In This Article:
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% |
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.
-
Insights from our recent growth report point to a promising forecast for Kinaxis' business outlook.
-
Click here to discover the nuances of Kinaxis with our detailed financial health report.
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.