The Middle Eastern stock markets have recently experienced a downturn, largely influenced by geopolitical tensions and fluctuating oil prices. Despite these challenges, investors continue to explore opportunities within the region's diverse market landscape. Penny stocks, often associated with smaller or newer companies, remain an intriguing area for potential growth. While the term may seem dated, these stocks can offer valuable opportunities when backed by strong financial health and sound fundamentals.
Top 10 Penny Stocks In The Middle East
Name
Share Price
Market Cap
Financial Health Rating
Thob Al Aseel (SASE:4012)
SAR3.99
SAR1.6B
★★★★★★
E.E.A.M.I (TASE:EEAM-M)
₪0.087
₪8.53M
★★★★★★
Tectona (TASE:TECT)
₪3.403
₪78.9M
★★★★★★
Alarum Technologies (TASE:ALAR)
₪2.997
₪207.81M
★★★★★★
Oil Refineries (TASE:ORL)
₪0.92
₪2.86B
★★★★★☆
Big Tech 50 R&D-Limited Partnership (TASE:BIGT)
₪1.71
₪18.15M
★★★★★★
Almeda Ventures Limited Partnership (TASE:AMDA)
₪1.551
₪24.86M
★★★★★★
Tgi Infrastructures (TASE:TGI)
₪2.12
₪157.61M
★★★★★☆
Sharjah Cement and Industrial Development (PJSC) (ADX:SCIDC)
Overview: Union Properties (ticker: DFM:UPP) is a company that invests in and develops properties, with a market cap of AED2.51 billion.
Operations: The company's revenue is derived from three main segments: Contracting (AED25.61 million), Real Estate (AED47.31 million), and Goods and Services (AED455.83 million).
Market Cap: AED2.51B
Union Properties has shown mixed performance indicators typical of penny stocks. Despite a low price-to-earnings ratio of 9.1x, indicating potential value compared to the AE market, the company faces challenges with negative earnings growth and lower profit margins at 52.1% compared to last year. The company's net income decreased significantly from AED837.62 million to AED275.64 million year-over-year, highlighting volatility in profitability partly due to large one-off gains impacting financial results. While debt management appears satisfactory with a reduced debt-to-equity ratio and short-term assets covering liabilities, operating cash flow coverage remains weak at 8.4%.
Overview: Axilion Smart Mobility Ltd develops AI-based software systems for managing urban transportation globally and has a market cap of ₪11.93 million.
Operations: Axilion Smart Mobility generates revenue from its Real Estate Operations & Development segment, amounting to ₪2.22 million.
Market Cap: ₪11.93M
Axilion Smart Mobility, with a market cap of ₪11.93 million, is pre-revenue, generating less than US$1 million annually. Recent earnings showed sales of ₪2.22 million and a net loss reduction to ₪23.08 million from the previous year. Despite its unprofitability, Axilion has no debt and maintains sufficient short-term assets to cover liabilities, supported by recent capital raises through a rights issue and follow-on equity offering totaling approximately ₪11.56 million. The management team is experienced with an average tenure of 4.3 years, though the stock's high volatility may concern risk-averse investors seeking stability in penny stocks.
Overview: Alarum Technologies Ltd. offers internet access and web data collection solutions across various global regions, with a market cap of ₪207.81 million.
Operations: Alarum Technologies Ltd. does not report distinct revenue segments at this time.
Market Cap: ₪207.81M
Alarum Technologies, with a market cap of ₪207.81 million, has recently become profitable, marking significant progress in its financial trajectory. The company’s short-term assets of $27.0M comfortably cover both short and long-term liabilities, reflecting sound financial health. Alarum trades at a substantial discount to its estimated fair value and holds more cash than debt, ensuring robust liquidity. Despite high share price volatility and a recent class action lawsuit alleging misleading statements about customer retention and revenue growth prospects, the company maintains strong interest coverage and an impressive return on equity of 28.1%, suggesting potential for future stability amidst current challenges.
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:UPP TASE:AILN and TASE:ALAR.
