In This Article:
As the Canadian market navigates a period of sideways consolidation and heightened volatility, investors are keenly aware of the importance of diversification and strategic rebalancing to fortify portfolios against potential corrections. In this environment, identifying stocks that may be trading below their estimated value can offer opportunities for those looking to capitalize on cyclical shifts and broadened market leadership.
Top 10 Undervalued Stocks Based On Cash Flows In Canada
Name | Current Price | Fair Value (Est) | Discount (Est) |
Tourmaline Oil (TSX:TOU) | CA$66.75 | CA$128.26 | 48% |
Docebo (TSX:DCBO) | CA$46.40 | CA$89.15 | 48% |
Decisive Dividend (TSXV:DE) | CA$6.15 | CA$11.48 | 46.4% |
Major Drilling Group International (TSX:MDI) | CA$8.22 | CA$14.64 | 43.9% |
Groupe Dynamite (TSX:GRGD) | CA$15.45 | CA$28.26 | 45.3% |
Electrovaya (TSX:ELVA) | CA$3.10 | CA$5.96 | 48% |
Quisitive Technology Solutions (TSXV:QUIS) | CA$0.57 | CA$1.07 | 46.7% |
Wishpond Technologies (TSXV:WISH) | CA$0.32 | CA$0.57 | 43.8% |
Enterprise Group (TSX:E) | CA$2.13 | CA$4.15 | 48.6% |
Condor Energies (TSX:CDR) | CA$1.82 | CA$3.41 | 46.6% |
Let's explore several standout options from the results in the screener.
Aritzia
Overview: Aritzia Inc., along with its subsidiaries, designs, develops, and sells apparel and accessories for women in the United States and Canada, with a market cap of CA$7.62 billion.
Operations: The company generates revenue primarily from its apparel segment, which amounts to CA$2.52 billion.
Estimated Discount To Fair Value: 19.2%
Aritzia's current trading price of CA$66.64 is below its estimated fair value of CA$82.49, indicating potential undervaluation based on cash flows. Despite recent insider selling, the company's earnings are forecast to grow significantly at 41.1% annually, outpacing the Canadian market's 15.8%. Recent financial results showed strong performance with increased net income and sales compared to last year, enhancing its appeal as a cash flow-based investment opportunity in Canada.
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The growth report we've compiled suggests that Aritzia's future prospects could be on the up.
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Get an in-depth perspective on Aritzia's balance sheet by reading our health report here.
Computer Modelling Group
Overview: Computer Modelling Group Ltd. is a software and consulting technology company that develops and licenses reservoir simulation and seismic interpretation software, with a market cap of CA$668.56 million.
Operations: The company generates revenue from two main segments: Seismic Solutions, contributing CA$37.62 million, and Reservoir & Production Solutions, contributing CA$90.44 million.