The Spanish stock market is showing signs of strength so far this year. The Ibex 35 index has risen by 11.85%, outperforming major European indices like Germany’s DAX (11.13%) and Italy’s FTSE MIB (11%). Within Ibex 35 itself, three financial institutions stand out for their strong performance: Bankinter is up 42.6%, Caixabank 57.1%, and Banco Sabadell leads the pack with a 70% gain.
Beyond the Ibex and large-cap stocks, the BME Growth segment focused on expanding SMEs hosts three standout companies that have returned up to seven times more than the Ibex 35: Labiana Health (+148%), Secuoya (+78.4%), and Cuatroochenta (+70%).
Labiana Health: Growth Driven by Animal Health
Labiana Health, a pharmaceutical and veterinary lab with Catalan roots, was part of the German group BASF from 1980 to 1999. Under the leadership of Manuel Ramos, the company has become a European reference for veterinary injectables and manufactures pharmaceutical products for third parties. In its human medicine division, it is notable for selling Fosfomycin trometamol, an antibiotic used to treat urinary tract infections.
The company employs 464 people across six production centers in Spain and Serbia. Its market capitalization stands at €22.39 million. The chairman owns 56.45% of the company, John William Nellis holds 13.01%, and the remaining 30.54% is publicly traded.
The stock’s sharp rise has been supported by a significant reduction in debt €8.5 million partly due to a €3 million capital increase in its Serbian subsidiary, Veterinaski Zavod Subotica.
Secuoya: Audiovisual Content with High Potential but Low Liquidity
With a 78.37% gain so far this year, Secuoya is also standout among small-cap stocks. Founded and largely led by Raúl Berdonés and Pablo Jimeno who together control 78.69% of the capital the company focuses on creating content for TV and platforms like Amazon and Disney, as well as on advertising production. It also leases studio space to Netflix in the “Ciudad de la Tele” complex (Tres Cantos, Madrid).
In 2023, the company’s net profit dropped 20% to €2.8 million due to weaker financial results. However, EBITDA grew 47% to €32 million, and revenue rose 3% to €106 million. The stock has very low liquidity, with a free float of just 1.31%. The remaining shares are held by Gala Capital (20%) and the company’s founders. Secuoya currently has a market value of €118.7 million.
Cuatroochenta: A High-Potential Tech Play
Among BME Growth’s tech companies, Cuatroochenta has been a top performer in 2024, with a 70% increase. Headquartered in Castellón and led by Alfredo Cebrián, the company specializes in cloud-based SaaS solutions and cybersecurity. Its products focus on optimizing business processes, with 35% of its revenue now generated outside of Spain, particularly in Latin America.
The company is valued at €32.5 million and, unlike Secuoya, has a much higher free float at 36%, which provides greater market liquidity. Since its IPO in 2020, the stock has dropped 66% from its peak due to an aggressive investment phase. However, the company is now showing solid revenue and margin growth of around 20%, has doubled its EBITDA, and trades at an EV/sales multiple well below typical tech-sector valuations, according to Alfredo Echevarría, analyst at Lighthouse–Instituto Español de Analistas.
Opportunities in BME Growth
Despite BME Growth’s generally low liquidity, the gains seen in 2024 highlight its investment potential. “Although the index’s overall performance has been subdued, many companies with solid fundamentals are trading below their real value,” notes Echevarría. He points to Alquiber, Cuatroochenta, Clerhp, and Seresco as particularly attractive opportunities based on valuation and growth expectations.
