Unveiling Three Undiscovered Gems In Middle East Stocks
As most Gulf markets experience gains ahead of earnings reports and significant U.S. economic data releases, investor sentiment in the Middle East is cautiously optimistic, with indices like Dubai's main share index advancing by 1.3%. In this dynamic environment, identifying promising stocks involves looking for companies that demonstrate resilience and potential for growth amid shifting market conditions and economic indicators.
Name
Debt To Equity
Revenue Growth
Earnings Growth
Health Rating
Alf Meem Yaa for Medical Supplies and Equipment
NA
17.03%
18.37%
★★★★★★
Nofoth Food Products
NA
14.41%
31.88%
★★★★★★
MOBI Industry
6.50%
5.60%
24.00%
★★★★★★
Sure Global Tech
NA
11.95%
18.65%
★★★★★★
National General Insurance (P.J.S.C.)
NA
13.40%
30.21%
★★★★★☆
Keir International
23.18%
49.21%
-17.98%
★★★★★☆
Union Coop
3.73%
-4.15%
-13.19%
★★★★★☆
Amanat Holdings PJSC
12.00%
34.39%
-9.61%
★★★★★☆
Saudi Chemical Holding
73.23%
15.66%
44.81%
★★★★☆☆
Waja
23.81%
98.44%
14.54%
★★★★☆☆
Click here to see the full list of 246 stocks from our Middle Eastern Undiscovered Gems With Strong Fundamentals screener.
Underneath we present a selection of stocks filtered out by our screen.
Simply Wall St Value Rating: ★★★★★☆
Overview: Amanat Holdings PJSC operates by investing in companies within the education and healthcare sectors both in the United Arab Emirates and internationally, with a market capitalization of AED2.67 billion.
Operations: Amanat Holdings PJSC generates revenue primarily from its investments in the education sector, contributing AED432.26 million, and in the healthcare sector, adding AED363.84 million.
Amanat Holdings, a nimble player in the Middle East's financial scene, has recently showcased impressive earnings growth of 191.4% over the past year, outpacing its industry peers. Despite a rise in the debt-to-equity ratio from 2.2% to 12% over five years, Amanat holds more cash than total debt, ensuring financial stability. The company reported AED 796 million in sales for 2024 and turned around from a net loss to AED 115 million net income. High-quality earnings and positive free cash flow further solidify its position as an intriguing investment opportunity within this dynamic region.
Click here to discover the nuances of Amanat Holdings PJSC with our detailed analytical health report.
Explore historical data to track Amanat Holdings PJSC's performance over time in our Past section.
Simply Wall St Value Rating: ★★★★☆☆
Overview: Drake and Scull International P.J.S.C. operates in the construction sector across various countries including the UAE, Saudi Arabia, and others, with a market capitalization of AED946.43 million.
Operations: Drake and Scull International P.J.S.C. generates revenue primarily from its MEP segment, contributing AED1.83 million, and Wastewater Treatment and Water Sludge segment, which adds AED101.84 million. The company's net profit margin is a key indicator of its financial health in the construction industry.
Drake and Scull International has shown a remarkable turnaround, with net income reaching AED 3.75 billion for the year ending December 31, 2024, compared to a net loss of AED 366.87 million the previous year. This shift is partly due to a significant one-off gain of AED 3.8 billion impacting its financial results. The company's price-to-earnings ratio stands at an attractive 0.3x against the AE market's average of 12.8x, suggesting potential undervaluation. With more cash than total debt and positive shareholder equity after five years in the red, DSI seems poised for continued stability in its operations.
Delve into the full analysis health report here for a deeper understanding of Drake and Scull International P.J.S.C.
Gain insights into Drake and Scull International P.J.S.C's historical performance by reviewing our past performance report.
Simply Wall St Value Rating: ★★★★★★
Overview: Saudi Azm for Communication and Information Technology Company, with a market cap of SAR1.68 billion, offers business and digital technology solutions in the Kingdom of Saudi Arabia through its subsidiaries.
Operations: The company generates revenue primarily from Enterprise Services (SAR142.76 million), followed by Proprietary Technologies (SAR48.32 million), Advisory (SAR31.56 million), and Platforms for Third Parties (SAR19.79 million).
Saudi Azm for Communication and Information Technology has been making waves with its robust financial performance. Over the past five years, earnings have grown at a solid 21.1% annually, reflecting high-quality earnings. The company reported net income of SAR 7.24 million for the recent quarter, up from SAR 5.49 million a year ago, alongside sales of SAR 63.95 million compared to SAR 49.54 million previously. With a debt-to-equity ratio significantly reduced from 84.1% to just 2.1%, Azm's financial health seems strong and its interest payments are well covered at an impressive EBIT coverage of 17x, indicating sound fiscal management and potential for sustained growth in the IT sector.
Navigate through the intricacies of Saudi Azm for Communication and Information Technology with our comprehensive health report here.
