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As the Canadian market navigates through trade uncertainty and inflation concerns, investors are closely watching the impact of newly announced tariffs on economic growth. Amidst this volatility, identifying stocks that may be trading at a discount can offer potential opportunities for value-focused investors seeking to balance risk and reward in their portfolios.
Top 10 Undervalued Stocks Based On Cash Flows In Canada
Name | Current Price | Fair Value (Est) | Discount (Est) |
Savaria (TSX:SIS) | CA$16.26 | CA$30.40 | 46.5% |
K92 Mining (TSX:KNT) | CA$11.99 | CA$19.99 | 40% |
Tantalus Systems Holding (TSX:GRID) | CA$2.00 | CA$3.90 | 48.7% |
Lithium Royalty (TSX:LIRC) | CA$5.07 | CA$9.27 | 45.3% |
Wishpond Technologies (TSXV:WISH) | CA$0.285 | CA$0.55 | 48% |
Electrovaya (TSX:ELVA) | CA$3.41 | CA$5.92 | 42.4% |
illumin Holdings (TSX:ILLM) | CA$2.25 | CA$3.75 | 40% |
BRP (TSX:DOO) | CA$48.65 | CA$80.12 | 39.3% |
AtkinsRéalis Group (TSX:ATRL) | CA$68.05 | CA$104.40 | 34.8% |
Metalla Royalty & Streaming (TSXV:MTA) | CA$4.25 | CA$7.73 | 45% |
Below we spotlight a couple of our favorites from our exclusive screener.
Kinaxis
Overview: Kinaxis Inc. offers cloud-based subscription software for supply chain operations across the United States, Europe, Asia, and Canada with a market cap of CA$4.36 billion.
Operations: The company's revenue segment is primarily derived from Software & Programming, totaling $483.11 million.
Estimated Discount To Fair Value: 28.2%
Kinaxis is trading at CA$155.24, significantly below its estimated fair value of CA$216.36, indicating potential undervaluation based on cash flows. The company's earnings are forecast to grow substantially faster than the Canadian market, with annual profit growth expected at 60.6%. Recent strategic partnerships and AI advancements in its Maestro platform enhance supply chain capabilities for clients like Fujirebio Inc., potentially driving future revenue increases despite recent profit margin declines and impairment losses.
Peyto Exploration & Development
Overview: Peyto Exploration & Development Corp. operates in the exploration, development, and production of natural gas, oil, and natural gas liquids in Alberta's deep basin with a market cap of CA$3.60 billion.
Operations: The company's revenue primarily comes from its oil and gas exploration and production segment, which generated CA$857.09 million.