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Discovering Canada's Undiscovered Gems in February 2025

In This Article:

As we enter February 2025, the Canadian market is navigating a landscape of mixed signals, with inflation showing signs of stability and economic growth facing potential headwinds. Amid these crosscurrents, identifying promising small-cap stocks requires a keen eye for companies with solid fundamentals and resilience in the face of broader market uncertainties.

Top 10 Undiscovered Gems With Strong Fundamentals In Canada

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Reconnaissance Energy Africa

NA

9.16%

15.11%

★★★★★★

Sol Strategies

NA

13.70%

4.95%

★★★★★★

Maxim Power

25.01%

12.79%

17.14%

★★★★★☆

Mako Mining

10.21%

38.44%

58.78%

★★★★★☆

Grown Rogue International

24.92%

19.37%

188.55%

★★★★★☆

Corby Spirit and Wine

59.18%

8.79%

-5.67%

★★★★☆☆

Petrus Resources

19.44%

17.20%

46.03%

★★★★☆☆

Genesis Land Development

47.40%

28.61%

52.30%

★★★★☆☆

Queen's Road Capital Investment

8.87%

13.76%

16.18%

★★★★☆☆

Dundee

3.76%

-37.57%

44.64%

★★★★☆☆

Click here to see the full list of 47 stocks from our TSX Undiscovered Gems With Strong Fundamentals screener.

Let's dive into some prime choices out of from the screener.

Mandalay Resources

Simply Wall St Value Rating: ★★★★★★

Overview: Mandalay Resources Corporation is involved in the acquisition, exploration, extraction, processing, and reclamation of mineral properties across Canada, Australia, Sweden, and Chile with a market cap of CA$438.56 million.

Operations: Mandalay Resources generates revenue primarily from its Metals & Mining segment, focusing on gold and other precious metals, with a reported income of $224.44 million.

Mandalay Resources, a small Canadian mining company, has shown impressive growth with earnings surging 381.7% over the past year, far outpacing the industry's 35.8%. Its debt-to-equity ratio improved significantly from 56.1% to just 2.7% over five years, highlighting prudent financial management. The company trades at a substantial discount of 67.6% below its estimated fair value, suggesting potential undervaluation in the market. Recent exploration success at its True Blue prospect in Australia revealed high-grade gold and antimony deposits, indicating promising future production potential and further enhancing Mandalay's growth prospects in the metals sector.

TSX:MND Debt to Equity as at Feb 2025
TSX:MND Debt to Equity as at Feb 2025

Senvest Capital

Simply Wall St Value Rating: ★★★★☆☆

Overview: Senvest Capital Inc. is a privately owned hedge fund sponsor with a market capitalization of CA$977.37 million.