Learn about Saudi Azm for Communication and Information Technology's historical performance.
Click here to access our complete index of 246 Middle Eastern Undiscovered Gems With Strong Fundamentals.
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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 DFM:AMANAT DFM:DSI and SASE:9534.
Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@simplywallst.com
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Undiscovered Gems in the Middle East to Watch in June 2025
As Middle Eastern stock markets face downward pressure due to geopolitical tensions, with key indices like Saudi Arabia's benchmark index and Dubai's main share index experiencing significant declines, investors are navigating a complex landscape. In such an environment, identifying stocks with strong fundamentals and resilience to external shocks can be crucial for those looking to uncover potential opportunities in the region. Name Debt To Equity Revenue Growth Earnings Growth Health Rating Alf Meem Yaa for Medical Supplies and Equipment NA 17.03% 18.37% ★★★★★★ MOBI Industry 6.50% 5.60% 24.00% ★★★★★★ Baazeem Trading 8.48% -2.02% -2.70% ★★★★★★ Saudi Azm for Communication and Information Technology 2.07% 16.18% 21.11% ★★★★★★ Nofoth Food Products NA 15.75% 27.63% ★★★★★★ National General Insurance (P.J.S.C.) NA 14.55% 29.05% ★★★★★☆ Amanat Holdings PJSC 11.28% 31.80% 1.00% ★★★★★☆ National Corporation for Tourism and Hotels 19.25% 0.67% 4.89% ★★★★☆☆ Waja 23.81% 98.44% 14.54% ★★★★☆☆ Saudi Chemical Holding 79.49% 16.57% 44.01% ★★★★☆☆ Click here to see the full list of 220 stocks from our Middle Eastern Undiscovered Gems With Strong Fundamentals screener. Here we highlight a subset of our preferred stocks from the screener. Simply Wall St Value Rating: ★★★★★☆ Overview: Link Bilgisayar Sistemleri Yazilimi ve Donanimi Sanayi ve Ticaret A.S. is a company engaged in the development and provision of software and hardware solutions, with a market capitalization of TRY 13.12 billion. Operations: Link Bilgisayar generates revenue primarily from its Software & Programming segment, which contributed TRY 861.60 million. The company has a market capitalization of TRY 13.12 billion. Link Bilgisayar is making waves with its impressive earnings growth of 2478.4% over the past year, far outpacing the software industry's 22%. The company has demonstrated resilience by turning a net loss of TRY 6.86 million into a net income of TRY 36.91 million, alongside sales skyrocketing from TRY 23.95 million to TRY 294.79 million in just a year. Despite these gains, shareholders have faced substantial dilution recently, which may raise concerns for some investors. However, Link's strategic financial management and strong profit margins suggest it could continue to be a promising player in its sector. Get an in-depth perspective on Link Bilgisayar Sistemleri Yazilimi ve Donanimi Sanayi ve Ticaret's performance by reading our health report here. Explore historical data to track Link Bilgisayar Sistemleri Yazilimi ve Donanimi Sanayi ve Ticaret's performance over time in our Past section. Simply Wall St Value Rating: ★★★★★★ Overview: Lydia Yesil Enerji Kaynaklari A.S. is involved in the production and sale of electricity and heat energy in Turkey, with a market capitalization of TRY25.20 billion. Operations: Lydia Yesil Enerji Kaynaklari generates revenue primarily from the production and sale of electricity and heat energy. The company reported revenue from food processing amounting to TRY62.25 million. Lydia Yesil Enerji Kaynaklari, a smaller entity in the energy sector, has shown remarkable earnings growth of 846.2% over the past year, significantly outpacing its industry peers. Despite generating TRY62 million in revenue, which is not substantial by industry standards, the company reported a net income of TRY360.73 million for Q1 2025 compared to TRY50.67 million last year. 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Additional income is derived from Salary Service, Human Resources and Long-Term Savings at ₪327.87 million, with a minor contribution from the Establishment and Investment Sector in Start-Up Companies at ₪4.05 million. Malam - Team, a smaller player in the IT sector, has shown impressive earnings growth of 48.9% over the past year, outpacing its industry peers' 26.2%. Despite a net debt to equity ratio of 44.9%, considered high, their interest payments are well covered by EBIT at 4.1x coverage. Recent results for Q1 2025 highlight sales reaching ILS 1 billion and net income climbing to ILS 30 million from ILS 21 million last year, with basic earnings per share up to ILS 1.37 from ILS 0.97 previously—indicating strong operational performance amidst financial challenges. Click to explore a detailed breakdown of our findings in Malam - Team's health report. Assess Malam - Team's past performance with our detailed historical performance reports. Take a closer look at our Middle Eastern Undiscovered Gems With Strong Fundamentals list of 220 companies by clicking here. Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive. Join a community of smart investors by using Simply Wall St. It's free and delivers expert-level analysis on worldwide markets. 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 IBSE:LINK IBSE:LYDYE and TASE:MLTM. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
