Middle East's Undiscovered Gems Including Amanat Holdings PJSC and Two Promising Small Caps

The Middle East stock markets are currently experiencing mixed performances, with Saudi Arabia's bourse extending its gains due to favorable interest rate adjustments, while Qatar and Egypt have seen declines amid profit-taking activities. In this dynamic environment, identifying promising small-cap stocks becomes crucial as investors seek opportunities that can thrive despite broader market fluctuations.

Top 10 Undiscovered Gems With Strong Fundamentals In The Middle East

Click here to see the full list of 205 stocks from our Middle Eastern Undiscovered Gems With Strong Fundamentals screener.

We'll examine a selection from our screener results.

Amanat Holdings PJSC (DFM:AMANAT)

Simply Wall St Value Rating: ★★★★★☆

Overview: Amanat Holdings PJSC operates as an investment company focusing on the education and healthcare sectors in the UAE and internationally, with a market capitalization of AED2.85 billion.

Operations: Amanat Holdings PJSC generates revenue primarily from its investments in the education and healthcare sectors, with AED485.25 million coming from education and AED365.18 million from healthcare.

Amanat Holdings PJSC, a small cap player in the Middle East, has shown remarkable earnings growth of 212.5% over the past year, significantly outpacing its industry peers. Despite an increase in its debt to equity ratio from 2.5% to 10.4% over five years, it holds more cash than total debt, indicating financial stability. Recent results reveal net income for Q2 at AED 47 million and sales at AED 228 million, reflecting consistent improvement from last year. The company seems well-positioned with high-quality earnings and positive free cash flow contributing to its robust financial health.

• Take a closer look at Amanat Holdings PJSC's potential here in our health report.

• Understand Amanat Holdings PJSC's track record by examining our Past report.

Anadolu Hayat Emeklilik Anonim Sirketi (IBSE:ANHYT)

Simply Wall St Value Rating: ★★★★★★

Overview: Anadolu Hayat Emeklilik Anonim Sirketi operates in Turkey, offering individual and group insurance and reinsurance services across life, retirement, and personal accident sectors with a market cap of TRY39.73 billion.

Operations: Anadolu Hayat Emeklilik generates revenue primarily from its life insurance and retirement segments, with TRY23.42 billion and TRY6.85 billion respectively. The non-life segment contributes minimally to the overall revenue at TRY4.71 million.

Anadolu Hayat Emeklilik, a notable player in Turkey's insurance sector, shows promising financial health with no debt and a price-to-earnings ratio of 8.6x, significantly below the Turkish market average of 24.2x. Over the past five years, earnings have impressively grown at an annual rate of 47.6%, although recent growth at 22.7% lags behind the industry's 40.6%. The company reported a net income increase for Q2 to TRY 1,416 million from TRY 1,222 million last year and six-month earnings rose to TRY 2,524 million from TRY 2,222 million previously; basic EPS improved to TRY 5.87 from TRY 5.17 year-on-year.

• Click here and access our complete health analysis report to understand the dynamics of Anadolu Hayat Emeklilik Anonim Sirketi.

• Gain insights into Anadolu Hayat Emeklilik Anonim Sirketi's historical performance by reviewing our past performance report.

Jamjoom Fashion Trading (SASE:9649)

Simply Wall St Value Rating: ★★★★★☆

Overview: Jamjoom Fashion Trading Company operates in the retail sector, focusing on apparel and fashion products, with a market capitalization of SAR1.15 billion.

Operations: Jamjoom Fashion Trading generates revenue primarily from its retail apparel segment, amounting to SAR680.04 million. The company's financial performance is influenced by its gross profit margin, which has shown a range between 45% and 50% over the last five reporting periods.

Jamjoom Fashion Trading, a notable player in the Middle East's retail scene, recently completed an IPO raising SAR 346 million by offering over 2.38 million shares at SAR 145 each. The company's earnings surged by 23% last year, outpacing the industry's growth of just 2.6%, showcasing its robust performance. With high-quality past earnings and satisfactory debt levels (net debt to equity ratio at 31%), Jamjoom demonstrates financial resilience. Despite being illiquid, it trades significantly below its estimated fair value, suggesting potential for investors seeking undervalued opportunities in this dynamic sector.

• Get an in-depth perspective on Jamjoom Fashion Trading's performance by reading our health report here.

• Examine Jamjoom Fashion Trading's past performance report to understand how it has performed in the past.

Make It Happen

• Explore the 205 names from our Middle Eastern Undiscovered Gems With Strong Fundamentals screener here.
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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.

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