In This Article:
The Canadian market is navigating a complex landscape with potential catalysts for volatility, such as trade developments and central bank meetings, while maintaining resilience supported by solid fundamentals. In this environment, identifying stocks that may be trading at a discount can offer opportunities for investors seeking value amid the market's fluctuations.
Top 10 Undervalued Stocks Based On Cash Flows In Canada
Name | Current Price | Fair Value (Est) | Discount (Est) |
VersaBank (TSX:VBNK) | CA$15.30 | CA$26.16 | 41.5% |
TerraVest Industries (TSX:TVK) | CA$168.15 | CA$300.77 | 44.1% |
OceanaGold (TSX:OGC) | CA$6.63 | CA$12.15 | 45.4% |
Metalla Royalty & Streaming (TSXV:MTA) | CA$4.96 | CA$8.26 | 39.9% |
Magna Mining (TSXV:NICU) | CA$1.89 | CA$3.06 | 38.1% |
Lithium Royalty (TSX:LIRC) | CA$5.20 | CA$8.43 | 38.3% |
Kolibri Global Energy (TSX:KEI) | CA$9.35 | CA$17.85 | 47.6% |
Groupe Dynamite (TSX:GRGD) | CA$16.09 | CA$28.78 | 44.1% |
First Majestic Silver (TSX:AG) | CA$11.46 | CA$20.29 | 43.5% |
Endeavour Silver (TSX:EDR) | CA$6.83 | CA$11.91 | 42.6% |
Let's uncover some gems from our specialized screener.
Aris Mining
Overview: Aris Mining Corporation, with a market cap of CA$1.57 billion, is involved in the acquisition, exploration, development, and operation of gold properties across Canada, Colombia, and Guyana.
Operations: The company's revenue is primarily derived from its Segovia operations, contributing $497.75 million, and Marmato operations, which add $62.76 million.
Estimated Discount To Fair Value: 32.9%
Aris Mining appears undervalued, trading at CA$8.75 compared to a fair value estimate of CA$13.05. Earnings are forecast to grow significantly at 68.44% annually, outpacing the Canadian market's growth rate of 12.6%. Recent Q1 earnings showed sales increasing to US$157.53 million from US$107.62 million year-over-year, with net income turning positive at US$2.37 million from a loss previously, despite past shareholder dilution concerns and low future return on equity forecasts (14.8%).
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The analysis detailed in our Aris Mining growth report hints at robust future financial performance.
Groupe Dynamite
Overview: Groupe Dynamite Inc. designs, distributes, and sells women's apparel under the Dynamite and Garage brand names in Canada and the United States, with a market cap of CA$1.74 billion.
Operations: The company's revenue is primarily generated from its apparel segment, totaling CA$958.53 million.
Estimated Discount To Fair Value: 44.1%