6 days ago
Unveiling Undiscovered Gems in Middle East Stocks June 2025
As the Middle East stock markets experience varied performances amid tariff uncertainties and rising oil prices, investor sentiment remains fragile yet cautiously optimistic. In this dynamic environment, identifying promising stocks involves looking for companies that can navigate international trade challenges while capitalizing on regional economic catalysts such as energy market shifts.
Name
Debt To Equity
Revenue Growth
Earnings Growth
Health Rating
Rimoni Industries
NA
2.82%
0.61%
★★★★★★
Mendelson Infrastructures & Industries
23.11%
5.81%
10.57%
★★★★★★
Terminal X Online
17.70%
12.39%
35.35%
★★★★★★
Formula Systems (1985)
33.74%
8.44%
11.96%
★★★★★★
Payton Industries
NA
7.02%
14.80%
★★★★★★
National General Insurance (P.J.S.C.)
NA
14.55%
29.05%
★★★★★☆
C. Mer Industries
109.27%
13.77%
72.47%
★★★★★☆
Rotshtein Realestate
167.30%
23.48%
15.60%
★★★★☆☆
Libra Insurance
45.49%
44.28%
62.35%
★★★★☆☆
Aura Investments
196.85%
9.21%
41.84%
★★★★☆☆
Click here to see the full list of 230 stocks from our Middle Eastern Undiscovered Gems With Strong Fundamentals screener.
Let's dive into some prime choices out of from the screener.
Simply Wall St Value Rating: ★★★★☆☆
Overview: Al Waha Capital PJSC is a private equity firm that manages assets across various sectors such as financial services, fintech, healthcare, energy, infrastructure, industrial real estate and capital markets, with a market capitalization of AED2.89 billion.
Operations: Al Waha Capital PJSC generates revenue primarily through its asset management activities across diverse sectors. The firm's financial performance is influenced by its ability to effectively manage and invest in these assets.
Al Waha Capital, a notable player in the Middle East's investment landscape, has seen its debt to equity ratio improve significantly from 135.2% to 73.9% over the past five years, reflecting better financial management. Despite having high-quality earnings and a satisfactory net debt to equity ratio of 0.6%, the company faced challenges with a negative earnings growth of -44.3% last year compared to an industry average of 2.2%. Recent results show revenue at AED 329.87 million and net income at AED 80.98 million for Q1 2025, marking a decrease from previous figures, yet it remains profitable with no cash runway concerns due to its profitability and P/E ratio of 9.8x below market average (12.6x).
Dive into the specifics of Al Waha Capital PJSC here with our thorough health report.
Gain insights into Al Waha Capital PJSC's past trends and performance with our Past report.
Simply Wall St Value Rating: ★★★★☆☆
Overview: Hiron-Trade Investments & Industrial Buildings Ltd operates in the real estate sector in Israel and has a market capitalization of ₪1.08 billion.
Operations: Hiron-Trade generates revenue primarily from its real estate activities in Israel. The company's net profit margin has shown fluctuations over recent periods, reflecting variations in cost management and revenue efficiency.
Hiron-Trade Investments & Industrial Buildings, a relatively small player in the real estate sector, has seen its net debt to equity ratio improve significantly from 19.5% to 6.4% over five years, indicating prudent financial management. The company's price-to-earnings ratio of 13x suggests it offers better value compared to the broader IL market at 14.3x. Despite a volatile share price recently, earnings have grown modestly at 1.8% annually over five years and are well-supported by EBIT with an interest coverage of 19.9x. A notable one-off gain of ₪44M impacted recent results, while revenue for Q1 rose to ILS 44M from ILS 40M year-on-year.
Take a closer look at Hiron-Trade Investments & Industrial Buildings' potential here in our health report.
Understand Hiron-Trade Investments & Industrial Buildings' track record by examining our Past report.
Simply Wall St Value Rating: ★★★★☆☆
Overview: Ratio Energies - Limited Partnership is involved in the exploration, development, and production of oil and natural gas both in Israel and internationally, with a market capitalization of ₪4.94 billion.
Operations: Ratio Energies generates revenue through the exploration, development, and production of oil and natural gas. The company operates both in Israel and internationally.
Ratio Energies, a promising player in the Middle East's energy sector, has shown impressive growth with earnings rising by 14.9% over the past year, surpassing the industry average of 7.4%. Despite a high net debt to equity ratio of 70.2%, its interest payments are well covered at 5.3 times by EBIT, indicating strong financial health. Trading at nearly half its estimated fair value enhances its appeal as an undervalued opportunity. Recent quarterly results highlight revenue growth to $78 million from $73 million and net income improvement to $36 million from $31 million, underscoring robust operational performance amidst high-quality earnings and positive free cash flow trends.
Click here to discover the nuances of Ratio Energies - Limited Partnership with our detailed analytical health report.
Explore historical data to track Ratio Energies - Limited Partnership's performance over time in our Past section.
Navigate through the entire inventory of 230 Middle Eastern Undiscovered Gems With Strong Fundamentals here.
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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 ADX:WAHA TASE:HRON and TASE:RATI.
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