Catenon And 2 More European Penny Stocks To Boost Your Investment Strategy

European markets have shown volatility recently, with the pan-European STOXX Europe 600 Index hitting a new high but ending the week broadly unchanged. Amid such fluctuations, investors often seek opportunities that can offer both growth potential and financial resilience. Penny stocks, though an older term, still hold relevance as they often represent smaller or newer companies that could provide affordability and growth potential when backed by strong financials.

Click here to see the full list of 278 stocks from our European Penny Stocks screener.

Underneath we present a selection of stocks filtered out by our screen.

Simply Wall St Financial Health Rating: ★★★★★★

Overview: Catenon, S.A. is a technology-based company that offers recruitment services both in Spain and internationally, with a market cap of €18.99 million.

Operations: The company’s revenue segment is derived entirely from the application of new IT and communication technologies, amounting to €13.06 million.

Market Cap: €18.99M

Catenon, S.A. has shown significant financial improvements, becoming profitable this year with high-quality earnings and a robust return on equity of 27.6%. The company’s debt management is commendable, with a net debt to equity ratio of 11.1% and interest payments well covered by EBIT at 52.3x coverage. Short-term assets exceed both short and long-term liabilities, indicating strong liquidity. Despite stable weekly volatility over the past year, its share price has been highly volatile recently. Trading at 12.8% below estimated fair value suggests potential for growth if market conditions stabilize further.

Simply Wall St Financial Health Rating: ★★★★☆☆

Overview: Acroud AB (publ) is a Swedish company that develops and operates Software as a Service (SaaS) solutions, with a market capitalization of SEK180.37 million.

Operations: Acroud generates revenue from two primary segments: Software as a Service (SaaS) solutions, contributing €27.07 million, and iGaming Affiliation, which accounts for €17.13 million.

Market Cap: SEK180.37M

Acroud AB, with a market cap of SEK180.37 million, operates in the SaaS and iGaming sectors, generating significant revenue from both. Despite being unprofitable with a negative return on equity of -45.3%, it maintains a sufficient cash runway for over three years due to positive free cash flow. Recent earnings reports show increased sales but continued net losses, highlighting financial challenges. The company’s board and management are relatively inexperienced, contributing to volatility in its share price which remains high compared to other Swedish stocks. Short-term assets cover immediate liabilities but fall short against long-term obligations.

Simply Wall St Financial Health Rating: ★★★★☆☆

Overview: Enzymatica AB (publ) is a life science company that develops and sells medical devices for infection-related diseases, with a market cap of SEK449.06 million.

Operations: The company generates revenue of SEK52.73 million from its medical devices segment.

Market Cap: SEK449.06M

Enzymatica AB, with a market cap of SEK449.06 million, faces challenges typical of penny stocks, including high share price volatility and ongoing unprofitability. Recent earnings show a slight increase in sales to SEK53.9 million for 2025 but continued net losses of SEK51.89 million. The company’s financial position is bolstered by short-term assets exceeding liabilities and reduced debt levels over five years; however, it has less than a year of cash runway based on current cash flow trends. A new partnership with the UK Sports Institute may enhance revenue prospects, yet management’s inexperience could impact strategic execution amidst executive transitions.

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 BME:COM OM:ACROUD and OM:ENZY.

This article was originally published by Simply Wall St.

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