In This Article:
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% |
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.
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.