Roxgold and Uni-Select are two of the companies on my list that I consider are undervalued. Investors can benefit from buying these companies while they are discounted, because they gain when the market prices move towards the stocks’ true values. Below is a list of stocks I’ve compiled that are deemed undervalued based on the latest financial data.
Roxgold Inc. (TSX:ROXG)
Roxgold Inc. operates as a gold mining company. The company now has 171 employees and with the market cap of CAD CA$424.81M, it falls under the small-cap category.
ROXG’s shares are now floating at around -25% below its actual level of $1.34, at a price tag of $1, based on my discounted cash flow model. The divergence signals an opportunity to buy ROXG shares at a low price. Additionally, ROXG’s PE ratio stands at 8.1x relative to its metals and mining peer level of 12.2x, suggesting that relative to its competitors, ROXG’s stock can be bought at a cheaper price. ROXG is also robust in terms of financial health, with near-term assets able to cover upcoming and long-term liabilities.
Dig deeper into Roxgold here.
Uni-Select Inc. (TSX:UNS)
Uni-Select Inc. distributes automotive refinish and industrial paint and related products in North America. Started in 1968, and currently headed by CEO Henry Buckley, the company provides employment to 3,122 people and has a market cap of CAD CA$1.06B, putting it in the small-cap stocks category.
UNS’s shares are now hovering at around -45% beneath its intrinsic level of $46.14, at a price tag of $25.4, based on my discounted cash flow model. The discrepancy signals an opportunity to buy low. In terms of relative valuation, UNS’s PE ratio is trading at around 17.5x against its its retail distributors peer level of 32.9x, suggesting that relative to its competitors, we can invest in UNS at a lower price. UNS is also robust in terms of financial health, with near-term assets able to cover upcoming and long-term liabilities.
More detail on Uni-Select here.
Iplayco Corporation Ltd. (TSXV:IPC)
Iplayco Corporation Ltd., through its subsidiaries, manufactures and sells play structures for children. Iplayco was started in 1999 and with the stock’s market cap sitting at CAD CA$10.64M, it comes under the small-cap stocks category.
IPC’s stock is currently hovering at around -65% less than its actual level of $1.47, at a price of $0.51, based on my discounted cash flow model. The divergence signals an opportunity to buy IPC shares at a low price. Additionally, IPC’s PE ratio is around 11.6x against its its leisure peer level of 20.8x, implying that relative to its comparable company group, you can purchase IPC’s stock for a lower price right now. IPC is also strong financially, with near-term assets able to cover upcoming and long-term liabilities.