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As the Canadian market navigates a landscape marked by fluctuating economic indicators and shifts in key indices, small-cap stocks have garnered attention for their potential to offer unique opportunities amidst broader market sentiment. In this environment, identifying promising stocks often involves assessing innovative business models and strong growth prospects that align with current economic trends.
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% | ★★★★★★ |
| Lithium Chile | NA | nan | 42.01% | ★★★★★★ |
| Amerigo Resources | 14.04% | 7.04% | 11.73% | ★★★★★☆ |
| Maxim Power | 25.01% | 12.79% | 17.14% | ★★★★★☆ |
| Mako Mining | 10.21% | 38.44% | 58.78% | ★★★★★☆ |
| Grown Rogue International | 24.92% | 43.35% | 67.95% | ★★★★★☆ |
| Corby Spirit and Wine | 65.79% | 7.46% | -5.76% | ★★★★☆☆ |
| Petrus Resources | 19.44% | 17.20% | 46.03% | ★★★★☆☆ |
| DIRTT Environmental Solutions | 58.73% | -5.34% | -5.43% | ★★★★☆☆ |
| Dundee | 3.76% | -37.57% | 44.64% | ★★★★☆☆ |
Below we spotlight a couple of our favorites from our exclusive screener.
Extendicare
Simply Wall St Value Rating: ★★★★☆☆
Overview: Extendicare Inc., with a market cap of CA$848.86 million, operates in Canada offering care and services for seniors through its subsidiaries.
Operations: Extendicare generates revenue primarily from Long-Term Care (CA$808.94 million) and Home Health Care (CA$545.46 million), with a smaller contribution from Managed Services (CA$70.43 million).
With a notable earnings growth of 261.9% over the past year, Extendicare stands out in the healthcare sector, surpassing industry growth of 11.8%. The company has reduced its debt to equity ratio from 412.5% to 244.3% over five years, though it still holds a high net debt to equity ratio of 108.5%. Its price-to-earnings ratio at 13.2x is attractive compared to the Canadian market's average of 14.3x, and interest payments are well covered by EBIT at an impressive coverage of 8.4 times, indicating strong financial management despite high leverage levels.
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Click here to discover the nuances of Extendicare with our detailed analytical health report.
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Gain insights into Extendicare's past trends and performance with our Past report.
Silvercorp Metals
Simply Wall St Value Rating: ★★★★★★
Overview: Silvercorp Metals Inc., with a market cap of CA$939.87 million, is involved in the acquisition, exploration, development, and mining of mineral properties through its subsidiaries.
Operations: Silvercorp Metals generates revenue primarily from the sale of silver, lead, and zinc concentrates. The company's cost structure includes mining and milling costs, which impact its profitability. It has reported fluctuations in its gross profit margin over recent periods.