In This Article:
As the Canadian market navigates through trade uncertainties and inflation worries, investors are keenly observing the impact of newly announced tariffs on economic growth and market volatility. In this environment, identifying stocks trading below their estimated intrinsic value can offer a strategic advantage, as these investments may provide potential for appreciation despite broader economic challenges.
Top 10 Undervalued Stocks Based On Cash Flows In Canada
Name | Current Price | Fair Value (Est) | Discount (Est) |
Savaria (TSX:SIS) | CA$16.04 | CA$30.40 | 47.2% |
Groupe Dynamite (TSX:GRGD) | CA$13.71 | CA$27.41 | 50% |
Tantalus Systems Holding (TSX:GRID) | CA$1.97 | CA$3.92 | 49.7% |
Thunderbird Entertainment Group (TSXV:TBRD) | CA$1.65 | CA$3.25 | 49.3% |
VersaBank (TSX:VBNK) | CA$14.83 | CA$29.18 | 49.2% |
Lithium Royalty (TSX:LIRC) | CA$5.01 | CA$9.32 | 46.2% |
Tourmaline Oil (TSX:TOU) | CA$69.40 | CA$137.02 | 49.3% |
Electrovaya (TSX:ELVA) | CA$3.35 | CA$5.94 | 43.6% |
illumin Holdings (TSX:ILLM) | CA$2.14 | CA$3.75 | 42.9% |
Metalla Royalty & Streaming (TSXV:MTA) | CA$4.16 | CA$7.77 | 46.4% |
Let's review some notable picks from our screened stocks.
Colliers International Group
Overview: Colliers International Group Inc. offers commercial real estate services to corporate and institutional clients across various regions, including the United States, Canada, Europe, and Asia, with a market cap of CA$8.73 billion.
Operations: The company's revenue is derived from Engineering ($1.24 billion), Real Estate Services ($3.07 billion), and Investment Management ($512.59 million).
Estimated Discount To Fair Value: 17.5%
Colliers International Group's stock is trading at CA$174.15, approximately 17.5% below its estimated fair value of CA$211.01, indicating potential undervaluation based on cash flows. Despite a high level of debt, the company shows strong financial performance with a substantial annual net income increase to US$161.73 million and earnings per share growth from US$1.43 to US$3.24 over the past year, alongside forecasted revenue growth outpacing the Canadian market average.
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$660.16 million.