Opportunities to Look Out For

25 November 2021

The last month has been a bit challenging for the Egyptian stock market. But, as the saying goes, with every challenge, there is an opportunity hidden that will lead you towards the path of wealth.

To lend a helping hand, we did a little digging to identify opportunities that should pique your interest. We believe they currently present lucrative investment opportunities.

Our assessment is based on identifying companies that are making healthy profits (ROE > 20%) and are valued at less than the book value of their shareholder’s equity (P/B < 1).

  • Return on equity (ROE) is a gauge of the company’s profitability and tells us how efficient it is in generating profits.
  • P/B compares a firm’s market capitalization to its equity value.

Generally speaking, a company that is achieving a return on equity higher than 20% in Egypt is a good signal. It simply means that it generates double the return of a risk-free investment like treasuries or our beloved Azimut Savings Mutual Fund (9 to 10% a year).

We then filtered out any company that is not in our top 20 Factor Investing Picks to ensure a more holistic view.

Below is the list of these companies, along with their ROEs, P/B ratio, and Thndr Score: