TSX Value Picks Including Exchange Income And 2 Stocks Priced Below Estimated Worth

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The Canadian stock market has recently reached new all-time highs, showcasing resilience amid global economic uncertainties and policy shifts. In this environment, identifying undervalued stocks can be a prudent strategy for investors seeking to capitalize on potential growth opportunities; focusing on companies with strong fundamentals and attractive valuations is essential in navigating the current market landscape.

Top 10 Undervalued Stocks Based On Cash Flows In Canada

Name

Current Price

Fair Value (Est)

Discount (Est)

Whitecap Resources (TSX:WCP)

CA$8.58

CA$14.08

39%

Docebo (TSX:DCBO)

CA$37.32

CA$59.09

36.8%

Groupe Dynamite (TSX:GRGD)

CA$15.20

CA$28.17

46%

Aris Mining (TSX:ARIS)

CA$7.89

CA$13.07

39.6%

VersaBank (TSX:VBNK)

CA$15.66

CA$30.59

48.8%

Currency Exchange International (TSX:CXI)

CA$20.35

CA$35.07

42%

Journey Energy (TSX:JOY)

CA$1.58

CA$3.03

47.8%

TerraVest Industries (TSX:TVK)

CA$170.17

CA$274.22

37.9%

Laurentian Bank of Canada (TSX:LB)

CA$27.77

CA$43.32

35.9%

Aya Gold & Silver (TSX:AYA)

CA$10.35

CA$20.50

49.5%

Click here to see the full list of 25 stocks from our Undervalued TSX Stocks Based On Cash Flows screener.

We'll examine a selection from our screener results.

Exchange Income

Overview: Exchange Income Corporation operates in aerospace and aviation services and equipment, as well as manufacturing businesses globally, with a market cap of CA$2.99 billion.

Operations: The company's revenue segments include CA$1.07 billion from manufacturing and CA$1.66 billion from aerospace and aviation services and equipment.

Estimated Discount To Fair Value: 18.8%

Exchange Income Corporation's recent financial results show a robust increase in revenue and net income, with sales rising to C$668.28 million for Q1 2025. The company has expanded its credit facility to C$3 billion, enhancing its liquidity position. Although the dividend yield of 4.54% is not well covered by earnings, the stock trades at C$58.18, below its estimated fair value of C$71.64, suggesting it could be undervalued based on cash flows despite some financial constraints.

TSX:EIF Discounted Cash Flow as at May 2025
TSX:EIF Discounted Cash Flow as at May 2025

Laurentian Bank of Canada

Overview: Laurentian Bank of Canada, along with its subsidiaries, offers a range of financial services to personal, business, and institutional clients across Canada and the United States, with a market cap of CA$1.23 billion.

Operations: The bank generates revenue from its Capital Markets segment, amounting to CA$949.68 million.