Middle Eastern Market Movers: Hily Holding PJSC Among 3 Penny Stocks To Consider

Amid resurfacing concerns over U.S. tariffs, most Gulf markets have seen declines, with the exception of Dubai's main share index which posted modest gains. In such a fluctuating market landscape, identifying stocks with strong fundamentals and growth potential can be challenging yet rewarding. Penny stocks, though an outdated term, still represent opportunities in smaller or newer companies that may offer growth at lower price points when backed by solid financial health.

Top 10 Penny Stocks In The Middle East

Click here to see the full list of 98 stocks from our Middle Eastern Penny Stocks screener.

Let's explore several standout options from the results in the screener.

Hily Holding PJSC (ADX:HH)

Simply Wall St Financial Health Rating: ★★★★☆☆

Overview: Hily Holding PJSC, along with its subsidiaries, manages securities portfolios across the United Arab Emirates, the Kingdom of Saudi Arabia, Kuwait, and Bahrain with a market cap of AED322.80 million.

Operations: The company's revenue is primarily derived from trading (AED50.71 million), investment in properties (AED37.27 million), freight forwarding and storage (AED18.11 million), and investment in financial securities (AED10.14 million).

Market Cap: AED322.8M

Hily Holding PJSC has shown significant financial growth, with revenue increasing to AED110.99 million in 2024 from AED70.48 million the previous year, and net income rising to AED25.15 million from AED6.53 million. Despite a low return on equity of 4% and negative operating cash flow impacting debt coverage, the company's net debt to equity ratio is satisfactory at 28.9%. Hily's earnings growth of 285.4% over the past year outpaced industry averages, though interest payments remain poorly covered by EBIT at just 0.4x coverage, indicating potential risks in financial management despite improved profit margins and reduced debt levels over five years.

• Click here to discover the nuances of Hily Holding PJSC with our detailed analytical financial health report.
• Learn about Hily Holding PJSC's historical performance here.

Allmed Solutions (TASE:ALMD)

Simply Wall St Financial Health Rating: ★★★★★★

Overview: Allmed Solutions Ltd develops, manufactures, and markets minimally invasive products across various medical disciplines both in Israel and internationally, with a market cap of ₪31.33 million.

Operations: Allmed Solutions Ltd has not reported any specific revenue segments.

Market Cap: ₪31.33M

Allmed Solutions Ltd, with a market cap of ₪31.33 million, operates as a pre-revenue company in the medical equipment sector. It remains unprofitable, reporting a net loss of ₪8.75 million for 2024 compared to a previous net income. Despite its financial challenges, Allmed is debt-free and boasts substantial short-term assets of ₪43.8 million against minimal liabilities, ensuring liquidity stability. The company's cash runway extends beyond three years at current free cash flow levels, though its share price has been volatile recently. Management and board experience offer some operational stability amidst financial uncertainties.

• Unlock comprehensive insights into our analysis of Allmed Solutions stock in this financial health report.
• Assess Allmed Solutions' previous results with our detailed historical performance reports.

Terminal X Online (TASE:TRX)

Simply Wall St Financial Health Rating: ★★★★★★

Overview: Terminal X Online Ltd. operates as an online retailer offering clothing, footwear, fashion accessories, cosmetics, and beauty products for men, women, and teenagers under various brands with a market cap of ₪600.10 million.

Operations: Terminal X Online Ltd. has not reported any specific revenue segments.

Market Cap: ₪600.1M

Terminal X Online Ltd., with a market cap of ₪600.10 million, has demonstrated significant financial improvements, transitioning to profitability in the last year. The company's debt management is commendable, reducing its debt to equity ratio from over 500% to 18.3% over five years and maintaining more cash than total debt. Terminal X's short-term assets of ₪387.4 million comfortably cover both its short- and long-term liabilities, highlighting strong liquidity. Recent earnings results show sales growth from ILS 423.7 million to ILS 492.34 million year-over-year, alongside a net income turnaround from a loss of ILS 2.06 million to a profit of ILS 25.21 million for the full year ended December 31, 2024.

• Click here and access our complete financial health analysis report to understand the dynamics of Terminal X Online.
• Review our historical performance report to gain insights into Terminal X Online's track record.

Summing It All Up

• Access the full spectrum of 98 Middle Eastern Penny Stocks by clicking on this link.
• Seeking Other Investments? 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.

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