instead, they’re quietly profitable, often niche market leaders that are still flying below the radar. From a Danish cell counter used in biotech labs to a Spanish sausage casing powerhouse, each of these companies has something unique to offer and might just deserve a closer look.
ATOSS Software (ETR: AOF) – Germany: A specialist in workforce management software that helps companies optimize staffing and time tracking. ATOSS enjoys exceptional profitability with strong margins and a globally leading niche position in its field, giving it the firepower to keep innovating and growing. Despite its success, it remains under-followed outside its home market, making it an intriguing under-the-radar play for long-term investors.
Revenue: €170.6 million
Operating Income (EBIT): €63.6 million
Net Income: €45.5 million
Market Cap: Approximately €2,1 billion
Bioventix (LON: BVXP) – United Kingdom: Bioventix produces specialized “sheep monoclonal” antibodies used in diagnostic blood tests. It runs an outrageously high-margin, royalty-driven business model with gross margins over 90% and ROIC exceeding 88%, illustrating its quality economics. This niche biotech is hardly a household name, yet its consistent growth and cash generation make it a compelling secret pick in the healthcare space.
Revenue: GBP 13.6 Million
Operating Income (EBIT): GBP 10.6 million
Net Income: GBP 8.1 million
Market Cap: Approximately GBP 139 million
Inficon (SWX: IFCN) – Switzerland: Inficon builds high-precision vacuum instruments and gas leak detectors used in semiconductors, refrigeration, and even environmental monitoring. It dominates its niches with over 50% market share in many of its product lines and has delivered exceptional returns on capital (historically an average ROIC above 30%. Despite its global reach in critical industries, this Swiss firm flies under most investors’ radars, even as it steadily compounds earnings.
Revenue: CHF 670.9 Million
Operating Income (EBIT): CHF 136.0 million
Net Income: CHF 112.8 million
Market Cap: Approximately CHF 2,185 million
Esker (EPA: ALESK) – France: Esker is a cloud software provider that automates finance and procurement paperwork – think electronic invoicing and order management. Its subscription-based model drives steady double-digit growth (2024 sales reached €205 million, a 15% increase, with SaaS now 82% of revenue. This Paris-headquartered SaaS player has a solid recurring revenue engine and a global customer base, yet remains relatively undiscovered outside European tech circles.
Revenue: €203.0 Million
Operating Income (EBIT): €20.6 million
Net Income: €16.7 million
Market Cap: Approximately €1,649 million
The first four companies are available to all subscribers. The remaining six are exclusive to paid members, but worth everyone’s attention. I’ll be publishing deep dives on each of these businesses in the coming months, so stay tuned. For now, let’s take a closer look at the rest of the list.
Keep reading with a 7-day free trial
Subscribe to Kroker Equity Research to keep reading this post and get 7 days of free access to the full post archives.