As Gulf bourses rebound in alignment with global shares, buoyed by gains in key indices such as Dubai's and Saudi Arabia's, the Middle East market is showing resilience amid broader economic uncertainties. In this context, identifying stocks that possess strong fundamentals and growth potential can be crucial for enhancing one's portfolio.
Top 10 Undiscovered Gems With Strong Fundamentals In The Middle East
Name
Debt To Equity
Revenue Growth
Earnings Growth
Health Rating
Alf Meem Yaa for Medical Supplies and Equipment
NA
17.03%
18.37%
★★★★★★
Sure Global Tech
NA
13.90%
18.91%
★★★★★★
Baazeem Trading
6.93%
-1.88%
-2.38%
★★★★★★
Saudi Azm for Communication and Information Technology
Overview: National General Insurance Co. (P.J.S.C.) operates in the United Arab Emirates, focusing on underwriting life and general insurance as well as reinsurance, with a market capitalization of AED1.02 billion.
Operations: NGI generates its revenue primarily from insurance underwriting, contributing AED857.38 million, and investments, adding AED120.97 million.
NGI, a small-cap insurer in the Middle East, showcases impressive financial health with no debt and a price-to-earnings ratio of 8x, undercutting the AE market's 12.5x. The company's earnings surged by 70% last year, outpacing the insurance industry's -1.8% performance. Recent earnings reveal net income at AED 127.5 million compared to AED 74.88 million previously, with basic EPS climbing from AED 0.45 to AED 0.77 per share. Despite its illiquid shares, NGI's high-quality earnings and robust growth suggest potential for investors seeking value in emerging markets.
Overview: Europen Endustri Insaat Sanayi ve Ticaret A.S. operates in the construction and industrial sectors, with a market capitalization of TRY9.89 billion.
Operations: Europen Endustri Insaat Sanayi ve Ticaret A.S. generates revenue primarily from its Door Window (Including Heat Glass) segment at TRY2.38 billion, followed by the Glass segment at TRY2.09 billion, and Profile (PVC) contributing TRY449.18 million. The company's net profit margin is a key financial metric to consider when evaluating its profitability within these sectors.
Europen Endustri Insaat Sanayi ve Ticaret, a small player in the building industry, showcases strong financial health with its debt to equity ratio dropping from 38.8% to 9.8% over five years. The company reported net income of TRY 1,068.89 million for the year ending December 2024, an increase from TRY 918.4 million previously, indicating robust earnings growth of 16.4%. Despite sales slipping to TRY 5,236.82 million from TRY 5,751.79 million a year ago, EUREN's earnings growth outpaced the industry's -12.7%, hinting at operational efficiency and resilience amidst market challenges.
Overview: The Tel-Aviv Stock Exchange Ltd. functions as a stock exchange in Israel with a market capitalization of ₪4.02 billion.
Operations: TASE generates revenue primarily from services, amounting to ₪437.87 million.
TASE has demonstrated impressive growth, with earnings rising 21.9% over the past year, outpacing the Capital Markets industry's 19%. The company reported a net income of ILS 101.39 million for 2024, up from ILS 83.21 million in the previous year, while basic earnings per share increased to ILS 1.093 from ILS 0.859. Despite an increase in its debt-to-equity ratio to 13.9% over five years, TASE's financial health remains robust as it holds more cash than total debt and maintains positive free cash flow at ILS 110.25 million as of April this year.
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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 DFM:NGI IBSE:EUREN and TASE:TASE.
