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Middle East's Hidden Treasures Include 3 Promising Small Caps

Middle East's Hidden Treasures Include 3 Promising Small Caps

Yahoo13-05-2025
As the Middle East market experiences a positive shift with most Gulf shares gaining momentum, buoyed by easing US-China trade tensions and strategic economic discussions, investors are increasingly turning their attention to small-cap stocks that may have been overlooked. In this environment, identifying promising small-cap companies requires a keen eye for those with strong fundamentals and growth potential, which can be hidden treasures in a dynamic regional landscape.
Name
Debt To Equity
Revenue Growth
Earnings Growth
Health Rating
Alf Meem Yaa for Medical Supplies and Equipment
NA
17.03%
18.37%
★★★★★★
Nofoth Food Products
NA
14.41%
31.88%
★★★★★★
MOBI Industry
6.50%
5.60%
24.00%
★★★★★★
Baazeem Trading
6.93%
-1.88%
-2.38%
★★★★★★
Sure Global Tech
NA
11.95%
18.65%
★★★★★★
Saudi Azm for Communication and Information Technology
2.07%
16.18%
21.11%
★★★★★★
National General Insurance (P.J.S.C.)
NA
13.40%
30.21%
★★★★★☆
Union Coop
3.73%
-4.15%
-13.19%
★★★★★☆
Saudi Chemical Holding
73.23%
15.66%
44.81%
★★★★☆☆
Waja
23.81%
98.44%
14.54%
★★★★☆☆
Click here to see the full list of 244 stocks from our Middle Eastern Undiscovered Gems With Strong Fundamentals screener.
Let's review some notable picks from our screened stocks.
Simply Wall St Value Rating: ★★★★☆☆
Overview: Saudi Chemical Holding Company engages in the manufacturing, wholesale, and retail trade of medicines and medical supplies, along with pharmaceutical preparations and medical equipment both domestically in Saudi Arabia and internationally, with a market capitalization of SAR7.01 billion.
Operations: The primary revenue stream for Saudi Chemical Holding comes from medicines and medical supplies, generating SAR6.11 billion. Explosives contribute SAR375.90 million, while ammonium nitrate production adds SAR83.73 million to the company's revenue.
Saudi Chemical Holding seems to be an intriguing prospect with its recent financial performance showcasing robust growth. Earnings soared by 59.2% last year, outpacing the healthcare industry's 16.3%. The company's net debt to equity ratio stands at a high 67.1%, though it has improved from 91.2% over five years, indicating efforts toward better financial health. Its price-to-earnings ratio of 24x suggests good value compared to the industry average of 24.9x, and EBIT covers interest payments comfortably at a rate of 4.7 times, reflecting solid operational efficiency despite recent share price volatility.
Navigate through the intricacies of Saudi Chemical Holding with our comprehensive health report here.
Evaluate Saudi Chemical Holding's historical performance by accessing our past performance report.
Simply Wall St Value Rating: ★★★★☆☆
Overview: Saudi Paper Manufacturing Company is involved in the production and distribution of tissue papers across Saudi Arabia, GCC countries, and international markets, with a market capitalization of SAR2.52 billion.
Operations: The company's primary revenue stream comes from its manufacturing segment, generating SAR963.95 million, with an additional SAR52.02 million from trading activities.
Saudi Paper Manufacturing, a notable player in the Middle East's paper industry, has shown impressive earnings growth of 77% over the past year, outpacing its industry peers. Despite a high net debt to equity ratio of 91%, it has successfully reduced this from 796% over five years. The company's EBIT covers interest payments by 3.9 times, indicating solid financial health. However, its share price remains volatile and free cash flow is negative. Recent earnings reported sales of SAR 190 million and net income at SAR 0.39 million for Q4 ended December 2024, with basic EPS at SAR 0.01 from continuing operations.
Unlock comprehensive insights into our analysis of Saudi Paper Manufacturing stock in this health report.
Gain insights into Saudi Paper Manufacturing's historical performance by reviewing our past performance report.
Simply Wall St Value Rating: ★★★★★☆
Overview: Max Stock Ltd. operates a chain of discount stores across Israel with a market cap of ₪2.02 billion.
Operations: Max Stock Ltd. generates revenue primarily from its retail trade segment, which reported earnings of ₪1.33 billion.
Max Stock, a standout in the Middle East retail sector, has seen its earnings grow by 34.3% over the past year, outpacing the industry average of -0.1%. The company enjoys a robust financial position with cash exceeding total debt and an EBIT that covers interest payments 6.7 times over. Over five years, its debt-to-equity ratio improved from 30.4% to 17.9%, reflecting prudent financial management. Recently added to the TA-125 Index, Max Stock reported sales of ILS 1.33 billion for 2024 and net income of ILS 108.76 million, alongside announcing dividends totaling ILS 0.50 per share as a special payout.
Click here and access our complete health analysis report to understand the dynamics of Max Stock.
Assess Max Stock's past performance with our detailed historical performance reports.
Embark on your investment journey to our 244 Middle Eastern Undiscovered Gems With Strong Fundamentals selection here.
Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports.
Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets.
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.
Companies discussed in this article include SASE:2230 SASE:2300 and TASE:MAXO.
Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@simplywallst.com
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