The Middle East markets have recently shown mixed performances, with Gulf stocks reacting to global trade tensions and potential changes in U.S. monetary policy, while oil prices have seen a rebound from recent lows. In this dynamic environment, identifying promising small-cap stocks requires a keen understanding of market trends and the ability to spot companies with strong fundamentals and growth potential amidst broader economic shifts.
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% | -1.74% | -2.37% | ★★★★★★ |
| Payton Industries | NA | 5.14% | 14.54% | ★★★★★★ |
| Qassim Cement | NA | 0.78% | -14.90% | ★★★★★★ |
| MOBI Industry | 18.09% | 6.66% | 22.02% | ★★★★★★ |
| Terminal X Online | 14.88% | 12.11% | 41.14% | ★★★★★★ |
| National General Insurance (P.J.S.C.) | NA | 14.58% | 25.09% | ★★★★★☆ |
| C. Mer Industries | 96.50% | 13.91% | 71.62% | ★★★★★☆ |
| Etihad Atheeb Telecommunication | 0.97% | 37.69% | 60.25% | ★★★★★☆ |
| Rotshtein Realestate | 142.50% | 22.29% | 13.79% | ★★★★☆☆ |
| Amir Marketing and Investments in Agriculture | 25.54% | 4.63% | 6.37% | ★★★★☆☆ |
Let's dive into some prime choices out of from the screener.
Gulermak Aglr Sanayi Insaat ve Taahhut (IBSE:GLRMK)
Simply Wall St Value Rating: ★★★★☆☆
Overview: Gulermak Aglr Sanayi Insaat ve Taahhut A.S. operates in the construction and engineering sector with a market capitalization of TRY59.97 billion.
Operations: Gulermak generates revenue primarily from its operations in the West and Turkey, with TRY24.16 billion and TRY8.06 billion, respectively. The East contributes TRY6.79 billion to its total revenue stream.
Gulermak Aglr Sanayi Insaat ve Taahhut, a small player in the construction sector, showcases a satisfactory net debt to equity ratio of 4.3%, indicating prudent financial management. Despite a robust 43.9% annual earnings growth over the past five years, recent figures show earnings growth at 14.8%, aligning with industry averages. The company's price-to-earnings ratio stands at 16.9x, offering better value compared to the TR market's 22.1x. Recent announcements highlighted a net income of TRY 1,053 million for the second quarter of 2025, a significant rise from TRY 401 million the previous year.
MIA Teknoloji Anonim Sirketi (IBSE:MIATK)
Simply Wall St Value Rating: ★★★★★☆
Overview: MIA Teknoloji Anonim Sirketi is engaged in providing software development services to public and private organizations in Turkey, with a market capitalization of TRY19.74 billion.
Operations: MIATK generates revenue primarily from its software and programming segment, amounting to TRY1.89 billion.
MIA Teknoloji shows promising potential with a Price-To-Earnings ratio of 11.1x, notably under the TR market average of 22.1x, suggesting it might be undervalued. Over the past five years, earnings have surged by 61.2% annually, although recent growth at 21.8% lagged behind the software industry's impressive 243.8%. The company's net debt to equity ratio stands at a satisfactory 2.3%, indicating prudent financial management. Recent earnings announcements highlighted a significant turnaround, with Q2 net income reaching TRY 404.57 million from a net loss of TRY 39.18 million the previous year, reflecting robust operational improvements.
Al-Babtain Power and Telecommunications (SASE:2320)
Simply Wall St Value Rating: ★★★★★☆
Overview: Al-Babtain Power and Telecommunications Company, along with its subsidiaries, manufactures lighting poles and power transmission towers in the United Arab Emirates, Saudi Arabia, and Egypt, with a market capitalization of SAR4.00 billion.
Operations: The company generates revenue primarily from its Towers and Metal Structures Sector, which accounts for SAR1.26 billion, followed by the Solar Energy Sector at SAR595.90 million. The Columns and Lighting segment contributes SAR534.91 million, while the Design, Supply and Installation segment adds SAR394.57 million to the revenue stream.
Al-Babtain Power and Telecommunications, a noteworthy player in the Middle East's power and telecom sectors, has shown significant earnings growth of 40.8% over the past year, outpacing the construction industry's 15%. This growth is reflected in their recent financials, with second-quarter sales reaching SAR 687.49 million and net income climbing to SAR 97.75 million from SAR 54.32 million a year prior. The company’s net debt to equity ratio stands at a high 68%, yet its interest payments are well covered by EBIT at 5.6 times coverage, indicating robust financial health despite elevated leverage levels.
- Dive into the specifics of Al-Babtain Power and Telecommunications here with our thorough health report.
Learn about Al-Babtain Power and Telecommunications' historical performance.
Seize The Opportunity
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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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