National General Insurance (P.J.S.C.) And 2 Other Undiscovered Gems In The Middle East

As most Gulf stock markets track global shares lower due to fears of stretched valuations, investors are becoming increasingly cautious about the sustainability of current market levels. In this environment, identifying stocks with solid fundamentals and growth potential can be key to navigating the broader market volatility. National General Insurance (P.J.S.C.) and two other undiscovered gems in the Middle East offer intriguing opportunities for those looking beyond traditional investment avenues.

Top 10 Undiscovered Gems With Strong Fundamentals In The Middle East

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Al Wathba National Insurance Company PJSC	10.97%	10.37%	3.14%	★★★★★★
Baazeem Trading	8.48%	-1.74%	-2.37%	★★★★★★
MOBI Industry	18.09%	6.66%	22.02%	★★★★★★
Qassim Cement	NA	0.78%	-14.90%	★★★★★★
Sure Global Tech	NA	10.11%	15.42%	★★★★★★
Nofoth Food Products	NA	15.49%	26.47%	★★★★★★
Saudi Azm for Communication and Information Technology	19.37%	17.10%	23.35%	★★★★★★
Najran Cement	14.76%	-3.67%	-26.79%	★★★★★★
National General Insurance (P.J.S.C.)	NA	14.58%	25.09%	★★★★★☆
Etihad Atheeb Telecommunication	0.97%	37.69%	60.25%	★★★★★☆

Click here to see the full list of 210 stocks from our Middle Eastern Undiscovered Gems With Strong Fundamentals screener.

Here's a peek at a few of the choices from the screener.

National General Insurance (P.J.S.C.) (DFM:NGI)

Simply Wall St Value Rating: ★★★★★☆

Overview: National General Insurance Co. (P.J.S.C.) operates in the United Arab Emirates, focusing on underwriting a range of life, general insurance, and reinsurance services, with a market capitalization of AED976.50 million.

Operations: NGI generates revenue primarily from its insurance segment, amounting to AED894.75 million, and investments contributing AED107.57 million. The company's financial performance is influenced by the mix of these revenue streams, with a notable focus on underwriting activities in the region.

National General Insurance (NGI) offers an intriguing profile with its debt-free status and high-quality earnings, although recent negative earnings growth of -0.7% contrasts with the insurance industry average of 9.8%. Despite this, NGI remains profitable with a price-to-earnings ratio of 7.4x, notably lower than the AE market's 12.3x, suggesting potential undervaluation. The company's free cash flow is positive, yet its share price has been highly volatile over the past three months. Recent reports show net income for Q2 at AED 49.67 million and basic earnings per share at AED 0.3, slightly down from last year’s figures but showing resilience over six months with AED 85.25 million net income compared to AED 80.85 million previously.

• Get an in-depth perspective on National General Insurance (P.J.S.C.)'s performance by reading our health report here.

• Examine National General Insurance (P.J.S.C.)'s past performance report to understand how it has performed in the past.

Edarat Communication and Information Technology (SASE:9557)

Simply Wall St Value Rating: ★★★★★☆

Overview: Edarat Communication and Information Technology Co. operates in the fields of cloud services and data center engineering, with a market capitalization of SAR1.13 billion.

Operations: Edarat generates revenue primarily from cloud services and data center engineering, with the latter contributing SAR75.32 million and the former SAR58.78 million.

With its recent contracts, Edarat Communication and Information Technology is making waves in the IT sector. The company has secured a SAR 16.49 million agreement with SenseTime KSA for data center services over three years, alongside deals with Center3 and Saudi Tadawul Group valued at SAR 9.98 million and SAR 4.03 million respectively. Over the past year, Edarat's earnings surged by 36.9%, outpacing industry growth of 8.4%. Its net income for Q2 reached SAR 13.98 million from last year's SAR 9.66 million, reflecting strong operational performance despite share price volatility in recent months.

• Click to explore a detailed breakdown of our findings in Edarat Communication and Information Technology's health report.

• Understand Edarat Communication and Information Technology's track record by examining our Past report.

Lapidoth Capital (TASE:LAPD)

Simply Wall St Value Rating: ★★★★★☆

Overview: Lapidoth Capital Ltd, with a market cap of ₪4.96 billion, operates through its subsidiaries to offer drilling and related services across Israel, Romania, the United States, Poland, and other international markets.

Operations: Lapidoth Capital generates revenue primarily from its Dania segment, contributing ₪6.58 billion, and Sunny Communications, adding ₪994.25 million. The AFI Residences segment also plays a significant role with revenues of ₪976.67 million.

Lapidoth Capital, a smaller player in the Middle East, has demonstrated robust financial health with a satisfactory net debt to equity ratio of 12.1%. Their earnings grew by 21.6% over the past year, outpacing the Energy Services industry average of 13.9%. The company's revenue for the second quarter reached ₪2.08 billion, up from ₪1.84 billion last year, while net income slightly dipped to ₪54.46 million from ₪54.89 million previously. A notable one-off gain of ₪120.7 million influenced recent results, highlighting potential volatility but also strong performance capabilities within its sector context.

• Delve into the full analysis health report here for a deeper understanding of Lapidoth Capital.

• Explore historical data to track Lapidoth Capital's performance over time in our Past section.

Summing It All Up

• Dive into all 210 of the Middle Eastern Undiscovered Gems With Strong Fundamentals we have identified here.
• Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments.
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Contemplating Other Strategies?

• 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.

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