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TSX Value Opportunities Trading Below Estimated Worth October 2024

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As the Canadian market navigates a period of economic uncertainty influenced by shifting U.S. Federal Reserve expectations and global fiscal concerns, investors are keenly observing how these factors might impact local equities. In this environment, identifying undervalued stocks on the TSX can present compelling opportunities for those seeking value investments that may benefit from broader economic trends or market adjustments.

Top 10 Undervalued Stocks Based On Cash Flows In Canada

Name

Current Price

Fair Value (Est)

Discount (Est)

Computer Modelling Group (TSX:CMG)

CA$12.03

CA$21.85

45%

Aya Gold & Silver (TSX:AYA)

CA$18.28

CA$33.59

45.6%

Kinaxis (TSX:KXS)

CA$157.05

CA$285.99

45.1%

Endeavour Mining (TSX:EDV)

CA$32.81

CA$59.34

44.7%

Viemed Healthcare (TSX:VMD)

CA$10.45

CA$20.08

48%

Sandstorm Gold (TSX:SSL)

CA$8.56

CA$15.31

44.1%

Kraken Robotics (TSXV:PNG)

CA$1.82

CA$3.18

42.7%

Blackline Safety (TSX:BLN)

CA$6.23

CA$10.96

43.2%

Boyd Group Services (TSX:BYD)

CA$212.93

CA$346.68

38.6%

Opsens (TSX:OPS)

CA$2.90

CA$4.64

37.5%

Click here to see the full list of 26 stocks from our Undervalued TSX Stocks Based On Cash Flows screener.

We're going to check out a few of the best picks from our screener tool.

Kinaxis

Overview: Kinaxis Inc. offers cloud-based subscription software for supply chain operations across the United States, Europe, Asia, and Canada with a market cap of CA$4.41 billion.

Operations: The company generates revenue primarily from its Software & Programming segment, which amounts to $457.72 million.

Estimated Discount To Fair Value: 45.1%

Kinaxis is trading significantly below its estimated fair value of C$285.99, presenting a potential opportunity for investors focused on cash flow valuation. Recent strategic moves, including partnerships with ExxonMobil and new client acquisitions like Ono Pharmaceutical and Mahindra & Mahindra, highlight its expanding market presence. Despite activist investor pressure and leadership transitions, Kinaxis's earnings are forecast to grow substantially faster than the Canadian market average, suggesting strong underlying business fundamentals amidst ongoing challenges.

TSX:KXS Discounted Cash Flow as at Oct 2024
TSX:KXS Discounted Cash Flow as at Oct 2024

Lithium Royalty

Overview: Lithium Royalty Corp. is a lithium-focused royalty company operating in Australia, Canada, South America, and the United States with a market cap of CA$350 million.

Operations: The company generates revenue of $6.16 million through the acquisition and management of royalty rights and working interests across its operational regions.