In This Article:
The Canadian market has been experiencing sideways consolidation in recent months, which may act as a corrective force amidst policy uncertainty and trade worries that keep volatility elevated. In this environment, identifying stocks that are potentially trading below their intrinsic value can be an effective strategy for investors looking to fortify their portfolios against short-term market fluctuations.
Top 10 Undervalued Stocks Based On Cash Flows In Canada
Name | Current Price | Fair Value (Est) | Discount (Est) |
Peyto Exploration & Development (TSX:PEY) | CA$15.24 | CA$28.72 | 46.9% |
Docebo (TSX:DCBO) | CA$48.05 | CA$87.19 | 44.9% |
Decisive Dividend (TSXV:DE) | CA$6.10 | CA$11.33 | 46.2% |
Major Drilling Group International (TSX:MDI) | CA$8.07 | CA$14.72 | 45.2% |
Groupe Dynamite (TSX:GRGD) | CA$15.20 | CA$27.53 | 44.8% |
Thunderbird Entertainment Group (TSXV:TBRD) | CA$1.85 | CA$3.33 | 44.4% |
Electrovaya (TSX:ELVA) | CA$3.02 | CA$5.83 | 48.2% |
Quisitive Technology Solutions (TSXV:QUIS) | CA$0.565 | CA$1.06 | 46.7% |
NuVista Energy (TSX:NVA) | CA$11.18 | CA$20.00 | 44.1% |
Condor Energies (TSX:CDR) | CA$1.76 | CA$3.45 | 49% |
We're going to check out a few of the best picks from our screener tool.
Major Drilling Group International
Overview: Major Drilling Group International Inc. offers contract drilling services to mining and mineral exploration companies across multiple continents, with a market cap of CA$672.76 million.
Operations: The company's revenue from its contract drilling services amounts to CA$680.16 million.
Estimated Discount To Fair Value: 45.2%
Major Drilling Group International is trading at CA$8.07, significantly below its estimated fair value of CA$14.72, indicating potential undervaluation based on cash flows. Forecasted earnings growth of 47.4% per year surpasses the Canadian market's growth rate of 15.8%. Despite a recent decline in profit margins from 9.8% to 6.1%, the company is implementing strategic leadership changes to enhance operational efficiency and support organic growth, reinforcing its position in the specialized drilling market.
Propel Holdings
Overview: Propel Holdings Inc. is a financial technology company with a market capitalization of CA$1.13 billion.
Operations: The company generates revenue of $416.43 million by providing lending-related services to borrowers, banks, and other institutions.