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- TASE:SHVA
Exploring Edarat Communication and Information Technology Plus 2 Promising Middle East Stocks
Reviewed by Simply Wall St
The Middle East stock markets have been experiencing a notable upswing, with most Gulf indices gaining traction amid progress in U.S. trade agreements and a strong performance in financial shares, as evidenced by Dubai's benchmark index reaching a 17-year high. In this vibrant market environment, identifying promising stocks involves looking for companies that demonstrate robust fundamentals and potential for growth despite broader economic uncertainties.
Top 10 Undiscovered Gems With Strong Fundamentals In The Middle East
Name | Debt To Equity | Revenue Growth | Earnings Growth | Health Rating |
---|---|---|---|---|
Baazeem Trading | 8.48% | -2.02% | -2.70% | ★★★★★★ |
Alf Meem Yaa for Medical Supplies and Equipment | NA | 17.03% | 18.37% | ★★★★★★ |
Saudi Azm for Communication and Information Technology | 2.07% | 16.18% | 21.11% | ★★★★★★ |
MOBI Industry | 6.50% | 5.60% | 24.00% | ★★★★★★ |
Sure Global Tech | NA | 11.95% | 18.65% | ★★★★★★ |
Najran Cement | 14.20% | -2.87% | -22.60% | ★★★★★★ |
Nofoth Food Products | NA | 15.75% | 27.63% | ★★★★★★ |
National General Insurance (P.J.S.C.) | NA | 14.55% | 29.05% | ★★★★★☆ |
National Corporation for Tourism and Hotels | 19.25% | 0.67% | 4.89% | ★★★★☆☆ |
Saudi Chemical Holding | 79.49% | 16.57% | 44.01% | ★★★★☆☆ |
Let's dive into some prime choices out of from the screener.
Edarat Communication and Information Technology (SASE:9557)
Simply Wall St Value Rating: ★★★★★☆
Overview: Edarat Communication and Information Technology Co. specializes in providing cloud services and data center engineering solutions, with a market capitalization of SAR 1.23 billion.
Operations: Edarat derives its revenue primarily from cloud services and data center engineering services, contributing SAR 48.94 million and SAR 55.63 million, respectively.
Edarat Communication and Information Technology, a relatively small player in the IT sector, has shown impressive financial resilience. Over the past year, earnings surged by 42%, outpacing the industry average of 20.8%. The company's interest payments are comfortably covered by EBIT at 85.9 times, indicating strong operational efficiency. Recent contracts with NEOM and MA'ADEN valued at SAR 4.5 million and SAR 11.5 million respectively signal robust business momentum that could positively impact future financials. With more cash than total debt and positive free cash flow, Edarat seems well-positioned to capitalize on growth opportunities in its market space.
Ayalon Insurance (TASE:AYAL)
Simply Wall St Value Rating: ★★★★★☆
Overview: Ayalon Insurance Company Ltd operates through its subsidiaries to offer a range of insurance products in Israel, with a market capitalization of ₪1.65 billion.
Operations: Ayalon generates revenue primarily from its life insurance and long-term savings segment, contributing ₪1.18 billion, and its health insurance segment, which adds another ₪647.28 million.
Ayalon Insurance, a noteworthy player in the region, is trading at 34.2% below its estimated fair value, making it an intriguing prospect for investors. The company reported net income of ILS 56.72 million for Q1 2025, up from ILS 29.38 million the previous year, showcasing strong earnings growth of 50.6%, which outpaces the industry average of 45%. With a net debt to equity ratio at a satisfactory level of 7.3% and interest payments well covered by EBIT at a multiple of 4.7x, Ayalon's financial health seems robust and poised for continued performance improvements in the insurance sector.
- Take a closer look at Ayalon Insurance's potential here in our health report.
Gain insights into Ayalon Insurance's past trends and performance with our Past report.
Automatic Bank Services (TASE:SHVA)
Simply Wall St Value Rating: ★★★★★★
Overview: Automatic Bank Services Limited operates payment systems for international debit cards in Israel and has a market cap of ₪903.60 million.
Operations: The company's revenue from the Clearing Segment amounts to ₪152.84 million.
Automatic Bank Services, a relatively small player in the financial sector, showcases high-quality earnings despite not outpacing industry growth. Over the past five years, its earnings have increased by 10.7% annually. The company remains debt-free and boasts positive free cash flow, with recent figures showing ILS 38.19 million in revenue for Q1 2025 compared to ILS 36.8 million last year. However, net income slipped to ILS 10.28 million from ILS 12.1 million previously, reflecting a slight dip in profitability as basic earnings per share dropped to ILS 0.26 from ILS 0.3 a year ago.
- Delve into the full analysis health report here for a deeper understanding of Automatic Bank Services.
Evaluate Automatic Bank Services' historical performance by accessing our past performance report.
Make It Happen
- Take a closer look at our Middle Eastern Undiscovered Gems With Strong Fundamentals list of 219 companies by clicking here.
- Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports.
- Enhance your investing ability with the Simply Wall St app and enjoy free access to essential market intelligence spanning every continent.
Looking For Alternative Opportunities?
- 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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About TASE:SHVA
Automatic Bank Services
Operates payment systems for international debit cards in Israel.
Flawless balance sheet with solid track record.
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